Hardy Auto-repair Tool Makers Stand Out in THS 2009 in Taipei

Calling Taiwan the "Kingdom of Hand Tools" would have been accurate many years ago, but no longer as China and Germany now lead the island with higher annual production values. Such flattering title was however a generalization even in years past as casual observers could not readily cite real-world, proven examples of excellence and innovation, while absolute numbers in output, production value and turnover speak nothing of net profit and margins, not to mention all the human and environmental costs.

Amid the slowly but surely recovering global recession, hand tool makers in Taiwan nevertheless are showing resilience and fortitude, with optimism about market outlook that was reflected in the rising exhibitor number, eclipsing 300 this year, at the 9th Taiwan Hardware Show (THS), held October 22 through 25 in the TWTC (Taipei World Trade Center) Exhibition Hall 1, staged with the 2nd Home & Lifestyle Fair (HLF).

Talking to five leading makers of auto repair tools in Taiwan-Machan International Co., Ltd., Sound Han Industrial Co., Ltd., Re-Dai Precision Tools Co., Ltd., Matatakitoyo Tool Co., Ltd. and Savco Corporation-at the THS allows a closer glimpse at a specific sector, particularly how they are coping with the unprecedented downturns in the global car-making industry, with erstwhile giants as GM, Toyota, Honda, Opel and Chrysler all being pummeled.

Machan International

Those in the auto repair tool sector in Taiwan would not have heard of Machan until 1985, a decade after its founding in 1975, when the maker diversified into chests and roller cabinets for use in factories, workshops and garages. Having evolved into a leader in this segment, Machan was in the spotlight at the THS.

Having begun to make OA metal furniture, Machan quickly gained ground after branching into tool chests, mainly because the maker stuck to the philosophy of "turning utilitarian tool chests into aesthetic products," according to Jessy Chang, the marketing manager.

From another perspective Machan is enhancing added-value in its tool caddies by developing more eye-catching exterior forms, coupled with improved functionality. Also the maker's production flexibility allows easy acceptance of made-to-order models. The company's 5-drawer chest is living proof that spicing up form and function makes sense: the tool caddy with colorful finish and a built-in stereo has been a hot seller since its debut at a trade fair a few years ago.

Machan is, more notably, also living up to its social obligations, adopting eco-friendly surface treatment to fully meet international standards prohibiting the use of toxic materials in metal products. Such eco-sensitivity is also enabling the maker to move into production of roller cabinets for healthcare applications, a segment bearing high profit but subject to higher safety requirements, which call for coating each unit area of product with antibiotic and nanotech finishes. Being willing to be creative and meet stricter standards are helping Machan to stay afloat amid the challenging global economy, as well as be prepared for better times with a line of new products in the works.

Sound Han

Another maker who managed to capture ample attention at the THS was Sound Han, who has resorted to branding, a sometimes unpredictable strategy, to achieve success. Apparently the tactic is working as the maker has built a degree of recognition as a world-caliber auto repair tool brand.

Founded in 1973 in Taiwan's central city of Taichung, Sound Han began as an OEM (original equipment manufacturer) of sockets. After some three decades, the company has become a proven ODM (original design manufacturer) and OBM (original brand manufacturer) with a wide-ranging line that includes spanner wrenches, hand sockets, impact sockets and accessories, air impact wrenches, hex key wrenches, screwdrivers and bits, screwdrivers, pliers, locking pliers and roller chests and cabinets, 90% and more of which are exported.

M.H. Chang, overseas business director, says that the company had decided to go down a risky yet valiant path about 19 years ago, trying to develop a private brand to impress foreign buyers with "Made-in-Taiwan" quality. It was a bold strategy as Taiwan-made hand tools were widely regarded as bottom-end products worldwide. The journey has been arduous so far, and Sound Han has been able to turn around the stigma, reeducating overseas buyers by becoming a top-caliber OBM gradually realized by investing steadily in R&D to improve product quality.

For instance, Chang says, Sound Han has literally adopted an overkill strategy regardless of R&D investment, eventually building interchangeable impact adaptors with 20 times the durability of conventional models. Also, its spark plug sockets are the world's thinnest at only 14mm, allowing easy use even in extremely tight spaces. Such single-minded dedication has helped the Sound Han brand to be popular globally, as well as among professional users in Europe, a market known for demand for top-end tools.

Re-Dai

Choosing THS 2009 as the stage to debut its newest Easy-on OGK Ratchet Handle, Re-Dai, a world-caliber ODM of auto repair tools and founded in 1984 in Taichung County, stated that the global downturn has not detoured its marketing program.

Muse Lin, overseas sales representative, says that the Easy-on ratchet handle is the culmination of the company's unparalleled production capability: the forged high-grade chrome vanadium steel body is precisely lathed on CNC (computer numerically controlled) equipment to achieve perfect concentricity. "Exacting concentricity helps users to more effectively torque the tool than competing models," Lin says.

Other notable features of the Easy-on ratchet handle include the improved 72-tooth ratcheting mechanism, enabling 11-gear per-rotation of the tool, three more than typical models, to achieve higher torque and durability, Lin says. In addition, the special wedge design allows tighter fit of sockets on the tool, with quick release of socket upon pressing the "built-in push button," which prevents sockets from accidental dislodging.

Furthermore, the company has also developed an "easy switch" on the shaft of the tool, protected by multinational patents, which enables users to easily reverse the driver's rotation with a single thumb. Plus the handle is TPR plastic jacketed and ergonomically shaped as well as being stable under a wide thermal range. These user-friendly features made the tool a big hit at the THS.

A way to move upmarket, the maker has been over the recent years completely phasing out production of DIY tools, instead focusing on middle-to-high-end tools for professional users. The strategy, Lin says, has helped her company fare well amid the global downturn, which has sapped personal consumption and hence many DIY segments. Over the past five years, the company has successfully penetrated the Japanese and Swedish markets to build a reputation as a proficient supplier of professional tools, including box wrenches, socket wrench sets, sockets, ratchet handles, combination wrenches and hex-key wrenches.

Matatakitoyo

With over 30 years of experience in production of hand tools, Matatakitoyo, established in 1992 in Taichung County, is now known as a reputable supplier of ratchet wrenches and handles for professionals worldwide, especially in Japan and Europe.

Y.M. Wu, chairman, says that moving upmarket has been inevitable for Taiwanese makers simply because Chinese rivals have outsold them in the DIY tools segment-literally by dumping, while Matatakitoyo has spent 10 years painstakingly honing its competitive edge to meet clients' requirements. Such dedication has paid off as the company ships 500,000 ratchet tools and torque wrenches in different specifications yearly on an OEM or ODM basis, all of which are used to repair aircrafts, military vehicles and cars.

One essential ingredient to the company's current success is its pursuit of perfection in terms of precision of torque, which has been achieved, says Wu, by continually fine-tuning the structure in the gear mechanism. The work has not been futile, as the maker has obtained over 50 patents in the U.S., Europe and China, 80% of which recognize structural innovations related to upgrading precision of torque. So far, the company has built various torque wrenches rated from 0.1n/m to 1500n/m. "The 0.1n/m model is popular for watchmakers and in the micro-electronic components segment, while few in Taiwan can match our torque precision," he says.

Sensitive to the trend towards digital tools, the company has been engaged in production of digital torque wrenches for 10 years, as one of the few in Taiwan who can turn out such advanced product. "We have an edge in know-how for we had been making digital multimeters, and such experience helps us build digital torque wrenches for the high-end market," he says.

Without explaining the correlation between the reported possible appreciation of the Chinese yuan and the maker's enthusiasm to develop its private brand "Matatakitoyo" in the Southeast Asian market, Wu nevertheless says: "After all, Taiwanese makers must move upmarket."

Savco

Defining Savco as an engineering-oriented brand, Daniel Haung, managing director of Savco, says that the firm is a seasoned maker of screwdriver bit holder and socket couplers founded in 1985 in Taichung County.

The THS 2009 offered the ideal stage to introduce Savco's newest SurFix AutoLock bit holder. The newest bit holder is chrome vanadium steel for structural durability and has a bright finish for enhanced appeal. However, Huang says, more notable is the improved inner configuration of the bit holder, upgraded from its older editions launched in 2002 and 2005. The newer design enables second-nature holding of any C-6.3 and E-6.3 type 1/4-inch bits. "No other maker in the world has the technology," he says. "This holder not only fits all hex-shank bits built to DIN3126 standards but also, making it even more practical, fits bits with damaged grooves caused by eccentricity."

In addition, the bit holder is built to be super user-friendly: the easy lock and release design allow users to push bits in with one finger or release them by pulling backwards the colored ring, according to Huang. And the holder is very versatile, able to be used with hand tools, power tools and pneumatic tools, as well as being impact-resistant.

Besides being known as specialized and engineering-oriented, the company, backed by decades of experience as OEM and ODM, is ISO9001 certified, with all its products tested to meet GS standards, including screwdrivers, ratchet screwdrivers, torque drivers, torque drivers, super torque ratchet screwdrivers, AutoLock series magnetic bit holders, AutoLock series magnetic socket couplers, NARO series screwdrivers, says Huang.