Taiwanese Screwdriver and Bit Makers Show off New Products at THS 2010

Manufacturers survive in Taiwan through innovation and upmarket targeting

The 10th Taiwan Hardware Show (THS) wrapped up on Oct. 23 in Taipei World Trade Center Exhibition Hall 1, after having put on a wide-ranging exhibition of products for all the world to see. Among them were the screwdrivers displayed there by local manufacturers.

Screwdrivers and bits are among the earthiest tools on show at a trade fair of this kind, with some people being convinced that they reached mature development hundreds of years ago and have nothing left to improve. They are used everywhere by almost everybody, and profits on them have long been squeezed thin. Taiwanese producers, in fact, have almost been squeezed out of the business of making DIY-type screwdrivers by their Chinese competitors, and have been forced to switch to other sectors like ratchet and socket wrenches.

Some makers on the island have remained unfazed by the profit crunch, however, and have stubbornly stayed in the business and differentiated themselves from the competition either by building innovation into their products or burnishing their reputation through the supply of high-end, quality-assured tools. This situation could be observed among the exhibitors at THS 2010.

Loh Torng Hardware Machine Co.
One company that is striving to boost its brand recognition among foreign buyers by placing more emphasis on original brand manufacturing (OBM) is the Loh Torng Hardware Machine Co., whose efforts have gradually paid off in the strengthening of the position of its “La Bear” brand in some overseas markets.

Since its inception in 1989 in Taichung County, central Taiwan, Loh Torng has been engaged in the production of screwdriver bits, screwdrivers, screwdriver handles, sockets, hex keys, and bit sets, among other items, over 98% of which are exported. The company's products have been well received among professional users worldwide.

Frank Liu, Loh Torng's manager, said that to keep ahead of its emerging rivals the company has introduced ISO and ERP to optimize its organization and has upgraded production and warehouse equipment to automate its production lines. The firm's R&D and QC teams work together to develop the OBM business, coming up with new products to reinforce brand recognition among customers. “Going upmarket to OBM requires drastic change a traditional manufacturer's management and organizational cultures,” Liu noted. “That's why Loh Torng has spent considerable resources refining and revamping our core competence over the past few years.”

Liu admitted that it is taking longer than expected to build a successful brand, especially since Taiwanese makers have been stereotyped as contract suppliers in the global supply chain. “Loh Torng's OEM sales have recovered even faster than OBM on the economic upturn,” he reported. “Encouragingly, a few customers from Europe and Australia have shown an interest in La Bear-brand products, as they like our quality and packaging design. We hope this will become the beginning of our entry into those markets on an OBM basis.”

Liu stressed that his company aims to compete on innovation and added-value in the global market, and that it will step up the development of emerging markets, the Middle East, and Australia with its own-brand products.

Yun Chan Industry Co.
Another exhibitor that attracted the attention by of visitors by showcasing its dependable-quality, visually impressive screwdrivers and bit sets at THS was the Yun Chang Industry Co., a veteran manufacturer in the line.

Established in 1976 in Taichung County, the company has focused on producing screwdrivers, screwdriver bits, drill bits, nut setters, impact screwdrivers, bit sockets, and ratchet screwdrivers targeted at the professional segment.

Sales manager Ray Hsiao stressed that his company's motto is “compete on quality,” claiming that “Yun Chan is one of the foremost Taiwanese screwdriver makers. We use torque testing equipment from Schatz in Germany; this helps to assure the quality of our products, because Schatz is a top-caliber inspection-instrument supplier.”

Hsiao also pointed out importance of visual attraction, which can enhance the added value of even the most mundane tools. Talking about Yun Chan's newest bit set, which debuted at THS 2010, Hsiao said that each bit of the set is meticulously finished and painted for an eye-catching look and chromatic appeal, and is made of high-grade steel alloy and plastic sourced from Taiwanese and German suppliers so as to provide unbeatable structural durability and resistance against weather. “We try to enhance the visual identity of each bit's size with different colors,” he said. “Easy-to-carry, compact packaging is also among the features of this series.”

Such features helped build a competitive advantage that enabled the company to minimize the impact of the recession in 2009. Hsiao claimed that his company was almost impervious to the global downturn, primarily because its products are aimed mainly at professional customers such as automakers and construction companies. A concentration on market diversification also contributed to the company's solid 2009 sales. The good times are expected to continue, Hsiao commented: “We estimate that our sales this year will grow by a sharp 30% on the economic recovery and our company's time-tested reputation with our customers.”

E-Chen Hand Tools Co.
The E-Chen Hand Tools Co. relied on the innovation incorporated in the screwdrivers it launched at THS to draw eyes to its booth there.

Founded in 1981 in Taichung County, the company supplies a range of hand tools including staple guns, hand saws, utility knives, and screwdrivers, and has for many years exported its products to Europe and the U.S. Marketing manager Cherry Chen said that her company, buoyed by its seasoned manufacturing and R&D capability, has worked to boost its profile in the line and move upmarket from OEM to ODM this year.

As evidence of E-Chen's R&D competency, Chen recounted the debut of the company's DSW-099 “Bit Shooter” screwdriver at the show, which adds a little fun and extra convenience by having a bit holder chambering six bits or different sizes, like the cylinder of a revolver, allowing the change of bits quickly—and a bit amusingly—by pulling the handle backward and revolving the bit holder to align the chamber and the bit with the shank. A back-up cylinder chambering another six bits is accommodated on the rear of the handle. In other words, the “Bit Shooter” is able to handle 12 different sizes of screws, making it highly practical for both DIY and professional users.

To enhance value-added, the handle of this innovative screwdriver is made of polypropylene (PP) and is molded by nitrogen injection. Chen noted that few companies in the line use nitrogen injection molding, because the required equipment is costly. But, Chen noted, injection molding technology can ensure comparatively durable and integrally molded handles that add a distinct visual appeal to the product; and, she concluded, “After all, E-Chen wants to gain the high ground in this line, so we decided to adopt the more costly process for our Bit Shooter.”

Kae Mae Enterprise Co.
The Kae Mae Enterprise Co., another high-profile supplier of screwdrivers in Taiwan, introduced its newest Auto Loading Ratchet Screwdriver at its THS booth.

The company's manager, Jason Chiang, explained that the ratchet screwdriver comes with nine bits and one extension bar, and lets users change bits easily by revolving the bit chamber on the top end of the handle. The handle is made of a mixture of TPR and ABS to give a comfortable grip as well as improved insulation and resistance to corrosion. “Buyers are very impressed with this screwdriver,” Chiang said. “This means that Kae Mae's R&D capability has come to be proven and recognized.”

With a history of over 20 years, Kae Mae is known for its seasoned expertise and experience in making screwdrivers. Its current product line encompasses precision screwdrivers, magnetic screwdrivers, one-touch screwdrivers, precision jewelry screwdrivers, and screwdrivers with LED lights, as well as screwdriver bits with various specifications, torque drivers, hammer drivers, auto tools, and hand tool sets.

The company puts a heavy emphasis on quality control and uses a full line of VDE testing equipment to conduct temperature endurance testing, pull force testing, impact testing, and hardness testing, noted Chiang, saying that “Kae Mae' name has been trusted by European buyers for years as a competent, reliable OEM and ODM supplier.”

Chingshin Industrial Co.
The Chinshin Industrial Co. is a 38-year-old screwdriver maker that highlighted its hot-selling Challenger III screwdriver at the show in an effort to secure a stronger sales drive and take advantage of the global economic upturn.

Matilda Cheng, the firm's sales representative, explained that the Challenger III features an ergonomically shaped handle, enhanced ratchet efficiency, and surefooted precision. What made the screwdriver especially attractive to visitors at the show, though, was its combination of an impact and ratchet screwdriver in a single tool.

With several U-joint and CR-V screwdriver bits of different specifications stowed inside its transparent handle, the multifunctional Challenger III deserves its promotional slogan: “With just this one, you don't need any more screwdrivers at home.” The product, which is ideal for DIY use, is protected by patents in Taiwan, Germany, and the U.S.

Inaugurated in 1972 in Taichung County, Chinsing is known as one of the most experienced screwdriver makers in Taiwan and has earned a solid name in the global market as an OEM and ODM supplier. Years of unstinting efforts to improve production have helped the company develop into a productive manufacturer with a maximum monthly capacity of 15,000,000 power bits, 100,000 screwdrivers, 30,000 impact drivers, and 20,000 tool sets.