Screwdrivers Taiwan Tightens Grip on High-end Market

When it comes to product variety and selection' Taiwan screwdriver makers are leaving most of their competitors in the dust. Many producers on the island turn out over a hundred screwdriver models--testament to the R&D muscle that these firms bring to bear. Many of these new items' moreover' are finding their way into foreign markets on an own-brand basis' translating into higher margins for their makers.

Quality has been another strong card in Taiwan's screwdriver industry. Local steel and iron' the main materials used in the tools' is top-notch. Indeed' it is the ready availability of high-grade metals' along with a highly supportive hardware industry' that has kept most of Taiwan's screwdriver producers from joining their peers in other industries in moving across the Taiwan Strait.

In choosing to stay put in Taiwan' manufacturers are betting their futures on multifunctional screwdrivers with good designs to appeal to the high margin market. Some of the newer products combine more than 15 functions in one unit.

According to statistics compiled by the Taiwan Hand Tool Manufacturers' Association (THTMA)' Taiwan exported US$43.97 million worth of screwdrivers in 2003' up 17% from the previous year's US$37.75 million. Exports amounted to US$21.57 million in the first half of 2004' up 15% from the corresponding period of the year earlier. THTMA anticipated overall exports of screwdrivers would grow by over 15% this year.

According to the THTMA figures' Taiwan's major screwdriver items are automatic screwdrivers' electric tester screwdrivers' nut drivers' impact screwdrivers' magnetic screwdrivers' one-touch screwdrivers' go-through screwdrivers' ratchet screwdrivers' precision screwdrivers' and jewelry precision screwdrivers.



Industry Pioneer



Yieh Cheng Factory Co.' Ltd.' founded in 1952' claims to be Taiwan's first manufacturer of screwdrivers and accessories. With over half a century of manufacturing experience' the company concentrates on the production of high-end screwdrivers.

To ensure the quality of its products' Yieh Cheng subjects all of its products to a rigorous inspection process.

The ISO9001-2000-certified company has two plants in the Nankang Industrial Zone of Nantou County' central Taiwan. The two plants have a combined floor space of 330'000 square feet and jointly turn out 85 patented products.

Three years ago Yieh Cheng established a subsidiary to design and make do-it-yourself (DIY) and semiprofessional power tools and cordless communications products.

In addition to its higher-end production in Taiwan' Yieh Cheng has been making commodity items at its mainland Chinese subsidiary Kunshan Yieh Cheng Tools Co.' Ltd. In Kunshan' Jiangsu province' since 1997. The 150-employee plant makes hand tools and power tool accessories.

Yieh Cheng is well known for its inventiveness in developing multifunctional screwdrivers. The company says its "Lancer" brand is well recognized in the U.S.' Canada' and western Europe. At present' the company exports half of its output to North America' 35%-40% to Europe' and the remaining 10%-15% to Asia' Latin America' Australia' and other markets.

All of the products made by Yieh Cheng are suitable for the needs of professional and DIY users alike.

Jack C.K. Lin' president of Yieh Cheng' says his company has a well-established R&D department in charge of developing new products. The company's R&D commitment has paid off with numerous product awards' including a bronze medal in the 7th National Invention Award presented by the Bureau of Standards' Metrology and Inspection under the Ministry of Economic Affairs' six years ago.

Lin says his company concentrates on the production of screwdrivers that are comfortable to use thanks to their ergonomic design' non-slip materials' durability' and multiple functions. "Our products meet such international standards as ANSI' DIN' ISO' VDE' and so on'" says Lin. "They are designed and made for both professional and home improvement use."

Yieh Cheng insists on using only the best quality materials in its products. Heat-treated 55CRV is used in 85% of the company's output in Taiwan' while the remaining 15% is made of SNCM+ vanadium alloy steel.

Over the past few years' the company has also developed high-density' compound component materials including aceron' acetate and high polymer vulcanized rubber to enhance the value and performance of its screwdrivers.

Lin says his company will continually create new materials to strengthen the torque and toughness of its products.



Standing Tall



Stand Tools Enterprise Co.' Ltd.' established in 1988 in Wujih Township' Taichung County' central Taiwan' develops ratcheted screwdrivers and magnetic tools.

Stand Tools invests heavily in R&D (an average of 15% of annual revenue) to develop professional hand-tools that stand apart from the pack. Many of these items are sold under the company's "Stand" brand in various markets.

The company has a 188'000-square-foot factory in Wujih with a work force of 50.

Stand Tools president Hsiao Yuen-sen says his company has obtained many awards in Taiwan and other nations' testifying to its outstanding R&D performance. Three years ago' the company won the bronze medal of the 10th National Invention in the individual category for its innovative ratcheted screwdrivers. In July 2004' the company won the 11th Small and Medium Enterprise Innovation Research award presented by the MOEA's Small & Medium Enterprise Administration for its 16-in-one high-torque ratchet screwdriver.

With 16 different bits' the company's 16-in-one high-torque ratchet screwdriver is suitable for an array of different jobs. The award-winning product has the torque of 350-400 kgf/cm' compared to the 150kgf/cm delivered by many rival models. The unit can be adjusted for right-hand or left-hand use by the push of a button.

Over the past several years' Stand Tool has rapidly expanded its sales. Even the sharply appreciating local currency has been unable to dent the export-focused company's growth. Company vice president Yang Yao-tsung predicts that Stand Tools will grow by 15% or more this year.

Stand Tools currently sells products on OEM' ODM' and OBM (original equipment/design/brand manufacturer) terms. The company claims to have built a good reputation for its "Stand" brand in Southeast Asia and some advanced nations.



Ergodynamic



Tong Lee Industrial Co.' Ltd.' established in 1974' specializes in the production of high-quality ergonomic screwdrivers.

Tong Lee follows stringent quality-control procedures and uses environment-friendly materials' such as the cellulose acetate plastics in its screwdriver handles.

Major product lines made by Tong Lee include jumbo-grip screwdriver sets' normal grip screwdriver sets with chrome-vanadium steel blades' electrician's insulated screwdriver sets with cushioned handles' high-impact screwdriver sets with steel end caps' super strong screwdriver sets with transparent handles' heavy-duty screwdrivers' ergonomically designed screwdrivers series' solid black screwdriver sets' maximum torque screwdriver sets with precision black tips' heavy-duty screwdrivers with blades in satin finish' insulating screwdrivers' and go-through plastic-handle screwdrivers.

With a work force of 60 in Yungkang' Tainan County' Tong Lee can roll out 700'000 to 800'000 screwdrivers per month. The Tainan plant was established in 1995.

Tong Lee says the plant is equipped with automated production equipment and precision testing instruments' which has helped it boost output and enhance product quality to reach international levels.

The screwdrivers turned out by Tong Lee feature unique ergonomic handles that allow for a comfortable and firm grip. The handles are available in two colors. The acetate cellulose plastic handles made by the company are extremely durable' can withstand huge gripping strength' and are resistant to chemical solvents.

Moreover' the blades of the screwdrivers are forged from the finest chrome-vanadium steel alloys' ensuring toughness' strength' and durability. The highly polished black tips of the blades undergo three plating processes and are magnetized.

At present' Tong Lee exports 85% to 90% of its total production' mainly to Southeast Asia' the Middle East' Latin America' western Europe' Australia' New Zealand' the U.S.' and Canada.

Tong Lee says his company can produce any type of screwdriver' and welcomes OEM orders.