Machine tool exports are expected to grow 5 to 10 percent this year, as the market gradually stabilized in the final quarter of last year and prospects became clearer, the Taiwan Machine Tool and Accessory Builders’ Association (TMBA, 台灣工具機暨零組件公會) said yesterday.
However, sentiment among its member companies is mixed, as many of them — especially components manufacturers — expect revenue to grow this year, but are cautious about the outlook for exports, the association said.
An internal survey by the association found that 50 percent of its members expect outbound shipments to grow this year, 27 percent project a decline and 23 percent forecast a flat performance, it added.
Photo: Lin Jin-hua, Taipei Times
“This indicates the industry is still facing challenges from the external environment,” association chairman Patrick Chen (陳伯佳) told a news conference in Taipei.
Challenges mainly stem from the trade policy of the incoming administration of US president-elect Donald Trump, which could reshape global economic order and accelerate the relocation and realignment of supply chains, Chen said.
Moreover, as Trump vowed during his presidential campaign that he would impose new tariffs on imported goods, Taiwan must pay close attention to this matter, as its trade surplus with the US remains high, which could become a factor in future trade negotiations, he said.
Meanwhile, countries’ imposition of carbon reduction measures and a declining birthrate worldwide have prompted the industry to speed up digitalization, high-efficiency and green development, he added.
“2024 is expected to be the bottom and we hope there would be a chance to turn things around in 2025,” he said.
Taiwan’s machine tool exports last year declined 14.8 percent year-on-year to US$2.22 billion, while shipments of machine tool components grew 1.2 percent to US$1.51 billion, association data showed.
By products, metal-cutting machine tool exports fell 16.8 to US$1.83 billion, machine centers slumped 24.5 percent to US$658.21 million, lathes dropped 18.1 percent to US$533.63 million and metal-forming machinery slid 3.7 percent to US$383.42 million, the data showed.
Outbound shipments to China, including Hong Kong — the nation’s main export market — fell 11.5 percent year-on-year to US$630.59 million, and those to the US, the second-largest market, dropped 9.7 percent to US$341.31 million, the data showed.
Shipments to Turkey, the third-largest, plummeted 33.6 percent to US$192.29 million, while those to India, the fourth-largest, rose 20.8 percent to US$145.87 million, the data showed.
Ranking from fifth to 10th were Vietnam, Thailand, Germany, the Netherlands, Japan and South Korea, with mixed performances in shipments, the data showed.
The association has high hopes for the Taiwan International Machine Tool Show, which is to take place at Taipei Nangang Exhibition Center from March 3 to 7.
The trade fair is to showcase the local industry’s achievements in digital transformation and sustainable development, and is expected to help domestic manufacturers secure orders and bolster their presence in the global market, it said.
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