New Woodworking Equipment Association Chairman C.L. Tu Talks Shop and Plans

The CENS Furniture magazine interviewed C.L. Tu, chairman of Cheng Kuang Wood Machinery Works Co., Ltd. who was elected chairman of the Taiwan Woodworking Machinery Association (TWMA) late last year, to talk about the trade and his plans for the three-year tenure. The TWMA represents and serves around 280 members on the island.

Q: Where are Taiwan's woodworking-equipment manufacturers mainly located? How would you describe the industry and product types in Taiwan?

A: The TWMA has around 280 member manufacturers and around 80% are headquartered in Fengyuan, Daya and Shengang of Taichung County in central Taiwan. They mostly manufacture secondary-processing equipment as saws, planes, forming machines, jointers, lathes, polishers, dust-collecting machines and finishing machines.

The woodworking-equipment industry is made up of so many types of machines that no single maker can be an all-round supplier. So our members tend to rely on teamwork to fill orders calling for turnkey plants. The industry in Taiwan works fairly well.

Q: How should the woodworking-equipment industry in Taiwan develop to optimize potential and product innovation?

A: Exporting 95% of output, Taiwan's woodworking-equipment industry's bread-and-butter is overseas and urgently needs to diversify markets as well as upgrade technology. With China rising as a vital market for our membership, the TWMA will be aggressively organizing trade delegations to participate in the woodworking shows in Beijing, Shanghai and Guangzhou this year in addition to the ones in the U.S., Dubai, India and Italy. Also the TWMA looks forward to the duty reduction benefits of the Economic Cooperation Framework Agreement (ECFA) to be signed by Taiwan and China that will help boost Taiwan's export of woodworking machines to China.

Also, we will organize delegations to promote members' machines in Brazil and Iran this year.

Regarding product innovation, the trend will still be to design machines that save labor. Along similar lines, suppliers would do well to help customers develop production lines that save manpower and time.

Q: How should TWMA members compete against mainland Chinese manufacturers when they have pulled ahead in world rankings?

A: Although makers in China have unseated Taiwan to become 4th globally in revenues and export volume, trailing Germany, Italy, and the U.S., our members turn out machines shipped to the U.S., East Europe, Russia and Southeast Asia that are clearly differentiated from those made in China, especially in efficiencies that are achieved with solid technologies cumulated over the past 60 years or so; while our machines are far more cost-effective relative to those made in North America and Europe.

China-made machines are increasingly commanding bigger shares of the domestic market due to lower prices, reducing China's dependence on imports, which is the primary reason behind declining exports to the mainland of Taiwan-made machines. So, our members also need to emphasize R&D to upgrade machinery performance, and prioritize tapping emerging markets as part of their marketing program.

Q: How will TWMA members be impacted by increasingly strict eco-friendly requirements imposed by European and American governments?

A: Usually European countries and North America raise green barriers by using non-tariff measures such as CE verification and toxin-free certifications that favor their own industries, a trend that will predictably result in more difficult entry into European and American markets. Our members and their subcontractors must fully realize the necessity of teamwork to overcome such technical barriers to effectively access European and American markets.

Q: Is the TWMA cooperating with academic institutes, government organizations and industrial technology researchers?

A: Our association has been working closely with academic institutes and industrial technology researchers. For instance, we work with the government-backed Precision Machinery Research and Development Center (PMC) on virtual exhibition platform; with Chaoyang University of Technology on technology R&D; and with National United University on B2B platform to sharpen competitiveness of our members.

Q: What are your plans for the association during your term?

A: The TWMA has been rated A by the government for three consecutive years and I hope to take that to A+ during my term. Also, I will push for the staging of the triennial Interwood Taipei trade show in Taichung simply because the majority of our members are headquartered in central Taiwan; plus I believe holding the show in Taichung will attract 30% more domestic suppliers than in Taipei.