In a move to reverse export declines, Taiwanese suppliers of furniture-manufacturing equipment last year began to redouble their focus on turning out high-efficiency and specialized products.

In 2005, Taiwan's exports of woodworking-equipment, the biggest slice of the furniture-making equipment sector, retreated by 6.6% to US$672 million.

Bill Hung, chairman of Taiwan's Woodworking Machinery Association, attributes the drop to weak demand and excessive supply of furniture products worldwide as well as increasing competition in China from domestic producers there.

He estimates that orders from major markets, China and Southeast Asia included, to have fallen by 30% last year, due to weakening demand among furniture makers.

Hung feels that the equipment market will continue to skid this year as many furniture makers in Southeast Asia stop production and the demand lull in China's furniture market persists. "The recession is only a beginning of another business cycle, " he says.

Amid the market gloom, there is at least one bright light: the automated and specialized machine sector. Hung says that an increasing number of furniture manufacturers have begun installing automated machines to reduce labor inputs and customized equipment to handle specialized designs. The trend, he says, has driven Taiwanese equipment suppliers to develop such machines.

Routing Competitors with High-end Machines
One such company is Hung's company Boarke Machine Co., Ltd. Last year at the biennially held InterWood Taipei woodworking equipment trade show, Boarke unveiled its first CNC router catering to furniture makers seeking efficient equipment to reduce labor costs. His company also has sought to boost the efficiency of its polishing machines, a long-time money earner for the company.

The PC-250R44 router is equipped with two vacuum tables each measuring 3 meters x 1.5 meters, making them ideal machines for big woodworking pieces. Its four spindle heads can work on four pieces simultaneously, with each head turning at maximum 20, 000 rounds per minute. The machine has maximum output of 80 meters of material per minute. It is also equipped with Siemens control systems that allow the machine to run on all cylinders.
Hung says that Taiwanese equipment suppliers are facing greater competition than ever. "European suppliers are dominating the high-end market, making it hard for us to get a foothold. At the same time, China is quickly catching up with us in the lower-end market."

To cope with the challenge, Hung urges Taiwanese equipment suppliers to develop a global operation strategy. He notes that many Taiwanese equipment suppliers have used China-made die-cast parts and accessories on their products to reduce costs. "But, this is only a first step. If we can operate in free-trade zones on the island it would cut down the red tape, like customs declaration and tax rebate applications. Tax exemption is another big incentive for zone operators, " he says.

Green Machines
Refine Coating Industrial Co., Ltd. Has recently introduced toxic-free powder-coating machines for median density fiber (MDF) board factories at a time when toxic painting has become an issue in the furniture industry. Also, the company has brought its thermo transfer printing systems to market. Both machines have been strong sellers.

Powder coating is a surface-treatment technique primarily used on metal products in early days. It uses a formaldehyde-free resin powder, complying with European environmental protection rules. Refine Coating chairman Lai Sung-li Lai claims that his company is Taiwan's first powder-coating equipment supplier. The company has shipped three systems to local MDF-furniture manufacturers, he says.

Powder coating, says Lai, is not only environmentally friendly, but also does not have a pungent smell and dries quickly, allowing coated products to be packed half an hour after coating. "A furniture piece can't be packed for at least three days after surface treatment if it is painted with a formaldehyde-based paint, " Lai says.

Refine's coating equipment is made for MDF-based office-automation furniture, collection furniture, stereo cabinets, TV cabinets, computer desks and decoration materials.

Lai notes that Taiwan's MDF powder-coating equipment is a nascent but growing trend. He adds that European suppliers have begun shipping such machines to furniture makers, though at triple the price of his company's machines, Lai claims.

Lai says his company spent three years developing the coating machine, which he says has a patented technology that enables 100% recycling of powder in various colors.

Refine's thermo transfer printing systems also deliver excellent efficiency, completing 5, 000 one-meter long metal tubes with a one-inch diameter, or 2, 500 kilograms of extruded aluminum parts a day.

Lai says the printing machine can print wood and stone grains as well as color pictures on furniture. Such prints are water, fire and humidity proof, he adds. The printing machine is ideal for metal and office furniture, sporting goods, bicycle frames, aluminum doors and windows, and so on. "Most of all, the printing quality is not compromised by irregular surfaces and colors, " Lai stresses.

Refine has steadily improved its manufacturing technique since opening in 1996. According to Lai, his company has worked with Kremlin of France and Eurotec of the United Kingdom on technology developments. In 2001, the company was ISO9001:2000 certified. "At present we have around 90 patents. We are technologically ahead of our local rivals, " Lai claims.

The Changhua, Taiwan-headquartered Refine opened a factory in Tongguang of mainland China in 1998 and branch offices in Thailand and Vietnam in 2001 to cut production costs and develop its business in Southeast Asia.

Piping Hot
Pipe-bending equipment maker Jan Far Machinery Industrial Co., Ltd. Has followed a different strategy to boost its fortunes. The company has branched into the production of equipment for bending pipes used in cars, household appliances, bathroom hardware, industrial furnaces and even aircraft.

Pipes for these high-end applications are mostly made of copper, aluminum, titanium alloy, chrome-molybdenum steel and stainless steel, compared with the iron most widely used in furniture pipes. "Currently, pipe-bending machines for furniture account for around 5% of our company's output, " says Charles Chen, the company's chairman.

Although most of the company's machines are already automated, Chen stresses that mold-building technique is more crucial than automation technology in his industry. "Automation technology allows the machines to be operated easily, but the electronic components for automation are already standardized and can be easily sourced on the market. But mold-building techniques determine the precision of machine operation. And making good molds is the product of long experience, " he says.

Since opening in 1980, Jan Far has built its own molds. "At that time, Taiwan's pipe-bending industry mostly depended on workmanship and the quality was far from good. Besides, only round and square pipes were available at that time, making the style very stereotypical, " he recalls. After more than 20 years of involvement in the industry, Chen is very confident of his company's mold-building expertise. "Our molds are very durable and they make perfect pipes, " he boasts.

Though Jan Far has trimmed its line of furniture-making equipment, the machines it continues to make remain popular with customers. Such machines include the JF-W30 auto surface stamping forging machine, JF-IW50DL high-speed twin-cylinder straight punching machine, JF-W10 NC digital auto spiral bending machine, JF-650L NC digital auto hydraulic bending machine, and JF-030L high-speed auto hydraulic circle roller.

The company's major export destinations include the Middle East, Latin America, China, Russia and Finland. Chen is closely watching the China market with an eye to opening a facility there. He says that it's still too early for the move, since the market there for high-end machines like his company's has yet to mature. He also worries about China's infamous talent for stealing competitors' designs.

In addition to high value-added equipment, the company also provides bending processing service in hope of boosting income. Chen reports that his company has landed orders to bend safety handrails for escalators used at MRT stations in Taipei and Kaohsiung. "Profits on the business are quite good, " he says. Today processing services and equipment production account for roughly equal portions of the company's revenue.

Sliding High
The 2005 industry lull has not taken much toll on Chin Minn Industries Co., Ltd., which ships 60% of its ball-sliding manufacturing equipment to furniture factories. According to company sales manager, C.M. Chen, orders for his company's equipment have been steady since last year.

Chen notes that Asia is accounting for a growing share of the global ball-sliding equipment market. "The production shift has given a big boost to the development of the equipment industry in Asia, especially in Taiwan, " he says. However, the core designs are still controlled by European and American equipment suppliers, he says, forcing Taiwanese equipment suppliers to rely on older model machines.

Chen points out that ball-sliding machine designs are becoming more efficient and accurate. "Among the major developments is the integration of secondary processing work on the balls into the whole machine, eliminating the need to do the processing with a dedicated unit, " he says. In addition, digital control units and servomotors are now built into the machines, he adds.

Ball sliding assemblies made with the company's equipment are used not only in furniture, but also in tool trolleys, cars, motorcycles, hardware and electrical appliances. "Our products have a very wide application range, " Chen stresses. He says his company has turned out over 2, 000 machines over the past 30 years since it was established.