Tool makers supplying car and truck factories have been hit hard by the downturn, experts at a machine tool trade fair in Taiwan said today.
Manufacturers of products such as industrial chucks said that sales of some of their most popular lines were in freefall.
Sally Chen, who works in the business department of Auto-Strong, a Taiwanese company, said that the worldwide auto industry was in a bad state.
Speaking at the Timtos Machine tool show, she said: “Our best selling chuck is the 200 series – many auto makers use it. Since car factories over the world have been closing, we’ve seen demand drop off.” A typical application for this tool would be mounting tyres on to wheel rims.
This view is echoed by others. Kyle Lo, vice president at Soco Machinery, admitted that the firm’s range of computer controlled tube bending equipment, also widely used by the motor trade, have seen a similar drop in sales. “We used to sell many more to the auto industry,” he said.
However, both firms have branched out into sectors that are fairing better, inventing new technology along the way. “We now make machines for the ‘green’ industry” Chen said, indicating a line of super-large chucks which can be used for the manufacture of the largest type of wind turbines. “The latest one is 63 inches diameter – currently the biggest in the world”.
Chen indicated that the firm could make chucks even larger, if there was a demand for it. Additionally, the company has developed a line of rotary cylinders, said to be more than 30 per cent more energy efficient in use than earlier products.
Soco also doesn’t rely on the auto industry for its entire market. “A lot of machines are for making scaffolding and formwork” Lo said, adding that some equipment was even being used to manufacture musical instruments.
The Middle East is also one of the ‘emerging markets’ the company will target during the downturn. “We have machines in Saudi Arabia, some in Lebanon, Syria as well as Abu Dhabi, Dubai and Sharjah,” Lo said.
Auto-Strong has also identified the Middle East as a key market. “We’ve sold some orders to Iran, but it is kind of difficult at the moment due to trade restrictions. So the best way is to transfer the order to Dubai” she said. “It’s much easier for us.”
The Timtos Machine tool show will run until Saturday 7th .