Interview with TFTA Chairman Bill Chen

 

by Tanya Shih, Fastener World Inc.

 

Fastener World Magazine is honored to have invited the chairman of TFTA (Taiwan Fastener Trading Association) for the annual interview of “Review & Prospects for the Fastener Industry,” which he shared with the industry his perspectives on the full year of 2014 and talked about TFTA’s goal and orientation for the next year. Chairman Bill Chen appreciated the consultants, the cadre, and all member companies for their support in every successful activity more than once. He hoped to promote better structure and sustainability of the association in 2015. Below he shared his views on the fastener industry:

 

 

The prospects of the global fastener industry look quite good. There may be influences from individual cases, but the development as a whole will still be positive. The demand from European and U.S. markets will turn normal and the industrial activities in emerging countries (especially Indonesia and Thailand) will be also very active. The sales performance from 2014 to 2018 will be getting better and better, and the performance of the global fastener market performance will grow steadily at an expected annual rate of 5%.

 

In terms of mature markets, we see recovering demand in Portugal, Spain, Italy, and Greece. As for the U.S., analysts are optimistic to the automobile and housing markets. Clients’ joining in the Las Vegas fastener show 2014 also reveals the competitiveness of Taiwanese fastener exports. In emerging markets, Indonesia (population: 200 million) and Thailand (population: 70 million) both have what it requires to take the lead in business opportunities. In Indonesia, where the number of fastener companies does not exceed 100, import is the only approach to satisfying the market demand, which also implies a large amount of demand in machinery, molds, inspection, and packaging industries.

 

Of course, we cannot rule out individual markets with possible political and economic changes, but we can be sure that these influences are short term after all, and there is no market that ceases its fastener demand due to environment changes.

 

 

“Acquisition” is a tangible standard to evaluate the industry development in a specific market. It functions as the integrator and stabilizer for the industry development, and is the inevitable path for the transition of any industry from “a plethora of small companies” to “a more integrated company groups.” Acquisitions by Boltun and Shanghai Prime Machinery are just the beginning, and similar cases will continue to be announced, which also means that China has started its plans of industrial integration, such as creating fastener, machinery, and wire plants with over RMB 1 billion worth of assets, which will immediately affects the flows of overseas orders.

 

Compared to other acquisitions in Europe and the U.S., these two Asian acquisitions will bring more shocks to Taiwanese fastener companies, probably making them not to play alone. The corporate integration is not necessarily a bad thing, but the biggest point is whether Taiwanese companies can accept being acquired or not. Undeniably, in recent years Taiwan has begun to focus on increasing the added value of products, which is visible in its annual export volumes and values. The actual export unit price revealed is the best proof of successfully increasing the high added value.

 

 

Taiwanese fastener industry is characteristic with meticulous, closely connected, and indispensable division of labor that forms a well-established industry cluster. I believe the advantages of Taiwanese fastener industry cannot be replaced by any other market. In the same market, some may do a good job while some others may not. Cooperating and integrating with other people may, otherwise, result in good chances. Taiwanese fastener companies can learn from the experience of Boltun and Shanghai Prime Machinery to make deployment in an open approach for more opportunities instead of staying unchanged.

 

 

Promoting the global reputation of TFTA is another important issue in 2015. Thus far, we have arranged various socials with other overseas associations, promotion in exhibitions, and trade delegations to other countries. For example:

 

(1) March 2015: To hand out free member directories and dine with EFDA president and CMCA     chairman in Fastener Fair Stuttgart.

(2) April 2015: To organize a trade delegation to visit Korean companies.

(3) April 2015: TFTA chairman and the International Committee will participate in EFDA Member Assembly in Berlin.

(4) June 2015: To organize a delegation to visit Shanghai-based companies.

(5) September 2015: TFTA Young Members will organize a group to visit Gem-Year and Cowin Fastech based in Jiashan Zhejiang.

(6) October 2015: To exhibit and hand out free member directories in National Industrial Fastener & Mill Supply Expo.

 

 

The greeting event for 2015 Chinese Lunar New Year will take place at Hai Zhong Sien Restaurant in Kaohsiung on March 2. In 2015 there will be training sessions and factory tours favorable to enhance industrial competitiveness. We will hold activities in northern, central and southern Taiwan and plan to make activities better by inviting more authoritative speakers and entrepreneurs to share their experience. This is not only for ensuring members’ rights but also recruiting more members with a goal of reaching over 400 members by 2015.

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