Taiwan’s Screw Industry Faces Challenges Amid Price Wars and Market Shifts

Taiwan’s screw manufacturers are grappling with intense price competition from China and Southeast Asia, a situation exacerbated by the U.S.-China trade war. As low-cost orders originally placed in China shift to Taiwan, manufacturers are being forced into price wars, a short-term strategy that industry experts warn could have long-term negative consequences for the country’s fastener industry.

A leading steel manufacturer has cautioned that aggressive price competition is eroding profitability. While order volumes may rise, reduced unit profits could ultimately weaken business operations. Moreover, an industry overly reliant on price reductions risks losing its technological edge, making it increasingly difficult to build brand recognition and international trust in Taiwanese screw products.

To counteract price-based competition, experts suggest that Taiwan’s screw manufacturers should focus on high-value-added products. Industries such as aerospace, medical technology, electric vehicles, and 5G equipment have seen growing demand for precision fasteners, presenting an opportunity for manufacturers to differentiate themselves through technology and innovation.

Additionally, investing in automation is seen as a crucial step. Upgrading to automated production systems not only enhances efficiency and cost-effectiveness but also ensures product consistency and stability, key factors in maintaining a competitive edge.

Despite widespread recognition of these challenges, shifting away from price wars remains easier said than done. A senior executive from a listed steel company noted that when faced with immediate low-cost orders, many manufacturers still prioritize short-term survival over long-term strategic transformation. As the situation grows more severe, the industry must confront a crucial question: how to survive while securing a sustainable future?