Taiwan Reports First Half 2006 Bearing Exports

Taiwan Reports First Half 2006 Bearing Exports Taiwan's Association of Machinery Industry (TAMI) reported official government totals for first half 2006 exports of machinery and related mechanical equipment. Overall, Taiwan exported almost USD $7 billion in equipment and engineered components, up a "tepid" 2.9% from 2005. Machine tools led the way in absolute value terms, up 7% from 2005 to $1.4 billion, while the "special purpose" machinery category was up more than 20%, to $443 million. Also up strongly were pumps and valves, rising almost 12% from 2005's first half. Falling off from 2005 were several key categories, such as plastics and rubber machinery, down 5%; pumps, compressors and fans were down 5.3%; and woodworking machinery off 14%. Many of the most dramatic declines can be traced to aggressive moves by China into capital equipment markets where that country has considerable expertise. Taiwan's sewing machine exports, for example, were off more than 10% in the first half; papermaking and printing machinery, was off more than 20%; leather processing and shoemaking equipment exports were down 17%. Even though China is a world market competitor, it is also Taiwan's largest industrial equipment trading partner, taking 34% of Taiwan's total export value. Hong Kong and mainland China together imported $2.3 billion in Taiwanese machinery, up more than 3% over 2005. The United States is still second, but falling, importing $1.2 billion from Taiwan, off 3%. Japan, Thailand and Vietnam round out the top five trading partners so far this year. Bearings, gears, and ball screws have been middling export performers in 2006, rising 4.2% as a group from 2005's $242.6 million to first half 2006's $252.8 million.