For Taiwan’s woodworking machinery industry—highly reliant on exports to Europe and North America—the implementation of 'reciprocal tariffs' has not only raised import/export costs but may also dampen demand and investment due to inflationary pressures.
The biggest challenge, however, lies in tariff discrepancies among competing countries. To tackle this, the government and trade associations must jointly promote both internal transformation toward smart machinery and external market expansion.
According to Mr. Chang Yin-Kung, Chairman of the Taiwan Woodworking Machinery Association (TWMA), Taiwanese manufacturers must proactively embrace transformation and upgrade strategies in response to fierce international competition.
Companies should focus on enhancing product value, leveraging digital tools to improve management efficiency, and strategically investing within controllable risks. Doing so will build competitive barriers and turn crises into opportunities.
Mr. Chang advises member companies to consider transformation across all management aspects—from production and sales to finance and HR. By broadening their business horizons, exploring niche markets, and building technological barriers, companies can prepare for future market shifts.
In terms of product development, Taiwan’s woodworking machinery industry has aligned with global trends toward smart and sustainable production in recent years. International buyers have responded positively.
Expanding from their core product areas into related applications helps reduce risk while advancing toward high-value-added products with industrial entry barriers. Ultimately, product upgrading will better meet diverse global market needs.
As the fourth-largest woodworking machinery exporter in the world, Taiwan’s export value reached approximately USD 521 million. Over 80% of manufacturers are clustered in central Taiwan—especially in Fengyuan and Shengang—where more than 300 SMEs form a dense satellite ecosystem with efficient supply chain support.
This enables made-to-order production, Taiwan’s strategic advantage in adapting to global demand shifts. Supported by smart line integration strategies, the sector has actively penetrated international markets.
Prior to the pandemic, the Precision Machinery Research & Development Center (PMC) and TAITRA launched a 'Smart Machinery Overseas Promotion Program' to help Taiwan’s woodworking machinery industry shift from selling single machines to offering complete automated production lines.
By streamlining workflows for cabinetry, veneer, and honeycomb panel production, companies can significantly boost output while easing the labor shortage in traditional manufacturing.
As most Taiwanese woodworking machinery firms are SMEs or micro-enterprises, Mr. Chang recommends utilizing ERP systems and advanced management software to enhance operational structure.
He also encourages overseas exhibition visits to understand customer needs and local market trends—helping companies identify new breakthroughs and innovation opportunities.
For younger business successors unsure how to manage operations, Mr. Chang suggests participating in overseas trade missions led by TWMA. Such initiatives not only offer government-funded subsidies for better booth locations and visibility but also facilitate mentorship from industry veterans.
Face-to-face exchanges with local trade associations and building materials or furniture suppliers can generate valuable insights and new opportunities.
Looking ahead, TWMA will proactively utilize government resources and collaborate with organizations like PMC, the Metal Industries Research & Development Centre, and the China Productivity Center.
These efforts will include training programs to help member companies upskill their workforce and enhance long-term competitiveness.
