The production value of Taiwan’s hand-tool industry in 2008 is NT$58.9 billion. Domestic demand is NT$7.21 billion while export value reaches NT$55.9 billion with an export ratio of 95% and import dependence of 59%. There are 636 hand-tool manufacturers in Taiwan. The whole industry accounts for 13,937 employees with an average of 22 employees. Manufacturers are mainly located in Taichung City and County, Chang Hwa County, and Nantou County. With a sound up-stream and mid-stream processing industry system, in recent years Taiwan government encourages industrial collaborative R&D alliance to increase international competitive power in terms of hand-tool material techniques, exterior design, research on manufacturing and testing techniques, etc. In the past three years Taiwan’s hand-tool products have received international awards, such as “Dragon Hammer” and “Tai Chi” hexagon wrench of Lucky-Brand Industrial Co. Ltd, adjustable wrench of Proxene Tools Co., Ltd and ratchet wrench of Hi-Five Products Developing Co. Primarily Taiwan investors set up factories along Zhe-Jiang and Jiang-Su provinces. After 2007 Taiwan investors moved factories to South East Asian countries such as Viet Nam.
Due to the impact of 2008 financial crisis, Taichung hand-tool industry lost it order by 30%. The global economy environment has not yet seemed to recover.
Future potential products include medical surgical devices, multi-functional hand tools, digitalized hand tools, light-weighted hand tools and innovative hand tools. The increase of aged population will bring about the demand of surgical instruments, which is worth investing. Therefore. Kaohsiung Medical Device Special Zone was set up by Taiwan government to develop high-added value delicate hand tools such as dental, orthopedics and surgical instruments.