Sustainable Smart Manufacturing: 2023 Machine Tool Industry Trends & Outlook — Taiwan's Machine Tool Sector Rises Amidst Global Challenges

Sustainable Smart Manufacturing: 2023 Machine Tool Industry Outlook Press Conference

The Taiwan Machine Tool & Accessory Builders’ Association (TMBA) held the "Sustainable Smart Manufacturing: 2023 Machine Tool Industry Outlook Press Conference" on December 22. In addition to releasing industry dynamics and the economic forecast for 2023, the TMBA officially introduced its 6th Board of Directors and Supervisors and outlined key focus areas for the future.

(Front row, from left to right) Chen Cheng, Vice Chairman (Chairman of Tungpe Industrial Co., Ltd.) Tai Yun-chin, Vice Chairman (Managing Director of Takisawa Taiwan) Hu Wei-hua, Convener of the Board of Supervisors (Chairman of Litz Hitech Corp.) Patrick Chen, Chairman (General Manager of YCM - Yeong Chin Machinery Industries Co., Ltd.) Hsu Wen-hsien, Honorary Chairman (Chairman of Habor Precision Inc.) Yen Jui-hsiung, Honorary Chairman (Chairman of Tongtai Machine & Tool Co., Ltd.) (Back row, from left to right) Wang Chen-peng, Executive Director (Vice General Manager of CHMER EDM) Wen-hen Chuo, Executive Director (Chairman of HIWIN Technologies Corp.) Wu Yu-chieh, Executive Director (Executive Vice President of Yinsh Precision Industrial Co., Ltd.) Huang Yi-ying, Director (Assistant Vice President of Taichung Machinery Works Co., Ltd.) Yen Lu, Executive Director (Vice President of Tongtai Machine & Tool Co., Ltd.)

In October this year, Patrick Chen, General Manager of Yeong Chin Machinery Industries (YCM), was elected as the 6th Chairman of TMBA. Embracing the theme of "Passing the Torch and Intergenerational Succession," the association aims to lead the sustainable development of the machine tool and accessory industry by integrating the expertise of the next generation of business leaders. The event was led by Chairman Patrick Chen, accompanied by Vice Chairmen David Tai and Chen Cheng, along with several executive directors and supervisors. Honorary Chairmen Yen Jui-hsiung and Hsu Wen-hsien also attended to show their support.

Chairman Patrick Chen stated that the machine tool industry in 2022 felt like navigating a treacherous valley. The first half of the year benefited from the momentum of 2021, as global economic reopening fueled active manufacturing and investment. However, the second half saw a slowdown due to China’s continued lockdowns and the prolonged Russia-Ukraine war. Rising global raw material prices, inflationary pressures, and the energy crisis in Europe led many companies to defer investment plans or reduce capital expenditure, causing a contraction in market growth for 2022.

Looking ahead to 2023, the global economy remains clouded by political instability, financial tightening, and energy crises, leading to a slowdown in major economies like the U.S., the Eurozone, and China. Global production and sales figures are expected to decrease compared to 2022. For Taiwan’s machine tool industry, export orders will fluctuate with global economic shifts. It is estimated that the market downturn will bottom out in the second quarter of 2023, followed by a potential recovery in manufacturing demand. Furthermore, the diversification of supply chains into Southeast Asia is expected to drive significant demand for machine tools.

TMBA Press Conference: "Sustainable Smart Manufacturing – 2023 Outlook on Machine Tool Industry Trends"

Honorary Chairman Hsu Wen-hsien noted that while early 2022 forecasts predicted over 20% export growth, the war, lockdowns, and inflation turned a strong start into a weak finish, resulting in a modest 9% growth compared to last year. He warned that 2023 remains volatile due to U.S.-China relations and global monetary policies. Additionally, Hsu highlighted that because the Taichung International Exhibition Center is not yet completed, the 2024 Taiwan International Machine Tool Show (TMTS) should remain in Taipei, urging the government and TAITRA to ensure the exhibition rights of the industry are protected.

Regarding global markets, orders from Europe and the U.S. remained stable in Q4, with inquiries mainly from Turkey and Southeast Asia. The U.S. market, despite inflationary bumps, is expected to see a surge in demand next year driven by infrastructure policies and the reshoring of manufacturing.

Honorary Chairman Yen Jui-hsiung emphasized that TMBA is promoting industrial standards—including interface unification, modular design, and production traceability—to enhance product value and competitiveness through digital transformation and green energy. Taiwan’s machine tool sector is also focusing on new energy applications, such as wind power and electric vehicles, to expand its end-market reach.

To support future operations, Chairman Chen established seven committees. In addition to the existing Think Tank, Technical, and Industry-Academia committees, a new Industry Promotion committee was added. To help companies balance ESG (Environmental, Social, and Governance) development, TMBA established three dedicated ESG committees to strengthen member services and promote industry sustainability.

Furthermore, "elimi," the TMBA’s association for female executives, celebrated its 10th anniversary. New President Yen Lu announced the goal of "Empowering Beauty and Diversifying Value," aiming to showcase female leadership in the machinery industry and attract more talent to the sector.

Facing the 2050 Net-Zero goal, TMBA will utilize its "Industry White Paper" and "Carbon Reduction Reference Manual" to build a sustainable, value-creating smart manufacturing platform. By focusing on "Digital Transformation" and "Green Energy," the association aims to help supply chains build carbon reduction capabilities and high-value products, ensuring the long-term sustainability of the machine tool and accessory industry.