Business

Taiwan firms train sights on overseas mobility aids markets

Made-in-Taiwan electric scooters are famous around the world. (Photos courtesy of TAITRA)

• Publication Date：03/04/2012
• Source： Taiwan Today
• By  Timon Hsu

As people around the world live longer lives, the number of senior citizens is increasing as well. Along with this increase, there has been a growing demand for mobility aids products. Two cities in central Taiwan, Taichung and Chiayi, have taken advantage of this trend and now sell their mobility aids products throughout the globe.

Due to advances in medical technology, most senior citizens are in good health and can move about freely. But as they get older, senior citizens still have to face the gradual deterioration of their physical functions, with many of them suffering from chronic diseases. Mobility aids can play an important role in helping them maintain a normal life.

A wide range of these products is currently available on the market, including motorized vehicles such as electric wheelchairs and electric scooters, nonmotorized vehicles such as manual wheelchairs, and other equipment that helps physically challenged people move about, such as crutches and walkers.

Motorized vehicles for physically challenged persons have the largest market share and are becoming ever more popular.

According to the Footwear and Recreation Technology Research Institute, Taiwan is the world’s largest producer of motorized vehicles, if both domestic and offshore production volume is taken into consideration. In 2008, the global demand for motorized vehicles was 700,000 units, with Taiwan producing 30.7 percent of the total, or 215,000 units.

If Taiwan’s offshore production of an additional 110,000 units is also taken into account, Taiwan’s share of the world total rises to 46.4 percent.

Taiwan’s electric scooter industry is effective because it can take advantage of the nation’s well-developed precision machinery and electrical and electronic industries. Coupled with an integrated supply chain, as well as the government’s active promotion and assistance, Taiwan has become a significant supply center of electric scooters to the entire world.

Taiwan’s electric scooters are exported mainly to American and European markets, both of which have higher national income levels and health care expenditures. Sales to the American market come mainly from orders placed by original equipment manufacturers.

As to European sales, manufacturers participate in exhibition and trade shows, where they get a chance to meet with potential customers while showing off their latest products.

Manual wheelchairs are an important part of the mobility aids industry.

At present, the major mobility aids markets of the world are in North America, Western Europe, Japan, New Zealand and Australia. The reason is that the industry is closely related to a nation’s social insurance, welfare policy and overall national environment. The U.S. currently accounts for 50 percent of the global market share of mobility aids, followed by Europe’s 30 percent.

In other developing regions such as Eastern Europe, Latin America and the Middle East, the market for mobility aids has expanded gradually in recent years.

According to FRTRI, Taiwan’s mobility aids sector took off in the 1980s, and since then an integrated supply chain of upstream and downstream industries has also developed.

In recent years, Taiwan’s mobility aids industry has grown rapidly, but it is now facing some bottlenecks caused by industrial changes and international competition. The lack of commonly agreed-upon local standards has created a situation where Taiwanese manufacturers have a hard time selling individual parts to different companies.

As a result, it is difficult for companies to keep costs down while also satisfying market demand for customization and diversity.

In addition, Taiwan still does not have a complete and reliable certification system, so that the production of controllers, a key component in mobility aids, remains in the hands of foreign mega-manufacturers like Dynamic, Proctor & Gamble, and Gurtis, even though Taiwanese companies have been dedicated to this field for years.

Under these circumstances, the first thing Taiwan needs to do is to build its own electric control system, so as to become independent of foreign suppliers. This strategy is so promising that Taiwanese businesses should get involved in it immediately.

Local companies should also invest more in improving battery systems. Take the traditional lead-acid battery, for example. Local manufacturers can try to work on improving its efficiency, reducing its weight, shortening charging times and increasing endurance levels.

Moreover, they should also make better use of the latest energy technology, such as nickel-metal hydride and lithium batteries, and fuel or solar cells.

On the other hand, the major export markets of Taiwan’s mobility aids sector are centered on the U.S. and Europe, so it is inevitable that exports are easily affected by American and European laws. Therefore, Taiwanese companies should explore new markets to spread their risk more evenly.

If possible, Taiwanese manufacturers should also cooperate with large international enterprises, so as to strengthen manufacturing capabilities and improve product quality. Only then can they become more competitive in the international market.

In addition, Taiwanese companies must learn to adjust their production strategies in a timely fashion, so as to respond quickly to changes in the medical subsidy systems of foreign countries.

Some Taiwanese mobility aids manufacturers have their own brand names.

HeartWay Medical Products Co. Ltd., Comfort Orthopedic Co. Ltd. and Karma Medical Products Co. Ltd. are some of the most outstanding mobility aids manufacturers in Taiwan. Founded in Taichung in 1995, HeartWay mainly produces manual wheelchairs, electric wheelchairs, electric scooters and other related products. Its products are sold in the U.S., Japan and the European Union. The company created its own brand “HeartWay” in 1999.

Since then, the sale of branded products has accounted for 90 percent of the company’s turnover, with the remainder coming from OEM orders. What makes this company different is that it is willing to produce specialized products to serve a small number of customers.

Founded in 1978, Comfort Orthopedic sells its products around the world under the brand name “Comfort.” The chairman of the company, M.S. Li, decided to set up shop in his hometown of Chiayi, and in so doing helped to create an industrial cluster of mobility aids manufacturers there.

When it first started out, the company manufactured only one product, which was sold only locally. As it developed, however, Comfort began making more and more mobility aids which are now sold throughout the world, with the European market accounting for 68 percent of sales.

The founder of Karma Medical, established in 1987, was also determined to set up a factory to Chiayi, because it has a complete industrial supply chain and offers many advantages in terms of land, labor and costs. From its inception, the company has insisted on manufacturing branded products, selling its manual wheelchairs, electric wheelchairs and electric scooters under the name of “Karma.”

After years of research, Karma Medical invented Taiwan’s first lightweight aluminum wheelchair in 1990 to replace the traditional bulky iron wheelchair. With this product the company was able to break into domestic and foreign markets. It is now the owner of over 40 patents worldwide.

These three companies represent just a small sample of the many mobility aids manufacturers in Taiwan. With so many outstanding companies in the sector, it is no wonder that Taiwan is regarded as the kingdom of mobility aids.

Timon Hsu is a freelance writer based in Taipei. Copyright © 2012 by Timon Hsu

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