Not a low-wage country any more

Mr Keim, the Taiwan Hardware Show took place in Taichung for the second time this year. What prompted Kaigo to move the fair from Taipei to this location? Was it the right decision? Gerd Keim: The region around the metropolis of Taichung has developed over the last 10 to 15 years into one of Taiwan's main economic powerhouses. Many well-known tool manu­facturers are based here and offer the ideal conditions for the Taiwan Hardware Show. In 2014 we were able to increase the number of exhibitors to over 350, while the number of trade visitors rose to around 25 000. These figures alone indicate clearly how successful the event is. Many Taiwanese companies carry out production in China and other low-wage countries. How do you see the situation developing here? The Taiwanese economy has been growing virtually continuously in the last few years. Taiwan isn't a low-wage country any more, and quality is something that people are increasingly aware of. Another factor is that incidental wage costs are very high in some cases in China, for instance. As a result, more and more companies are moving part of their production back to Taiwan so as to remain competitive with higher-value products.

As far as the tools sector is concerned, I remain optimistic. The export quota to the USA is now nearly 30 per cent, closely followed by the European markets. Goods to the value of roughly USD 5.4 billion are supplied to Germany alone every year. Will the Taiwan Hardware Show be staged in Taichung in 2015 too? Correct. In fact, it will take place from 12 to 14 October on an even bigger exhibition space in an additional hall. Our goal is also to increase the number of foreign exhibitors and make the Taiwan Hardware Show even more international.