By PYC Bearings
©2004-2008
To gain an edge, makers are focusing on specialized models and improving manufacturing and QC systems.
Mainland China and Taiwan suppliers of machine bearings are implementing differentiation strategies as a means of strengthening their position in the industry.
These double-row, tapered roller bearings from Shandong Tonglian of mainland China have a 10 to 300mm inner diameter.
Many companies are increasing the output of specialized designs. Even as the product structure and dimensions remain compliant with industry standards, the materials and finishes are being chosen according to application-specific requirements.
Bearings for food-processing machines, for instance, now come in noncorrosive materials such as stainless steel to prevent contamination. Besides tempering, such versions undergo oxidation, zinc plating and phosphate coating for surface protection.
Rare-earth ceramic models are also being launched. Suitable for the construction and petrochemical industries, these lightweight designs have high insulation and a low thermal expansion coefficient, and require minimal starting torque. Further, they are resistant to wear, acid, salt and alkalies.
The specialization trend is becoming prevalent in the mainland as makers target the less-saturated high-performance market. This move is largely driven by the expanding supplier base there, which to date has reached more than 2,000.
Taiwan companies are focusing on specialized models to avoid competing directly with mainland counterparts that offer low-priced, generic products.
To build a quality edge, suppliers in the island are upgrading manufacturing and QC facilities.
Companies there are utilizing automatic machinery to perform accurate cutting, annealing, grinding and assembly.
As such, they can offer designs with specifications conforming to ABEC 1, 3, 5, 7 or 9 tolerance.
Manufacturers are also investing a significant portion of revenue in computerized inspection equipment. This includes ring and A-class block gauges, horizontal metroscopes, curvature measuring instruments, and vibration and noise-testing devices.
Other suppliers such as Tung Pei Industrial Co. Ltd are subcontracting steel ball, retainer and seal fabrication to reliable factories offshore, where outlay is lower. This enables engaging in price-based competition with overseas makers.
Wontop Enterprise Co. Ltd has relocated its entire production to the mainland. Machine bearings from the company are priced nearly 100 percent lower than Japan and Germany-made designs.
Chuang Hon Yi Axle Co. Ltd is accepting low-quantity orders to attract clients with small purchasing requirements.
The supplier is also improving its OEM service by expediting the countersample preparation. Prototypes are now completed in two to eight days.
Price movement
Machine bearing suppliers recently increased product prices by 10 percent. In the mainland, the upturn came from the rising cost of GCr15 steel, the predominant material used in production. GCr15 reached about $1,250 per ton at the end of 2007, up 87 percent from a year earlier.
Taiwan's Wontop offers single-row, deep-groove bearings made of AISI 52100 steel. These are suitable for motors, power tools and CNC machines.
Another factor that contributed to the increase is the new labor contract law, which went into effect January 2008. Obligating companies to provide workers with larger salaries and insurance coverage, the directive has pushed up manufacturing outlay by 15 percent.
Machine bearings from the mainland are currently priced between $0.14 and $12, depending on the size.
Suppliers such as Joint Bearing Co. Ltd will be implementing another 10 percent increase in coming months if conditions do not improve.
Although prices have likewise risen in Taiwan due to higher metal costs, some companies have kept quotes stable by absorbing the incurred expenses.
Domestic, export trade
Nearly 80 percent of the mainland¡¯s machine bearings output goes to the domestic market.
The BL207 model from mainland China's Zibo Zhongcheng is a max-type ball bearing with a 35mm bore size, 72mm outer diameter and 17mm width. Price is $1.93.
This comes amid the rise in government-funded projects, including the infrastructure for the upcoming Olympic Games, railways, and electricity and natural gas generation systems.
The rest is exported to North America, the EU, Asia, the Middle East and Africa.
OEM and ODM orders account for 70 percent of shipments. Even so, OBM business is strong among some mainland suppliers.
All exports from ISO 9001:2000-certified Shandong Huatian Rolling Bearing Co. Ltd, for example, carry the in-house HT brand.
OBM designs represent 60 percent of overseas sales at Zibo Zhongcheng Bearing Mfg Co. Ltd and Cixi FL Bearing Co. Ltd.
At Shandong Tonglian Bearing Fty, models under the in-house TLR brand constitute 40 percent of shipments. Asia and the EU are the key markets.