Market Opportunity:
Taiwan has focused much of its economic recovery effort on improving cross-Strait economic integration. Three financial memorandums in January 2010 opened the island to greater investments from Mainland's' financial firms and investors, providing new opportunities for Taiwan. Estimates of the labor force by occupation ranks service 58%, industry 36.8% and agriculture 5.1%. However, the country faces several challenges. Taiwan's birth rate is one of the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. In addition, its rapidly aging population and widening poverty gap are major long-term challenges that the country must face with new policies addressing these economic problems.
Taiwan faces many of the same economic issues as other developed economies and its future development will rely on further transformation to a high technology and service-oriented economy and carving out is niche in the global supply chain. Despite current crisis, the New Taiwan Dollar is still stable against the US dollar; this will limit imported inflation
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Global demand of man made fibre
World demand for manufactured fibres is projected to increase 5.4 per cent annually to about 44 million metric tons in 2005, valued at US$120 billion. Manufactured fibres will continue to increase their market share at the costs of natural fibres expanding to nearly two-thirds of total mill fibre consumption in 2005 based on expanding applications in apparel and home furnishings, as well as continuing strength for synthetics in tufted carpeting and industrial applications.
Taiwan's man made fibre industry
In the last five decades, the textile industry has created an important position in exports, earning huge revenues of foreign exchange for Taiwan. Though, in the second half of the 1980s, many problems like labour shortages, increasing overhead costs, prohibitive land prices and environmental protection forced many textile houses to relocate a part or all of their production to Southeast Asia and China in order to stay competitive.
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China's focus is to become the manufacturer to the world. Their rate of expansion is 15% or higher over the last few years and is maxing out many of the resources of the country and world. Commodity prices for metal, concrete and other natural resources have skyrocketed. Chinese power plants cannot produce enough electricity to keep up with the industrial production that is going on in their country.
What is their secret to such prolonged manufacturing growth? First and most important, the government in Beijing decided many years ago that if China was going to be a world power. They will need to manufacture goods. They saw it work in Japan and obviously, they knew it worked in the United States.
They knew they had a technologically advanced workforce. Factories had been manufacturing electronic components since the 70's and early 80's. Not only are the Chinese technologically advanced, they are a very hard working culture
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