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• 19/9/2018 - North American business is understandably a major concern

It also has a high-level of vertical integration, from wire drawing and annealing through to coating and packaging – as well as having its own production machinery company. 41% of output is destined for the United States, 22% for Europe, the balance evenly divided between Asia and Oceania.

Perhaps counterintuitively, Trout also reckoned quality and customer orientation are rarely sustainable differentiators – being transient, with competitors often able to close up once it is apparent customers are paying heed. In the four years following its IPO in 2012, Sumeeko grew sales by a third to approaching US$40 million.

Deep specialisation, then, and increasingly direct supply to major customers worldwide represent key differentiators for Sumeeko, which through acquisition is now also radically increasing both scale and outreach. Automation makes some contribution to handling and storage efficiencies and there are some improvements in factory air quality. Erosion of European and North American business is understandably a major concern to the Taiwan fastener manufacturing industry.

Valuably, Sumeeko’s Socket Sets Manufacturers is ISO 17025 accredited. The Group’s small screw plant in China, Ming Hwei Fasteners, employs more than 500 people, with a similar machine park count, and generates revenues of US$70 million. Receding for a while, by mid-year Chinese imports surged again and by the third quarter had overhauled its offshore competitor. On the other hand, the mainland offers young Taiwanese talent temptingly higher salaries.

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