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Narrow-down your potential DC motor suppliers with this report. Pre-qualify manufacturers who:

• Prices may increase by about 5 to 10 percent into the first half of 2008, mainly because of high prices of critical raw materials such as copper and silicon steel, and concerns with increased labor costs.
• Offer high-reliability, low-noise DC motors based on their product specifications, QC and testing procedures and source of materials such as ball bearings
• Specialize in brushed and brushless DC motors and micromotors
• Can accommodate million-unit orders monthly

With profiles of 26 suppliers, 84 products and a summative industry overview, this report answers all these questions…and MORE.

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China may be facing great compulsion to widen its currency conversion band, but exporters are confident the government will not bow to pressure anytime soon.

The country’s central bank has been working to maintain a 6.80 exchange rate between the yuan and the US dollar since mid-2008 to ease the effects of the global downturn on exporters. Prior to that, the yuan had appreciated from 8.27 to the US dollar in July 2005 to about 6.83 by July 2008.

The US dollar has continued to weaken during the past several months, causing the de facto peg to drag the yuan down against other currencies such as the euro. This, in turn, has been straining trade relations between China and its key export markets, especially against the backdrop of ballooning trade deficits in favor of the former.

Even so, there is a prevailing sentiment among manufacturers that the government will keep the yuan-dollar rate stable to support the export industry, which is still struggling to recover from the economic slump. The biggest fear is that a dramatic change in the conversion ratio could transform a profitable sale into a loss in just a matter of days.

Suppliers can find assurance in official government pronouncements. Premier Wen Jiabao himself declared China would not bend to pressure from other countries to revalue. “We will absolutely not agree to the various calls pressuring us to appreciate the yuan,” Wen said in December 2009. Maintaining the stability of the yuan’s exchange rate is vital not only to China’s economic development but to global financial stability as well, the premier asserted.

Although there are signs of improvement, China’s exports have not bounced back completely. Overseas shipments for the month of November 2009 totaled $113.6 billion, lower than November 2008′s $115 billion and November 2007′s $117.6 billion. Average monthly exports from January to November 2009 were valued at $97.4 billion, compared with $119.1 billion and $101.5 billion in the corresponding periods of 2008 and 2007, respectively.

Vice Commerce Minister Zhong Shan reiterated the government’s stand at a recent press conference with Dow Jones Newswires and Bloomberg. He did say, however, that conversion margins could be broadened once economic recovery is certain.

This has led several manufacturers to temper their optimism, limiting projections of a stable yuan to 1H 2010. Most businesses, however, are unable to estimate when the currency will be adjusted and by how much. “Actually, there is no good way to anticipate the revaluation. We (exporters) just want the government to keep the exchange rate stable,” said Lionel Lau, product manager of audio speaker specialist Shenzhen Baoan Fenda Industry Co. Ltd.

But based on market research, Fujian Rich & Fine Trading Co. Ltd sales manager Anna Xiao anticipates up to 3 percent appreciation by year-end. The company produces children’s garments and shoes.

Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed. You may find the original article at Stronger yuan not likely in 1H 2010

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates’ respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.

More manufacturers jump on the ‘green’ wagon amid stricter export regulations, growing alternatives and rising demand.

QC personnel inspect cutting, stitching and ironing processes as well as finished products to ensure compliance with the Oeko-Tex Standard 100.

Treading the “green” path is on the rise among manufacturers in China, albeit at different levels of adoption. Be it in the garments, jewelry, stationery, paint or consumer electronics industries, more companies are adopting ecologically safe materials, including recycled substitutes.

Suppliers are motivated by two main factors. Most are compelled to do so because of increasingly stringent product regulations in their key export destinations, namely the EU and the US. RoHS, for example, curbs the use of elements and compounds that are perilous to the environment. Among these are lead and cadmium. Although the EU directive applies only to electrical and electronic products, makers in other industries such as fashion jewelry are taking heed and dispensing with such substances.

A few are tapping the eco trend as a marketing tool to help them move to upscale manufacture and break away from cutthroat competition in the low end. Because there is a premium attached to green models, companies can charge 5 to 50 percent more for these items.

No more toxins

Most jewelry suppliers have dropped the use of nickel, an erstwhile widely applied plating metal that can cause skin irritation and has been banned in some countries and regions, including the EU. Other types of heavy metal such as lead and cadmium are also disappearing steadily from both the product composition and manufacturing processes.

Fashion accessories maker Temgo Group Co. Ltd uses nickel-free resin and plastic beads that do not have toxic content. “The plating of the metal does not contain lead and nickel. This is required by all of our EU and US buyers,” vice general manager Stanley Fan said.

“We are also using low-cadmium plastic packing bags. It will be a trend in the future. Some acrylic beads or stones are required to be low in cadmium as well.”

The Neoglory Group, one of the top 10 fashion jewelry makers in China, worked with the Kunming University of Science and Technology to develop a zinc-based alloy that complies with the increasingly stricter overseas standards. Three patents have been applied for the new metal, which took a year to perfect.

Aside from its environment-friendly properties, the newly developed jewelry metal will save Neoglory $0.044 per piece. The company is targeting increased exports to North America and Europe once mass manufacturing begins.

Many products are now also free from phthalates, plasticizers that are endocrine disruptors and suspected carcinogens.

Even paint is being reconstituted for ecological safety. Oil-based versions contain PAH and high levels of volatile organic compounds, which are among the most common pollutants.

Much of the eco-friendly substitutes from China are water-borne. When the water volatilizes, the paint film layer is formed without releasing xylene, formaldehyde and other harmful VOCs.

At present, more than 80 percent of paint suppliers in the country offer water-based variants. Foshan Aoke Chemical Co. Ltd, Foshan Maydos Chemical Co. Ltd and Sunfo International Chemical Co. Ltd have developed paint that complies with the China national standard for VOC content, which is lower than 200g/L.

For printing, water-based oil and soy ink are taken up as a low-VOC, PAH-free choice over solvent-based versions.

Natural, sustainable alternatives

Apart from ensuring components are free from toxins, many companies are incorporating materials that are grown with as little impact on the environment as possible.

Cotton farmers are the leading users of insecticide globally, accounting for 16 percent of total consumption. Organic cotton that is cultivated without toxic pesticides and synthetic fertilizers promotes healthier products, biodiversity conservation, and reduction of noxious chemicals seeping into the environment.

Tencel, which is a brand of regenerated cellulose fiber made from dissolved wood pulp, is another eco-friendly material that is often used in pants and coats. It is normally mixed with cotton at a ratio of up to 1:3.

Rayon from bamboo is also used in the production of garments. Aside from being biodegradable, it is one of the most efficient among all types of natural fibers in terms of moisture absorption and breathability.

Other natural materials that makers are turning to are silk, bamboo charcoal, and soybean and milk protein fibers.

Apart from the textile application, bamboo is being employed as an alternative to wood, which is currently in short supply. Some makers have even found ways to reshape the naturally hollow and cylindrical plant by processing it in high-pressure machines.

Bamboo’s short maturity cycle, wide availability, and proven strength and durability make the material not only an ecologically safer option to wood, but also a more profitable one.

Recycled substitutes

Wood pulp, the most common material for paper making, has been linked to a number of environmental issues, including deforestation, and air and water pollution. This has prompted suppliers to turn to earth-friendly alternatives, which are becoming increasingly available. Among these are nonwood pulp paper such as those made from cotton, bamboo and reed pulp, and bagasse and stone.

Recycled paper such as the kraft type is also a green option. In terms of quality, recycled paper holds up against conventional versions. It has some usage limitations, however, including unsuitability for color printing.

“Although products made of eco-friendly paper are priced higher, the acceptance of customers is high. Both our old and new customers place orders actively for such products,” said Wang Hao of Zhejiang Guangbo Group Co. Ltd, a stationery maker.

Toy makers cited recycled sawdust, which was merely discarded as a wood byproduct, as a suitable substitute material. Apart from yielding environmental benefits, it improves crack- and heat-resistant properties in toys such as role-play sets. Being easier to process than wood, this alternative also has a shorter production time and simpler molding procedures.

In the beauty and cosmetics line, the trend is reflected in the simpler and recycled or recyclable packaging being adopted by many makers. Refills are likewise more gradually being promoted.

Green economics

Trends show that green manufacture has a direct correlation with the cost of adoption. Makers are more likely to use an environment-friendly alternative if it will not inflate their cost structure, and substitutes that are considerably more expensive than conventional materials have fewer takers.

Organic cotton, for instance, is at least 30 percent costlier than the traditional kind since it has fewer growers and suppliers. Parallel to its popularity, however, organic cotton acreage in the US grew by 26 percent in 2009 YoY with total planted area estimated at 4,342 hectares, the highest since 2001.

For beauty products, biodegradable packaging costs 20 percent more than traditional plastic or glass equivalents.

On average, ecologically safe paper is 5 percent more expensive than wood pulp variants, while water-borne paint is about 20 percent costlier to make than the oil-based type.

Full River (Hong Kong) Ltd estimates total production costs for earth-friendly consumer electronics are 4 to 8 percent higher than for conventional models.

With the use of soy ink, Wenzhou Success Group Paper Articles Co. Ltd raised its quotes 5 to 10 percent.

For some product lines, the green transition is eased by the absence of additional expenses. Multi-Link Apparel has substituted azo dye and heavy metal with greener inputs, but its material costs have remained the same.

Even more fortunate for some suppliers, switching to sustainable production has proven to be more profitable than before. Some denim garment makers, for instance, are able to increase their margins by up to 50 percent per pair.

The cost of making stationery out of bagasse, stone and reed is about 5 percent lower than that of wood pulp paper, but export quotes could be 5 to 15 percent higher.

A plastic refill costs about 30 to 50 percent less than a retail plastic bottle in the same volume, savings that are passed on to consumers.

At present, traditional packaging has lower overall costs than alternatives due to the former’s mature technology and established supply chain. In the coming years, recyclable and degradable packaging materials are expected to become more economical and widely used.

Maximizing advantages with eco-labels

China makers expect to enhance their competitiveness in key export markets by getting their products certified with environment-protection labels. Test and certification fees are shouldered by buyers directly or factored into quotations.

Many of the major export destinations have announced versions for a wide array of items. Beauty products, for example, have the BDIH Certified Natural Cosmetics Seal in Germany, Cosmebio and Ecocert in France, ICEA in Italy, and Ecogarantie in Belgium.

Sleepwear from Qingdao Fitex Apparel Co. Ltd bears the DSD Green Point and recycle marks, which indicate that the apparel is suitable for collection and reuse, merchandiser manager Joy Liu said.

Products without foreign eco-labels may present the local equivalent, China Environmental Label. Developed according to the ISO 14024 standard, the mark is acknowledged by various international eco-labeling organizations and has mutual recognition agreements with Germany, Japan, Australia and other countries.

Much of the locally available green paint is marked with the China Environmental Label. Multi-Link Apparel supplies earth-friendly garments with the China Environmental (Green) Label.

Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed. You may find the original article at Eco-friendly products boost competitivenes

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates’ respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.

The D310-0818 model from ZZW has an LED flashlight tip, hammerhead and seat belt cutter.

China suppliers of tire pressure gauges are ramping up production and exports in step with growing fuel efficiency and driver safety concerns in key markets.

While mature technology-wise, the line has just recently started drawing attention as a basic tool for reducing greenhouse gas emissions. It helps in doing so simply by preventing underinflation, which could increase the tire’s rolling resistance and in turn require the use of more fuel.

Suppliers’ expansion plans are geared mainly toward the burgeoning promotional segment, which now generates over 50 percent of demand. Orders come mostly from automakers and service stations that provide free tire pressure gauges as a courtesy to customers. At some countries, including Canada, the device is also being handed out at local campaigns aimed at educating drivers about tire pressure maintenance.

Companies anticipate even greater uptake as car repair and maintenance shops in the US state of California will be required to conduct tire pressure checks on all incoming vehicles starting July 2010. Safety organizations NHTSA and NTSB are also calling for proper tire inflation, raising buyer awareness further.

To match rising demand, many suppliers are investing in additional production lines. One of these is Ningbo Waywell International Co. Ltd, which plans to boost output by 20 percent in 2010.

Export strategies, meanwhile, are anchored on aggressive marketing and R&D.

To reach out to buyers in North America and the EU, suppliers are spending more on promotional activities. Most intend to venture into online advertising or attend several trade shows.

With product development, the emphasis is on user friendliness. Models, for one, are being made lighter through the adoption of ABS rather than PVC.

Companies also hope to attract orders by taking functionality up a notch. Several of the latest releases, in fact, incorporate a hammerhead, LED flashlight tip, seat belt cutter, compass, tread depth gauge and bleeder valve. In addition, some units are capable of delivering voice readouts in English or Spanish.

Appearance upgrades abound as well, most of which revolve around the use of brighter colors and ergonomic contours in designs.

On the whole, China manufactures more than 50 million tire pressure gauges each year. Half of output is shipped abroad, with North America and the EU absorbing over 75 percent.

Products & prices

Mechanical models dominate China’s tire pressure gauge line, accounting for 70 percent of output. Digital versions are nonetheless gaining ground because of high demand in the promotional segment.

The categories are fairly similar in terms of measuring range. Most units are calibrated from 0 to 100 or 200psi, 0.05 to 9.95 bar, 0.05 to 9.95kg/sqcm and 25 to 995kPa. Readings are precise within 0.5psi, 0.05 bar, 0.05kg/sqcm and 5kPa. Inaccuracy ratings are between 0.5 and 1 percent.

Design-wise, mechanical gauges are often available in a pencil style or with a dial face.

The head and body are made of aluminum, zinc or stainless steel, among other metal variants. ABS is used for the two- or four-sided indicator bar.

Depending largely on the material, models go for $0.30 to $6.

Because of the inclusion of electronic features, digital units are more expensive. Prices generally start at $2 but can reach up to $8.

Designs are equipped with an LCD readout that shows the real-time condition of each tire. Measurements can be displayed in psi, bar, kg/sqcm and kPa. An LED backlight is added for easy operation at nighttime.

Models typically have at least one or two extra functions, with compasses and flashlight tips among the popular choices. Newer versions can come with up to eight add-ons.

Auto shut-off mechanisms for minimizing energy consumption are common as well. Power source options include AAA and button cell batteries.

ABS is utilized for the housings, which usually weigh less than 100g. The sensor chipsets are procured from domestic or Taiwan suppliers.

Industry snapshot

China’s tire pressure gauge industry has fewer than 100 makers, nearly all of which are local enterprises.

Operations are usually based in Guangdong, Zhejiang, Shandong and Fujian provinces, and Shanghai. Most companies engage in mixed production, offering automotive tools and electronic devices as well.

Suppliers of mechanical gauges perform the bulk of manufacturing processes in-house, including molding. Counterparts in the digital segment have facilities for PCB subassembly.

SMEs dominate the line, with midsize businesses capable of turning out more than 100,000 units per month. Among large players, monthly capacity exceeds 1 million units.

Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed. You may find the original article at Expansion plans kick into high gear

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates’ respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.

The TW-22 model from Tianjinshi Top is suitable for commercial buses.

To keep overall sales strong, suppliers are veering away from passenger tires and exploring alternative markets.

China’s tire industry is moving the sales mix away from its primary lines and market. The action comes in the wake of the US’ announcement of a three-year tiered additional tariff on passenger and light truck tires starting Sept. 26, 2009. The import tax will be at 35 percent for the first year, 30 percent on the second year and 25 percent on the third.

Levied on top of the 4 percent duty already in place for all tire imports, the extra tariff raises the final price of China-made models in the US by $50 to $100. This has caused several clients to cut back on orders or refrain totally from purchasing. As a result, a number of tire manufacturers saw exports to the country decline an average of 60 percent in October and November.

The reduction is apparent in China’s customs statistics. Although the US continued to be the top market, sales from passenger and bus tires sent there fell by more than 60 percent in October compared with the previous month. In 2008, export revenue grew 14 percent during the same period.

Feeling the pinch, suppliers focusing on the US are building up the export shares of models for buses, motorcycles and other applications to keep overall sales strong.

Additionally, companies are exploring alternative markets for growth opportunities. Many have set their sights on the developed economies of the EU, Canada and Australia, which will be able to accept models priced similarly to those sent to the US.

The euro zone currently accounts for 16 percent of China’s export revenue from tires. Australia and Canada, meanwhile, rank fourth and sixth among the single-country importers.

Several suppliers are also looking into the developing economies of Eastern Europe and South America. Russia and Brazil, in particular, are considered attractive destinations.

The domestic market is considered a key growth area as well, with sales of cars, SUVs and other vehicles booming. In fact, thanks in part to tax cuts and its stimulus program, China overtook the US as the largest consumer of vehicles in the last quarter of 2009.

Under efforts to boost revenue, several enterprises are establishing sales offices or appointing agents in their chosen markets. A number are also spending more for online advertisements.

Nonetheless, even as strategies to offset lost sales from the US are being implemented, the country will remain an important export destination for the industry. Although currently weakened by the economic slowdown and the new tariff, demand from the market is still considerable. China suppliers note that their tires retain a price advantage over those from other hubs, despite the added duty pushing prices higher. Further, sales in the US are expected to become stronger after three years.

Kaifeng offers ATV tires that comply with E-Mark and DOT requirements.

Cost challenge

Faced with one crisis, tire suppliers are preparing to confront another obstacle to growth, namely rising raw material expenses. Spending for natural rubber, in particular, surged 30 percent to $2,950 per ton in November 2009 from levels earlier in the year. The increase was triggered largely by the anticipation of global recovery and a projected fall in output of key producing countries.

In coming months, some companies estimate that the cost of the polymer might increase further to reach $4,100 per ton. With natural rubber accounting for about 40 percent of total raw material outlay, suppliers are expected to jack up prices to cover higher expenses.

More than 60 percent of the natural rubber employed by China’s tire industry is currently sourced overseas because domestic supply is not sufficient to meet demand. RSS3 is procured mainly in Thailand and Vietnam, while TSR20 is from Malaysia.

In China, Hainan and Yunnan provinces are the primary sources of the material. Suppliers of the polymer can also be found in Guangdong, Guangxi and Fujian provinces.

Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed. You may find the original article at Makers adjust 4Ps to cope with tariffs

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates’ respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.