The FE-67 model from mainland China's Xiamen Ocean is a ball fountain made of G654 granite.

Makers are downsizing designs and turning to automation to cope with the material and labor costs upsurge.

Mainland China and Taiwan suppliers of garden ornaments are realigning operational strategies in response to higher manufacturing outlay.

The sharp increase in material costs is the primary concern. Aluminum and brass, for example, have risen 30 and 100 percent, respectively, since 2006. Nonetheless, the majority of companies still prefer these traditional materials as they yield more visually appealing and durable products than the alternatives.

To reduce expenditure makers are purchasing key materials in bulk to get a better deal from suppliers. Further, they are downsizing designs and removing certain components.

These measures aid in limiting price increases to 10 percent. To help justify the upturn, companies are incorporating high-value functions in their models.

One mainland maker interviewed for this report is also adopting a total solution strategy for buyers’ convenience. It not only creates the product but also designs customized packaging and labeling.

Another factor that aggravates suppliers’ pricing dilemma is the rise in labor costs, which has been brought on by the revision of government policy pertaining to worker welfare.

This is prompting many companies to increase the use of automated equipment in volume manufacture. Carving, molding and polishing, in particular, are now carried out by machines. Samples, however, are still handmade.

In the mainland, makers are also boosting efforts to reduce the defect rate and, consequently, product returns. This is seen as a way to minimize administrative expenditure in the long run.

Such approaches assist suppliers in contending with the new labor law. Since its implementation, the directive has raised outlay by 2 to 20 percent.

The regulation is likewise affecting Taiwan’s garden ornaments industry negatively. A significant number of companies had relocated factories in the mainland but are now planning to transfer production to Southeast Asia or back to the island. Some have even shut down operations.

Several makers with domestic facilities, meanwhile, are dealing with Taiwan’s water pollution prevention policy. Carrying out anti-contamination methods also contributes to the price upturn.

	Brassbell of Taiwan offers model SL-0287, an iron garden ornament fitted with a lamp.

Suppliers are releasing functional designs under efforts to enhance product value and soften the impact of price increases.

In the mainland, Eastex Ltd has launched models AH0971 and AH0972, which are sculptures that double as flowerpots.

Xiamen Ocean Rock Garden & Landscaping Import & Export Co. Ltd incorporates an LED lamp or a decorative candle in its garden ornaments. The company has also introduced the BDB-016 model, a 40x40cm birdbath made of G603 granite.

Catering to the Japan market, Xiamen Tong’an Yinfeng Granite Crafts Co. Ltd offers designs that serve as fountains.

Decorative tabletop and stool sets, which come in natural granite, are also produced. The price is $150. Mainland suppliers such as Jinjiang Huabao Stone Co. Ltd export garden ornaments unbranded.

Xiamen Long Way Young Handcraft Co. Ltd and Chaozhou Santai Porcelain Manufacture Co. Ltd are among the exceptions, with OBM models accounting for 95 and 75 percent of shipments, respectively.

Functional modification is also the trend in Taiwan. Some releases from Brassbell Industrial Co. Ltd, for instance, have a lighting fixture.

Additionally, new designs from the supplier feature smaller dimensions than previous models to reduce material expenditure.

Eighty percent of Brassbell’s garden ornaments are created in the mainland. The rest is made in Taiwan and consists of high-end products for the European market.

The helicopterlike model from Ming Lee Enterprise Co. Ltd features a sprinkler function. The design is patented domestically, and in the US and Europe.

As part of cost-effective strategies, Jackey Autosystem Inc. has removed the supporting base of its wind vane versions. This has also made transport more convenient.

Taiwan-made garden ornaments cater generally to the upscale segment. Models with lighting devices bear the CE mark and are UL listed.

Some suppliers introduce designs to the domestic market first as a means of assessing the demand potential before shipping them overseas.

Exports go to the US, the EU and Australia. Models bearing in-house brands constitute the majority. As such, boosting brand awareness is taking a backseat to acquiring patents for multifunction and unique designs in many companies.

The decline in the US economy has caused orders to slip 30 percent in recent months. To recover from the slump, makers are strengthening their foothold in Europe and Asia.