Wenzhou Yongchang of mainland China offers twist drill bits for use in woodworking machines.

While mainland China makers are developing models that withstand wear and corrosion, Taiwan companies are moving upmarket.

Drill bit suppliers in mainland China and Taiwan are enhancing the durability of their releases by utilizing better materials, surface treatments and manufacturing techniques.

As technology in the line is relatively mature, R&D efforts are directed mainly at improving the quality of existing models, rather than the development of innovative designs.

Mainland companies now offer drill bits with greater resistance to wear, high temperature and damage. This is being achieved through the use of choice materials sourced from select suppliers, and the implementation of thorough production and QC processes.

Makers are also adding value to traditional drill bits by expanding finishing options. Moreover, models are subjected to longer heat treatment to ensure hardness and drilling efficiency.

To ensure quality further, some makers have invested in advanced equipment from Japan or Germany.

In Taiwan, intense competition has made it difficult for suppliers to raise prices while offering the same product type and quality. As a result, companies have started manufacturing more high-end models because these generate better profit margins. In fact, the majority of the island's drill bit makers are already concentrating on upscale production.

	Zhangjiagang Sunshine of mainland China offers drill bits made of carbon steel.

Many mainland suppliers continue to use materials associated traditionally with drill bit production, sourcing these locally. Carbon steel and HSS, for instance, remain popular for their durability.

Some companies, however, are expanding the material choices by employing different types of alloy steel in new releases.

Among the mainland suppliers interviewed for this report, Hangzhou Xiaoshan Jiajia Tools Co. Ltd has released carbon steel drill bits that are tin-coated.

Founded in 2001, the company also manufactures hacksaws and chisels.

At ISO 9001:2000-certified Wenzhou Yongchang Tools Co. Ltd, models are made of stainless steel and can be used to drill or bore into concrete.

The company devotes 30 percent of production to drill bits. Wrenches, chisels and circular saw blades make up the rest.

Wilon Tools Mfg Co. Ltd offers stainless steel drill bits for various applications. Models are exported mainly to OEM customers in the US, the EU and Asia.

Zhangjiagang Sunshine Corp. uses carbide on the tips of its tool bits, which are made of carbon steel. Designed for the masonry industry, the bits are shipped primarily to the US.

Models from Zhengzhou Cutsky Industrial Co. Ltd come in alloy steel because of its high resistance to damage and corrosion.

Besides drill bits, the ISO 9001:2000-certified company offers glass cutters and grinding wheels. Exports go to North America, the EU, Asia and the Middle East.

ZZW Precision Tool Supply (Shanghai) Co. Ltd adopts carbide and HSS, plating the surface of the bits with titanium for added hardness. The supplier manufactures precision measuring instruments as well. It ships all output overseas, mostly to OEM clients in the US, Europe, Asia, the Middle East and Africa.

While emphasizing high-end exports as a means of avoiding competition in the low end, Taiwan suppliers are finding it crucial to meet the stringent quality and safety standards in the EU and the US.

These key upscale markets also have a growing concern for environmental protection and a preference for stronger bits. Users here are opting for more-durable and longer-lasting models to reduce the frequency of having to change them.

Because of its high torque and tensile strength, S2 tool steel is now largely utilized on models that target the high end. In fact, low-end and midrange designs in CrV and CrMo alloy steel account for less than 20 percent of Taiwan's output.

Good Year Hardware Co. Ltd offers drill bits made of S2 for use in woodworking machines. The company is not only improving the durability of models but also making the bit easier to maintain.

Good Year exports mostly on an OEM basis to the EU and North America.

Jin Guann Her Enterprise Co. Ltd's S2 drill bits have a hardness of 59HRC. They are heat-treated to 800 C for at least six hours.

The company operates a factory in the mainland and plans to increase production capacity by as much as 30 percent in the next 12 months.

Rote Mate Industry Co. Ltd has released S2 drill bits with a hardness of 58HRC. Products are exported mostly to the US and the EU.

Instead of machining, the company performs cold forging on high-end models because the process yields stronger bits with 50 percent longer service life.

Moving upmarket and shifting to S2, however, has presented challenges to Taiwan's suppliers since steel is among the materials currently experiencing volatile price fluctuation.

In the past 12 months, the cost of stainless steel has increased by more than 20 percent, while other steel alloys have gone up by about 10 percent.

Companies are also predicting further price adjustments for several other reasons, one of which is the rising cost of labor.

Even though material and labor spending remain unpredictable, makers on the island have pushed up prices by only 3 to 8 percent under efforts to preserve sales growth.