Tong Yang Industry Sees Stronger Fourth-Quarter Outlook as Aftermarket Demand Rebounds
Tong Yang Industry is preparing for a stronger finish to 2026, with capacity utilization expected to climb to around 90% to 95% in the fourth quarter. The improved outlook is being supported by a recovery in North American aftermarket orders, which is helping the company move into the seasonal peak with stronger production momentum.
Deputy general manager San-Liang Huang said the rebound in demand from the North American aftermarket is expected to support profitability during the final quarter of the year. Higher factory utilization typically allows manufacturers to spread fixed costs more efficiently, which can help improve margins when order volumes rise.
However, the company is still facing pressure from external cost challenges. Container capacity remains tight, keeping shipping conditions difficult and potentially limiting the full benefit of stronger demand. Elevated freight costs continue to be a concern for manufacturers that rely on global supply chains and export markets.
Raw-material prices are another factor that could influence Tong Yang Industry’s fourth-quarter performance. If input costs remain high, they may offset some of the gains from stronger utilization and better order flow.
Despite these challenges, the expected recovery in North American aftermarket orders gives Tong Yang Industry a more positive outlook for the final quarter of 2026. With utilization nearing full capacity and seasonal demand improving, the company appears well positioned to benefit from the market rebound, as long as logistics constraints and material costs remain manageable.
