Abstract Throughout the engineering in Taiwan, due to the rapid development of engineering technology, engineering increasingly large scale, business has been facing ever faster and greater impact; however, SMEs have long played the Taiwan's driving force in economic growth. Therefore, facing the situation of global competition, companies how to respond to times changing and overcome difficulties then evolve, strategically transformation is even more important. The researchers involved in heavy machine engineering professional installation industry up to thirty years long. In the professional installation of mechanical engineering project management experience, have deeply realized that the heavy machine construction industry is largely impacted by the economic cycle and national policies. Heavy machine engineering industry is the services provider in the industry supply chain for the steel industry, shipbuilding and petrochemical industry, energy industry and environmental protection products industry. The current Taiwan industrial development status in today's perspective, the petrochemical industry is the heavy machine construction industry to the biggest support industry. Case studied company is a local medium-sized heavy mechanical machine installation company provides functional products for the industrial market. Because the client faces international risk management and international competitiveness thinking, the future business risk changes and uncertainties will be bound by potential clients and constraints. Such as South Korea's Samsung, Japan¡¦s CHOYOTA, etc., as a long-term business perspective, they will definitely affect and raise this company's international operations threshold and entrance barriers. Furthermore, medium-sized engineering company as like large engineering companies is also required constantly cost-price competition. Resources are not as much as large companies in economies scale financial size and human resources, how to find core competition of medium-sized engineering manufacture company and implement transformation of organizational change strategies are the main motivations of this thesis study. This thesis study takes the interview to study the case company, first of all to understand of the domestic small and medium sized engineering manufacture industry profile, case company operating situation, finally analysis the transformation operate strategy of the case company, the result appears that the case company "the problems change faced by the company" and the "Innovation Challenge of Development " are two key factors for the company transformation strategy. The research result is sufficient to provide small and medium sized engineering manufacturing industry as a future strategic policy reference. For the medium-sized engineering manufacturing industry in the industry sector in the value of the core competitiveness, supply chain management for reviewing source of corporate competitiveness. Keywords¡G Engineering industry, business transformation strategy, heavy industry, industrial development