Transcript Slide 1

European mould industry:
Towards a new competitive positioning
Eduardo J. C. Beira
J. Menezes
Eduardo Beira
Tool, dye
and industrial moulds
5000
import
export
4000
internal market
3000
2000
1000
USA
Germany
Japan
Italy
France
Taiwan
UK
Canada
Spain
Switzerland
-1000
Portugal
0
-2000
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2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
1962
1960
Industrial moulds
exports (P)
70
60
50
40
30
20
10
0
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2001
1998
1995
1992
1989
1986
1983
1980
1977
1974
1971
1968
1965
1962
1959
1956
1953
1950
1947
Mouldmakers
New entries (P)
10
9
8
7
6
5
4
3
2
1
0
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2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
1962
1960
Exports (P)
80%
70%
60%
50%
40%
30%
20%
10%
0%
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Exports (P)
30000
€/ton
25000
20000
15000
10000
5000
0
1960
1965
1970
1975
1980
1985
1990
1995
2000
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Exports (P)
100%
Brinquedos
Matr.Construção
90%
2001
1992
1984
27%
18%
18%
12%
7%
7%
6%
3%
2%
14%
7%
15%
9%
34%
13%
1%
13%
7%
21%
9%
14%
6%
8%
28%
100%
100%
100%
Mat. Eléctrico
80%
70%
Ut. Domésticos
Electrodomésticos
60%
Elect./Telec.
50%
Outros
Embalagem
40%
Ind. Automóvel
30%
20%
10%
0%
2001
1992
1984
Ind. Automóvel
Embalagem
Outros
Elect./Telec.
Electrodomésticos
Ut. Domésticos
Mat. Eléctrico
Matr.Construção
Brinquedos
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Portugal (I)
according to USITC (2002)
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Unique industry characteristic:
– small industry dedicated almost exclusively to exporting
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Strengths:
– Specialist training colleges
– Quick lead times, technological capability, price, and low labor costs
– Quality, technology, service, skilled in producing high precision and complex
dies and molds
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Weaknesses:
– Small domestic market with lowest productivity indicators (sales per worker)
among ISTMA members
– Lacks modern automotive and aerospace industries to stimulate
technological advancement
– Many die and mold producers tend to be small companies with limited
financial and management resources
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Portugal (II)
according to USITC (2002)
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Despite Portugal small size, it has emerged as a world leader in the
production of industrial moulds
Portugal is the eighth-largest producer of dies and molds in the world
and it exports to more than 70 countries
Portugal is also one of the world´s principal producers of precision
molds for the plastics industry.
Portuguese moldmakers are highly specialized, concentrating in
different production areas such as mold cavities, mold bases, polishing,
large molds, and precision molds
Since Portugal joined the EU in 1986, the share of companies capable
of manufacturing complex molds grew from less than 30% to more
than 80% in 1997
Molds for less complex products such as toys and electrical appliances
have been supplanted by more complex molds for the automotive,
electrical equipment, pharmaceutical, telecommunications, medical
equipment and computer industries
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Portugal (III)
according to USITC (2002)
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Recently several larger moldmakers in the Marinha Grande region have
shifted from being solely tooling producers to become integrated
suppliers of design and manufacturing services, principally for the
european market
Since joining the EU, Portugal´s mold industry has steadily evolved
from a labor intensive industry to a capital intensive one
It possesses world-class equipment produced in Germany, Switzerland
and Spain
The majority of companies have access to the latest generation of
software, CNC and EDM machines, finite-element-analyst technology,
machining centers, 3-D measuring machines, and DNC and
CAD/CAM/CAE systems
Many of Portugal mold manufacturers have instituted Simultaneous or
Concurrent Engineering and Total Quality, and many qualified for ISO
9001 and 9002 certification
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The strange case of the portuguese mould industry
– No tradition of precision metal manufacturing industries
• No local industrial equipments and automobile industries
– No significant local moulding and plastics industry
– Regional base
– Poor commercial base
– From a technical craft to a engineering discipline
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Low cost was not the critical succes factor for the portugueses mould
industry
– Portuguese mould manufacturing model
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No “toolmakers”
Functional specialization
Mould assembling vs part manufacturing
Scalability / capacity easily available
Shorter time to market
• Importance of international buying agents
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1950´s
Plastic / material
Technology
Idea, concept
Gravadores
Part models
Lathes
Milling
Copying
Metal
Technology
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1960´s
Plastic / material
Technology
Idea, concept
Gravadores
Part models
Final Product
Free form milling
Metal
Technology
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1970´s
Plastic / material
Technology
Part engineering drawings
Mould design drawings
Mould injection test runs
Idea, concept
Final Product
DNC
EDM
Heat treatments
Metal
Technology
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1980’s
Plastic / material
Technology
Part design
Prototyping
Pilot runs
Customer integration
Idea, concept
Final Product
CAD/CAM
CNC
Metal
Technology
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1990´s
Plastic / material
Technology
CAE
Mould engineering
Product engineering
Part design & Prototyping
Concurrent engineering
Customer partnerships
“Nypro” model
Idea, concept
Final Product
CAD/CAM/CAE integration
CIM
Metal
Technology
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2000´s
In mould decoration
In mould assembling
Multimaterial molding
Cycle time optimization
Plastic / material
Technology
First runs / moulding
Product assembling
Logistics and distribution
Quality certification
Idea, concept
Final Product
Product decoration
Design for competitive price
Real and virtual prototyping
Rapid tooling
High speed machining
Sensors / Intelligente mould
Metal
Technology
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A growing puzzle of techologies
Plastic / material
Technology
Idea, concept
Final Product
Metal
Technology
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2000
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Moulding and plastics assembling offshores to China
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Mould manufacturing to China
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The customers are dropping the european mould makers ...
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China
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China
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Luen Shing (PY) Industries
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7000 moulds per year
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2500 people
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!!!
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China
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Zhejiang mould city
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China
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China
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China
1400
imports
1200
exports
1000
800
600
400
200
0
1997
1998
1999
2000
2001
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USA imports
18,0
16,0
14,0
china
12,0
germany
taiwan
10,0
portugal
8,0
s korea
italy
6,0
spain
4,0
france
2,0
0,0
2000
2001
2002
2003
2004
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Japan exports to USA
japan
100,0
90,0
80,0
70,0
60,0
50,0
40,0
30,0
20,0
10,0
0,0
2000
2001
2002
2003
2004
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And now?
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Our competitive values (versus China)
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Knowledge / experience
Customer base and network / reputation
Western based: close to the customers
Culture / language
Commercial experience
Better in the “non standard” products
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And now?
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The traditional mouldmaker mould is running out
– Especially for “large” mouldmkers (>60 people)
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A new business model is needed
A new commercial approach is needed
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A new portfolio of skills and competences
– Along the four directions
– Anyway, an increase in complexity of operations and business
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More
More
More
More
engineering
innovation
integration
services
In mould decoration
In mould assembling
Multimaterial molding
Plastic / material
Cycle time optimization
Technology
First runs / moulding
Product assembling
Logistics and distribution
Quality certification
Final Product
• AROUND THE MOULD
Idea, concept
Product decoration
Design for competitive price
Real and virtual prototyping
Rapid tooling
High speed machining
Metal Sensors / Intelligente mould
Technology
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– A NEW COMMERCIAL POSITIONING
– More marketing
• Different level
• Different contacts
• International networking
– More commercial skills
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Technology and engineering based
Strong soft skills
International trading
2+ languages mandatory
Management of large and complex projects
– New prospecting activities
– More commercial investment
• Non material
• Higher financial and business risk
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Restruturing
– Higher funding needs
– Reducing fragmentation by M&A
– New actors?
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Multinationals
– OEMs and “first tier”
• They will buy 70% of their moulds in low cost countries (Ásia)
– Where large volume moulding is / wiil be based
• Remaining 30% of high precision and high complexity moulds
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Concurrent engineering
Certified quality
Plastic and metal advanced technologies
Long term partnerships
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“Independent custom moulders”
– From the margin to the core of the portuguese industry customer base?
– Business policy implications
• How to close deals?
• And the network?
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Two business approaches for the future
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Multinationals / transnationals
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More integration and partnership
Lower volume
Complexity based specialization
Non standard approach
– “independent custom moulders”
• more volume
• Comercial arena to be (re)discovered
• “engineering & tooling” based
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Leverage the client base and industry networking
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Reinforce the industry based cooperation and marketing
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Reinforce the technologies competences
– Key roles of Technology Centres
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And the automobile industry?
– A new phase of innovation and change
• Opportunities and dangers
• More cooperative?
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Future will not be in technology and machines
– Although they will be necessary
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Future will call for a competitive repositioning of the business model
– Non technical soft skills will be critical
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Hope: the industry has a long tradition of change and flexibility
– Customers are to be prized!
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Thanks for your attention
Eduardo Beira