Trends in Europe

  • Main Customers (60%) are car and truck producer
  • Volumes are not too bad; the cost side is a problem
  • Steel, personnel and energy are main cost drivers
  • Our main customers and their system suppliers often refuse to compensate cost increases
  • Concentration and globalisation in between OEM's continuing    we are asked to follow
  • Increasing number of system-suppliers rend to make us tier two or tier three suppliers    meaning price pressure
  • The general Platform strategy means higher volumes but also price reductions
  • E-business can be helpful but the tool of internet auctions are to be used carefully    rules needed
  • Supply-chain projects are becoming popular. Positiv total-cost thinking but also consuming internal recourses
  • The trend of downsizing engines, of more Diesel powered cars and four-wheel driven SUV means higher forging volumes
  • The trend of lightweight cars with demand for low energy consumption means weight-saving challenge for forgings
  • The European Forgers should try to be ahead of customer    this is not easy for small and medium sized companies
  • The small companies have a hard time to withstand the requests of the automotive customers
  • One way is to become a super-specialist but many of the forgers cannot move easily in that direction
  • One way is to organize themselves in their national association and try to act globally
  • Most of us is in the forging business, world-wide, is in the same boat    this demands for co-operation concerning common opportunities and threats

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