Trends in Europe
- Main Customers (60%) car and truck producer
- Volumes are not to 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
