Eduardo Beira
European mould industry:Towards a new competitive positioning
Eduardo J. C. BeiraJ. Menezes
Eduardo Beira
Tool, dye and industrial moulds
-2000
-1000
0
1000
2000
3000
4000
5000P
ort
ug
al
Sw
itze
rla
nd
Sp
ain
Ca
na
da
UK
Ta
iwa
n
Fra
nce
Italy
Jap
an
Ge
rma
ny
US
A
import
export
internal market
Eduardo Beira
Industrial moulds exports (P)
0
10
20
30
40
50
60
7019
60
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
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MouldmakersNew entries (P)
0
1
2
3
4
5
6
7
8
9
10
1947
1950
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
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1995
1998
2001
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Exports (P)
0%
10%
20%
30%
40%
50%
60%
70%
80%19
60
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
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1998
2000
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Exports (P)
0
5000
10000
15000
20000
25000
30000
1960 1965 1970 1975 1980 1985 1990 1995 2000
€/ ton
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Exports (P)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 1992 1984
Brinquedos
Matr.Construção
Mat. Eléctrico
Ut. Domésticos
Electrodomésticos
Elect./Telec.
Outros
Embalagem
Ind. Automóvel
2001 1992 1984
Ind. Automóvel 27% 14% 1%Embalagem 18% 7% 13%Outros 18% 15% 7%Elect./Telec. 12% 9% 21%Electrodomésticos 7% 34% 9%Ut. Domésticos 7% 14%Mat. Eléctrico 6% 13% 6%Matr.Construção 3%Brinquedos 2% 8% 28%
100% 100% 100%
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Portugal (I)according to USITC (2002)
• Unique industry characteristic:– small industry dedicated almost exclusively to exporting
• 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
• 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
Eduardo Beira
• 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
Portugal (II)according to USITC (2002)
Eduardo Beira
• 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
Portugal (III)according to USITC (2002)
Eduardo Beira
• 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
Eduardo Beira
• Low cost was not the critical succes factor for the portugueses mould industry
– Portuguese mould manufacturing model• 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
MetalTechnology
Plastic / materialTechnology
Idea, concept
LathesMillingCopying
GravadoresPart models
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1960´s
Final Product
MetalTechnology
Plastic / materialTechnology
Idea, concept
Free form milling
GravadoresPart models
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1970´s
MetalTechnology
Plastic / materialTechnology
Final ProductIdea, concept
DNCEDMHeat treatments
Part engineering drawingsMould design drawings Mould injection test runs
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1980’s
MetalTechnology
Plastic / materialTechnology
Final ProductIdea, concept
CAD/CAMCNC
Pilot runsCustomer integration
Part designPrototyping
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1990´s
MetalTechnology
Plastic / materialTechnology
Final ProductIdea, concept
CAD/CAM/CAE integrationCIM
Customer partnerships“Nypro” model
Product engineeringPart design & PrototypingConcurrent engineering
CAEMould engineering
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2000´s
MetalTechnology
Plastic / materialTechnology
Final ProductIdea, concept
Rapid toolingHigh speed machiningSensors / Intelligente mould
First runs / mouldingProduct assemblingLogistics and distributionQuality certification
Product decorationDesign for competitive priceReal and virtual prototyping
In mould decorationIn mould assemblingMultimaterial moldingCycle time optimization
Eduardo Beira
A growing puzzle of techologies
MetalTechnology
Plastic / materialTechnology
Final Product
MetalTechnology
Plastic / materialTechnology
Idea, concept
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2000
• Moulding and plastics assembling offshores to China
• Mould manufacturing to China
• 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
0
200
400
600
800
1000
1200
1400
1997 1998 1999 2000 2001
imports
exports
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USA imports
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
2000 2001 2002 2003 2004
china
germany
taiwan
portugal
s korea
italy
spain
france
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Japan exports to USA
japan
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
100,0
2000 2001 2002 2003 2004
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And now?
• Our competitive values (versus China)
– 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?
• The traditional mouldmaker mould is running out– Especially for “large” mouldmkers (>60 people)
• A new business model is needed • A new commercial approach is needed
Eduardo Beira
• A new portfolio of skills and competences– Along the four directions– Anyway, an increase in complexity of operations and business
– More engineering– More innovation – More integration – More services
• AROUND THE MOULD
MetalTechnology
Plastic / materialTechnology
Final ProductIdea, concept
Rapid toolingHigh speed machiningSensors / Intelligente mould
First runs / mouldingProduct assemblingLogistics and distributionQuality certification
Product decorationDesign for competitive priceReal and virtual prototyping
In mould decorationIn mould assemblingMultimaterial moldingCycle time optimization
Eduardo Beira
– A NEW COMMERCIAL POSITIONING– More marketing
• Different level• Different contacts• International networking
– More commercial skills • 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
Eduardo Beira
• 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– Concurrent engineering– Certified quality– Plastic and metal advanced technologies– Long term partnerships
Eduardo Beira
• “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?
Eduardo Beira
• Two business approaches for the future
– Multinationals / transnationals• 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
Eduardo Beira
• Leverage the client base and industry networking
• Reinforce the industry based cooperation and marketing
• Reinforce the technologies competences– Key roles of Technology Centres
Eduardo Beira
• 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
• Future will call for a competitive repositioning of the business model– Non technical soft skills will be critical
• Hope: the industry has a long tradition of change and flexibility– Customers are to be prized!
Eduardo Beira
• Thanks for your attention