Eduardo Beira European mould industry: Towards a new competitive positioning Eduardo J. C. Beira J. Menezes

Eduardo Beira Tool, dye and industrial moulds

Eduardo Beira Industrial moulds exports (P)

Eduardo Beira Mouldmakers New entries (P)

Eduardo Beira Exports (P)

Eduardo Beira Exports (P)

Eduardo Beira Exports (P)

Eduardo Beira

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

Eduardo Beira

1950´s Metal Technology Plastic / material Technology Idea, concept Lathes Milling Copying Gravadores Part models

Eduardo Beira 1960´s Final Product Metal Technology Plastic / material Technology Idea, concept Free form milling Gravadores Part models

Eduardo Beira 1970´s Metal Technology Plastic / material Technology Final ProductIdea, concept DNC EDM Heat treatments Part engineering drawings Mould design drawings Mould injection test runs

Eduardo Beira 1980’s Metal Technology Plastic / material Technology Final ProductIdea, concept CAD/CAM CNC Pilot runs Customer integration Part design Prototyping

Eduardo Beira 1990´s Metal Technology Plastic / material Technology Final ProductIdea, concept CAD/CAM/CAE integration CIM Customer partnerships “Nypro” model Product engineering Part design & Prototyping Concurrent engineering CAE Mould engineering

Eduardo Beira 2000´s Metal Technology Plastic / material Technology Final Product Idea, concept Rapid tooling High speed machining Sensors / Intelligente mould First runs / moulding Product assembling Logistics and distribution Quality certification Product decoration Design for competitive price Real and virtual prototyping In mould decoration In mould assembling Multimaterial molding Cycle time optimization

Eduardo Beira A growing puzzle of techologies Metal Technology Plastic / material Technology Final Product Metal Technology Plastic / material Technology Idea, concept

Eduardo Beira 2000 Moulding and plastics assembling offshores to China Mould manufacturing to China The customers are dropping the european mould makers...

Eduardo Beira China

Eduardo Beira China

Eduardo Beira Luen Shing (PY) Industries

Eduardo Beira 7000 moulds per year

Eduardo Beira 2500 people

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!!!

Eduardo Beira China

Eduardo Beira Zhejiang mould city

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China

Eduardo Beira

China

Eduardo Beira

China

Eduardo Beira USA imports

Eduardo Beira Japan exports to USA

Eduardo Beira 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

Eduardo Beira 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 Metal Technology Plastic / material Technology Final Product Idea, concept Rapid tooling High speed machining Sensors / Intelligente mould First runs / moulding Product assembling Logistics and distribution Quality certification Product decoration Design for competitive price Real and virtual prototyping In mould decoration In mould assembling Multimaterial molding Cycle 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?

Eduardo Beira 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