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

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

2. Tool, dye and industrial moulds

3. Industrial moulds exports (P)

4. MouldmakersNew entries (P)

5. Exports (P)

6. Exports (P)

7. Exports (P)

9. 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

10. Portugal (II)according to USITC (2002) • 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

11. Portugal (III)according to USITC (2002) • 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

12. 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

13. 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

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

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

20. Plastic / material Technology Part engineering drawings Mould design drawings Idea, concept Final Product DNC EDM Heat treatments Metal Technology 1970´s Mould injection test runs

21. Plastic / material Technology Part design Prototyping Pilot runs Customer integration Idea, concept Final Product CAD/CAM CNC Metal Technology 1980’s

22. 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 1990´s

23. 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 2000´s

24. A growing puzzle of techologies Plastic / material Technology Plastic / material Technology Idea, concept Final Product Metal Technology Metal Technology

25. 2000 • Moulding and plastics assembling offshores to China • Mould manufacturing to China • The customers are dropping the european mould makers ...

26. China

27. China

28. Luen Shing (PY) Industries

29. 7000 moulds per year

30. 2500 people

32. !!!

33. China

34. Zhejiang mould city

36. China

41. China

43. China

44. USA imports

45. Japan exports to USA

46. 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

47. 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

48. 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 • 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

49. 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

50. Restruturing • Higher funding needs • Reducing fragmentation by M&A • New actors?