Aluminium Foundry
Foundry Boot Camp
In the competitive aluminium foundry industry, avoiding “home blindness”—the tendency to become too inward-focused—is essential for success. Embrace innovation by seeking diverse perspectives and external influences. Stay adaptable to market shifts, such as the rise of electric vehicles reducing the demand for traditional powertrain castings. Ensure you remain connected with customer needs to keep your products relevant in an evolving market.
In this declining environment, to overcome home blindness, your aluminium foundry needs an unbiased external view so it can stay ahead of the curve and thrive in a dynamic industry. Cost-cutting programs from the OEMs are around the corner.
Free Consultation
Do you need help unlocking the full potential of High-Pressure Die-Casting, Sustainability, and Rheocasting?
Casting-Campus GmbH helps you from the idea through the implementation into the production process. Book today a free consultation today to talk about your company’s potential.
What are the cost-cutting measures from the OEMs?
The cost of new developments skyrocketed, and the wrong product portfolio or the car makers' inability to deliver, hugely impacted sales. You have probably already seen the correction of the ramp-up curves for several models that don't sell. Your aluminium foundry’s calculation is now way off when the OEM doesn't buy enough parts from you.
Now, the real hammer hits! Volkswagen, in particular, spoke heavily about cost-cutting during the Q1 2024 earnings call. So, besides lower volumes, you will get a call soon, and someone will ask you how much you can reduce your prices. This is just the start and will soon turn for the worse. Here are some typical things that start to happen:
Increased Pressure on Suppliers:
These measures could put increased pressure on suppliers to reduce their prices, which could impact their profit margins. Suppliers might need to find their own cost-cutting measures to maintain profitability.
Long-Term Supplier Relationships:
These measures could impact the long-term relationships between the OEMs and their suppliers. Suppliers might feel squeezed by the cost-cutting measures and look for other customers, or they might work more closely with the OEMs to find mutually beneficial cost savings.
Consolidation of Suppliers:
OEMs might consolidate their supplier base to achieve cost savings. This would lead to increased competition among suppliers and potentially drive some smaller players out of the market.
Risk of Quality Issues:
If cost-cutting measures are too aggressive, they could potentially lead to quality issues. Suppliers might cut corners to meet price targets, which could impact the quality of the components they supply.
Investment in Technology:
Suppliers might need to invest in new technologies or processes to increase efficiency and reduce costs to meet cost-cutting objectives. This could lead to innovation but also requires upfront investment.
So, be prepared when the phone rings. Have a plan to reduce costs without impacting quality. It is way better to stay in business with your customers if you have already started implementing cost-saving measures. Do you know where to find long-term, sustainable cost-cutting potential?
How can you counter these cost-cutting programs?
Everyone looks first at the headcount, but you need talented people for the next upswing. It is much better to improve your internal processes because even the smallest inefficiencies in melting, casting, tool making, spraying, and heat treatment processes can accumulate significant costs over time.
By conducting thorough process analysis, optimising material handling, implementing energy-efficient practices, reducing scrap, ensuring quality assurance, optimising maintenance, fostering a culture of continuous improvement, and embracing data-driven decision-making, Casting-Campus GmbH can help foundries uncover and mitigate hidden inefficiencies, leading to significant long-term cost savings and staying in business.
Are you ready to embark on a journey of efficiency optimisation? Let us assist you and pave the way for sustained success in your foundry operations! Schedule a meeting today and get a teaser on such a process optimisation workshop for your aluminium foundry.
Do you want a sneak peak how much you have to streamline your foundry?
If you are a foundry eager to grow, listen carefully; there are a lot of insights into how to become a trusted supplier at Tesla. We discuss why having a mission is critical to giving the customer additional value. You can learn why things have to be different for EVs.
We give you our insight into where Industry 4.0 has to go and how this affects quality management as we know it. And to wrap it up we discuss the value people with different backgrounds bring to the foundry world.
HPDC and Gigacasting Newsletter Articles
The Role of Simulation in Risk Mitigation in Gigacasting
Discover how advanced simulation and risk mitigation strategies are transforming gigacasting in automotive manufacturing. Learn why tools like MAGMASOFT are essential for reducing defects, avoiding costly delays, and ensuring casting success at scale.
Trimming Tool vs. Straightening
Learn how to manage geometric distortion in Gigacasting with trimming tools and straightening techniques. Explore strategies for risk mitigation in large projects and the evolving values of car users impacting European manufacturers.
The NADCA Report
Experience insights from the NADCA show with highlights on U.S. die-casting innovation, international representation, and growth potential. Discover why American resilience and service culture set the stage for a thriving industry.
