Imagine the Energy was Free

We all know that the energy consumption of a foundry is higher than in most other businesses. Melting and rapidly cooling metal takes a lot of energy. Let’s make a mind experiment, and let’s say the energy you’re getting, whether it is natural gas or electricity, is free.

• How would your current economic situation change?
  
  
• What would your next offers look like?
  
  
• Is that the margin that wins you the new contract?

In this situation, you’re in an excellent position when your balance sheet’s energy costs are cut. That boosts your margin. You can also build a financial buffer to support you during hardship. So are all your problems solved?

I don’t think so!

When we look at the current product spectrum in the purchasing process, the target prices are between 10 and 30% below your current production prices. That is far greater than what you spent on energy!

Another problem is where you get new parts for your foundry. As the transition from combustion engines to electric vehicles has occurred, the number of articles in foundries has dropped from around 1600 to 400. How do you compensate for that loss?

This transition especially affects the smaller clamping forces. There is a massive oversupply of commodity parts, making it impossible to compete with low-cost countries for standard parts.

How do you get the next generation of workers, engineers, project managers, and IT experts to work at your foundry? The average age of a German foundry is 47. Free energy does not give you visibility and new apprentices. You need a good employer branding strategy to secure the survival of your organisation.

Market Development is the Solution

Using the energy cost increase as the sole issue of the foundry world is a cheap scapegoat. Writing letters to your local and governmental politicians will make them aware, but how do you judge the problem-solving capabilities of the current government? They will not solve your problems, as the issue is far below the surface.

• You need visibility to get new people who love working there into your foundry.
  
  

• You need to develop new markets for casting that have never seen a casting.
  
  

• You need new technologies to give you a speciality and an edge in specific markets.

Rheocasting is one of these technologies that can catapult you into market leadership. Think about battery castings or CO2 compressors without impregnation. Think about highly thermally conductive heat sinks with complex fin geometries that keep electronics from thermal throttling. Think about large structural castings or gigacastings that you can rivet and weld at the end of the filling.

Does that sound like a plan for the future? Learn about Rheocasting in the Rheocasting Workshop and find the perfect applications for your part and machine spectrum. Follow the link and schedule a Free Consultation Call today.