Marketing is the Key to Industry Success
The die-casting industry has to gear-up in both technology and marketing activities. Foundries must adapt to new business opportunities, rethink traditional models, and attract talent to expand die-casting applications.
A key takeaway is that foundries must embrace flexibility when entering new industries. In telecom, die-casting faced missed opportunities due to rigid business models. Many foundries failed because they imposed automotive-driven practices onto a different sector. Instead of listening carefully and adapting to industry-specific demands, they stuck to standard procedures, losing potential markets. A customer-centric approach is crucial for success.
Die-casting has traditionally been volume-driven, with margins dictated by efficiency, machining services, and strategic material purchasing. However, growing global competition and price pressures threaten profitability. To sustain margins, foundries must evolve beyond volume-based strategies by offering design input, innovation, and additional services.
When Quality and Lean Management kills Innovation
Excessive overhead from quality and lean management processes is a major challenge. While necessary, over-specification, such as extreme porosity standards, leads to wasted resources and higher costs without tangible performance benefits. Foundries face bureaucratic slowdowns, excessive documentation, and unnecessary inspections, making them less agile and competitive.
Many non-European competitors operate with leaner structures, allowing faster iterations and customer response. If European companies want to survive, they must reassess how these processes serve the business rather than hinder it.
Traditionally reactive, the die-casting industry must now drive innovation. Engineers introducing casting to new applications to demonstrate how proactive engagement can open markets. Instead of just responding to demand on the portals, foundries should educate customers on casting’s advantages and new possibilities.
The Industry Needs a Mindset Shift
Many foundries still expect customers to understand HPDC instead of making it accessible. This inward focus disadvantages them, as unfamiliar engineers default to sheet metal or other methods. To succeed, foundries must position themselves as development partners, engaging OEMs at the concept stage, hiring engineers who advocate for casting, and investing in R&D to showcase potential.
For casting to secure its future, marketing must be flexible and proactive. Foundries must adapt strategies for different industries, maintain margins by offering more than raw castings, and attract professionals who expand applications. Most importantly, they must shift from being passive suppliers to strategic development partners.
With technology, expertise, and demand on their side, HPDC foundries have what it takes to thrive. However, without a marketing transformation and streamlined management practices, they risk losing ground to more adaptable manufacturing methods. The time for change is now.
Share:
Casting Insights⚒️
Learn about new topics around the foundry industry each Tuesday.
Subscribe to the newsletter with your E-Mail and become part of the community.
