What differenciates the European Foundry Industry?

When we look at the European foundry industry, we feel and see a decline. The volumes aren’t there anymore. However, is the industry really declining, or is it just somewhere else?

Last week, I attended the Executive Circle of the Euroguss Team, where we discussed increasing business for all European companies and breaking the trend. The trend is declining. From its peak in 2017 to today, 40% of castings are no longer here.

The industry’s projection isn’t favourable for people to enter, either. There are blacked-out production halls where everything is dirty and hot. Flames and molten metal are everywhere, and you have to wear protective suits all the time so that your workplace is basically a one-person sauna. Who wants to work in that utopia?

There is no Gigacasting without European Technology

Of course, some foundries still look like this, but most foundries with an interesting part spectrum are totally different. They are clean, highly automated, and have advanced processes. No more sweating in molten metal, more of process integration and optimization. It is a great place to work!

If we look at the castings produced in European foundries, many cutting-edge technologies have been developed here. Weldable, high-elongation HPDC parts were invented in Europe by combining knowledge. You needed good die-casting machines that allowed for nuanced shot control. You needed a clean, low-impurities alloy, an advanced venting system, and a sealed, high-precision tool. Add bleeding-edge release agents and spray systems, and then you have invented structural castings.

Structural castings have been the driving force behind the growth of foundries in the last two decades, and this is how these castings have become the global standard. They are a commodity right now, sold to the cheapest bidder on the portal. It is impossible to earn a living with shock towers in Western Europe.

The cutting edge today is Giant-, Mega-, or Gigacasting. One foundry in Europe has invested in large machines. All the other machines sold are to Chinese or American companies. However, without the technology from Europe, nothing would have been possible. I’m asking why it isn’t marketed to change the industry’s image. Sure, marketing alone doesn’t change the declining trend, but it does position the European Foundry industry as a global technology leader.

Why don’t we act like Technology Leaders?

As technology leaders, we can demonstrate and implement innovative solutions besides the gigacastings that solve problems for the final customer. Are these solutions easy to implement? No, of course not. They are hard to implement, and there is a learning curve.

There will be mistakes made. But there is no innovation as long as making mistakes means the end of your career. You will end up in a 1.5-ton vehicle with a 2.0-liter Diesel engine. Everything is done via a bidding auction on a non-transparent platform, and the advantage is on the purchasing side.

If you want to bring prosperity to the European foundries and their suppliers, you must show what an innovative powerhouse you are. Show how you solve problems your customer hasn’t even recognized yet. You have to market the benefits you bring. And that is not possible on a standardised purchasing portal. Go where no one else is and target the engineers who actually design the car and can impact its design.

Start marketing your Benefits to the Customers

So, what is the solution? Start marketing the benefits, not the features, you can bring to your customers now!

Let’s talk if you don’t know where to start or how to do marketing that works for business development and recruiting new talents. Scoll down and secure your Free Consultation Call today.