Post on 29-Mar-2015
1WSM Wirtschaftsverband
Dipl.-Ing. Ulrich Galladé
President
Innovations in the steel and metal processing industry –
Challenges for medium sized companies and the entire value chain
METEC InSteelCon 2007
Düsseldorf, June 12, 2007
Wirtschaftsverband Stahl-und Metallverarbeitung e.V.
2WSM Wirtschaftsverband
Contents
Innovations in the steel and metal processing industry –
Challenges for medium sized companies and the entire
value chain
1. WSM
2. SMEs in Steel Processing Supply Chain
3. Innovations
4. Conclusions
3WSM Wirtschaftsverband
1. WSM – Market Data
Steel and Metal Processing in Germany:
4.600 Companies
Family owned Business
410.000 Employees
72 bn. € Turnover
24 Associations
4WSM Wirtschaftsverband
1. WSM – Supply Chain
• Semi-finished Products and Components
• End-Products
• Industrial Service and Treatment
• www.wsm-net.de
5WSM Wirtschaftsverband
1. WSM - Diversity
e.g. Cold Forging, Cold roll forming, Steel Wire, Iron Wire,
Plates, Sheets, Strip Metal, Cold drawn steel, sections
e.g. Fasteners, Chains, Springs, Gates, Wire Products,
Tanks, Vessels, Sheet metal working, pressed and drawn
parts, Powder Metallurgy, tubes
e.g. Surface-, Heat-, Hardening- or Mechanical- Treatment
6WSM Wirtschaftsverband
1. WSM - Core Characteristics
Steel and Metal Processing
Material Costs up to 60% and above
Medium-sized Companies
Market Pressure
by Supplyers and by Customers
„Sandwich-Position“
Politics in favour of SMEs
e.g. Innovation Policy for SMEs, International Accounting for
SMEs, Energy Policy, Tax Policy, Competition Policy
7WSM Wirtschaftsverband77WSM Wirtschaftsverband
1. WSM - Key DataCompanies in Steel and Metal Processing
3.600
3.800
4.000
4.200
4.400
4.600
4.800
5.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
8WSM Wirtschaftsverband88WSM Wirtschaftsverband
1. WSM - Key DataEmployees in Steel and Metal Processing
340.000
350.000
360.000
370.000
380.000
390.000
400.000
410.000
420.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
9WSM Wirtschaftsverband
0
10.000.000
20.000.000
30.000.000
40.000.000
50.000.000
60.000.000
70.000.000
80.000.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Turnover in Steel and Metal Processing
99WSM Wirtschaftsverband
Tsd. €
1. WSM - Key Data
Ausland
Inland
10WSM Wirtschaftsverband
2. SMEs in Steel Processing Supply Chain
EU-Definition of SMEs:
250 employees per company
50 million € turnover per company per year
Steel and Metal Processing in Germany:
100 employees per company (average)
15,6 million € turnover per company per year (average)
Family owned business culture
11WSM Wirtschaftsverband
2. SMEs in Steel Processing Supply Chain
Market Pressure
Steel Industry as a Supplier
highly concentrated in Germany and in Europe
Automotive Industry as an important Customer
highly concentrated in Germany and in Europe
High horizontal Competition
from inside Europe and from outside Europe,
especially from „low cost countries“
12WSM Wirtschaftsverband
2. SMEs in Steel Processing Supply Chain
Challenges for SMEs in the supply chain
• Differentiation from competitors -
Excellence in price, in quality, in service
• Cost-Efficiency
• Attractive for young academics and skilled personnel
• Global supply chain management
13WSM Wirtschaftsverband
3. Innovations
SMEs meet many challenges by Innovation
• Innovations and sustainable quality are means of differentiation, esp. from producers from low cost countries
• See examples from WSM-publication„Innovations – Values - Growth“, 2006
• Innovations in steel quality and in production process may also reduce costs significantly
• Innovations attract young academics and skilled personell
14WSM Wirtschaftsverband
3. Innovations
Structures of Innovation in Steel and Metal processing
• Hardly ever R&D-results from an SME‘s own research department only
• Cooperation – Vertical (with Supply Chain partners)• Cooperation – Horizontal (WSM: „FSV“ / „GAK“)• Cooperation – with Universities and Research Labs• Exchange of talented Academics / Networks• Role of R&D Funds (WSM et al.: „AVIF“) / R&D State Aid
15WSM Wirtschaftsverband
3. Innovations
Shortcomings of Innovation in Steel and Metal processing
• Lack of political incentives for transfer of technology
• Lack of Engineers
• Lack of Financial Ressources- equity ratio often too low- own innovation not booked as an asset in ballance sheets- revenues often do not cover costs sufficiently- customers often do not pay for innovation and know-how separately
• Lack of effectiveness in R&D-financial support (bureaucracy)
16WSM Wirtschaftsverband
3. Innovations
Improving Innovation in Steel and Metal processing
• Steel and Metal processing must be advertised by the whole supply chain as „innovative“ in order to attract young academics
• - Suppliers must focus on down stream customer‘s demands
- Customers must pay adequate prices for innovations / know-how
• Government should give better incentives for better transfer of technology to more flexible SMEs
- Freedom and Competition for Universities / Research Labs
- „Forschungsprämie“: program extension for horizontal research cooperations of SMEs
- Develop concept of Universities and Research Labs as „non-profit scientific service
providers“
• Procedures for R&D-financial support must be better tailored for SMEs and should be less bureaucratic
17WSM Wirtschaftsverband
4. Conclusions
Steel and Metal processing is an innovative sector, characterised by SMEs
Innovation is a challenge for the entire Supply / Value Chain
• Concerted advertisement for innovations in networks• Fair pricing• Focus on Down Stream Demands
Better Regulation: Government must focus on „transfer of technology“
18WSM Wirtschaftsverband
Dipl.-Ing. Ulrich Galladé
President
Thank you for your attention!
METEC InSteelCon 2007
Düsseldorf, June 12, 2007
Wirtschaftsverband Stahl-und Metallverarbeitung e.V.