18 people who set out to explore the new world. The VDWF delegation trip to North America

Transcription

1 VDWF Dialogue 4/ people who set out to explore the new world. The VDWF delegation trip to North America by Fabian Diehr Seven days, two countries, one continent: In mid- September, an 18-member VDWF delegation set out for a one-week trip to explore North America. In Canada and the USA, company representatives of German tool and mold makers gathered fascinating impressions with their overseas colleagues. The VDWF delegation was headed by its association president, Professor Thomas Seul. To start, his conclusion about the North America trip: We encountered colleagues who not only received us with a warm and very friendly welcome, they proceeded to impress us with their high production standards and entrepreneurial spirit. At many of their company visits, the tour group from Germany was treated to in-depth insights into the production of goods and tools. In the process, they discovered how they were different, along with all they had in common with the North Americans. Such as the issue of a shortage of skilled specialists: In Canada as in the USA, the younger generation shows little interest in the toolmaker profession. At the same time, machines are becoming increasingly complex and difficult to operate there as well, reports Thomas Seul. Canada - The Immigration Country In the discussions with those responsible at the companies and for the production systems, the high regard for German tool and mold makers was always apparent. As Ed Bernard of Crest Mold in the Canadian town of Oldcastle phrased it, this was music to the ears of the German visitors, of course. In Canada and the USA, German engineering skill is greatly appreciated and respected. For all of us here, technology from Germany is the benchmark - in all areas. It s as if someone had launched a North American marketing campaign for you...you guys are the rock stars of the industry! So if you d like to try a collaboration, just let us know! We are accustomed to doing business in the USA and Mexico. The Canadians are open-minded and their country is ideal for immigration. That also became evident right at the beginning of the field trip that led the VDWF delegation into the affluent suburbs of the Canadian metropolis of Toronto in the province of Ontario. It was there, in Concord, that Riccardo Tesan, an Italian from Udine with a German wife, founded the Tesan Mould company in In 2015, Austrian toolmaker Haidlmair invested in the company and acquired 50 percent of the shares in the 30-person enterprise. Since then, Haidlmair has been investing a great deal of money into constant replacement and upgrading of the technology and exchanges employees between sites in Canada, Austria, and Hungary, to some extent even long term - for many years. The know-how transfer improves the company s competitive position. The focus in Concord is on the manufacture of tools for furniture, boxes and crates, flowerpots, and a few automotive parts. The remarkable thing: At Tesan Mould or Haidlmair North America, migration is the solution for the lack of qualified Canadian specialists. Lucas Tesan, junior boss and son of founder Riccardo Tesan: We are all very happy with our immigrants. When we post a job for a technician, we quickly receive 20 to 30 applications. They include many immigrants who possess skills as craftsmen in metalworking and are prepared to work in our industry. Many young Canadians no longer want to get their hands dirty and seek office jobs. Incidentally, for the Austrian-Canadian company, thinking and working simultaneously in the metric and American inch system is routine. We Canadians have two brains, Lucas Tesan explains. With inches, it s very easy: you work with pictograms. An inch, divided by 64, and then the multiples of that. On the other hand, the metric system - the worldwide standard in science - is characterized by a wide variety of numerical values. Here calculating is like writing letters, says Tesan... Windsor the tool manufacturing cluster in the heart of North America The VDWF delegation then made its way from Toronto to the heart of Canadian tool and die making. Since the late 1940 s, that heart has been beating on the border to the United States, in the city of Windsor, across from Detroit. The Detroit River is all that separates the Canadian capital of toolmaker expertise from the motor city. In the past, around 90 percent of the Canadian tool shops were located in Windsor; and even today, it s still over 70 percent. 85 percent of what is manufactured in Windsor is for the automotive industry, and almost 100 percent of the tools are destined for export. Impressive for the members of the VDWF delegation: The town of 210,000 residents has as many as three injection molding shops, that specialize in mold trials for injection molding tools.

2 62 VDWF Dialogue 4/2018 However, the toolmakers around Detroit find themselves in something of a gilded cage. They know that they constantly get orders from the Big Three GM, Ford and Chrysler - even if it means having to disclose their calculations, explains Stephan Berz, Vice President of the hot runner systems manufacturer HRSflow. Automotive giant General Motors (GM) presented its own system for open book calculation to the guests from VDWF. That leaves the toolmakers with only the choice of you do things according to our terms! or you re out!, explains Berz, an engineer himself, who lived and worked in Detroit for several years. The tier-1 suppliers undoubtedly feel more or less patronized here. At the outset, no one was thrilled with this transparency program, but after five years run time, they ve all gotten used to it. GM is the owner of the tools and would like to establish uniform quality standards for the toolmakers that are recommended to injection moulders. Riccardo Tesan (bottom right), founder of Tesan Mould in Concord, Ontario, in conversation with the visitors from the VDWF. In 2015, Austrian toolmaker Haidlmair invested in the company and acquired 50 percent of the shares. Windsor He describes the proximity to the automobile industry as a problem: In Windsor we have access to a lot of low hanging fruit, all of the new tooling required from GM, Chrysler and Ford, vehicles and version changes, keeping us busy but creating a narrow market complacency. As the former president of the (CAMM) Canadian Association of Moldmakers, Bernard speaks for all his colleagues in the country. WE GLOW FOR YOUR SUCCESS. meusburger.com/gluehen

3 We should also deal with industries such as medical technology or housewares. That s where we Canadians and even Americans are not as well equipped as the Europeans. Toolmakers in the Vortex of Politics The business with Mexico has become a hot topic for the industry - thanks to politics. In the morning, we no longer look at the machine data, but at what Trump has tweeted, says Ed Bernard. That s why the exchange of ideas at the delegation level is so important because, in the age of Trump, we have to find direct trade routes. The fact that the USA, Mexico, and Canada have agreed on a new North American trade accord - the successor to NAFTA - ought to ensure relief in the industry. In 2018, 3.4 million motor vehicles will be produced in Mexico; by 2020, it s expected to be 5 million. The suppliers are part of that. That in turn requires that toolmakers are on the ground in order to guarantee servicing the tools. In the past year, tools worth 1.7 billion dollars were purchased in Mexico, with 84 percent of these coming from abroad. However, there are only about 160 toolmaker companies in Mexico. So the demand is great, but the labor market for that is rather thin.

4 64 VDWF Dialogue 4/2018 Integrity Tool & Mold in Oldcastle, Ontario, is a start up, if you want to call it that. Founded 18 years ago, today the company manufactures around 400 tools a year, with over 600 employees at seven locations in Canada, the USA, and Mexico. The Integrity branch in Tennessee supplies automotive manufacturers in the US southeast. Around 7 percent of all cars and vans made in the USA are produced in Tennessee. What s more, in 2012 the company was one of the first toolmakers to show a presence in Mexico. At present, there are around 150 employees working at the Integrity plant in Queretaro.... and we continue to accelerate!

5 VDWF Dialogue 4/2018/65 There are far fewer toolmakers in Canada than there are in Germany, says Bernard. Thus, the industry is even more invisible here than it is with you. Several toolmakers also went public, which did a great deal to help enhance the presence of our profession. However, the entrepreneur sets the American industry in a totally different context: For 1.2 billion dollars, someone could buy all the tool and mold makers in Canada, and for 1.8 billion dollars, all those in the USA. So 3 billion dollars is what you need to gain total control of molding plastic in our hemisphere," says Bernard. If you take a look at how important we are for large-scale industry - without us, granulate doesn t take on shape or function - then it s actually astonishing that we are at each other s throats in Canada and the USA to fight for a few dollars so we can proceed to offer them at lower prices. The American toolmakers complain that their Canadian colleagues are producing at 30 percent below their price levels. That is why fierce competition prevails between the neighbors. The American toolmakers feel neglected because they have a sense their government does not support them as strongly as, for instance, the Canadians do, explains Stephan Berz, Canadian enterprises are supported by their government in financing projects to allow them to cope with the long payment terms that are common in this industry. They are a result of the sampling procedure for series production parts, the Production Part Approval Process (PPAP) customary in a North American industry, heavily shaped by the automotive sector. The Americans benefit from the fact that made in North America is extremely important to most of the companies in the automotive industry. The market in the tool business and in plastics production is a very closed one, says Berz. Europeans are accustomed to purchasing their tools in other regions, such as from China. In the US, most of the tools for the automotive industry are made in the North American region and they stay there. They confine themselves to local suppliers. That is historical tradition and is based on national pride in the country. However, thanks to a strong dollar and rising production costs in emerging economies, for the past two years even those tools that had been ordered from abroad are increasingly returning to America. Re-shoring is a term that is currently making the rounds in the tool and mold making industry in the US. YEAR END PROMOTION adjustable inserts flexible cable protection various file sets ring bolts limit switches Your high-performance partner for tool and mold making KNARR.com

6 66 VDWF Dialogue 4/2018 Battle for the Minds Get-together with Dianne Deslippe (centre), Managing Director of the Canadian Association of Moldmakers (CAMM) and board member Tim Galbraith (right) I have nothing against trade unions, but they don t work in our industry, Galbraith explained when he guided the VDWF delegation through his company, Cavalier Tool in Windsor, Ontario. Our profession is underappreciated, says Bernard. The industry does everything it can to generate interest with young talent. Companies invite parents and their children to guided tours or go right into the schools to attract young people. We have now succeeded in convincing the government of our critical importance. They realize that we have more staying power than the oil industry or Blackberry. And in the meantime, toolmakers are no longer listed under cutlery in the Canadian government industry index, adds the Crest-Mold employee almost a bit amused - but above all concerned. Another stop on the VDWF delegation tour was with Tim Galbraith, Sales Manager at Cavalier Tool in Windsor. An impressive, highly structured operation with 140 employees. By consistently increasing efficiency, over the past six years, the company has succeeded in doubling its sales from 16 million to 32 million euros. For instance, Galbraith established a 12- member engineering team in India for construction and mold flow simulations. Staffing for this undertaking was simply impossible to find in Canada. Galbraith, who is also on the board of CAMM: We are open for collaborations, we welcome everyone. We tend to see opportunities here. That s because our biggest problem is finding talented employees. We can teach the skills. Unfortunately, you cannot learn how to work hard... Quality is no accident. Specialist for graphite, electrodes and accessories.

7 VDWF Dialogue 4/2018/ 67 At Cavalier Tool we work 7 days a week Five weekdays in three-shift operation and Saturday and Sunday in two 12-hour shifts each. Galbraith: In tool making, a 55 hour work week is typical. Employees demand that and voluntarily waive the minimum number of 44 working hours per week in their employment contracts. Everything beyond that is paid at the overtime rate of 50 percent bonus. By the way: In Canada, as in the US, paid vacation depends on the length of employment with the company. 5 to 10 days are the standard. Some companies do not even offer paid vacations. Knowledge sharing in Niagara-on-the-Lake, Ontario with the Canadian and US representatives of Hasco, the manufacturer of standard mold units, based in Lüdenscheid, Germany. Roland Pfletschinger of Pfletschinger & Gauch was impressed by the work ethic of the Canadian colleagues. All the workers who showed us something were proud of what they set in motion, what they build or create. They didn t care about working over 50 hours a week, explains the 52-year old who himself had worked in Canada for a year when he was a young engineer. VDWF Vice President Anton Schweiger sees the American work time model as generating capacities and a competitive edge. The companies are staffed 7 days a week. So damages that occur at clients on Friday can be repaired over the weekend. Schweiger was also impressed by Galbraith s corporate structure. The philosophy here is growth through efficiency - not with blind expansion. SINCE 1926 OKAMOTO MACHINE TOOL WORKS LTD. JAPAN GRIND-X ACC 818NC PRECISON PROFILE GRINDING MACHINE PERFECTION IN FORM AND TECHNOLOGY MEETING POINT: HALL 3.0 BOOTH F10 OUR PARTNER: JOSEF BINKERT AG OKAMOTO MACHINE TOOL EUROPE GMBH Raiffeisenstraße 7b Langen - Germany Phone: +49 (0) Fax: +49 (0) info@okamoto-europe.de

8 68 VDWF Dialogue 4/2018 Cavalier Tool has a clear structure, and one immediately realizes that the company is distinctly focused on its highly sophisticated processes. That includes getting rid of a machine after ten months in service if it hasn t performed as hoped. In terms of technologies and digital interconnection of the workflows, this is absolutely on par with German levels. Automated assembly line at Windsor Mold in Windsor, Ontario (above), und progressive compound tools at Haerter Stamping LLC in Kentwood, Michigan Inspection of plastic parts at the HRSflow technology department in Byron Center, Michigan Visiting the International Manufacturing Technology Show (IMTS) in Chicago, Illinois, and visit with VDWF member DMG Mori Securing the Future through Automation High-tech automation - but in a totally different dimension - is what the VDWF delegates experienced at Windsor Mold. The family-owned business was founded in 1972 and has since developed and grown into a parts manufacturer, which currently employs 1300 people in Canada, the US, and Mexico. At the Canadian tool making company in Windsor, the German colleagues encountered an outstanding production line for tooling inserts. Four milling centres, featuring automated connections to a pick and place robot and to an electrode production line situated just opposite. Over the past 5 years, Windsor Mold has invested 30 million euros in this structure. The seven employees who work on the line achieve annual revenue of 27 million dollars. And in the coming two years, plans call for investment of an additional 35 million euros for machines and systems - and all this without having to take out loans. Thilo Krumm, Managing Director at Formotion: In the production area, the dimensions and sizes of the halls was impressive. The 50- ton cranes alone demonstrate what is being undertaken here. And the automated interlinking of the milling machines - based on the size and sound of the shuttle systems, it felt as though an ICE intercity express train was arriving. Amazing! Our automation strategy has empowered us to take back 80 percent of the jobs that we had lost to China. In the next two years, we re going to get everything back, declares Patrick Martyn, Senior Business Development Manager at Windsor Mold. And why? Because I have children, and they want to have jobs here in our country! Klaus Felker, Director of Sales at Tebis, was more excited about the software at Windsor Mold: At this company, it was very impressive to see how over a period of 16 years a database tool was programmed so that it maps all production stages. The Estimator requires 30 minutes to complete a quotation costing. That s incredible! Although it must be said that no more than 5 percent of the quotations actually result in an order. Europeans are investing in the USA Continuing its North American road trip, the VDWF delegation crossed the Detroit River from Windsor and arrived in the United States. The destination, 160 miles west of Detroit and near vast Lake Erie, was Grand Rapids, Michigan. The greater area of the 200,000 inhabitant city is where several tool and

9 VDWF Dialogue 4/ mold makers with German and Danish roots have settled. For instance, it is where the Königsbach stamping technology company, Härter, founded its US subsidiary in In Kentwood, the 70-person operation manufactures precision stamped parts, metal-plastics components, and complete assemblies. An in-house tool making facility with 10 employees provides the tools. In 2015, HRSflow built the newest of its hot runner systems manufacturing plants in Byron Center, near Grand Rapids. What is special about it? The structures and systems at the sites in Italy, China, and the USA are not only the same, they have identical standards. From the milling system to the production strategies all the way to the machinery. Even the concrete for the foundations was poured by the same construction company on all three continents. That provides for a production-related advantage: It ensures that vibration conditions for metal processing are exactly the same in all the plants. VDWF President Thomas Seul: Each and every production process at HRSflow is interchangeable on all continents. Above all, this allows for mutually supportive interaction all over the world. An interesting approach that we were able to see here. When it comes to investment in the US by German toolmakers, Berz suggests taking a look at the southeast. That is where the international automakers have established themselves and they are desperately seeking toolmaker expertise. German automotive manufacturers purchase these tools in Europe for their plants in the US, but they do not have any local contact partners who would be capable of professionally maintaining these tools. And guaranteeing this service from Windsor or Detroit would be somewhat like providing support for a production in Portugal from Frankfurt, Germany. That is why it is definitely interesting for toolmakers to open their own centres in the southeastern part of the USA. If every organization were to send its best employee down there for three or four years and a group of about 30 welltrained toolmaker specialists were to emerge, the great demand would allow you to establish something really big. Given the great investment and the loss of employees, however, this would of course put a dent in the operation. Conclusion for Berz: One company alone could not achieve this. Collaborations would be conceivable. I facilitate quality and safety. Specifications for injection molding tools 2.0 With the updated HASCO tool specifications, mold makers and clients can define the details in the design of complex forms together. Clear evidence for the established quality control process. Detailed information guarantees full traceability all the way to the suppler. Protection against defective products, minimization of the downtime risk, ensuring the overall economic efficiency of one s own production process. In addition, however, an insight gained by the members of the VDWF delegation in the US should be considered. We always have a sense of being very close to the Americans in terms of culture, says Berz. You get in touch with each other quickly, but anyone who takes a closer look at business customs and practices, quickly realizes that the culture is completely different... From a technical perspective, the Americans have great confidence in their capabilities, according to Berz. They try things out and test them. If they fall, they pick themselves up and keep on going. They are definitely ahead of us in this regard. On the other hand, there is the matter of hire and fire. It takes courage for an employee to present something new. If the idea isn t good, then you re out.