Localisation for Africa
SA Foundries pay significantly more for electricity and raw materials than BRIC counterparts .
foundry ) with a demand pull ( leveraging the unique requirements of customers ) to upgrade the foundry value chain ,” says Cunningham .
“ Customers want foundries that are good and getting better , they want foundries that have good internal measurement and control . They expect company-wide continuous improvement and ongoing investment in the foundry .
Many foundries can compete with European foundries on price and complexity , but cannot compete with Asian foundries on price and delivery speeds .
Manufacturers increasingly realise that they cannot be competitive if their supply chain does not give them an advantage . Thus they want flexibility and responsiveness , yet good prices so that they can enter new markets .
It cannot be denied - price matters , especially when entering new markets or reclaiming lost markets ” concludes Cunningham .
Interestingly , Spada and Cunningham concur on the topic of foundries not being good communicators in general and the absolute need to shift from the attitude of “ I melt metals ” to “ my foundry is a solution provider , focusing on the needs of the customer and delivering at the right price , quantity and quality ”.
Customers of the foundry sector face similar challenges ( energy , cost of labour , material and so forth ), so if it is streamlined from the start through communication , then the supply chain benefits .
In an ideal world , this means that the customer and the foundry should work together to find the balance that improves the casting process . foundries pay significantly more for electricity and certain raw materials than its BRICS counter parts .
In addition , South Africa ’ s labour cost in relation to productivity is cause for concern amongst foundries in the BRICS countries .
The BRICS Foundry Forum was jointly hosted by the NFTN and SAIF .
The National Foundry Technology Network ( NFTN ) is an initiative of the Dti and works closely with the South African Institute of Foundrymen ( SAIF ).
A study was commissioned by the National Foundry Technology Network ( NFTN ) to make meaningful comparisons between the various countries in relation to iron casting foundries . The results of the study indicate similar export patterns across all the BRICS countries , with most products destined for domestic markets .
The dominance of the automotive industry as a sector supplied by the foundry industry is not as pronounced in South Africa , where mining dominates .
When viewed as a percentage of production costs , labour costs in South Africa are the highest amongst BRICS countries ( 33.5 %) followed closely by Brazil ( 32 %). The other countries reported labour costs ranging between 8 % and 20 %.
Sharing insights at the BRICS Foundry Forum
Duncan Hope , Project Manager , CSIR MSM
Brad Harris - Director of Quality , Bremen Castings , USA
With the shift to localise , this means foundries need to step up and to develop along with their customers .
They need to really look for design improvement and design for better and or improved manufacturability . This will make it cheaper to manufacture after the casting process .
At the BRICS forum which preceded the MCC event , it became evident that South African
Adrie El-Mohamadi - Project Leader of the NFTN
Adrie El-Mohamadi , Project Leader of the NFTN , says that the study was commissioned to provide a snapshot of the iron foundry industry per country . “ Although the study looked at public sector support and incentives amongst BRICS countries , the issue is a complex one with many layers which needs further interrogation ,” she says .
Dr Shephard Bhero , UJ
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