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ET 2012
posted by: Paul Robbins
A time of unmatched opportunity
I am the General Manager of Castool Tooling Systems, a manufacturer located on the outskirts Uxbridge that services the global aluminium extrusion and die cast industries. About 50% of these sales are to the automotive industry.
Castool moved to Uxbridge from Scarborough in November 2006. We employ 86 skilled people. The move has been very good for the company, our employees and Uxbridge.
It's about time an article was published about the present economy that is somewhat positive. So I'm writing it.
It is not that I have my head in the sand. Being in manufacturing, I know how challenging the business environment is. We are paying for an era when financial engineering counted mole than breakthrough products and services. We were deluded by unsustainable growth figures and lost track of our long-term priorities.
Just now, following the recent economic meltdown, our economy, our productivity and our lifestyle, are all in the process of being reset. Industry cannot ignore this fact. We must accept it and adjust to much more challenging business environment for foreseeable future.
I believe that we are entering a period of unprecedented and virtually unlimited opportunity for our industry as well as others. Automakers throughout the world are urgently redesigning and retooling to produce smaller, lighter vehicles that will cost less and use less fuel. The fact that if the weight if a vehicle is reduced by 10% the fuel consumption is reduced by 6-8% means that the strength to weight ratio of steel, plastic and aluminum for every component of these new models is now being carefully compared. This will inevitably result in a much-increased demand for aluminum product. There is also an additional factor involved in this equation.
A critical but as yet seldom-articulated factor in the future use of aluminum products is the influence of Generation Jones. This is a term used to describe the generation of people of born between 1954 and 1965, right after the well-known post war ‘Baby Boomers’ who dominated our culture so long. Just now Generation Jones, aged 45-55 has commanding presence in both industry and politics.
More than a quarter of all adults in North America and Western Europe are Jonesers To date they have been a largely anonymous generation, but with some consistent and clearly defined characteristics. For our industry, the most of these is a strong sense of responsibility for the protection of our global environment. With regard to the use of aluminum in the automotive sector for example, to a Jonsener a fact that a lighter car using less fuel produces less green house gas emissions is almost important as it reduces the cost of operation. He will also be attaracted by the recyclable potential of aluminum products. All of this influences the Jonesers support of anything that will increase the profitable use of aluminum.
The best time ever for die casters to improve their productivity and profit is now. The opportunity is immediate.
The one undisputable truth is that only creativity and aggressive innovation will fuel a turn around. The Chinese symbol for change is in fact two symbols risk and opportunity. Change does not arrive via miracle. It requires a kick-start.
Adversity traps our strength. Too often we retrench or maintain, what we actually need to do is stretch.
There are only two ways to grow. Take inventory of what you are good at and extend out from your skill OR determine what your customer needs and work backwards even if it requires to learn new skills. It is prudent to do both.
Change can start with small measures and it can be rewarded with small prizes. I read this example the other day. Toyota receive 1.5 million employee suggestions every year. The employee with single best idea gets a fountain pen. Lehman Brothers (who just went bankrupt) gave one million dollar bonuses.
The future does not play favorites. It has no winners or losers. It has no trends, business challenges or emerging market. Because the future has not happened yet, it is a blank sheet a clean slate and uncharted. How will we shape it? Together we can create the future. There are opportunities around us. Very few are raking them. Lets get creative and aggressive and build Uxbridge’s future.
The market has been reset. Yesterday, the choice was cheaper or better. There is no longer a choice. Today the product must be cheaper and better. It will never return to the standards of quality, service and price that was acceptable in the past, but the technology is rapidly improving to meet this challenge.
The market is there. The improved technology is available. The time is now.