'Hanging on' & 'dying': Perception of U.S. foundries is reality.

I recently returned from the four-day Society of Automotive Engineers (SAE) World Congress in Detroit. The 37,000 in attendance at this event (many of whom are transportation industry design engineers and purchasers) provided a look at our industry's health from a customer's perspective.

"The automotive industry's image of U.S. foundries is that they are just hanging on," said a prominent engineer from the auto industry (which, by the way, consumed 31% of the total casting demand in the U.S. in 2001). "They aren't top in class."

"There is no marketing of their (U.S. foundries') material or capability competencies," said a purchaser who makes his firm's metal component sourcing decisions. "We have no idea if this industry is advancing. We perceive it is dying."

Another thought to chew on-only nine firms operating U.S. foundries exhibited at a 1000-firm SAE show. Compounding that, numerous offshore casting suppliers were scattered throughout the show floor, including Korean and Taiwanese pavilions with up to 40 different suppliers (including foundries).

Why does the world's metalcasting leader appear to be fading while offshore sources are aggresively taking work from it un-checked? Why are Korean and Taiwanese foundries the dominant presence at a U.S. trade show?

Although a lack of marketing savvy is a big problem for U.S. foundries (as the transportation industry purchaser pointed out), the issue at hand is greater.

A case in point are the recent rumblings over an article MODERN CASTING ran on Kurdziel Industries' expansion into China ("From Western Michigan to China: The Kurdziel International Story," March 2002). Some foundrymen are upset that we published an article on a U.S. foundry sending work to Chinese "partners" at the "request" of its customers. By publicizing Kurdziel's success, I am told, the concept gains more merit, thus opening the eyes of more foundries and their customers to this option. The better approach from some's perspective, I guess, is to keep it under wraps so it will go away.

The thing is that, as I saw at SAE, the problem isn't going away. If you think things are going to improve by not talking about globalization, you are mistaken.

According to shipment data compiled at AFS, casting imports are expected to increase by 34% in 2002 alone. Lowcost, offshore sources have been gaining steam for 20 years and our response, for the most part, has been to beg the government for help.

Why can't we do more than that? Instead of looking to others for help, can we help ourselves?

Our goal must be a proactive one to better equip our industry to compete in the world economy. The goal can't only be reactive and focus on increasing the burden (tariffs or other measures) on offshore sources to decrease their position. These will be just temporary fixes with extensive economic/political repercussions. We must follow a sound plan that incorporates marketing, increased customer education, facility and worker upgrades, and government support to carry the U.S. foundry industry into the future.

This macro plan for our industry is up to the industry leaders and AFS, as some of the foundation has been laid via industry roadmaps and this month's AFS forum on trade. But the micro side is up to each foundry.

Individual foundries must take the initiative to keep U.S. castings in front of design engineers and purchasers at every turn. Individual foundries must take the initiative to sell the benefits of American technology, customer service and quality.

Take the initiative-don't let the perception that U.S. foundries are dying become reality. Who is ready for the challenge?

Alfred T. Spada, Executive Editor