The die casting podcast on EUROGUSS 365

The European automotive industry is steering into one of its most turbulent periods. It is caught at the crossroads of structural transformation and intensifying competition. With ambitious EU mandates driving a shift to EVs and Chinese manufacturers aggressively entering the market, legacy carmakers are under pressure to innovate and remain competitive. Stagnating sales, high production costs, and policy uncertainties have compounded the crisis, threatening jobs and economic stability in the automotive sector. This crisis directly impacts the European foundry industry, as OEMs and Tier 1s are the primary customers.

In this context, the initiative from the Euroguss Team with the Executive Circle stands out as a beacon of collaborative innovation. The Executive Circle brings together top decision-makers from the die-casting industry to foster collaboration and work on five key topics to boost the European foundry world. The proof is that decision-makers with full schedules took the time to meet and discuss at one spot. 

In the first Executive Circle, five topics were identified as the major contributors to the future of the European foundry industry. The first is the Network Mindset, which we discussed in Gold Nugget 33 with Benjamin Jung from Heck & Becker. In the podcast, we identified the following challenges for the industry as a team to solve, which is the first point.

 

1. Need for Collaboration

Collaboration was a recurring theme throughout the discussion. The die-casting industry is seen as fragmented, with companies and regions often working in isolation. Unlike other areas, such as Korea, which implements coordinated efforts to dominate the EV market, European die-casters usually hesitate to share resources or collaborate due to competition and mistrust.
The podcast suggests building networks that bring together OEMs, toolmakers, and foundries to pool expertise, share risks, and drive innovation. Examples from other industries and regions highlight how collaboration fosters innovation and makes industries globally competitive.
A particular success story mentioned is the collaboration among competitors in the Executive Circle, which shows the potential of transparent partnerships. However, this cultural shift from competition to cooperation requires significant effort and trust-building.

 

2. Challenges in the Die-Casting Industry

The podcast opens by addressing the prevailing stereotypes about the die-casting industry. It's often viewed as a "dirty and outdated" sector, operating under antiquated conditions like the 1960s. However, this image is outdated. Modern foundries are technologically advanced, sustainable, and cleaner than ever. They contribute significantly to industries like automotive manufacturing and green technologies, yet their contributions often go unnoticed.
One primary concern is the difficulty in attracting new talent to the sector. Due to outdated perceptions, the industry struggles with a lack of visibility and appeal, particularly among younger generations. Revamping its image to reflect its modern, innovative, and environmentally conscious practices is essential.

 

3. Reimagining Innovation and Marketing

The speakers criticised the industry's reliance on incremental improvements (e.g., reducing part costs by fractions of a per cent) as insufficient for long-term growth. Transformative approaches, such as redesigning entire manufacturing processes and embracing technologies like Gigacasting or Megacasting, are necessary to stay competitive.
Beyond innovation, the industry must prioritise strategic marketing. The lack of visibility on platforms like YouTube was noted as a missed opportunity. Unlike other industries that actively engage audiences online, the die-casting sector remains virtually absent. A robust marketing campaign could target multiple audiences. 
For young talent, the most important topic is showcasing the industry as a high-tech, exciting career path. For policymakers delegates need to demonstrate the industry's contribution to sustainability and local economies. Consumers and businesses need to be educated about the hidden role of die-casting in everyday products.  In all of these directions, developing consistent, engaging content is seen as a crucial step to rebranding the industry.

 

4. Energy Costs and Policy Advocacy

Energy costs in Europe are a significant challenge for die-casters, who are naturally energy-intensive. The high electricity and energy tax costs in countries like Germany put local industries at a disadvantage compared to global competitors who enjoy governmental subsidies or lower energy prices.
The industry must actively lobby for policy changes to secure fair energy pricing and advocate for the benefits of local production, such as reduced carbon footprints and stable supply chains. The podcast stresses the importance of raising awareness among policymakers about the industry's economic and environmental contributions. Without such advocacy, production risks being outsourced to regions with fewer sustainability concerns, effectively "exporting problems" rather than solving them.

 

5. Importance of Leadership and Communication

The podcast underscores the need for leadership at multiple levels, including within companies, industry groups, and the political sphere. Strong leadership can foster trust and collaboration among stakeholders and guide the industry through significant transitions.
A key challenge is the lack of effective communication. Without a unified voice, the industry struggles to influence policymakers or attract new talent. The Executive Circle, a group discussed in the podcast, is a promising platform for fostering stakeholder dialogue. However, more needs to be done to create and sustain this momentum.
Effective communication strategies for the various channels are also essential. These would involve crafting targeted messages for different audiences, from young professionals to senior policymakers, and utilising various channels like social media, conferences, and lobbying efforts. A well-planned communication strategy could establish the die-casting sector as a leader in innovation, sustainability, and economic development.

The public view of a foundry is a dirty, dark place with hot metal and flames everywhere. Combined with a large amount of manual labour, this picture is not appealing to a generation that wants to become influencers.

However, it is possible to attract talent even today with transparency and the power of social media. In Gold Nugget 36 of the Goldcasting Podcast, Fabian Niklas and Staffan Zetterström discuss with Carsten König innovative strategies to address these challenges, emphasising the importance of employer branding and modern recruitment techniques. Here, we explore five key insights from the discussion, offering a comprehensive roadmap for industry transformation.

1. Redefine the Industry’s Image with Employer Branding

Employer branding is more than a buzzword—it’s a strategic necessity. The foundry industry must move beyond traditional recruitment practices to position itself as an attractive, forward-thinking career choice. This involves showcasing the industry’s innovation, sustainability efforts, and growth opportunities.

For the younger generations value purpose and alignment with their personal values is crucial. Companies need to market themselves not just as workplaces but as mission-driven organisations contributing to global challenges like sustainability. For example, Tesla, with its emphasis on clean energy and innovation, serves as a model for how a strong brand can transcend industry stereotypes to attract talent—even in roles traditionally considered unappealing.

2. Overcoming the Challenges of Attracting Talent

The podcast identified key obstacles in attracting younger workers, who often perceive manufacturing jobs as unattractive. Today’s workforce prioritises flexibility, work-life balance, and purpose-driven roles. To compete, the foundry industry must redefine its value proposition.

Recruitment efforts should highlight aspects beyond salary—such as a company’s role in creating cutting-edge technology or its commitment to employee development. Social media and influencer-style campaigns showcasing dynamic and fulfilling industry roles can help shift perceptions. Addressing these challenges requires a fundamental understanding of what motivates today’s workforce.

3. Building a Sustainable Pipeline with the Apprenticeship Model

Germany’s apprenticeship model emerged as a powerful example of how structured training programs can bridge the gap between industry needs and workforce capabilities. Apprenticeships offer dual benefits: they allow companies to evaluate young talent over time while providing trainees with practical skills and a clear career path.

The global success of companies like Grob demonstrates the versatility of this model. With apprenticeship programs in Germany, the U.S., Brazil, and China, Grob has built a robust talent pipeline tailored to its needs. Beyond technical training, these programs provide apprentices with cultural exchanges and job rotations, preparing them for leadership roles in a globalised workforce. Companies worldwide can learn from this approach, adapting it to their specific contexts.

4. Speake the Language of Youth with Storytelling on Social Media

To connect with younger generations, the foundry industry must meet them where they are—on platforms like Instagram, YouTube, and TikTok. The podcast emphasised the power of storytelling, particularly through authentic employee experiences.

Rather than relying on polished corporate videos, companies should empower employees to share their journeys and daily experiences through short, engaging clips. For instance, apprentices can document their growth, offering a firsthand look at the opportunities within the industry. This not only humanises the company but also builds trust with potential recruits.

Importantly, social media strategies must be localised. What resonates in Europe may not work in China or South America, so companies must tailor content to regional preferences and platforms.

 

5. See a Long-Term Engagement and Invest in Employees’ Futures

Recruitment is only the beginning. Retaining talent requires a clear focus on long-term employee development and satisfaction. The podcast highlighted several initiatives to engage employees and create a sense of belonging:

• Job and Location Rotations: Allowing apprentices to explore different departments and global offices helps them comprehensively understand the company and find their best fit.
• Unique Incentives: Offering perks like electric cars for top-performing apprentices motivates excellence while reinforcing the company’s commitment to its employees.
• Career Development Pathways: Providing clear advancement opportunities ensures that employees see a future within the company.

These strategies create a cycle of engagement where satisfied employees become brand ambassadors, attracting even more talent.

 

A Call to Action for the Industry

Carsten concluded with a powerful message: “Whining about the talent shortage won’t solve the problem. Instead, companies must act.” Even small foundries with limited resources can implement impactful changes, such as employee storytelling and localised social media campaigns. Authenticity, creativity, and a willingness to adapt are key.

The foundry industry is at a turning point. By embracing innovative recruitment strategies and investing in long-term employee engagement, it can overcome its challenges and secure its place as a dynamic, future-ready sector. For industry leaders and those who want to become one, the time to start is now!