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.