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moldmakingtechnology.com 17 FOR MORE INFORMATION Harbour Results Inc. / 248-552-8400 / harbourresults.com CONTRIBUTOR Laurie Harbour is president and CEO of Harbour Results Inc., an operational and strategic advisory company. to rise. As manufacturers look for ways to reduce costs, sourc- ing tooling in China is delivering a price advantage of as much as 35 percent while providing a comparable product. With the Chinese government supporting manufacturing there by providing subsidies to develop new shops and grow existing ones, domestic shops will continue to face expanding competition from this region. In addition, tool shops in China are delivering better quality than in the past. It is true that some Chinese-made tools still are not the best, but the level of quality and professionalism from that nation has risen dra- matically. In fact, many Japanese automotive manufacturers currently are using Chinese tool sources and teaching its sup- pliers more efficient processes. Now more than ever, it is critical that mold manufacturers work on "the business." Companies can no longer afford to guess or to do things the same way they were done in the past. With Slumping Exports, China Will Subside FIGURE 4 Leadership must gather and review both internal and external data. Triangulation of customer information, industry knowl- edge/historical performance/experience and external market intelligence are the cornerstones of developing a strategic plan. Near- and long-term strategic plans, coupled with a culture of continuous improvement, will help ensure that they are able to manage adversity within their businesses and leverage today's trends to optimize business performance. 60% 40% 20% 0% -20% -40% China's export growth has slowed, is negative in 2015 However, tooling demand from North America has increased Growth in Revenue for China Shops % Growth from Base Year 120% 100% 80% 60% 40% 20% 0% -20% 2010 2011 2012 2013 2014 2015 China Exports Y/Y by month Y/Y by Qtr Exports cumulatively were down almost 6% from Q3 2014; largest quarterly decline since GR 2012 slowdown was global Y/Y N change is USS$ 0% -3% 101% 21% 37% 62% Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Source: Alhambra.