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44 MoldMaking Technology —— MAY 2017 INTERNATIONAL PERSPECTIVE Think Global, Act Local, and Cooperate Cooperative manufacturing, optimization of internal processes, and Toolmaking or Industry 4.0 are three strategies for remaining globally competitive. By Barbara Schulz There is a paradigm shift in the European tool and moldmak- ing industry, believes professor Thomas Seul, vice president for research and transfer at the University of Applied Science in Schmalkalden, Germany, and president of the Association of German Tool and Mould Makers (VDWF). Just 20 years ago, tool and moldmaking companies in Germany and Europe were all watching each other closely, but everyone was fighting their own battles. Today, this competition is more or less a thing of the past, because there is a genera- tional change happening. The new generation of company owners and managers count on cooperation with other mold shops or even competitors in order to remain globally competitive, and the moldmaking business is an increasingly global one, Seul believes. Companies have to increasingly "think global, act local" and find local partners in booming markets such as Mexico or Asia. I recently spoke with Seul about this topic to get his viewpoints. You have been very with familiar the German and European moldmaking industries for a long time now. What are some strategies for remaining competitive that apply equally to German and American shops? Professor Thomas Seul: I believe that it doesn't matter whether you are making tools or molds in Germany, other European countries or the United States. Germany, like the U.S., has a big domestic market but is also facing globaliza- tion issues, such as com- petition from low-cost countries, price competi- tion, increasing demands on product quality, as well as increasingly complex tools. In my opinion, there are three strategies: 1) cooperative manufactur- ing, which allows shops to open up new and bigger markets; 2) optimization of internal processes to ensure the best service and on-time delivery; and 3) Toolmaking or Industry 4.0. Can you elaborate more on cooperative manufacturing strategies? Seul: There is a new generation of company owners and managers today that recognizes the importance of partner- ships and capacity-sharing with other mold shops that might sometimes be competitors, because others' capabilities and capacities might complement both businesses. The "older" generation, which is slowly handing over the business to its children, has not been very open to sharing its knowledge or capacities with competitors in the past. Today, people have different mindsets. The younger generation is more open to share capacities and to network. Can you provide an example of this cooperative manufacturing? Seul: One in particular is Eisenach-based moldmaker Gezea. Henning Köllner, who took the company over from his father not long ago, is an advocate of forming clusters within the tool and moldmaking sector to eliminate bottle- necks and benefit from each company's specific expertise. He is working closely with Werkzeugbau Ruhla in Seebach, Germany, to manufacture complete tools or electrodes for them, if necessary. Do you have an example of Industry 4.0 in practice? Seul: Yes. Germany's Toolmaker of the Year (an annual award presented by a jury in Aachen), Phoenix Contact's tool shop. The shop runs several automated cells that include milling and EDM, and has embraced the idea of maximum visibility and transparency. It is today probably one of Professor Thomas Seul, vice president for research and transfer at the University of Applied Science in Schmalkalden, Germany, and president of the Association of German Tool and Mould Makers (VDWF) shares his thoughts on global competition.