International Appliance Manufacturing 2007

preferred by the suppliers and looks into their self-assessment with regard to future developments. Current research For the past years, shifting production abroad has been controversially discussed because of its consequences for the relocating companies themselves as well as for suppliers and employees. One side of the discussion, represented by Prof. Dr. Sinn (ifoInstitute), supports the assumption that Germany develops into a bazaareconomy that receives preliminary products from abroad and merely assembles them. Therefore, even medium-sized suppliers would have to consider shifting production. In contrast, another thesis (e.g. Horn/Behnke, 2004, BMF, 2004) postulates that Germany – despite the production relocation – will be a winner within globalization. This is due to the fact that productive networks have been developed between old German and new foreign production sites – strengthening Germany’s competitiveness in terms of the trade balance (Hickel, 2004). Even more important than the discussion within the German speaking area about the economic benefit of shifting production is the challenge of the well-known MITprofessor and Nobel prize winner Samulson (Samulson, 2004) who summarizes his concerns as follows (VDI-Nachrichten, 2004): “Even if the total world-wide aggregate income increases on a net basis due to the new trade of services, it does not automatically lead to a gain for the industrialized countries.” Also this statement is academically controversial as Alan Greenspan’s commentaries on Samulson’s evaluation prove. In addition to the academic debate about “the economic sense of shifting production” – with relation to Germany’s competitiveness – the question arises whether this trend continues. Several studies support this view on future development (IW, 2006, Department of Industry and Trade Baden-Wuerttemberg, 2006; IAW, 2005; kfw, 2006). Yet, in contrast to studies confirming the relocating trend, there are also papers which believe in the rerelocation to Germany to a more or less considerable extent. According to a field research of the FraunhoferInstitute in Karlsruhe between 2001 and 2003, about 1200 enterprises from the manufacturing business decided to bring back their production to Germany (Fraunhofer Institut, 2006). The national research of TEC (the largest intersectoral association for medium-sized businesses worldwide) takes it even further – just 16% of the polled smaller companies think that the current situation will considerably improve due to shifting production. The remaining 84% questioned have got a skeptical or even negative attitude. The majority of empiric studies and academic research assumes that shifting production will continue. Comparative observation Suppliers of all sectors – more or less – are affected by production relocations abroad. Especially the automotive sector can be considered as a trendsetter from a supplier’s point of view. Therefore, it is essential to look further into the important sector of this industry. Under the heading “automotive suppliers in the complexity trap” the BESTgroup published a study showing that suppliers avoided the cost pressure of manufacturers by shifting their production into low cost countries. Nevertheless, these savings were offset by the increase in logistic and material costs. Just few companies were not affected by this trend (BESTgroup, 2006). Therefore, in particular the supplying industry in the automotive sector is under great pressure: “With production synergies increasingly difficult to achieve and margins depressed, Tier I and Tier II suppliers are forced to continue searching for additional added value or cost reductions.” (PWC, 2002). Overall, there exist three main strategic options for automotive suppliers (PWC, 2002): they can defy changes, they can switch to a more attractive market or they can expand in their current sector. The last case of growth can be attained by integrating higher levels of the value creation chain: conquering a niche or taking over the cost-leadership. The current wave of consolidation within the automotive supplying industry verifies the need for action (PWC, 2004). Until 2010, a decline by half of the suppliers in the automotive sector is expected (Roventa / Weber, 2006). The Fraunhofer-Institute of Production and Automation assumes that in the future the suppliers’ own competency in the preliminary - / serial development, the production and the assembly will be needed. The investment of the suppliers will double by 2015 (IPA, 2004 ). Research design Within the study 240 suppliers and 10 manufacturers from the German speaking region (Germany, Austria and Switzerland) have been questioned in a survey between February and May 2006. The designed questionnaire International Appliance Manufacturing 2007 9

Table of Contents Feed for the Digital Edition of International Appliance Manufacturing 2007

Contents White Goods- made out of Germany Customer Benefits from Coil Coating Products with “Metal Looks” In Mould Labelling for the Appliance Industry Only Pay for What You Need with Trimmed Concept for Appliance Manufacturers New Lighting Trend in the Oven Innovation in Light and Design- An Introduction Influence of Recycled Material on the Mechanical Performance and Stabilization System of GB355WG Why Choose a Fast Diode Mosfet in a Three-Phase Inverter Topology Providing Six-step Current Commutation Appliance Motor Control Made More Efficient, Cost- Effective Through Sensorless FOC Control Save, Bright and Spotlessly Clean Stainless Steel Strip is Stepping Out with the Launch of Sandvik Decorex New Hot Melt Silicone Sealant Technology Reduces Time, Costs for Appliance Manufacturers IR Touch Controls- The 4th Generation Coil Coating Ensures White Goods at Leading Edge Design Coil Coating Ensures White Goods at Leading Edge Design New material Solutions That Help Satisfy Consumer Wants, Producer Needs and Regulatory Musts for Tomorrow’s Appliances Welcome to the Chinese Century Multibase PPμ Talc Switches and Sensors Rise to the Challenge Development by SKF of Value Added Solutions (VAS) for Washing Machine Applications Silicon Adhesives for Display Cabinet Construction Instantaneous Hot Water for Beverages A Very Small Real Time Scheduler for Both Cost Effective Home Appliance Controllers and Higher Level Firmware Development Dishwasher Circulation Pump Evolution Nucleated PP Opens the Door to Improvements in Design and Productivity of Molded Appliance Articles Energy Saving Solutions for Home Appliances Sensors Sensors Sensors and No Way Back An Integrated Driver for LED Panel Renders the Traditional MCU Obsolete Integrating Hall-effect Magnetic Sensor Technology into Modern Household Appliances High Efficiency, Low Cost BLDC Evaperoator Fan Motor with a Soft Magnetic Composite Stator and Bud TM Controller Household Dishwashers Energy Consumption Reduction- A Success Story Novel fan Design Offers Energy Savings to Refrigeration Market

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