As we end 2009
with a sigh of relief and anticipate 2010 with guarded optimism, we remember that the global foundry industry has seen significant
restructuring from the financial crisis that has infected our business over the last 15 months. Our capacities
have declined, orders canceled or moved out indefinitely, price reduction pressure from customers, and concerns about the
economic viability of our customer base dominate our conversations. We have seen record raw material pricing
over the last three years and our ability to react is often mitigated by customers that insist foundries absorb any material
price increase on at least a 50-50 sharing. We have seen foundries reduce or eliminate capital spending
from their budget, remove all technical training and education, and drop attendance to trade shows and exhibitions. It has
indeed been difficult to be in the foundry business, but what can we expect in the near future?
The future for 2010 and beyond will be challenging. It will continue to be difficult to obtain
bank financing at desired levels and rates to maintain necessary capital expense levels and to finance growth when and if
it occurs. There will be increased political pressure to go “green”, to reduce emissions, to
provide safer and cleaner operations, and there will be increased marketplace pressure to form alliances within the global
foundry industry to provide and satisfy “local content” laws. There will be increased activity
from investment groups to buy and consolidate foundries to satisfy growing global demand for castings in developing nations.
There will be growing pressures placed on national foundry
organizations to not only provide technical training and additional education, but to help foundries compete in a regional
and global environment. During the last two years the board of directors at the WFO has recognized that
we need to revisit our programs and provide our member organizations with programs that are better designed and more timely
to meet the changing needs and demands of the industry. Our “commissions” need to be active
and productive and if they are not, they will be eliminated until such need resurfaces and our energies and monies will be
re-directed. We need to review sponsorship of regional conferences and Expo’s in order to maintain
the highest standards in the approval process of presented papers that will provide meaningful and new information to our
membership. We will not allow the commercialization of branded products or processes to occur under the guise of a “new
and improved” label.
The WFO will consider
partnering with different organizations for the benefit of our members when it makes sense to do so. In
today’s reality, we recognize the need to balance the commercial interests of the industry with that of educational
and training platforms that have been integral to the past success of the WFO. We will not change for the
sake of change, but will do so when it is of clear benefit for the industry in this very difficult period of time.
We will continue to put our resources to work for the betterment
of the industry and we welcome your comments and ideas, so feel free to contact me through the website of the WFO.
It is my honor and privilege to serve as your President and I am confident that with the quality of people on the Board,
our pledge to deliver to the industry, the best product that we can will be successful.
