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COMMERCIAL SERVICES
Marketing Group
The BMPTA's focus in recent years has been on opening potential markets for Members as well as helping Members understand the competitiveness of their industry in Europe.
The BMPTA's recent internal Audit and Expansion Study highlighted Members' wishes for the Association to be involved in a variety of commercial, marketing and representational areas. As a consequence, the BMPTA's Commercial Committee was reformed as the 'Marketing Group' with Membership open to all BMPTA Members.
The Group's first meetings have given priority to the needs of SME's Members and have focused on:
- more meaningful commercial trade statistics and information
- commercial services
- more information on export/imports and on inward and outward trade missions
- exhibitions and fairs - UK and overseas
- representations to government and lobbying on issues such as the environment, finance and employment.
Subjects proposed for future meetings include:
- networking/regional meetings,
- the need or otherwise for road shows,
- translation assistance
- BMPTA marketing/sales brochure.
EUROTRANS
The Commercial Committee has also taken part in the wider forum of European manufacturers (EUROTRANS) to attempt to standardise the terms and conditions for sale and purchase of products, as well as set up a lobbying facility within the EC.
Exhibitions
The BMPTA organises shared stands at major exhibitions on behalf of Members and it is expected that with an improving business climate that this will form a more important part of the Association's commercial activities in coming years.
The BMPTA will again have a Stand at the 1999 Drives & Controls Exhibition where it expects to have a much better position than previous years with space increased to more than 84 square metres of which over 78 square metres will be allocated to Members to meet increasing demand.
The Annual Dinner and Technical Congress is held in conjunction with the Drives and Controls Exhibition at Telford.
Industry Statistics
UK trade and production data
Trade and production statistics for the UK's non-automotive gear and transmission industries are compiled annually by the BMPTA from:
- 'Combined Nomenclature' (CN) trade data (imports and exports) collected by HM Customs and Excise.
- 'Production in the Communities' (PRODCOM) production surveys carried out annually by the Office for National Statistics (ONS).
These data are used by the BMPTA as a basis for making annual returns to EUROTRANS and to complete the Association's annual 'Current Market Outlook' report.
The BMPTA is also working with the ONS and EUROSTAT (via. EUROTRANS) to ensure that Members' views are heard as to requirements for CN and PRODCOM codes and descriptions that reflect the statistics needs of the industry.
European trade and production data
Data provided to the BMPTA by EUROTRANS Members is used to compile inter-EC trade data and EC production data for the non-automotive gear and transmissions components industries in the form of a 'Current Market Outlook' report published by the BMPTA for Members in the autumn of each year. The report shows production and trade tends for most European countries in both local currencies and in £ terms.
As a result of a BMPTA Member survey carried out for the BMPTA in the autumn of 1997, the BMPTA's Marketing Group proposed that in future these data will be referenced to a common historical date (1990) in order to show trends more clearly and will express trends in European countries in terms of a 'basket' of European currencies so that the effects of currency variations are minimised.
Current Market Outlook report
Order the report
The seventh annual 'Current Market Outlook' report on the European Mechanical Power Transmissions Industry published by the British Gear Association, illustrates production, import and export levels of the major mechanical power transmission manufacturing countries in Europe.
The current report provides data for the industry for the period 1990-1996 and will be updated with 1997 data in October 1998. The data is broken down into:
- Gears,
- Gearboxes
- Transmission Elements
- Transmission Chain.
Figures are presented in UK Sterling and National currencies in order that market size and industry trends comparisons can be made. Highlights of the 1997 report are:
Production
- Expressed in Pound terms, total European production fell by 9% in 1996 to £5.56 Billion. Expressed in local currencies however, production rose: 8% in Italy, 6% in Britain and France and 2% in Germany.
- Germany is dominant in Europe in gearbox and chain production and is on a par with Italy in tercns of gear production. Italy is dominant in production of transmission components. Britain's key strength is in the production of gears.
- Within Europe as a whole, percentage production of transmission components has increased and production of gears has fallen in recent years
Consumption
Like production, net consumption of Mechanical Power Transmissions products showed a fall in 1996 of 11% to £4.16 Billion when expressed in Pound terms. Expressed in local currencies however consumption rose 7% in Italy, 5% in Britain and 2% in France. It was stagnant in Germany. ,
- Germany has the highest consumption of gears, gearboxes and chains but falls behind Italy in demand for transmission components. Britain's net consumption of products as a percentage of European totals is spread evenly across all product sectors.
Balance of Trade
- While Germany and Italy enjoyed trade surpluses of £841M and £557M in 1996 respectively, all other EUROTRANS Members (except Belgium) showed trade deficits - Britain and France being similar at - £59M and - £65M respectively.
Although Britain showed greatest export growth (+18%) in 1996 in Transmission elements, imports were higher at (+25%). Exports of gears from Britain Fell by 10% in 1996. While Italy and Germany showed only a modest growth in exports of gearboxes and transmissions of 5% - 7%, exports of gears fell in Germany by 5% - compensated perhaps by a similar rise in exports by Italy.
Sales Initiatives
In 1996, the BMPTA commissioned studies on the German and Italian markets, the former to identify potential customers the latter, better to understand how the Italian industry manages its business.
Germany
The DTI funded a sales initiative into Germany with equal contributions from the Members which resulted in many enquiries from German companies anxious to avail themselves of specialist gearing services. It also brought home to some of the Members how difficult is was to penetrate what is the most demanding engineering market in Europe.
Italy
With DTI assistance, the BMPTA has also been able to provide Members with a detailed insight into the financing of the Italian industry in the early 90's to try and ascertain why their levels of investment had been so superior to anyone else in Europe, including Germany, and how that had been achieved in what is basically a fragmented industry of multiples of small companies. This study has especially benefited some of the larger producers and sellers of gearboxes, as they can understand the financial pressures that are currently besetting the Italian industry, and how they will influence their pricing/investment over the next few years.
Market development study
Building on the `omnibus' market studies carried out in 1996 a further 'Market Development' study was carried out in 1997 with a view to replication and development for the Membership as a whole.
The study was designed to generate new business for a `pilot' group of four Members having different target markets and product portfolios. The Members taking part were involved at each stage of the project and three out of the four Members fielded their own enquiries.
The study researched markets in nine counties and resulted in over thirty enquiries having an estimated aggregate value in excess of £6M. Although the Project helped to demonstrate to Members the research processes needed to find new business abroad (and generated new business for some of those taking part) it was clear however that significant business had probably been missed.
Future marketing support
As a result of the experience of the German and Italian studies and the Market Development Study, the Marketing Group are considering future:
- options for similar projects - perhaps repeated on a biannual basis on behalf of all BMPTA Members.
- parallel focused surveys carried out on behalf of individual Members or groups of Members.
- market research services in support of Members' business and marketing activities where Members do not have the necessary skills or resources.
Self-assessment
Spearheading the constant drive to improve company performance and standards, the BMPTA has entered into the Government's sponsored Self Assessment programme where companies are assessed against a European Quality Management scheme.
The Self Assessment programme is a tried, tested and inexpensive format that has emerged from the European Quality Model and can ultimately lead to companies applying for the European Quality Award. The programme:
- has the support of the DTI with over 150 questionnaires in the database.
- is not Technology based, but covers nine key criteria which a company needs to address if it is to get a meaningful picture of its total business operation and performance.
- is equally suited for both small and large companies that are responsible for "profit and loss".
- will assist companies in calculating their strengths and weaknesses so that they can make best use of their resources to achieve maintainable performance improvement.
- is gradually becoming part of the OEM's Supplier Audit.
- The results of the initial assessment will lead to further DTI supported initiatives to improve the competitiveness of The Mechanical Power Transmission Industry.
To date 9 Member companies have completed the programme and 10 more are in progress. At £60 per participating company the system provides a cost effective Quality Assessment operation. It has been made clear to Members that they need to be honest about themselves if they are to be successful, but the rewards of long term persistence with this project will be obvious for those who persevere.