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Competing in the Toolmaking Industry: A Call for Local Support

By Chris Conradie – Polyoak Packaging Group (Pty) Ltd and PtSA Member

Reflecting on the Webinar Experience

I recently attended a thought-provoking webinar advertised on LinkedIn by PtSA and several Gauteng economic development agencies, and I was inspired by the discussions that unfolded. As a qualified toolmaker with a deep passion for the industry, I found that the topics covered resonated strongly with my experiences and challenges.

The Competitive Landscape

At Polyoak, we source a significant number of moulds from overseas suppliers in Asia, Europe, and the United States. In my department, we face fierce competition from these highly industrialised toolrooms on multiple fronts such as price, lead time, quality, and performance. Despite our investment in state-of-the-art machinery and technology, competing on price remains a formidable challenge, especially against suppliers in Asia. The playing field is anything but level.

A Stark Price Disparity

Recently, I encountered a stark example of this disparity. A supplier quoted us 40% more than what they were offering to toolrooms in Asia. This price gap extends beyond just the moulds costs; it also affects critical aspects of our trade, including materials, cutters, and machinery. Moreover, I discovered that one of Polyoak’s specified suppliers in France benefits from government subsidies for every mould they produce, further skewing competition against local manufacturers like us.

The Need for Local Protection, Collaboration and Change

It’s clear to me that we need to take a hard look at how to protect and bolster the local toolmaking industry from the flood of imports. This is not just about survival; it’s about enabling growth, development, and investment in our capabilities. If we can create a more supportive environment for local manufacturers, we might position ourselves to compete more effectively.

So, what interventions can be made to ensure that more of the R20 billion worth of tools currently imported are produced locally? This question is critical and deserves ongoing discussion. We must advocate for policies that support local businesses, whether through subsidies, tax incentives, or other means that can help level the playing field. Collaboration among industry stakeholders is essential; we need to unite our voices to push for change.

In conclusion, the future of the local toolmaking industry hinges on our collective ability to address these challenges. Let’s continue this vital conversation and explore innovative solutions that can help us thrive in a competitive global marketplace. Your thoughts and insights are invaluable as we navigate this complex landscape together.

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