UK mouldmaking declines by 32%

David Odlin, of DMS Diemould Service Co, and GTMA Treasurer, offers a personal view of statistics published by HM Customs and Excise Import/Export regarding the state of mouldmaking in the UK.

David Odlin, MD of DMS Diemould Service Co, and GTMA Treasurer, offers a personal view of statistics published by HM Customs and Excise Import/Export regarding the state of mouldmaking in the UK and the threat from overseas.

Manufacturers' Sales and UK Net Supply - UK net supply of moulds (and mould components) reduced by 33% to GBP 214 million.

- UK manufacture reduced by 32% to GBP 186 million - UK exports reduced by 26% to GBP 21 million - UK imports reduced by 35% to GBP 48 million UK net trade balance reduced by 40% to minus GBP 28 million.

This is consistent with the view that the total value of moulds produced in the UK fell during this period due to both reduced volume and lower prices, but is not it surprising that imports have decreased faster than exports? Exports are good - are they not? Exports to 'old' Europe now account for 38% of the total.

Over the four years, Germany was the largest importer from UK followed by Ireland.

Exports to countries outside Europe showed USA as the largest importer (currently 13%), while exports to Poland, Czech Republic, Hungary together accounted for 22% - it is considered likely that the moulds are being moved for moulding in these countries.

Exports of moulds to the Far East (China, South Korea, Taiwan) have reduced to almost nothing after a high year (20%).in 2001 Imports from Far East are killing us are they not? Imports from 'old' Europe account for a steady GBP 25 million.

In percentage terms they have increased over the period from 33% to 52%.

Imports from Germany have increased and now account for 25% (GBP 12 million) of total imports.

It is likely that a large proportion of these imports are standardised mould components and hot runner systems from the many suppliers based there.

Imports from USA and Switzerland are consistently high.

The USA figures are a mystery (although as exports are also high, could it be automotive moulds moving across the Atlantic?).

Switzerland is well known for its high precision high cavity moulds and hot runner systems.

Imports from Japan (automotive?) have also been high for three of the last four years at approximately 16% (GBP 10 million), but in 2003 they dropped suddenly to 6%.

The Far East Imports from China and Hong Kong, Taiwan and South Korea together account for only 13% (GBP 6 million) of imports and hence less than 3% of UK net supply.

Imports from these countries have reduced from 27% (GBP 19 million) in 2000.

Although imports from China have increased from 2% to 6% of total imports during this period this has been more than offset by reductions in imports form Taiwan and South Korea.

Currently Chinese moulds account for 1.4% of UK net supply - hardly a threat at present (though all the above numbers are measured in £ and not volume, hence very low cost tools could account for a higher volume %).

Lies, Damned Lies and Statistics Could this information be misleading? The data could be incomplete or erroneous in some way e.g coding of imports and exports.

This is not obvious as there are few substantial differences from year to year i.e the data seems to be fairly consistent.

The effect of losing not only the mould but whole moulding/assembly line is not shown i.e moulds could be placed in China and other low cost countries, and the mould is not exported but components and assemblies are.

It is food for thought.

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