Subcontracting Trade Fair - Globally local

Column | Happiness through subcontracting

A happy ecosystem is an ecosystem that breathes and shows humanity. It dares to try and to live and it trusts the different people in the organisation. Kindness and offering peer support are characteristic to a happy ecosystem.

In a happy ecosystem, there is no Someone Else to blame. People react to things immediately, whether they are part of their responsibilities or not. Any issues are brought up without delay or fixed immediately if possible. There are many grey areas at the junctions of subcontracting chains; these are the playgrounds of that imaginary Someone Else. Time and meetings can be saved if there is no Someone Else, only you and I. Us, together.

Column | Networks form an integral part of industrial competitiveness

The long period of low inflation, negative interest rates, and cheap raw materials and energy is now over. This poses a whole new set of challenges for companies’ operations, as doing things well will no longer guarantee success. When suppliers are unable to provide materials and raw stock, processing will not produce added value. When the prices of energy or source materials rise significantly, operational profitability will face notable, even insurmountable challenges.

In terms of the export industry’s competitiveness, it is essential to create networks that can manage large wholes so that price competitiveness and delivery reliability can be maintained. This requires forecasting, materials procurement on a long-term basis, and good cooperation throughout the entire delivery chain. This will also take the requirements of the Lean ideology to a new level. Operating on the production pull control is not enough – one must be able to ensure the availability and price competitiveness of raw materials even before any actual production decisions are made. All this requires simplification at the portfolio level and broad visibility within the subcontractor network.

Column | Competence must be ensured

The mechanical engineering sector is a key driver of exports in the Tampere region. There are dozens of global large as well as small and medium sized companies in the region that provide a total of 34,000 jobs. Of these, roughly 6,000 require vocational training.

In 2021, the turnover of the technology industry in the Tampere Region was over 8 billion euros, the majority of which came from exports. In all of Finland, technology companies employ 319,000 persons directly and 670,000 persons indirectly. The age structure of the workers in the mechanical engineering sector is, however, somewhat imbalanced: every year in the Pirkanmaa region, roughly 500 professionals retire from the sector, but only around 200 persons graduate from vocational institutions to replace them.

Column | More investments in industrial attractiveness and operational reliability

The crises have weighed heavy on the economy. Still, the situation of the industry and the supplying technical trade look good so far.

Companies are investing in new production, which shows in the sales of machine tools and compressors, for example. Here the machines’ energy efficiency and electricity consumption have become key selection criteria. Therefore, the outlook for engineering works and mechanical engineering remains good. Furthermore, new energy solutions, especially the growing use of wind power, also increase the demand for Finnish industry and related technical trade.

Thanks to increased order volumes, the situation is expected to remain good until the end of the year. However, next year is still subject to speculation due to the developing recession.