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Companies in the metals and machinery sector are seeking to streamline subcontracting networks 

19/10/2007

Long-term objectives include fewer suppliers and larger purchases.

According to an article published in Tekniikka & Talous magazine on 27th September, leaders of Finnish companies operating in the metals and machinery sector are seeking to do business with a smaller number of suppliers while making larger individual purchases, with the long-term objectives of a) distributing their subcontracting more evenly between different countries and b) using companies that are as close as possible to the location of final delivery.
 

The document quoted as the source of these opinions is a vision of subcontracting produced by the Federation of Finnish Technology Industries. This document reports on a survey that examined the views of different companies on the formation of production and purchase chains. Another conclusion reached in the report was that subcontractors and system suppliers should develop and expand both their own networks and their networking activity, as the pressure to outsource production to lower-cost locations is currently very strong.  

“A clear indication that opportunities exist”
 

On the other hand, companies involved in the survey also said that ways of maintaining a wide range of production options in Finland also exist, with the country’s particular strengths being manufacturing linked to the training and product development taking place, and to skills and know-how relating to machinery, equipment and production networks. Finland was also considered to be a sound location for companies specialising in prototype and small-scale production, and for organisations that provide services to European concerns. 

Commenting on the Tekniikka & Talous article, Tuomo Airaksinen, CEO of Invest in Finland, said “It is well known that proximity to end-users is essential in the engineering business. The opinions expressed in this report are a clear indication that opportunities exist in Finland for foreign companies looking to establish operations close to their own end customers.”

 The Federation of Finnish Technology Industries has approximately 1200 member companies and offers its members and partners a wide selection of services. The organisation’s stated mission is “to ensure that the Finnish technology industries have what it takes to be competitive in the global marketplace”. To achieve this, the federation fosters an innovative and internationally-competitive business environment, activates business development and networking, negotiates internationally-competitive labour market agreements, and works to enhance the image and attractiveness of both the technology industry and its member companies.

 Further information:  

http://www.teknologiateollisuus.fi/english/index.php

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