Demystified ‘success of Gühring’s cutting tools’ at METALEX 2022
Gühring demystifies their success as one-stop-service cutting tool supplier at METALEX 2022.
With remarkable engineering advancements, Gühring is one of the first names that come to mind when it comes to the world's top brand of high-precision metal cutting tools. Gühring KG Germany employs about 8,000 people globally and runs more than 70 manufacturing facilities in 48 nations, one of which is Gühring (Thailand), which was founded in 2006, and about which we had the following conversation with Mr. Ralf Alber, managing director of Gühring (Thailand) Co., Ltd. at the booth at METALEX 2022:
Market trends for cutting tools during the shift to the EV era
According to Mr. Ralf, it will take time for the automobile sector to switch to EVs. Naturally, this will eventually lead to a decline in the need for cutting tools. However, both EVs and hybrids will be available in the automotive sector over the next ten years. Both a combustion engine and an electric motor are present in the hybrid vehicle. This increases the need for tools and Gühring will benefit greatly from it.
Gühring has no frets over the transition as it has a division in charge of the electric vehicle industry. It also serves clients outside the car industry, including aerospace, electronics, molds, and others.
Mr. Ralf also talked about the aerospace industry's demand, which was initially anticipated to decline because of the COVID-19 resulting in people being unable to fly. However, the truth is the exact reverse; the need for cargo is soaring. The need for cutting tools in the aerospace industry has risen as a result. So has the need for inland cargo. It turned out that pickup and truck manufacturers received more orders than other vehicle makers, who saw a decline.
Mr. Ralf, on the other hand, claimed that Gühring has grown its business into other industries for more than 5 years and has lessened its reliance on vehicles as a core consumer category. Customers in the aerospace and mold industries are currently crucial to the company's business.
In Thailand, there are various mold manufacturers. In contrast to China, which concentrates on mass production, Thai manufacturers are strongest when it comes to producing a limited quantity of goods. In 2022, due to Thailand’s rising demand for molds, Gühring has grown by 12% and aims to 15% growth for 2023.
Demystified ‘Gühring’s success’
Gühring's cutting tools are meticulously made with over a century of experience that has accrued into specialized knowledge of in-house production within three German factories, ranging from the selection of materials and carbide from Berlin, the product design, to the creation of specialized machines to produce cutting tools.
The standard cutting tools are manufactured in a factory in Germany, and the special cutting tools are manufactured in a factory in Thailand. Currently, the proportion of sales is 60:40, respectively.
The Gühring factory in Thailand is well equipped and able to design and manufacture special cutting tools with short lead times, as well as plating, cutting tool sharpening, and other related services, as a one-stop-service. Gühring is the only one in Thailand that can support all the needs of cutting tools for customers quickly, which gives Gühring a huge advantage over competitors.
The rivalry in the market for cutting tools nowadays is not just about low prices anymore. Customers now holistically consider the total cost to determine whether it is worthwhile in terms of the tool's service life and the output's quality and quantity. Despite having a somewhat greater cost per workpiece than its rivals, Gühring's product lineup stands out due to its superior value across the board.
