Automation helps metal-working companies progress

Quick changeover and automation create results.

Nordiske Medier’s ”Industriens Top 2017” analysis of the metal-working industry shows that 80 % of the Danish companies in the industry achieved better results in 2017 than they did before the financial crisis in 2009.

“The industry has gained new life and it is very busy now. The Danish companies have shown an ability to adapt their manufacturing costs,” says Knud Hareskov, Head of the Center at the Center of Danish Subcontractors.

When the financial crisis started, TRECO developed a focused strategy to get through the crisis. We adapted to the difficult period and followed our strategy despite the uncertain situation. Our long-term strategy proved fruitful and it is the reason we are doing better now than before the financial crisis.

Why we invest in automation

Investments in manufacturing are the primary reason why Danish companies in the metal-working industry are competitive. That is the assessment of Thomas Søby who is the senior economist at the Danish Metalworker’s Union.

“The Danish companies were competitive when export orders started to return [to Europe] five-six years ago because they regularly invested in new machines and technology,” he says.

With automation, companies can reduce their manufacturing costs because it is significantly cheaper than manual manufacturing. Automated manufacturing ensures higher efficiency and a lower margin of error. Since it is controlled with computers, automation also ensures more consistent manufacturing.

These factors contribute to optimized manufacturing. It also means that the price difference between outsourcing to Denmark and to the Far East is not that big anymore. As a result, more companies are moving their manufacturing from the Far East to Denmark.

Placing manufacturing in Denmark gives companies greater consistency in both quality and supply. At TRECO, we regularly invest in automation to keep our manufacturing as efficient as possible. This ensures that TRECO is a strong manufacturing partner.