Michele Arde

Report
Key developments
and Vision for the
sector in the
Western Cape auto
hub
www.wcac.co.za
WC Automotive Component
Manufacturers contribution to Industry
•
•
•
•
Representing 11% of total employment
10% of gross value add
15 Automotive component manufactures
(Source: Quantec)
www.wcac.co.za
WCAC Background
• 2013 Western Cape Auto motive companies acknowledged, without
collaboration the local industry would not be sustainable long-term
• Pro actively, 6 firms funded the formation of an Automotive cluster
in an effort to tackle the various challenges of industry
• Western Cape government welcomed this move to foster local
economic growth and has since provided co-funding for the cluster
Membership
www.wcac.co.za
Vision
To promote the sustainable growth
and competitiveness of the Western
Cape automotive manufacturing
sector
Mission
To promote the Western Cape
automotive sector’s unique value
proposition through establishing
mutual competitive advantages
Objective
Increase supplier MVA in support of
increasing employment, enabling
local supply chain capabilities,
increasing local content & advancing
transformation
www.wcac.co.za
Strategic Priorities
Supply chain competitiveness, enabling
increased MVA, localisation &
employment
Access to scale
& technology
Competitive
skills
Competitive
operating
efficiencies
Transformation
(cross-cutting)
www.wcac.co.za
Competitive
supply chains
Institutional Structure
Skills
Development
Market
Access
Operational
Capability
Executive Committee
8
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
C. Rautenbach, Atlantis Foundries (Chair)
S. Ledgerwood, Precision Press (Vice-Chair)
T. Mancini, Senior Flexonics
T. Du Toit, Qtec Moulding
A. Turner, Torre Automotive
S. Rosenstein, CGI
N. Gwynne Evans, WCPG
M. Van Wyk, WCPG
D. Comrie, B&M Analysts
M. Arde, B&M Analysts
Infrastructure
& Materials
Highlights since kick off Nov 2013
• Institutionalisation of WCAC with governance structures
• Development of formal Executive Committee comprising
key members, stakeholders and government
• Development of strategy for WCAC and interventions in
line with this
• Roll out of Graduate Development Programme for
engineers for all members
• Regional Best Practice Study tours for industry
• Initiated WCM programme at five of six member firms
• Alignment with IPAP, NAACAM, WCPG, ASCCI
So what next? Build on successes to
date
• Explore further potential
– Deepen localisation, grow exports and Aftermarket
• Thus far, foundation has been laid – great deal of
progress in short amount of time
• Next step: reflect on achievements, identify any gaps
• Take action accordingly to build on success
Thank you and Good Buy
Further Background
Market & Technology Access
1. Objective - long term
Increased scale of production
2. Associated challenges
1.Geographically distant from domestic OEMs therefore reducing appeal as source of supply
2.Sub-optimal levels of benefit derived from APDP & other industry incentives
3.Industry not prioritised in provincial and local Government policy and strategy
4.Capital investment age profile and automation levels
5.Diversification of customer base identified as a key risk mitigation priority.
3. Outcomes required
1.Optimize benefit from APDP & capital investment incentives
2.Enhance links to localisation focus of domestic OEMs
3.Economic development strategy supportive of industry
4.Increased exports of components at Tier 1 & Tier 2 level to African, EU & USA markets
13
Skills Development
1. Objective - long term
• Greater productivity:
– Parity versus leading cost countries
2. Associated challenges
1.Lack of competitiveness relative to high income – high skill countries as well as low income-low skill
countries
2.Limited availability of specialised skills as well as (less acutely) non-scarce automotive skills
3. Outcomes
3.Lack
of labourrequired
flexibility inhibits competitiveness of industry/capital investment
1.Increased availability of management skills and ability of management to drive productivity
enhancements
2.Increased availability of industrial engineering skills
3.Elevated performance of team leaders and operators
4.Enhanced labour market flexibility
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Operational Capabilities
1. Objective - long term
• Supplier productivity:
– Parity versus leading cost countries
2. Associated challenges
1.Business management systems not uniformly in place or not optimally effective
2.WCM manufacturing practices not in place or not optimally effective
3.Sustainability of WCM interventions highly variable
3. Outcomes required
1.Objective identification of firm-level requirements
2.Support adoption and development of base business management systems
3.Support adoption of ECM best practices on a sustainable basis
4.Facilitate inter-company learning
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Supply Chain Management
1. Objective - long term
• Supply chain costs:
– Reduced inbound SCM costs
Reduced outbound
SCM costs
2.– Associated
challenges
1.Geographically distant from major domestic OEM & AM markets, reducing cost competitiveness &
attractiveness as a source of supply
2.Geographically distant from major domestic sources of raw materials
3.Long international supplier lead times reduce value chain flexibility & therefore negatively affect
competitiveness
3. Outcomes required
1.Reduced real cost and perceived lead time of supply to major domestic markets
2.Reduced real cost and lead time of supply from major domestic hubs
3.Reduced logistical cost and/or lead time of imported materials
4.Reduced reliance on imported raw materials
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