The market conditions and the rules for corporate success have changed significantly in the past ten years: sites with high personnel costs have clearly lost their appeal. The result: companies are being increasingly forced to transfer the production or assembly of products to emerging regions in Eastern Europe due to increasing cost pressure.
Mr Haug, you are the Sales Director at Prettl Metal Components and are responsible for outsourcing. In your opinion, what do outsourcing providers need to prepare themselves for today?
In the field of outsourcing, companies are looking for efficient, reliable and experienced service providers that will function as long-term partners and are able to assume the procurement and quality assurance obligations of complex products. Today, an outsourcing provider is required to be well placed on the international and global stage.
In your view, what advantages does outsourcing bring to companies?
One the one hand, it enables companies to concentrate on their core competencies. On the other, cost savings arise due to reductions in cost pools for labour, ancillary labour and storage. In addition to this, the transfer of cost-intensive processes creates space for new products/production lines. Outsourcing also opens the door to new markets and market activities in Hungary and Eastern Europe.
Why should companies focus especially on PRETTL as an outsourcing partner?
PRETTL is an outsourcing partner that is extremely well positioned globally. We understand the needs of our automotive customers and have over 15 years of outsourcing experience in a variety of complex technological sectors. Productivity, employee qualifications and the quality of the finished goods in Eastern Europe has reached Western standards in recent years. The production lines of our customers are transferred to our plant in Szekszárd, Hungary, where the products or systems are produced. PRETTL also assembles and manufactures highly complex products, in line with German quality standards, such as complete electric motors and wiper mechanisms. We are also certified according to ISO TS 16949, ISO 9001 and ISO 14001. To sum up, the customer receives a comprehensive outsourcing service package.
How will outsourcing develop in the coming years?
Competitive pressure is ever increasing due to growing globalisation, the displacement of the markets to Eastern Europe and Asia, and a concentration process in the automotive market. Product innovation cycles are becoming ever shorter with manufacturers’ product programmes becoming broader and more in depth. These factors influence the corporate strategies and raise the cost pressures of companies to transfer their production lines. Outsourcing will remain in focus as a cost optimisation tool.