15 Jun 2016

Under the motto “strength through unity” Portuguese metal is a world hit

From metallurgy to metalworking, not forgetting foundry, metal-related sectors are setting export records.

Foundry is growing 10% a year, while metalworking and metal mechanics are setting new export records and metal construction is gaining contracts all over the world and metallurgy is innovating from Portugal. They are all creating jobs and strongly need qualified technicians to keep up with the rapidly increasing investment (also from abroad) in the metal sectors. What do they have in common? Quality, innovation and teamwork.

"The "strength through unity” motto does apply here”, said Rafael Campos Pereira, the vice-president  of the Portuguese Metal Entrepreneurs Association, meaning "the work for internationalization we have been conducting, in some cases since the 90’s, more recently in others, which has allowed the sector to become an export champion”.

Last year was the best ever, with over 14.6 billion euros in exports to all over the world. While overall exports decreased during the first quarter of the year, metalworking and metal mechanics still managed "to make up for the loss of markets outside Europe, which were hit by the oil crisis, by gaining ground in nine out of the ten main European markets and also in the USA”. From cutlery and metal tableware exported to the Middle East and China to technical parts and hardware which are gaining ground in the USA, this is a varied sector, but its common strategy has paid off.

"One year ago we began the project for the Metal Portugal brand, and more and more companies have been joining and taking part in its international collective actions. Currently, we boast around 200 companies under our  «umbrella», but we aim to treble that number before the end of the year”, said the spokesman for the sector, which aggregates around 1500 small and medium companies and thousands of subsidiary micro-companies, totalling 15 thousand entities.

In 2013, a similar project, "Portugal Steel”, was launched by the Portuguese Metal Construction Association (PMCA), in order to consolidate the good image Portuguese companies had earned through joint initiatives abroad. "That quality seal allowed us to get in such demanding markets as France”, explained Luís Simões da Silva, the president of PMCA, which represents around one hundred companies.

Modernizing equipment and training human resources was fundamental, he said, for the sector to earn its image of "quality and innovation” which has enabled it to conquer new markets, such as Colombia and the Far East. Now the challenge lies in taking back the domestic market, which slumped during the crisis. "We have interesting and competitive solutions for urban rehabilitation and we want to increase our competitiveness with construction firms and the public sector”, Luís Simões da Silva told us.

Curiously enough, unlike one would think, the most competitive companies are not always the youngest. The metalworking, sector, for instance, is more than a hundred years old and still manages to innovate, grow and export 85 of its production. It boasts a yearly 10% growth  and has been attracting foreign investment, while creating very specific jobs.

"Today our foundry is very niche-oriented: the car sector (there is not a single European make which has not Portuguese-made parts); faucets, most of which for export, for high-end civil construction; complements for equipment or machinery that are exported to the European market; and small niches, such as decorative pieces made of tin of ship propellers”, revealed Filipe Villas-Boas, the president of the Portuguese Foundry Association.

Skilled labor is the main need of Portuguese metal. "Although we employ 200 thousand persons, we have an immediate need for 4 thousand more, 5 thousand if they are highly skilled”, said Rafael Campos Pereira. The Institute for Employment and Professional Training and the Centre for Professional Training of the Foundry Industry are currently training professionals for the sector, but "they are unable to keep up with the needs of the industry”. Besides machinery operators and mechatronics and logistics technicians, the industry is also competing with technological companies for the computer engineers that will be able to enable it for the 4.0 revolution.
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