ly KNOWLEDGE ■ ni IRTE, Assoc Inst that breaches

7th May 1965, Page 169

7th May 1965

Page 169

Page 170

Page 169, 7th May 1965 — ly KNOWLEDGE ■ ni IRTE, Assoc Inst that breaches

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the Tariff Barriers

British friction material makers benefit from long export experience

FOR more than 50 years British friction material manufacturers have been engaged in building up a tool -that has proved it can circumvent many of the tariff barriers .hich in more recent times have been set up in different parts I the world. To summarize this just as quality, which ultilately it is, would be to over-simplify the position. In buying iction linings the purchaser should not only be acquiring a rtain amount of material, but also a high percentage of !search work which may be taken to incorporate a good deal f analysed experience and operational assessment of the roduct.

It is in this know-how that the British exporters are reaping te benefit of good work in past decades, and it is one of the :asons why they dominate the market. This professional Rich that prescribes the right treatment, as well as dispensing te correct medicine, is one of the principal factors in the iccess of the British brake-lining manufacturers. Currently ley are securing just about 50 per cent of the world's export ade in this field, leaving the other half to be shared among I other nations.

Many of the lining manufacturers of these other exporting mntries present a keen challenge to our own people on the :ores of both price and quality, but they have a lot of leeway , make up. Somewhat different considerations apply in cerin parts of the world where tariffs and other restrictions are :signed to protect local manufacturing industries that someTICS are of conspicuously low standard. It is in cases such these that users are often prepared to buy the proved reliality of the British product, even if this involves both higher itial cost and heavy duties in addition.

Because a high proportion of overseas sales are of brake iings for fitting either as initial equipment or replacements to ,n-British vehicles, difficult problems may at times arise in I nfirming the all-round suitability of the particular products. us is one of the reasons why German, Japanese, Italian and vedish vehicles are among those now to be seen undertaking st work on British roads.

Earket Prospects

Brake facings offer what appears likely to be a consistently panding overseas market to those who are willing to make e right approach and to supply proved goods presented in a anner acceptable to the individual countries. To the uniniited one length of lining material is apt to look much the me as the next and, as signs of change are liable to generate

spicion in some parts of the world, the continuance of a idttional appearance is among the things that ensure conLence in a product of this nature, quite irrespective of the undness of the inherent quality.

For Iran, as an example, Ferodo Ltd. paint all the edges of wen brake linings in red, this being a lucky colour in the es of many local people. Concessions of this kind to local liefs are not infrequently encountered in different countries. In some parts of the world a fine balance is maintained tween supplying the user with the quality of product neces sary for the job in hand and satisfying the need for the maintenance of the highest possible level of local employment. In Ceylon, for instance, large quantities of linings are imported in curved sheet form, for machining and finishing on the spot. Other markets take large sheets or woven linings in the roll. Wherever possible the principal makers are now encouraging area dealers to put in modern plant for the relining of replacement shoes.

The enterprise of the leaders of the post-war industry has left few markets untapped anywhere in the world. Representatives of such products as Mintex, Don, Capasco, Duron and Ferodo travel continually overseas, not only meeting prospective buyers but also ascertaining any changes in local requirements. Almost everywhere there is a steadily growing demand, although new problems consistently face the exporter in this as in other spheres. The most promising fields are already well covered and now extra pressure is being put on the second-line markets.

Looking to the immediate future the increasing adoption of State trading appears likely to present a stimulating challenge to the British manufacturer and one that will demand sales approaches radically different from those that have proved successful in the past. Mr. Peter Howlett, export manager of Ferodo, recently told me that to strike the right note in these circumstances the sales literature must be kept free from generalizations and must provide far more technical data than has hitherto been considered necessary for the same countries.

Iron Curtain countries have the longest experience of operation of State import bodies and those who are in contact with ' them are generally agreed that there is a satisfactory pattern that can be followed there. With the Afro-Asian nations, to which this system is spreading, experiences appear to have been somewhat less satisfactory. Because when a State trading policy is followed the agents who have previously held sway are cut out, personal contact at high level becomes more important and there is obvious need for the manufacturers to keep in closer touch with the actual users' needs.

Principal competitors of Great Britain in the export field F25 are the United States and Germany. The former, with more than twice the 'number of England's friction material manufacturers, has an export total approximately half that of the British. Western Germany has been making steady progress over the past seven years, but that country's figures are still under a quarter of those of the UK.

Mr. E. H. Burrell, export manager of British Belting and Asbestos Ltd., told me that he regarded Western Europe as the easiest market for the British exporter but one in which the price factor was becoming of increasing importance. In the unsophisticated countries, he observed, not only the appearance but also the smell of the product could have a bearing on acceptance by the actual user. Woven linings retain much of their popularity in such parts and Mintex, as well as other manufacturers, are large exporters of roll material.

Italians Best Customers

In recent years, taken on value, Italy has been the biggest market in the world for British friction linings, with Australia and Sweden running close up----but the trade is literally worldwide. Mr. C. B. Baker, joint managing director of Brake Linings Ltd., told me that Duran heavy-duty commercialvehicle equipment is now being used by bus companies and other operators from Hong Kong to Montevideo and from Helsinki to Cape Town. His company specializes in commercialvehicle brake linings and in the past eight years exports, which represent one-third of the factory's output, have doubled.

Duron moulded linings constitute some 75 per cent of Brake Linings' production and, principally to meet the increased demand for this variety, a new plant is shortly to be built on a 13-acre site at Buxton. Mr. Baker spends something like half his business time away from his office and makds frequent visits to overseas markets, thus reinforcing the efforts of the company's export manager. Mr. A. Kirk, who among his other travels makes world tours in alternate years. Whilst the Duren plan certainly does not neglect far-away places such as Australia, New Zealand, Pakistan, India and Malaysia, it is specially concentrated on north-west Europe where prospects of expansion appear consistently bright.

Among the friction material makers, Small and Parkes Ltd., who five years ago became integrated with Capasco, have consistently secured a significant share in the export market. At home, under their trade name of Don, they have for long been important suppliers in the P.s.v. field and this pattern is r26 repeated in certain spheres overseas. In round figures it is fait to put the Don-Capasco export element at 20 per cent of the total output of those marques. In addition to the very real exports that have been dealt with up to this Stage, there are invisible exports through which medium British industry receives further advantage in exchange for its well-developed knowledge and skills.

British Belting and Asbestos Ltd. have long had a wholly owned subsidiary that manufactures in the United States; they also manufacture through subsidiaries in Spain and Germany and have an associated factory in Australia.

With an eye on changing conditions in various parts of the world the Turner and Newall group has established Fero& associates in several countries. The wholly owned Italian subsidiary will facilitate speedy supply to the automotive industry there, but a variety of special requirements will still be imported from Britain. Formed to fit in with the economic policies of the Spanish Government, the associated organization operating in Spain is owned jointly by Turner and Newall and local interests.

Hardie-Ferodo Ltd. represents a tie-up with successful Australian brake-lining manufacturers, whilst there are other associates in South Africa and Brazil, as well as HindustanFerodo Ltd., an offshoot of another Turner and Newall company which now carries a certain amount of Indian capital.

Another channel for the employment of British technique to good effect overseas is used by Small and Parkes Ltd. This company, I was told by Mr. H. Middlehurst, export director. first concluded an agreement with an important and wellequipped organization in Japan for its use under licence of the Manchester factory's successful manufacturing methods and formulm.

Small and Parkes provide whatever research facilities may be required, a function they are well equipped to perform, This agreement has been followed by another under which an Indian corporation will enjoy similar co-operation from the Manchester plant, in this way saving, among other things, the cost of setting up complete technical services.

Cape Asbestos Co. Ltd. manufacture a range of brake and clutch linings through the medium of their subsidiary, Cape Asbestos Insulations Pty. Ltd., at Benoni, near Johannesburg and supply a substantial share of the South African market.

In their various ways the members of the British friction material manufacturing industry have taken command of the export situation in a decisive manner and, impregnable though their position appears, they will spare no effort in their endeavours to maintain the lead over their rivals in this field.

Constant alertness is vital in meeting the problems associated with tariffs and with changing methods of trading in countries east or west. But of infinitely greater importance than all this is the correct diagnosis of the operating needs of the voillele user, needs which are as widely varied as are the peoples ol the world.

There are the commercial vehicle users up and down the globe whose loads are forever 50 per cent ahead of the manufacturers' rating; there are the speedsters to whom every n-yaurftain road is a happy helter-skelter; there are the myriad changes in climatic conditions. . . . Look at it how you will .the friction lining manufacturer, who accepts the doubling roles of psychologist and guardian angel for his customers certainly merits that place it' the sun.