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Metal Casting Technologies : September 2010
METAL Casting Technologies September 2010 37 PHILIPPINES By Prof. J. Hermes D. Bautista, Technical Consultant, PMAI Positive outlook for Philippines' manufacturing industry There is no doubt some strong evidence is emerging to indicate that the metal casting industry is starting to pick up in expectation of a better manufacturing climate. New companies have recently entered the market while others are planning to expand their facilities. One company has transferred from the urban area to a rural one making it possible for it now to produce three times its previous output. Some of the pressing problems still besetting the industry and their effects and possible solutions are: 1. The problem of having a continuous and reliable supply of metal scraps persists. This is one of the most vital issues at the present time as scrap is the industry's raw material and is actually its lifeblood. Legislation is needed to alleviate the problem. It is not farfetched to say, "No scrap, no business; no foundry, no jobs." 2. There is also the problem of too high tariffs on other foundry materials and supplies which are not produced and available locally. The industry plans to continue pestering the involved government agencies until it gets some results. Government has a responsibility to protect its local industries which the past Administration has grossly neglected. The new Administration, hopefully, can do something about this, for isn't it true that government can influence economic laws to its favor, but not natural laws? Natural laws are God's own prerogative." 3. On top of the above two problems, the industry is still encountering high power rates. One wonders what the electrical utilities' electrical engineers with management know-how are doing about it. It seems that doubling the transmission voltage would lower transmission loss to only about 25 percent, saving about 75 percent of the present transmission losses which are reportedly about 12.5 percent of the total bill. Furthermore, it seems that there is not enough generating capacity indicating a lack of foresight, so that power interruptions are inevitable. 4. The castings coming from mainland China are a cause of serious concern. The industry is trying to figure out why China can undersell the Philippines so that the proper countermoves could be made. "Know your competitors and deal with them properly!" 5. The ever-rising cost of living in the Philippines is claimed to be caused by rising oil prices in the world -- although sometimes it is suspected that this is only a ruse of the oil companies here. Because of this, the labor sector still demands an increase in the legislated minimum wage -- which it did not get fully in the past years -- in order to cope. It will be noted that increasing the labor cost further would merely increase production costs with the same labor productivity, and the ultimate resulting higher prices could and would make the products that much less competitive. 6. Of course, the industry shall continue to support the government's call and efforts at improving the environment. In all of the past years the environment Beckwith Macbro Resin Coated Sands Contact : Rob Dalla Via 30 Devon Road Devon Meadows, Melbourne Telephone: +61 3 5995 4244 Mobile: 0417 332 723 Fax: +61 3 5995 5030 E-mail: firstname.lastname@example.org Website: www.beckwithmacbro.com.au All grades of resin coated sand used for shell molding and shell cores for ferrous and non-ferrous applications PRODUCTS ■ Range of resin strengths from 1.0% to 5.0% ■ Silica, Zircon, Chromite coated sand or blended mixes ■ Coated Sands of di erent AFS typically from 50-90 AFS ■ Thermal Reclaimed Coated Sands SERVICES ■ Full technical and trouble shooting service. ■ On-site shell core and shell molding facility to evaluate the product applications. ■ Laboratory facility to ensure product quality. nds s FOR SALE SHELL CORE MACHINES SHELL MOULD MACHINES