March 2019

57 www.drivesncontrols.com March 2019 BEARINGS, BELTS AND CHAIN n Responding to pressures in the power transmission market E very few years in the UK power transmission component market, we seem to swing between the predominant MRO (maintenance, repair and operations) request being either for the “lowest possible purchase price” or for “best quality, highest performance and longest life”. Looking back over the past decade, it’s probably fair to say that the financial crisis has had a long-term impact on manufacturers’ buying decisions – ironically for the better. In the immediate aftermath of the crisis, there was a definite trend towards a cost- based decision-making process, which was understandable. However, once the recovery started, it became apparent that businesses were thinking long-term and the concept of Total Cost of Ownership (TCO) took off in a big way. As a manufacturer of drive and conveyor chains, we are used to some end-users viewing our product as a commodity purchase rather than an engineering solution. The trend towards TCO gave us the opportunity to demonstrate to many businesses that the right chain can make significant savings in terms of energy efficiency, reduced maintenance and increased productivity. While “buy cheap, buy twice” is hardly a novel concept, the TCO revolution of the past decade has seemingly refreshed the enthusiasm of manufacturers to invest in long-term improvements to their facilities and to target improvements in yield through marginal gains. For manufacturers of premium power transmission components, TCO has make it possible to offer “best quality, highest performance and longest life” while demonstrating that they also often offer the “lowest possible purchase price” when viewed over the total life of the product. This then has led to an interesting new challenge for manufacturers. As our customers are becoming more informed buyers, they are challenging us to “add value”. The new go-to phrase in many sales meetings is: “We are looking for a solutions partner, not just a supplier”. We are no longer judged purely on the quality or our products, but on our abilities to offer engineering support, manage supply chains, provide 24/7 servicing, or customise products to fit a new design. Working for a company that produces an almost-infinite range of roller chain means that we’re well placed to answer the challenge. The Japanese manufacturing ethos that runs at the heart of Tsubaki means that it has evolved an ability to understand the needs of its customers and remain flexible. I’m happy to say that I see a lot of other power transmission brands responding similarly. The challenges facing a premium power transmission brand have changed subtly, but significantly, in the 10 years since the financial crisis. We no longer simply have to prove that our products hold value over cheaper alternatives; we must now prove that our business practices offer value as well. The good news is that when we are successful, we have the opportunity to form genuine partnerships with our customers that promise to reciprocate in value as we move forward together. n Since the financial crisis, UK buyers of power transmission components have swung between demanding low prices and high quality. Derek Mack, sales director at Tsubakimoto UK, reports that they are now thinking longer term and looking to minimise their TCO – Total Cost of Ownership. UK buyers of power transmission products such as industrial chain are increasingly looking for add-ons such as support, servicing and customisation