Global competitiveness of European surface technology. Part 1: competitiveness and the relationship between European manufacturing and surface finishing sectors

The present paper is part one of two of a report aiming at recommending future directions for the European surface technology industry to remain relevant and competitive. This first part analyses the present status of the competitiveness of the European surface finishing industry, and its relationship to the manufacturing sector, as a base for suggesting actions. Surface finishing is not a stand-alone industry, but an integrated part of manufacturing of most products and thereby an integrated part of the manufacturing chain and follows the rest of the manufacturing if offshored. The drivers for offshoring are changing, and automation of manufacturing makes offshoring less profitable. The European surface finishing sector is characterised by an annual turnover of about US$ 114 Bn, 900,000 employees, and an annual growth rate of 3.6%. Surface finishing accounts for about 5% of all manufacturing of products. About 1/3 of the surface finishing is estimated to be done by sub-contractors and 2/3 in-house. There is a large diversity in technology used and firm size throughout Europe. The average size of European subcontractors is between 11 and 12 employees with the majority being very small with less than 10 employees, which is a challenge for the future development that demands adoption of new technology, legislation, and cooperative structures.