Paul_van_der_Linden_and_Martijn_Jansen
Paul van der Linden (l.) & Martijn Jansen

International trend: local for local production

23 July 2014

Interview with Paul van der Linden and Martijn Jansen (Sales)
 

- Rompa Group as a manufacturer of plastic components, a trend follower for many years -
The coming decades global manufacturers and their suppliers will increasingly have to produce products locally in order to remain competitive. The national manufacturing suppliers in countries in Asia, South America or Africa in these emerging growth markets are often not able to act on the Western European high-tech level yet. Here lies a task for Western European suppliers, who are already supplying to multinationals, to produce 'local’. A conversation with the sales team, Martijn Jansen and Paul van der Linden, of Rompa Group; with worldwide about 800 employees in multiple international production locations.


For the sales team of the international plastics manufacturer Rompa Group it is now clear: the path to producing locally for the local market is taken. It's the only path. Martijn Jansen: "The prevailing business model for suppliers to produce in one location and to supply their customers from this one location is outdated. It is too costly to supply Western European technology and premium products to new growth markets such as South America and Asia from one factory somewhere in the world.  Multinationals want production for the local market in the main continents. Time to market and lower transportation costs are the main reasons; add to this rising energy prices and growing global consensus that CO² emissions accelerate climate change. Energy efficiency and reducing operating costs are key words in this matter."


Faster adaptation
Paul van der Linden adds: "For a Western European supplier, which supplies to multinationals, a local sales office in emerging markets such as South America and Asia is really not enough. In the future, internationally active firms will need to adapt much faster in order to take advantage of local developments. Faster and faster periods of declines and strong revivals will alternate. This implies that more flexible business models for organizations and working hours are required. Therefore a greater trust and stronger partnership between customers (multinationals) and suppliers is needed. This really is a challenge for suppliers. In order to increase their competitiveness, manufacturers will have to invest in local production possibilities."


Rompa Group trendsetter
"Basically, this scenario applies to all global operating companies, but Rompa Group will in particular look at their trusted consumer electronics and automotive sectors," says Martijn Jansen. "As is well known, the Rompa Group has fully dismantled the production of plastic components in The Netherlands in recent years and relocated it abroad. That the Rompa Group has chosen the right path is shown by the significant annual growth of 20% over the last three years, for which we were nominated in 2013 for the FD Gazelle Award, set up by the Financial Newspaper in cooperation with Graydon, ABN AMRO and KPMG. With this nomination we belong to the fastest growing and healthiest production companies of The Netherlands ".


Move
As of June 1, 2014, the Rompa Group has moved to a new headquarters in the Saal of Zwanenbergweg 23 in Tilburg.
Paul van der Linden: "Because the old production facilities were no longer in use, the old building no longer met the requirements that we as an international operating company want. In terms of appearance and functionality the new office meets up to all our wishes.
From our headquarters in Tilburg our manufacturing facilities in China (Jiangmen, Chengdu, Shanghai), the USA and the Czech Republic are supported. In Tilburg we do engineering, calculations and sales, as well as handling applications of our Dutch and Western European customers, feasibility studies and customer relations.
By increasingly focusing our attention on local for local production, we are convinced we are able to face global competition in the production of plastic components for multinationals.”