Industrial specialization of Soviet republics led to problems with their manufacturing of industrial tools. Ukraine emerged from this property partition with a significant piece, i.e. seven tool-making factories, three specialized diamond plants, two abra
TOOLS TO BECOME MORE IMPORTANT
TOOLS TO BECOME MORE IMPORTANT
The beginning of the 1990s was the period when the former
Soviet republics were splitting apart the common Soviet manufacturing facilities and
establishing their own capacities. It turned out that industrial specialization of Soviet
republics led to problems with their manufacturing of industrial tools. Ukraine emerged
from this property partition with a significant piece, i.e. seven tool-making factories,
three specialized diamond plants, two abrasive factories, and one large-size hard-alloy
works. However, all raw materials for hard alloys were mined abroad. In this situation,
suppliers of raw materials made everything possible to exhaust resources of tool-making
enterprises that barely had any current assets to carry on. As a result, such once
prosperous and large plants as Svetlovodsk Hard-Alloy Works, Lvov and Chernigov Tool
Factories had to leave the market and such enterprises as Lvov Diamond Plant and
Zaporozhye and Vinnitsa Tool Factories are next to bankruptcy now.
The country’s transition to the market economy led to the
situation when prices for base materials (e.g. hard alloys, steel etc.) and energy turned
reliant on the market situation. Consequently, the profitability of tool making became
dependent on organization of production cycle, efficiency of technological processes,
expertise of personnel and so on. This is why, many enterprises failed to successfully fit
into the new economic situation.
Some enterprises (for example, Poltava Diamond Plant,
Zaporozhye Abrasive Works, Institute for Superhard Materials of the National Academy of
Sciences of Ukraine) have managed to adjust themselves to the new situation well. Others
were acquired by rich owners, who do not understand much about tool making but know how to
compete on the Ukrainian market. Taking into account presence of many foreign companies on
the Ukrainian market, competition here is fierce indeed. European and American tool-making
companies did not waste their time. When Ukrainian tool manufacturers finally started to
make and sell their products in their home country, it turned out that they need not have
made many of their products, because they have already been imported here and are now
offered at reasonable prices. In order to make Ukrainian instrument more competitive, the
country has to attract skilled specialists to manufacturing of tools. It is worth
reminding that Ukraine has over 10 ths. of candidates and doctors of sciences, which make
up a weighty scientific potential.
One of the possible ways out is a state policy aimed at
recovery of domestic producers. To some extent, the work in this direction has already
been launched. For example, with assistance of the State Committee for Industrial Policy
of Ukraine and the Ukrainian League of Industrialists and Entrepreneurs, Kiev hosted
INTERTOOL 2000, the International Specialized Exhibition of Machine-tools, Instruments,
and Industrial technologies.
It is important that this show, which is popular in Europe
and is organized by JSC Vienna Fairs and Congresses (represented by M.S.I. Vertriebs
Gmbh), has finally come to Ukraine. INTERTOOL trade show enabled Ukrainian and foreign
tool makers to establish new contacts and get acquainted with new technological
achievements in this sphere. The exhibition was also an excellent opportunity for
Ukrainian manufacturers to promote their products to the global market. Organizers were
able to attract around 100 participants from 7 countries, which exhibited their latest
achievements in the sphere of industrial technologies. Ukrainian companies and
organizations made up around 70% of the show’s participants, whereas the remaining 30%
were foreign companies. Visitors had an opportunity to get familiar with up-to-date
production technologies and hold direct negotiations with manufacturers as regards
technical issues.
The following topics were covered at the trade show:
metalworking tools for machine-building;
abrasive tools, including those made of superhard materials;
tools and equipment for construction and assemblage;
tools and equipment for woodworking;
tools and equipment for welding and cutting of various materials;
tools and equipment for electromechanical works;
fastening tools;
metalworking and assembly tools and equipment;
measuring, control, and testing tools and equipment.
Let us take a glance at such simple parameters as market
shares of manufacturers and sellers that exhibited at INTERTOOL 2000. Figures indicate
that the number of participants split between the two categories, meaning that the numbers
of sellers and producers were nearly equal at this exhibition
Another interesting figure is the share of domestic
enterprises in the total number of metalworkers participating at the exhibition. Foreign
participants in this sphere accounted for 25% and the remaining 75% were Ukrainian
companies. However, if we analyze the distribution by the previous parameter (sellers
versus producers) it will become clear that in the areas of metalworking and abrasive
instruments, there are approximately two sellers per one manufacturer. What exactly does
this ratio mean?
The manufacturers-sellers ratio of 1 to 2 indicates the
present unfavorable situation of domestic tool makers. No doubt it is much more difficult
for them to fight for buyers and with fiscal authorities. Unfortunately, the state fiscal
policy does not give incentives to domestic producers.
Another negative feature of the Ukrainian tool market is
that sellers trade largely in multi-purpose tools. Thus, in many instances, there is
shortage of special-purpose instruments, because traders do not wish to deal with those
and there are very few producers, who are not capable of manufacturing the whole range of
special-purpose tools because it is too expensive for them. In this situation, instead of
the needed special-purpose tools, multi-purpose tools that most closely match the required
properties are used. This, in turn, leads to poorer quality and lower productivity of
metalworking.
This is not the only problem of tool-making today. The
general situation in this industry is getting worse. Top experts have left the industry.
Obsolete technologies are employed (for example, many factories now sharpen cutting tools
not with instruments made of superhard materials but with abrasive wheels, which
correspond to the level of industrial development of the 1960s). Under these
circumstances, it is impossible to sharpen the cutting edge to the standard, which is the
most important part of the cutting tools.
Two types of metalworking tools are absent in Ukraine.
These are borazon grindstones and thin-walled diamond cutting wheels. This is a niche
occupied solely by the Institute for Superhard Materials of the National Academy of
Sciences of Ukraine. Demand for these tools is going up because instruments made of
high-speed steel can be sharpened quickly and efficiently only with borazon grindstones,
employment of which nearly doubles the durability of metal-cutting tools. Thin-walled
diamond cutting wheels are capable of making a thin cut, which is very important for
working of expensive/precious metals, when wastage must be minimal.
In 2001, it is planned to organize INTERTOOL trade show in
Kiev again and we hope that the situation will gradually change for the better for
Ukrainian tool manufacturers.