Clusters and competitiveness - PRO INNO Europe
Clusters and competitiveness - PRO INNO Europe
Clusters and competitiveness - PRO INNO Europe
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Figure 19. The main agents in the kitchen <strong>and</strong> bathroom tap cluster<br />
Suppliers of parts<br />
<strong>and</strong> valves<br />
Sedal<br />
Suppliers of raw<br />
materials<br />
brass, nickel<br />
Source: Observatory for Industrial Foresight.<br />
Importers<br />
Grohe, other br<strong>and</strong>s<br />
Tap manufacturers<br />
Roca,<br />
Industrias Ramon Soler,<br />
Grifería Tres,<br />
Supergrif,<br />
Tebisa...<br />
Auxiliary firms<br />
casting, machining,<br />
chrome-plating...<br />
Analysis of the competitive situation<br />
Association<br />
Agrival (Madrid)<br />
Distributors<br />
warehouses, shops,<br />
department stores<br />
Designers<br />
Certification Centre<br />
LGAI<br />
New build (50%)<br />
Replacement (50%)<br />
In 2005, the kitchen <strong>and</strong> bathroom tap cluster in Baix Llobregat had two apparently<br />
contradictory characteristics. On the one h<strong>and</strong>, it was an exp<strong>and</strong>ing business due to the<br />
strong growth in its client, the construction sector, which also led to an increasing number<br />
of firms in Catalonia selling products from abroad 15 ; on the other h<strong>and</strong>, offshoring to China<br />
<strong>and</strong> other low-cost countries was causing a big crisis among local suppliers of parts <strong>and</strong><br />
services, whose workload was steadily decreasing 16 . Moreover, it was also quite evident that<br />
there was growing polarisation between premium range products (in which design was<br />
important) <strong>and</strong> the cheapest products (normally imported from China). Therefore, in the<br />
strategic segmentation carried out by the Observatory for Industrial Foresight during its<br />
analysis of the sector’s competitive situation, basically three kinds of manufacturers were<br />
identified:<br />
1. Wide range suppliers: companies with an extensive product catalogue with wideranging<br />
qualities <strong>and</strong> prices <strong>and</strong> with renowned br<strong>and</strong>s in the market in all segments.<br />
In practice there were two companies that worked for the new build sector with a large<br />
production output.<br />
15 During the previous four years, imports from China had multiplied by 15 <strong>and</strong> those from Italy had grown by almost 90%.<br />
16 Although this was not a specifically Catalan phenomenon, the price of copper, the main component of brass, which practically all taps<br />
are made from <strong>and</strong> which can account for up to 20% of the product’s final production cost, had multiplied by 2.5 over the previous four<br />
years. Paradoxically, however, this provided Catalan manufacturers with a competitive advantage over low-cost countries (China, among<br />
others), as in these countries raw materials represent a much larger proportion of the production cost.<br />
THE CATALAN GOVERNMENT’S CLUSTER POLICY<br />
75