Elmia Subcontractor 2009
Smaller subcontractors are more competitive
Small and medium sized subcontractors have the upper hand in rapid changes in the market, according to Ingrid Larsby Arvered, global purchasing manager at Sandvik Material Technology.
– Smaller companies are more flexible and can make bigger adjustments in a short amount of time.
The order books are starting to fill up again for Sweden’s smaller subcontractors. This is the conclusion from a survey performed by IT-company Visma. One explanation for the result, says Ingrid Larsby Arvered, could be that small and medium sized companies can more easily adjust for example in case of a recession.
– When the market changes, the smaller companies become more competitive. Larger companies are by definition not as flexible and there are also risks involved, says Ingrid Larsby Arvered, and implies that many prefer to use small or medium-sized subcontractors when making drastic changes in the company.
According to Ingrid Larsby Arvered, Sandvik Material Technology work with both local, regional and global suppliers. A common flaw among all subcontractors, says Arvered, is that they are often lacking in marketing skills. She means that they must have a clear message and show that they exist.
– Subcontractors rarely tell the world how great they are. Large corporations don’t always keep track of every company they meet which is why subcontractors need to stand out and be a little more aggressive. At the same time patience and perseverance is crucial, deals are not made over night.