FKG: Resilience as a competitive advantage
Electrification, AI, global competition and changing supply chains are reshaping the landscape for automotive suppliers, according to the Scandinavian Automotive Supplier Association (FKG). For Swedish suppliers, future competitiveness is no longer solely about technology and innovation – it increasingly depends on the ability to adapt to a constantly changing world.
– Resilience has evolved from being a matter of risk management into a strategic competitive advantage, with regionalisation and diversified supply chains becoming increasingly important, says Gabriella Virdarsson, Communication & Strategy Officer at FKG.
FKG represents suppliers to the Scandinavian automotive industry and closely monitors the developments currently affecting one of Sweden’s most important industrial sectors. While technological shifts are creating new opportunities, many companies are also facing significant challenges.
– Increased global competition, cost pressure and rapid technological change are forcing suppliers to reposition themselves within the value chain. At the same time, many European suppliers struggle to generate the margins required to make the investments needed for the future, Gabriella explains.
From mechanics to integrated systems
Electrification is one of the strongest drivers behind the transformation. However, according to FKG, the transition involves much more than new powertrains.
– Electrification is changing both products and business models. Mechanical engineering is increasingly complemented by software, electronics and system integration, creating new opportunities but also new demands for skills and partnerships, says Peter Bryntesson, CEO of FKG.
The transformation is opening doors to innovation and new ways of solving old challenges, but FKG also highlights the importance of maintaining a broader perspective on future mobility.
– It is important not to forget that other powertrain technologies will also play an important role in achieving net-zero emissions targets, Peter adds.
For suppliers, this means combining traditional industrial expertise with emerging technologies in order to remain competitive.
Collaboration strengthens resilience
As global uncertainty increases, collaboration is becoming an increasingly important success factor.
FKG sees companies actively seeking new forms of partnerships to address growing investment needs, technological requirements and changing market conditions.
– Joint ventures are extremely popular right now – and for good reason. Focusing on what you do best and partnering with someone who excels in another area is a win-win situation, says Gabriella.
The need for transparency, knowledge sharing and collaboration is also increasing throughout the supply chain.
– This is why meeting places such as Elmia Subcontractor are becoming even more important. They provide opportunities for companies to exchange experiences, build relationships and find new partnerships that strengthen both competitiveness and resilience, Peter continues.
Future skills will shape future success
Alongside the technological transformation, the industry's skills requirements are also changing.
FKG sees a growing need for expertise in AI, software development, electrification and sustainable materials. At the same time, traditional manufacturing competence will remain an essential foundation.
– The ability to combine technical expertise with business understanding will be crucial going forward.
Despite the challenges facing the industry, FKG sees significant opportunities for Swedish suppliers in the years ahead.
At a time characterised by uncertainty and rapid change, resilience is no longer simply about managing risk. For automotive suppliers, it has become a key factor in future competitiveness.
– Sweden already holds a strong position in advanced systems, digitalisation, sustainable solutions and specialised expertise. By collaborating and ensuring visibility in the right arenas, such as Elmia Subcontractor, we can accelerate that development, Gabriella concludes.
Fact Box
The Scandinavian Automotive Supplier Association (FKG) is the industry organisation for suppliers to the Scandinavian automotive industry. For nearly 30 years, FKG has supported its approximately 300 member companies by acting as the industry's voice towards manufacturers, policymakers, authorities and media, while helping suppliers strengthen their competitiveness and long-term development.