Appendices Appendix 1: The world of Hyva
Red dots – Hyva subsidiaries (production and/or sales)
Yellow dots – Hyva agents/importers
Appendix 2: Information framework of the export environment
The framework of the export environment includes six primary environmental dimensions, 17
subsidiary export dimensions and 60 specific decision variables. The required variables for the external analysis can be extracted from this framework.
Primary environmental dimensions Subsidiary export dimensions Specific decision variables (written description used in survey)
Politics Stability (1) Political strength of leadership in the foreign country
(2) Degree of freedom of the political opposition in the foreign country
(3) The degree of local labor unrest and the foreign government’s ability to deal with the current and future labor unrest
(4) Degree of foreign country’s domestic instability (e.g. rebellion, political kidnappings, riots, guerrilla wars)
Diplomatic Relations 5) Degree of normal diplomatic relations between US and the foreign country and vice versa (6) Extent of restrictions on free and open trade with the foreign country due to political frictions (e.g. US freeze on US technology exports)
Internal Policies (7) Extent of foreign government’s use of incentives to encourage private business (8) The ability of the foreign government to enforce its diplomatic policies with respect to trade (for example, ability of foreign government to enforce policy of limited trade with U.S) (9) Actual size of the private sector in relation to the government sector in the foreign country Market Potential General Demand (10) Potential foreign buyers’ ability to pay for your produc
(11) Average annual sales of your type of product or service in the foreign country (12) Future trends and growth rate of the foreign market that your product or service would be sold in
(13) Opportunities for you to offset cyclical swings in the US market demand for your product by entering a foreign market
Adaptation Costs (14) Parts and technical service support needed and available for your product in the foreign country (15) Need to change your product specifications due to differences in foreign buyers’ tastes and preferences or technical requirements
(16) Degree of test marketing and promotion required to assure adequate sales of your product in the foreign market
(17) Credit and financing normally extended to buyers in the foreign country (i.e. industry standards for financing sales to a foreign market)
Competition (18) Types and number of competitive products on the market in the foreign country (19) Competitors’ market share, coverage, and growth rate in the foreign market (20) Advantages and weaknesses of competitors in the foreign market (e.g. the uniqueness of competitor’s product and facilities for distribution)
(21) Price levels on competitive products as compared to your C.I.F. price (costs, insurance, and freight) in the foreign market
Economics Development and performance (22) Gross National Product and per capita income in the foreign country (23) Availability of US dollar reserves in the foreign country (24) Education and employment levels in the local foreign population (25) Inflation rate over the past five years in the foreign country (26) Trends in the foreign country’s balance of trade (surpluses vs. deficits)
Production Strength (27) The degree of use of modern, efficient methods in the creation of products and services in the foreign country (relative skill level of labor force)
(28) Wealth of the foreign country in natural resources and the extent of their development (29) The diversity and range of all products produced in the foreign country versus those imported
Consumption (30) Per capita ownership of consumer goods in the foreign country (e.g. cars, radios, TV’s, etc.) (31) Per capita food consumption in the foreign country
(32) Per capita energy consumption in the foreign country (e.g. oil, gas, coal)
(33) Per capita industrial goods consumption (e.g. steel, cement, glass) in the foreign country Culture Cultural Unity (34) Number of different cultural groupings, such as ethnic, religious, racial, and language groups
found in the foreign country
(35) Extent of harmony or friction between different cultural groups in the foreign country (36) Differences in life styles and customs of various groups in the foreign country Cultural Differences (37) Extent of adoption of American way of life in the foreign country
(38) Percent of the business community who speak English, and the extent of adoption of American business practices in the foreign country
(39) Preferences and prohibitions in the foreign country with respect to numbers, colors, shapes, sizes, and symbols on products and in promotion of products
(40) Differences between US and foreign views on the use of your product
Infrastructure Distribution (41) Costs and efficiency of transportation to the foreign country from the US (airlines, shipping lines, etc.)
(42) Costs and efficiency of transportation within the foreign country (roads, highways, railroads, trucking, etc.)
(43) Costs and efficiency of physical handling and warehousing in the foreign country (in the port of entry and throughout the foreign country)
(44) Extent of development of wholesale/retail system in the foreign country
Communications (45) Costs and efficiency of communications to the foreign country from US (telex, telephone, post office, telegraph)
(46) Costs and efficiency of communications within the foreign country (i.e. commercial broadcast media, print media, promotional agencies)
(47) Costs and efficiency of trade fairs and industrial exhibitions in the foreign country Geography (48) Total land area of the foreign country and description (i.e. mountain range, rivers, natural
harbors, land locked)
(49) Climatic characteristics in the foreign country
(50) Natural disaster potential in the foreign country (earthquakes, volcanoes, floods, windstorms) Legal Tariffs/Taxes (51) Exact tariffs, import duties, and taxes assessed by the foreign country on your products
(52) Tariff concessions allowed by the foreign country (i.e. drawbacks, preferential tariffs) (53) Common markets or regional trading blocks to which the foreign country belongs Non-Tariff (54) Product standards imposed by the foreign country (e.g. local assembly laws; product
packaging and labeling requirements; local safety and environmental regulations)
(55) Required documentation, import procedures, and quotas imposed by the foreign government (56) Extent and nature of the foreign government’s participation in trade (e.g. foreign government procurement policies)
Other Legal (57) Visa requirements in the foreign country (restriction on travel imposed by foreign government)
(58) Foreign government’s laws affecting relationships with agent’s distributors (e.g. severance pay, compensation)
(59) Laws regulating and restraining advertising and promotion in the foreign country (60) Patent, copyright, and trademark protection in the foreign country
Appendix 3: Dump truck population differentiated by state
Class 5 Class 6 Class 7 Class 8 Total
Alabama 1.310 3.234 913 5.755 11.212
Alaska 51 144 120 1.003 1.318
Arizona 378 1.352 550 1.533 3.813
Arkansas 18 53 7 145 223
California 7.860 3.216 1.341 8.831 21.248
Colorado 675 985 829 2.835 5.324
Connecticut 528 499 573 2.557 4.157
Delaware 128 298 134 878 1.438
Florida 1.393 2.377 1.395 9.589 14.754
Georgia 1.596 3.613 1.990 6.326 13.525
Hawaii 86 165 170 348 769
Idaho 247 639 349 1.656 2.891
Illinois 2.297 2.465 1.910 4.600 11.272
Indiana 372 4.301 1.500 5.530 11.703
Iowa 660 2.063 1.028 4.419 8.170
Kansas 709 2.546 447 2.958 6.660
Kentucky 1.012 2.210 1.673 3.889 8.784
Louisiana 271 711 173 2.257 3.412
Maine 123 674 589 2.685 4.071
Maryland 0 1.070 502 4.241 5.813
Massachusetts 502 2.061 2.194 3.794 8.551
Michigan 520 2.420 1.092 4.590 8.622
Minnesota 368 1.366 1.091 4.592 7.417
Mississippi 87 337 152 1.038 1.614
Missouri 346 1.280 1.235 4.881 7.742
Montana 53 1.182 203 1.019 2.457
Nebraska 37 478 320 1.461 2.296
Nevada 149 413 149 538 1.249
New Hampshire 233 592 746 2.051 3.622
New Jersey 1.162 2.292 1.324 6.516 11.294
New Mexico 324 712 356 1.236 2.628
New York 5.361 4.012 2.857 9.159 21.389
North Carolina 948 6.161 1.781 8.555 17.445
North Dakota 508 776 463 1.635 3.382
Ohio 0 4.727 2.884 9.470 17.081
Oklahoma 172 1.443 735 3.647 5.997
Oregon 679 1.480 162 1.696 4.017
Pennsylvania 3.800 3.505 3.629 10.533 21.467
Rhode Island 104 274 89 535 1.002
South Carolina 638 1.089 297 2.312 4.336
South Dakota 51 418 166 1.025 1.660
Tennessee 405 1.153 613 6.776 8.947
Texas 1.612 1.757 2.104 5.415 10.888
Utah 261 207 420 1.177 2.065
Vermont 111 212 330 1.143 1.796
Virginia 1.041 3.507 1.977 7.292 13.817
Washington 41 1.988 1.355 3.660 7.044
Washington DC 0 19 3 22 44
West Virginia 479 1.537 655 2.723 5.394
Wisconsin 441 1.944 498 6.747 9.630
Wyoming 184 578 167 955 1.884
U.S. Total 40.331 82.535 46.240 188.228 357.334
Appendix 4: Trailer production 2003
2003 Trailer Production Figures
2003 North American Truck Trailer Output
2003 Output 2002 Output
Rank & Company Trailers Chassis Containers Trailers Chassis Containers
1 Great Dane (estimate) 41,000 33,000
2 Wabash National Corp 36,230 739 1,306 27,149 1,301 5,803
3 Utility Trailer Mfg 23,688 17,574
4 Stoughton Trailers 9,900 1,050 2,400 10,300
5 Hyundai Translead 8,871 15,101 4,026 4,763 5,195 1,342 6 Manac—Canam Manac
Group 6,300 6,900
7 Strick Corporation 6,000 8,500 5,200 4,500
8 Trailmobile Canada 5,479 4,664
9 Fontaine Trailer
Company 3,900 3,050
10 Transcraft Corporation 3,629 3,703
11 Wilson Trailer
Company (estimate) 3,000 2,500
12 Trail King Industries 2,677 2,681
13 Dorsey Trailer
Company 2,537 2,565
14 Heil Trailer Intl 2,300 2,200
15 Lufkin Trailers 2,206 1,923
16 Kentucky Mfg 2,085 1,879
17 Road Systems 1,815 1,101
18 Timpte Inc 1,774 1,650
19 Pitts Trailer 1,550 1,350
20 East Manufacturing
Company 1,360 1,200
21 Polar Tank Trailer 1,200 1,320
22 MAC Trailer 1,158 973
23 Talbert Manufacturing 1,072 918
24 Kidron 875 763
25 Benson International 819 715
26 Reitnouer Inc 812 693
27 Fontaine Specialized 800 1,400
28 Beall Corporation 768 615
29 Brenner Tank 650 800
30 X-L Trailers 536 529
Total 174,991 25,390 7,732 144,078 10,996 7,145
Reprinted from Trailer/Body Builders® magazine February 2004
Appendix 5: The transatlantic vicious cycle
Withdrawal of the European from the USA
Disappointment of the European
Product introduction – Positive initial response
American Concern Regarding Priorities/ US-Commitment
of the European
Refusal to Purchase Due to Perception of
Lack of Commitment
Financial Loss Limit Reconfirmation of the
American’s Concern about European Commitment
The Transatlantic Vicious Cycle
Entry
Appendix 6: Comparison with competition (Custom Hoist and Commercial) Hyva – Custom Hoist
Custom Hoist Hyva
Type : 8-5-235 : FEE 183-5-05955 (7-5-235)
Weight : 276 kg (608 pounds!) : 273 kg (602 pounds) Weight + oil : 398 kg (877 pounds) : 359 kg (791 pounds) Max. work pressure : 135 bar / 1958 psi :190 bar / 2756 psi
Airbleeder : yes : not necessary
Top eye : 2” non spherical : 2” spherical or non spherical Oil contents : 143 ltr / 38,4 Gallon : 106 ltr / 28,2 Gallon (- 26%) Closed length : 1651 mm / 65 : 1560 mm / 61,4
“0” bottom Eye : 91/2” = 241.3 mm : 240 mm Piston diameter : 4” = 101.6 mm : 99 mm F piston 135 bar : 10.9 T : 10.4 T F piston 170 bar : Not possible : 13 ton
Sealing : V-pack : U-cup
1st stage chromed : No : Yes
Hyva advantages:
Weight saved on cylinder : 3 kg =7 pounds (-1%)
Weight saved on lesser oil : 38 ltr = 33 kg = 72 pounds (-26%) Total weight saved : 36 kg = 10% less weight! = 79 pounds 26% faster tipping
26% faster lowering More lifting capacity
No bleeding of cylinder necessary (Spherical bearing)
Chromed 1
ststage Better seal – U-cup
Hyva – Commercial
Commercial Hyva
Type : S85DC-40-235 : FEE 183-5-05955
Weight : 299 kg (659 pounds) : 273 kg (602 pounds) Weight + oil : 411 kg (906 pounds) : 359 kg (791 pounds) Max. work pressure : 135 bar / 1958 psi : 190 bar / 2756 psi
Airbleeder : yes : not necessary
Top eye : 2” non spherical : 2” spherical or non spherical Oil contents : 132 ltr / 35 Gallon : 106 ltr / 28,2 Gallon (- 20%) Closed length : 1641 mm / 64,61” : 1560 mm / 61,4”
“0” bottom Eye : 91/2” = 241.3 mm : 240 mm Piston diameter : 3,75” = 95,25 mm : 99 mm F piston 135 bar : 10.0 T : 10.4 T F piston 170 bar : Not possible : 13 ton
Sealing : V-pack : U-cup
1st stage chromed : No : Yes
Hyva advantages:
Weight saved on cylinder : 26 kg = 57 pounds
Weight saved on lesser oil : 27 ltr = 23 kg = 50 pounds
Total weight saved : 49 kg = 12% less weight! = 108 pounds 20% faster tipping
20% faster lowering More lifting capacity
No bleeding of air necessary
Spherical bearing
Chromed 1
ststage + Better seal
Commercial Hyva
Type : S85DC-40-265 : FEE 183-5-06715-502 (01545164) Weight : 352 kg (776 pounds) : 295 kg (650 pounds)
Weight + oil : 482 kg (1061 pounds) : 359 kg (791 pounds) Max. work pressure : 135 bar / 1958 psi : 170 bar / 2465 psi
Airbleeder : yes : not necessary
Top eye : 2” non spherical : 2” spherical or non spherical Oil contents : 153 ltr / 40,3 Gallon : 118 ltr / 31,2 Gallon (- 23%) Closed length : 1803 mm / 71” : 1762 mm / 69,4”
“0” bottom Eye : 91/2” = 241.3 mm : 240 mm Piston diameter : 3,75” = 95,25 mm : 99 mm F piston 135 bar : 10.0 T : 10.4 T F piston 170 bar : Not possible : 13 ton
Sealing : V-pack : U-cup
1st stage chromed : No : Yes
Our advantages:
More lifting capacity
Weight saved on cylinder : 57 kg = 125 pounds (17%) Weight saved on lesser oil : 35 ltr = 30 kg = 66 pounds
Total weight saved : 87 kg = 18% less weight! = 191 pounds Popular truck cylinder model:
Commercial Hyva
Type : S74DC-40-161 : FEE 162-4-03960-201 (6-4-161) Weight : 183 kg (405 pounds) : 190 kg (418 pounds)
Weight + oil : 249 kg (550 pounds) : 241 kg (532 pounds) Max. work pressure : 135 bar / 1958 psi : 190 bar / 2755 psi
Airbleeder : yes : not necessary
Top eye : 2” non spherical : 2” spherical or non spherical Oil contents : 78 ltr / 20,7 Gallon : 60 ltr / 16 Gallon (- 23%) Closed length : 1404 mm / 55,31” : 1425 mm / 56,1”
“0” bottom Eye : 91/2” = 241.3 mm : 240 mm Piston diameter : 3,75” = 95,25 mm : 99 mm F piston 135 bar : 10.0 T : 10.4 T F piston 190 bar : Not possible : 14,7 ton
Sealing : V-pack : U-cup
1st stage chromed : No : Yes
Our advantages:
More lifting capacity
Weight cylinder : 7 kg = 15 pounds MORE
Weight saved on lesser oil : 18 ltr = 15,3 kg =34 pounds LESS Total weight saved : 8,3 kg = 3% less weight! = 18 pounds
On truck cylinders Hyva is less competitive unless the pressure can be increased. Cylinders are not exactly interchangeable with competition. Dry weight of cylinder is sometimes even higher.
Fortunately oil volume is still a lot smaller and maybe the customer can have a smaller oil tank.
• Construction Tube nesting
The main advantage of our cylinder, besides the higher pressure, is the compact nesting of our tubes, which means that our piston diameter is usually one size bigger. This would allow moving to a smaller size cylinder while being able to lift at the same pressure. This makes it obvious that we would have to go one diameter smaller (also for price!) in order to have the competitive advantage of reduced weight and smaller oil volume. Also for exchangeability we have to go one model smaller as we have a wider “O” dimension. With one model lower we are exactly the same as our competition.
Wall thickness
The Hyva cylinders have a bigger wall-thickness as compared to the Custom Hoist and Commercial cylinders. This is necessary for our higher pressure. This also makes most of our parts more expensive as we need better quality, stronger materials and higher tolerances. Fortunately we need a smaller cylinder to do the same job which compensates for the price as well.
Seals
The difference between a V-pack seal and a U-cup is as follows:
The V-pack seals must be put under tension by mechanical pressure (the ramnut) for optimal sealing.
After some time when the seals age the elasticity of the seal is reduced and also some play occurs because of the usage. This is the reason why the ramnuts of these cylinders can be tightened. The U- cup seal works differently.
The oil pressure in the cylinder causes the sealing tension and the sealing performances increases as the pressure goes up. Readjusting the seal is therefore not possible.
• Hyva Unique Selling Points
Concluding Hyva can offer the bodybuilder OEM’s the following advantages:
- 20-25% less oil volume = lower weight, maybe smaller oil tank possible - 10-15% Lower dry weight of cylinder
- Faster tipping and lowering times
- High technology product, European design, higher pressures - Higher quality product
- Higher lifting capacity if pressure is increased
- Better resistance against overpressure because of thicker tubes For the end user customers Hyva has the following unique selling points:
- Less oil needed - Easy to service
- Longer lifetime (hard chromed piston) - Faster tipping and lowering
- Large overcapacity in terms of overloading
- Lower dry weight cylinder
Appendix 7: Technical overview per cylinder brand (Hyco, Custom Hoists, Mailhot and Comm.)
Hyco (new series 70)
• Welded bottom with standard base tube bottom eye
• Narrow fixed top eye with breather (no spherical bearing)
• Std. double oil-inlet on base (2 mounting positions of hose)
• U-cup, Poly Urethaan Seal
• Ram nut(retain glands) from nodular cast iron ASTM A536-80 Grade 80-55-06
• Dual lip wiper in Ram nut
• Double stopring with spacer on most stages
• Tube material ST52-3
• Sliders: The underside of the tube is fixed with a slider bush that has four slider grooves.
However the number of actually mounted sliders is 2. The material of the sliders is a plastic compound
• Snaprings: At the underside of the above-mentioned bush an L-shaped liftring is welded.
• Low pressure
Custom Hoists
• Welded bottom with standard base tube eye under
• Narrow fixed top eye with (manual / automatic) breather (no spherical bearing).
• Oil-inlet with variable position and dimensions
• Adjustable V-pack seals, kept under tension by a feathered support-ring, mounted between the wearrings.
• Double glassfiber reinforced wearrings
• Single stopring with the on lower stopring with a sloped stop side.
• Dual lip wiper in ramnut
• Double glassfiber reinforced wearring
• DOM tubes
• Underside bush stopring with a sloped stop side
• Sliders made of nylon or bronze
• Welded liftring
• Low pressure
Custom Hoists tube range Stage Inch
7 3,00
mm 76,20
6 4,00 101,60
5 5,00 127,00
4 6,00 152,40
3 7,00 177,80
2 8,00 203,20
1 9,12 231,65
Mailhot
• Welded bottom with standard base tube eye under
• Narrow welded topeye with (semi automatic) breather. (no spherical bearing)
• Standard SAE oil-inlet
• U-cup Poly Urethaan Seal
• Nitrated ramnuts without wearrings
• Wiper in ramnut
• Nitrated tubes
• Underside of tubes equipped with bushes with slider groves. Bush also serves as stopping surface (Nitrated?).
• L-shaped liftring welded at the underside of the tubes
• Low pressure
Commercial
• Welded bottom with standard base tube eye under
• Narrow welded topeye with (semi automatic) breather. (no spherical bearing)
• 1 or 2 oil-inlets
• Non adjustable V-pack seals
• Low pressure
• Quite similar as Custom Hoist
Commercial Intertech Stage inch Mm 7 2,75 69,85 6 3,75 95,25 5 4,75 120,65 4 5,75 146,05 3 6,75 171,45 2 7,91 200,79 1 9,38 238,13 Other US competitors:
- Crysteel (long warranty period) - Gallion
- Prince - Perfection - Heil - Ward
Conclusion with regard to technology of US made telescopic cylinders:
• Most cylinders are of the type FEE with a fixed (welded) bottomplate with a narrow bottom. FC’s are also sold in the market.
• In order to (dis-)assemble the cylinders all tubes are equipped with ramnuts.
• Generally tubes are used in exact inch sizes, and all tubes more or less differ 1”(25.4mm).
• Max. working pressure is generally 2000 psi (135 bar).
• Oil inlets are of SAE type
• All cylinders are equipped with fixed eyes without spherical bearing.
• Seals are known to be of low quality, some are adjustable.
• Cylinders are available standard without Hard-chrome. Not even the pistons. Mailhot only delivers standard nitrated cylinders.
Hyva in U.S. sizes:
Mm Stage inch
60,00 9 2,36
78,00 8 3,07
99,00 7 3,90
120,00 6 4,72
141,00 5 5,55
162,00 4 6,65
183,00 3 7,20
207,00 2 8,14
231,00 1 9,09
Appendix 8: Composite index
The original composite index of Kogut and Singh
1formed:
,
where Iij stands for the index for the i- th cultural dimension and the j- th country, Vt is the variance of the index of the i- th dimension, u indicates the United States, and CD j is cultural difference of the j- th country from the United States.
As mentioned, this formula has to be adapted to the revised framework of Hofstede. The revised framework consists of 5 dimensions (long- versus short-term orientation was added) and 53 countries (of which 3 are regions). Therefore the number of dimensions is in the formula 5. The cultural difference is the sum of the deviations on five variables. This is showed by the following formula:
As mentioned in the revised framework 53 countries were subject to research, instead of the 40 countries in the first edition. It is assumed that this does not reduce the significance of the statistical relationship.
When this formula is applied to the revised index scores, these are the results:
Index scores Canada United States The Netherlands
Power Distance 39 40 38
Uncertainty Avoidance 48 46 53
Individualism - Collectivism 80 91 80
Masculinity - Femininity 52 62 14
Long- versus Short-Term orientation 23 29 44
CD (per dimension) (via formula) CD (per dimension)
PDI 0,00043 0,00171
UAI 0,00138 0,01689
IDV 0,03818 0,03818
MAS 0,06070 1,39858
LTO 0,01590 0,09939
Total Cultural Distance (CD) 0,11659 1,55475
Cultural Distance Culturally similar:
Canada 0,11659
Culturally dissimilar:
The Netherlands 1,55475
The numbers act as if they illustrate a great accuracy, but the number is meant to develop a general idea, not to be totally accurate. Countries with a (CD<1) are considered as culturally similar countries and countries a (CD>1) are considered as culturally dissimilar countries.
The next page shows the variance (VAR) calculation table. The numbers 1 to 53 are the different countries (or regions) from the IBM set. The variance calculation for LTO consists only of 31 countries (or regions), since not for all countries an index score on LTO was given. It assumed that this does not reduce the validity.
1
Kogut, B. & Harbir Singh, The effect of National Culture on entry mode choice, In: Journal of International Business Studies,
Vol. 19, Issue 3, Fall 1988: 411-432
Variance Calculation:
PDI UAI IDV MAS LTO
1 49 86 46 56 31
2 36 51 90 61 31
3 11 70 55 79 38
4 65 94 75 54 65
5 69 76 38 49 23
6 39 48 80 52 46
7 63 86 23 28 41
8 67 80 13 64 39
9 35 86 15 21 31
10 18 23 74 16 25
11 78 67 8 63 96
12 33 59 63 26 61
13 68 86 71 43 43
14 35 65 67 66 34
15 35 35 89 66 80
16 60 112 35 57 75
17 95 101 6 37 44
18 68 29 25 57 44
19 78 48 14 46 30
20 77 40 48 56 0
21 58 59 41 43 19
22 28 35 70 68 30
23 13 81 54 47 48
24 50 75 76 70 19
25 45 13 39 68 33
26 54 92 46 95 40
27 60 85 18 39 87
28 104 36 26 50 56
29 81 82 30 69 29
30 38 53 80 14 25
31 31 50 69 8 16
32 22 49 79 58
33 55 70 14 50
34 95 86 11 44
35 64 87 16 42
36 94 44 32 64
37 63 104 27 31
38 49 49 65 63
39 66 94 19 40
40 74 8 20 48
41 57 86 51 42
42 31 29 71 5
43 34 58 68 70
44 58 69 17 45
45 64 64 20 34
46 66 85 37 45
47 61 100 36 38
48 40 46 91 62
49 81 76 12 73
50 76 88 27 21
51 80 68 38 53
52 64 52 27 41
53 77 54 20 46
VAR 466,82 580,10 633,86 329,48 452,77
Appendix 9: Dumptruck market potential U.S.A.
Red: Number of truck registration of the last 5 years is at least 10.000 Orange: Number of truck registrations of the last five years at least 4.000 Yellow: Number of truck registrations of the last five years less than 4.000
The numbers on the map correspond with the states indicated below. The column “number of registrations class 5-8” indicates the number of registrations of “Dump trucks” of the last five years.
Class 5-8 means that the gross vehicle weight is higher than 7.259 Kilograms. The number between brackets shows the position relative to the other states. Number 1 has most sales and number 49 has least sales. The states of Alaska and Hawaii are not on the map but their number of registrations is minimal, respectively 1.318 and 769 (place 46 & 49).
# of registrations class 5 - 8 Rank # of companies in the 1. Washington 7.044 (22) potential customer list
2. Idaho 2.891 (36)
3. Montana 2.457 (38)
4. North Dakota 3.382 (35) (2)
5. Minnesota 7.417 (21) (4)
6. Wisconsin 9.630 (14) (2)
7. Washington D.C. 44 (51)
8. Michigan 8.622 (17) (1)
9. New York 21.389 (2) (3)
10. Vermont 1.796 (42) (1)
11. New Hampshire 3.622 (33)
12. Maine 4.071 (30) (1)
13. Oregon 4.017 (31) (3)
14. Wyoming 1.884 (41)
15. South Dakota 1.660 (43) (1)
16. Iowa 8.170 (19) (3)
17. Illinois 11.272 (11) (1)
18. Indiana 11.703 (9) (4)
19. Ohio 17.081 (5) (8)
20. Pennsylvania 21.467 (1) (9)
21. New Jersey 11.294 (10)
22. Connecticut 4.157 (29)
23. Rhode Island 1.002 (48)
24. Massachusetts 8.551 (18)
25. California 21.248 (3) (13)
26. Nevada 1.249 (47)
27. Utah 2.065 (40) (1)
28. Colorado 5.324 (27) (2)
29. Nebraska 2.296 (39) (1)
30. Kansas 6.660 (23)
31. Missouri 7.742 (20) (2)
32. Kentucky 8.784 (16) (1)
33. West Virginia 5.394 (26) (3)
34. Virginia 13.817 (7)
35. Maryland 5.813 (25)
36. Delaware 1.438 (45)
37. Arizona 3.813 (32) (1)
38. New Mexico 2.628 (37)
39. Texas 10.888 (13) (5)
40. Oklahoma 5.997 (24) (1)
41. Arkansas 223 (50) (2)
42. Louisiana 3.412 (34) (1)
43. Mississippi 1.614 (44) (2)
44. Alabama 11.212 (12) (1)
45. Tennessee 8.947 (15) (1)
46. Georgia 13.525 (8) (1)
47. South Carolina 4.336 (28) (1)
48. North Carolina 17.445 (4) (4)
49. Florida 14.754 (6) (7)
Through the colours it is tried to show the attractive areas for HYVA in a visual way. Red are the most attractive areas with a total number of at least 10.000 dumptrucks. The top-10 states are bold.
Secondly, the orange areas indicate states with a total number of registrations of at least 4.000 dumptrucks, but less than 10.000. Finally, the least attractive area is the yellow area with a number of registrations of less than 4.000 dumptrucks.
These numbers give a good indication of the truck market potential of the different states of America for HYVA. This is especially true because these figures only include relevant body types for HYVA, these are only body that (can) make use of hydraulic lifting devices.
The total number of registrations of “Dump Trucks” in the U.S.A. is 357.334.
Still the truck market is divided between a lot of small manufacturers, so gaining market share is a difficult task. The trailer market, on the other hand, is dominated by a number of large manufacturers.
Therefore it is easier to penetrate and gain market share. The trailer-body builders are indicated on
the map below, it can be seen that the American trailer market can be seen as a concentrated market,
concentrated in a market share and a geographical view. Although the HYVA cylinder can work up to a
higher capacity with a higher performance pump, it is already compatible for mounting on current
trucks and trailers.
Appendix 10: Trailer / Bodybuilders U.S.A.
Company City State # trailers 03
1 Beall corporation Portland Oregan 768
2 Benson trailers Mineral Wells West Viginia 819
3 Clement industries Minden Louisiana
4 Featherlite Cresco Iowa
5 Trailstar Alliance Ohio (Bodies)
6 East Randolph Ohio 1.360
7 Mac trailer Alliance Ohio 1.158
8 J&J bodies Somerset Pennsylvania (Bodies)
9 Ravens Kent Ohio
10 Thiele Industries Windber Pennsylvania
11 Travis body Houston Texas
12 Crysteel Fulton New York
13 Wabash National Lafayette Indiana 36.230
14 Utility Trailer City of Industry California 23.688
15 Trailmobile Northbrook Illinois 5.479
16 Great Dane trailer Savannah Georgia 41.000
17 Stoughton trailers Stoughton Wisconsin 9.900
18 Strick trailers Fairless Hills Pennsylvania6.000
19 Hyunday Translead San Diego California 2.677
20 Lufkin Trailers Lufkin Texas 2.206
21 Pitts Trailers Pittsview Alabama 1.550
22 Trail King industries Norway South Dakota 2.677
23 HPA Monon Monon Indiana
24 American Trailer MFG Dekalb Illinois 25 Perfection dump body Ft Wayne Indiana
26 Reiten Cooperstown North Dakota
27 Fontaine Trailer Company Haleyville Alabama 3.900
28 Dorsey Trailer Company Elba Alabama 2.537
Capital Map
1
6 5,7 13,35 9 23 25 15 24 4
8 10 18
12 2
16 21
3 20
11 22 26
14
19
17
27
28 29
30
31 32
33 34
36 37
38 39
29 Wilson Trailer Company Sioux City Iowa 3.000
30 Transcraft Corporation Anna Illinois 3.629
31 Heil Trailer International Athens Tennessee 2.300
32 Kentucky Manufacturing Louisville Kentucky 2.085
33 Road Systems Searcy Arkansas 1.815
34 Timptelnc David City Nebraska 1.774
35 Talbert Manufacturing Rensselaer Indiana 1.072
36 Kidron Kidron Ohio 875
37 Reitnouer Inc Reading Pennsylvania 812
38 Brenner Tank Fond du Lac Wisconsin 650
39 X-L trailers Oelwein Iowa 536
These are the 27 largest trailer manufacturers in the U.S. supplemented with specfic dump-trailer / bodybuilders. Specific dumptrailer builders and therefore possible customers are written in bold. The Canadian manufacturers are left out of the picture, since the initial location will be in the U.S.
Companies with the number of trailers sold given, are in the top-30 trailer manufacturers chart.
Appendix 11: Advertisement “The Big Guns” (adapted to Hyva USA)
Appendix 12: Discussions with Managing Directors of various Hyva subsidiaries
As indicated Hyva is a very international company. To use Hyva’s rich international experience I tried to contact managing directors of international subsidiaries. On the one hand to find out how previous expansions went in practice and on the other hand to use their learning experiences (not to oversee important issues). By e-mail I contacted managing directors of various Hyva subsidiaries. The e-mail that was send to them is the following:
Hello Frans,
As you might know Hyva is assessing its possibilities to expand to the North-American market. Marcel Birkhoff is responsible for this possible expansion and I’m assisting him by doing research on the (North) American market.
Now, after 1½ month I have become familiar with Hyva and developed the research framework. The reason I send you this e-mail is that you experienced an expansionary process from close by. Learning from each other can be very valuable and therefore I would like to talk with you about this subject.
This would help my research and might contribute to the international success of Hyva. Your general experiences and specific ideas on the following subjects are very interesting to me:
• Market potential (Did you assess it upfront and how did you do that? Was that a good indication?)
• Competitive field in the foreign market
• Entry mode (why was this chosen and is it suitable?)
• Potential customer identification
• Reason of customers to ‘switch’
• Market share development
• Learning effects (unexpected issues)
I would like to talk with you about these subjects and without a negative response I will call you in the coming days. If you prefer a specific day or time please let me know.
Best regards, Ronald Scheffer
As becomes clear in this e-mail the atmosphere within Hyva is down-to-earth. In the e-mail I could be on terms and use first names. I had a conversation by telephone with three managing directors and one sales director. Furthermore, I went to Hyva Belgium and had a face-to-face conversation with the managing director of Hyva Belgium.
On market shares I received a reply from Hyva India that I included in this e-mail as well.
Finally, on Hyva China I got a lot of information in the company itself. Learning experiences of the
expansion to China are included as well.
1) Summary of the dialogue with Zbigniew Jalocha, Managing Director of Hyva Poland and founder of Hyva Russia (June 24, 2004)
In 1995, Zbigniew Jalocha was chosen as a representative for Hyva in Poland. He had no earlier experience in the truck industry. Prior to his assignment as representative, he was working outside Poland, so he had no recent experience with the Polish market, he wasn’t aware of the actual
situation. Despite this lack of experience, he had good commercial skills and those would proof useful in the coming years.
He enjoyed an intensive training in The Netherlands and Hyva more or less showed him the (Polish) market. Hyva already exported to some customers in Poland. However, there was no preceding professional research, all was done on the basis of intuition.
Around 1996-1997 Poland was a good market with a 5 to 6% economic growth. Therefore any product would be successful. Especially because there was a lack of Western technology. Zbigniew went back to Poland and spend a lot of time on the road, visiting (potential) customer to learn their needs. At that time demand was so big that only export was not a viable option anymore due to customs procedures. Zbigniew made a stock proposal to serve the market. Delivery time would decrease and therefore he could be more responsive to the customers’ needs.
The stock proposal was approved, but demand was growing even more. Following, Zbigniew made a proposal for a Hyva Poland, because the market was too big to be covered only as a representative.
That proposal was approved as well and Hyva Poland was at the right time and the right place.
Zbigniew used his commercial skills to develop the company, the customers were looking for me. It was almost a customer overload. All OEMs and chassis manufacturers (Scania Poland, Volvo Poland) were visited. That was already enough, they created the market. All the key players became customer of Hyva and they created the market. At that time, customers were not asking for truck equipment, but for Hyva equipment. That was also because there was no competition of ‘Western’ suppliers, only local competitors. Zbigniew had only personal contact with customers. Also a website was launched in 1998, this was entirely new in the market and that created a lot of recognition.
The market share development was like this (estimation):
1998: 80-90%
1999: 80-90%
2000: crisis year, market share went down
2001: crisis year, market share went down even more 2003: around 40%
At the time of the crisis, competition entered Poland. So, slow demand and increasing competition put high pressure on the market share. At the moment all suppliers have their own agents in Poland and there is really fierce competition. Hyva Poland has to fight for market share.
Hyva Russia
A new Hyva subsidiary is opened in Russia. On the one side Scania, MAN and Volvo were putting pressure on Hyva to expand to Russia. Follow their after-sales and sort of expanding with your customer. On the other side, there were a lot sales in Russia and the Russian market is developing just as the Polish market. The market is too big (geographically) to give it to an agent, so a subsidiary was opened. Furthermore the market has to be developed locally because of:
• Bureaucracy
• Language differences
• Business mentality (Relation is more important, trust is of primary importance. To give an example, it took a year of traveling to Russian customers before Zbigniew received his first order from the Russian market. It took that long to develop a trustful relationship)
• Strict customs procedures
It is important to have the right people in the right place. The employees have to be motivated to
developed your company. Employees are only locals, because they understand business mentality
differences. Presence at exhibitions is important to give the market the opportunity to get to know
you. In terms of market share, Hyva is fighting with competitor Binotto (has a Russian agent and a
partnership with the biggest bodybuilder). After one year the market share in direct cylinder sales is
40% and indirect (with cylinders on complete tippers) is 60%.
The Polish, Russian and American market are common by the fact that the standard in the market, at the time of entering was low pressure. The solution to low-pressure is selling of complete systems (wetkits + cylinders). Find the customers (preferably big) and sell them the complete system. Market leaders are important and can have a large influence. Price was not an issue, Hyva solutions were more expensive, but good products were demanded.
Zbigniew also mentions that the Polish and Russian market are different from the U.S. market, nevertheless the learning experiences are valuable inputs.
Learning experiences Zbigniew:
• Stock is necessary to be responsive to customer needs
• Personal contact develops the relationship, creates trust and gives you the opportunity to learn the customers’ needs
• Key players are influential
• Acknowledge differences in business mentality
• Motivated people are basis for success
• Solution to low-pressure markets is to encourage key players to buy complete systems.
2) Summary of the dialogue with Giulio Rigotto, Sales Manager of Hyva do Brasil (June 29, 2004)
Hyva Brasil was in operation for one year when Giulio joined the company. At that time, Hyva was facing one competitor in the market and gained a lot of marketshare in the beginning. Hyva became market leader within a couple of months, this was due to the quality of Hyva products. Another reason was, that the local competitor was acting like a monopolist, defining its own rules, for the previous years. The bodybuilders were not happy with this situation and took the opportunity to buy cylinders from Hyva.
The Brazilian customer base consists of a small number of very large bodybuilders. Therefore Hyva Brasil does not make use of a distributor, but delivers directly to the customer. Two big bodybuilders operate in the same city, Hyva Brasil delivers to these customers on a daily basis. Other customers are in the Sao Paulo region and those customers have a weekly delivery. The after-sales network consists of 10 to 12 service companies that trained to service Hyva products.
The market share development in the Brazilian market is as follows o 1995-1997 50%
o Currently 65%
The Brazilian market was already functioning under high pressure, so the market was ready for Hyva products.
Hyva Brasil also exports to Chili and Argentina. In those countries, Hyva Brasil makes use of distributors. Hyva Brasil started in Chili because the market looked good (there was good market information available) and had an opportunity with a good distributor. One of the Hyva suppliers (Hydrocar) wanted to be distributor of Hyva cylinders and he is a real good distributor. The market share developed from 30% after the first year to a 60% current market share.
Little bit different story for the Argentinian market. This was a good market until the big crisis. During the crisis the market went down to 0, no cylinder was sold. Currenly the market is recovering again.
Giulio thinks entry via distributors is the right entry mode in South-American countries, because of:
o Less risk
o Markets are very unstable most of the times o Lower costs (investment)
o Good logistics into place
Hyva Brasil was lucky to find good distributors so far. Good candidates are distributors with products in the same area that do not yet have hydraulic cylinders.
Important (unexpected) issues that Giulio names are currency risk and market crises. Logistics still remains an issue as well, especially the custom procedures. Brazilian customs have a lot of strikes and that gives a lot of problems for importing. However, Hyva Brasil has good ways to circumvent this.
Learning experiences of Giulio:
• Large bodybuilders can be delivered directly
• A service companies network can be trained to provide the required service
• Delivery times are important
• Distributors are a good entry mode for unstable markets
• Currency risk is an issue
• Custom procedures can be problematic
3) Summary of the dialogue with Frans Koeners, Managing Director of Hyva Belgium, in Kontich (Belgium) July 7, 2004
Frans has first started in Belgium for Edbro and joined Hyva in 1979. The market was first served from the Netherlands and had a turnover of 50.000 HFL a month and then Frans (or Hyva) decided to open a local subsidiary in Belgium. So there were sales already and that showed the market potential.
Within a few months of establishing the local subsidiary, sales rose to a turnover of 300.000 HFL Local presence was essential to increase the sales. Frans asked his customers, why sales rose so quickly by establishing a local subsidiary, the following reasons were indicated:
• Taxes when paying the bills to outside Belgium
• Distance, with distance is meant the physical distance, because some customers pick up their goods. But also the figurative distance, being close to the customers. This co-aligns with the third reason
• More trust in the company
• The presence of a repair-shop; possibility to deliver flexibility and provide service.
At some point, almost all the large transport companies switched over to front-end cylinders. This increased the market for Hyva enormously and because the large companies switched, smaller companies followed.
The market share in the trailer market for Hyva Belgium is 80%. It was relatively easy to gain marketshare since almost the whole market swithed over to front-end cylinders and competition was low in the heavy segments.
The reasons for customer to switch over to Hyva front-end cylinder were:
- less weight - faster
- less expensive
In the current competitive field, new competitors try to enter the market, but they do not really manage to do so. In order to enter the market, the competitor needs to be:
- interchangable with current Hyva cylinders, because all customer use Hyva drawings - and actually the new entrant should be less expensive
If Hyva would leave the market (no local subsidiary anymore), it would definitely mean the end of turnover in Belgium, because Hyva will loose its feeling with the market and would not have any local stock anymore. Local stock is essential, you need to deliver fast (also because Belgian manufacturers do not make real use of forecasts).
In the choice of size range, Hyva has another option. In Belgium Hyva made its sizes slightly different than the current sizes. That forced the customers to switch over from Edbro to Hyva, also in the replacement market.
A wet-kit is replaced more often than a cylinder, especially in large transport companies.
Belgium is a completely different culture than the Netherlands and also within Belgium are major differences (to begin with the deviation in the French and Flemish speaking part). It is important to acknowledge these culture differences, but in the end quality, price and delivery time are most important.
Spare parts are very important to achieve sales. In order to achieve (future) sales, Hyva has to think
of the interests of the customer, try to help them out. This can for example be, extremely fast delivery
of two small spare parts (maybe two O-rings of 2 Euro). This will improve the relationship, create the image of a reliable supplier and lead to future sales.
Key customers are important. Not only the large customers, but also especially the smaller ones. Small customers do not have an alternative in case of stand-still, often have a small fleet. Therefore fast repair and small stand-still times are important for them. They might be the future large customers!
Small things form the basis for the future. Another important thing is diversification, with
diversification I mean distinguish from the other competitors. That can be done by several things, but in Belgium it is also done by a large product range (a lot of agencies)
(Delivery)-time is money, therefore Hyva Belgium has a normal stock of 45 days and that is really necessary.
Make sure you make a good start in the market, because once you’re in at a customer, you’re in. On the other hand, customers will remain a bad image of your company when the beginning years in the market are bad (bad delivery times, bad after-sales service, bad quality, too high pricing).
Frans has some prior experience with expansions to the U.S., went to the U.S. a couple of times and has some specific remarks on the U.S. market:
The gear-boxes in the market are to a large extent similar. This means that the market can be served from 2 PTO’s. PTO production in the U.S. is customer made (no stock), because PTO’s are usually standard with different modules. In Frans’ opinion, Americans are not so chauvinistic in the transport industry.
The Americans are not focused on repair, but are more inclined to replace. An expansion to the U.S.
Frans has experience with is the expansion of Groeneveld. With that expansion, production capacity was an issue. The first order Groeneveld received was 8.000 pieces, while the normal total annual production was 1.500 pieces. Demand was too big to serve and this lead to disappointed customers.
Again stock is essential and in delivery the U.S. mentality is “a man, a man, a word, a word”. Keep your promised delivery time.
Learning experiences of Frans Koeners:
• Local subsidiary is essential, due to stock (fast delivery times), trust, service providing possibility and feeling with the market
• Interchangability is essential (current relationships, drawings, procedures)
• Quality, price and delivery time are most important for sales
• Think of the customers’ needs (for example serve him quickly his two small spare parts), build a relationship, creates a reliable supplier image and leads to future sales
• Also (maybe especially) small customers are very important
• Make sure you make a good start (first impression!)
• U.S. more inclined to replacement
• Again stock essential, “a man, a man, a word, a word”; keep your promised delivery time
• Production capacity issue (see the Groeneveld example)
4) Summary of the dialogue with Alwin Oud, Managing Director of Hyva Marocco (July 15, 2004)
Alwin first has some general (practical) remarks on setting up a local subsidiary, since he has set up the local subsidiary in Marocco. Think about issues as:
- is it allowed to be a 100% shareholder?
- founding the company can take a long time, so start as soon as possible in case of a local subsidiary
- working permit
Before expanding to Marocco Alwin already ‘served’ the market from the Netherlands. The reason of
expanding to Marocco basically was initiated by the idea of being ahead of competition. Being close to
the customer and try to protect the position in the market. Hyva was market leader and had a market
share of 50/60%, this went down to 30% because of fierce competition.
Alwin is continuously in contact with (potential) customer and trying to gain marketshare. This entry mode (local subsidiary) was the right choice, it gave Alwin the opportunity to give good pre- and after-sales service and have fast delivery times (reasons for customers to switch); stock is important.
Even more, Alwin can better pursue a push-pull strategy, marketing the full customer range (from OEMs to bodybuilders to end-customers).
The competitive field contains no real local compeition, there is no specialist on the area of hydraulics.
All equipment is imported. Hyva tries to maintain and develop an image of a Dutch company (good service) being close to the customer.
Distribution via dealers/agents is a problem, a pricing problem. The extra link in delivery chain makes either the product more expensive or your profit margin less attractive. In Marocco, Alwin makes use of a 2-tariff-system to stay competitive in the market. Hyva should pursue direct sales everywhere.
This is also true because the profit margin has to be 20% to keep the subsidiary profitable (cover fixed costs). Although this also depends on the sales volume. Establishing the local subsidiary even lead to more competition, because competitors tried to answer to this ‘development’.
The development of customer relations is very difficult because Alwin has:
- scarce time
- long travelling distance/time to customer
- therefore problems of giving customers personal attention
In Alwin’s opinion Hyva should operate via direct sales in the U.S. Convince large (potential) customer to switch over to Hyva by ‘sharp’ pricing and try to use their network.
Learning experiences of Alwin:
• don’t forget about practical issues (work permit, establishing a corporation)
• pre- and after-sales important
• fast delivery essential
• distribution via agents gives a pricing problem
• developing relations is difficult
• use direct sales
5) Summary of the dialogue with Tony Davis, Managing Director Hyva UK (July 15, 2004) Tony Davis is very experienced in this business and has knowledge on the U.S. market as well. In this dialogue he sheds his light on this market, it is not following the precise questionnaire, but it was a good exploratory conversation.
Since it was not internationalizing to the UK, assessing the market potential was not specifically done.
Tony indicates that U.S. market as a total is huge and especially California is huge as well. If California would be seen as a separate country, it could be the 6
theconomy of the world. Therefore that is a market not to forget. The U.S. should not be treated as “one country”, Tony knows of a bodybuilder in the Eastern area who sells actually only in the East and a bodybuilder in the Western area who sells only in the West. So focus on a West/East distinction. Of course, the Chicago area is the main industry area, but you should not forget about California.
The increase of sales of Hyva cylinders came really from product features, a Hyva cylinder was more suited for the UK semi-trailers (compared to competitors) and therefore Hyva UK gained a market share of over 50%. Hyva UK developes special cylinder for the UK market as well (aluminium FCT).
On the 4 axle truck market Hyva UK has a market share of around 25% (cylinder 162) and as soon as the ranges get smaller, market share decreases. The conclusion of this can be that Hyva has to understand U.S. customer’s needs.
The American market is a low-pressure and low-technology, although Americans think they have high
technology. In the UK they have the saying on America: “ There ain’t no substitute for cubic inches ”,
which means as much as ‘the bigger the better’. Therefore Tony thinks Hyva has to try to replicate
existing designs. This is also initiated by the terrible legislation on axles, that legislation differs per
state. This variance in legislation affects the design of hoists. So, try to replicate existing designs and
make sure there is interchangeability. Furthermore weight is key critical in the U.S. market, this can
also be seen in the permanent waste tipping stations. In order to save weight on the truck or trailer, a
permanent tipping device is installed.
The UK is (was) strong competition, since it is the home-market of a big competitor. In those situations it is difficult to break in and a bad market development for Hyva UK is the trend of bodybuilders buying hoist companies (threat vertical integration). On competition in the U.S., Tony thinks Commercial (Parker) is a strong player. Custom Hoists has tried to sell (tank)cylinders in the UK, but this did not work out to be a success.
To get information on the American truck and trailer market, Tony advises to contact Lenny Brescia, Vice-President Sales of Pioneer Cover-All.
Learning experiences:
• California is a huge market
• Focus on East/West
• Legislative issues (state) influence cylinder designs
• Try to replicate and interchangability is essential
• Increased weight consciousness
6) E-mail Hyva India, Managing Director Hyva UK (July 15, 2004) 7
thAugust, 2004
To :Mr Ronald Scheffer Fm :Mr Subhamoy Ghosh
Sub :Cylinder market share.
Dear Mr Scheffer
I am Subhamoy Ghosh –Manager Sales, in Hyva India Pvt Ltd looking after the country sales activities.
As per the information available, we are having approximately 98% of the market share for Front End Tipping Systems for Multi Axial Truck, which is about 4000 units per year.(Cylinders ranging from ( FE 120 to FE 162)
Tip Trailer business is relatively a new growing business in India and as of date, we are having about 90% Market share in that segment. We sell around 100-130 units per year, but in Indian Tipper Market under body cylinders are also having a large market share of around 50% of the total No of Tippers made on Multi Axial Truck.
Presently with the force of Hyva India, there is a switch over trend from under body cylinders to Front end cylinders. In 4x2 segment, 95% of market is with under body cylinders. Hyva is making an entry of front end version of FC 105 Cylinder in this segment so far about 30 cylinders sold in Indian market and expect this figure to reach 300 by December 2004.
I hope I could give you a clear idea of Indian tipper market and Hyva’s presence in that market.
Should you need any further information, please feel free to get in touch with me. My user id is subhamoy@hyvaindia.com
Thanks & Regards
Subhamoy Ghosh
7) Learning experiences of the expansion to China
This information is collected via various conversations with people within Hyva and documents.
On the 28
thof April 2004 Hyva opened a manufacturing site in Yangzhou, China. This is a production facility build to serve the Asian market (principally China, India, Thailand, Korea). Currently, the Brazilian production facility produces cylinders for the Chinese and Indian market. The Chinese and Indian production facilities will become self-serving. CEO Dijkstra indicated in his opening speech that no company can be a global player without being present in China, because China offers the greatest potential for growth in today’s world.
This potential has become evident in the first months of operation. Large orders were placed at Hyva, on the one hand to supply the demand in China and on the other hand to get the production facility operational. The production process needs material input. The enormous demand that needed to be supplied caused a lot of problems within Hyva. There was a shortage of production capacity and for that reason a lot of overtime was necessary. The demand could not be handled and there were also problems supplying the regular demand. Delivery times more than doubled in this period and customers were lost for that reason.
At this point in time the factory in Alphen aan den Rijn is still working on its backlogs and the problems are still not solved. The reason for these problems lie in the decisions on the production in China. Not all functional areas were taken into account when decisions were taken. Consequences for all functional areas should have been discussed upfront, in order to prevent the current problems.
This is a lesson for future expansions within Hyva.
The start-up problems were a good learning experience as well. The first 20 cylinders were re-
installed by the after-sales department and transported by air-freight, that was a large cost for Hyva
2. Attention has to be paid to correct mounting and good instructions to new customer customers.
2
Mr. S. Heijbroek, International After Sales
Appendix 13: Financial performance – Investment specification Hyva USA
Intangible Assets: $4.200,00
- Foundation costs 1.200,00
- Website construction 3.000,00
Tangible Assets: $20.800,00
- Furniture 5.000,00
- 2 Telephone lines + hardware 2.300,00
- Fax machine 900,00
- Computers (2x + server & software) 5.000,00
- Tools 1.000,00
- Test/repair/work/bench - Dril machine
- Lathe
- Warehouse inventory
- Workshop pick-up truck / van - Steam cleaner
- Unexpected investments 6.600,00
Total initial investment $25.000,00 Estimation of necessary stock* $191.392
* initial stock 60 days
