August 2025 Volume 7

INDUSTRY NEWS

“Positioning your company as a sustainability leader is increasingly important in attracting the next generation.” Workforce development models vary across Europe, but local partnerships are common. “Many companies have strong links with regional high schools and universities, which helps them attract apprentices and engineers,” Hain explained. “Joint R&D projects also provide opportunities to engage with young academics.” Trade Pressures and Policy Uncertainty As the global economy continues to evolve under the weight of inflation, shifting alliances, and rising protectionism, European forging companies are feeling intensifying pressure from international competitors and uncertain policy environments. “We’re operating in an increasingly complex and volatile global trade landscape. European forgers are trying to build on their strengths in the difficult position between rising production costs at home and lower-cost competition abroad,” said Hain. Countries such as Türkiye, India and China have emerged as dominant players in the global forging marketplace, offering aggressive pricing structures that many European producers find difficult to match. “We’ve seen significant volume shifts to these regions over the past few years,” Hain noted. “Some customers were drawn to lower prices, but many have returned after experiencing quality inconsistencies, reliability issues, or logistical disruptions.” Despite these challenges, EUROFORGE does not advocate for blanket “We’re operating in an increasingly complex and not punish legitimate competition.” One of the most debated policy tools currently under development is the Carbon Border Adjustment Mechanism (CBAM), a European Union initiative designed to impose carbon costs on imports from countries that do not maintain comparable emissions regulations. CBAM is intended to level the playing field for European industries facing high carbon taxes, while also incentivizing greener manufacturing practices abroad. In theory, CBAM could be a powerful tool for climate equity and industrial protection. In practice, however, Hain warns that the regulation is deeply flawed. “CBAM is not currently designed in a way that delivers its intended outcomes,” he said. “There are too many loopholes and, critically, no export relief for European companies. This puts EU manufacturers at a disadvantage in global markets, particularly in sectors with strong export footprints.” Hain emphasized that environmental responsibility must be a shared global effort, not a regional burden. “We would rather see the creation of an international ‘Climate Club’—a cooperative framework where countries align their climate policies and carbon pricing systems. Isolated efforts will only lead to trade frictions, not sustainable progress.” volatile global trade landscape. European forgers are trying to build on their strengths in the difficult position between rising production costs at home and lower-cost competition abroad.” protectionism. Instead, the association remains a strong proponent of open markets governed by fair rules. “We believe in free and fair trade,” said Hain. “But trade must be reciprocal and based on shared standards. Any defense measures must clearly target unfair dumping practices and

Adding to the uncertainty are ongoing discussions in the United States regarding potential trade restrictions on foreign made vehicles, machinery, and components. “Any new tariffs or localization mandates from the U.S. could have ripple effects across European supply chains,” said Hain. “And if Europe responds with countermeasures, the consequences could be disruptive for both sides of the Atlantic.” There are also growing calls within the European Union for “local content” requirements—policies that would mandate a certain percentage of domestically produced materials or components in goods sold within EU markets. While some industries support this approach as a means of safeguarding European jobs and capabilities, EUROFORGE has not formally endorsed such measures. “Local content rules can create more harm than good if they’re not carefully implemented,” Hain cautioned. “They risk undermining the integrated, globalized supply chains our industry depends on.” EUROFORGE’s stance reflects a broader philosophy of global engagement over insular retrenchment. “We believe collaboration—across regions and borders—is the key to long term resilience and competitiveness,” said Hain. “The forging industry has always been international by nature, and that will not change.” Still, navigating today’s trade and policy environment requires vigilance, agility, and ongoing advocacy. EUROFORGE continues to engage with European policymakers, industry partners, and international counterparts to ensure that the voice of forging manufacturers is heard in regulatory debates. “At the end of the day, trade policy should support—not hinder— industrial innovation and climate responsibility,” said Hain. “We’re committed to shaping a regulatory framework that rewards those who play by the rules and invest in the future.” Member Support and Strategic Priorities EUROFORGE, which represents national forging associations across Europe, is focused on both strategic advocacy and member services. “Right now, we’re preparing for the International Forging Congress 2025 in Frankfurt, which will bring together global leaders in science, technology, and manufacturing,” Hain said. In addition to its flagship congress, EUROFORGE hosts an autumn meeting featuring two working groups: Automotive and Non-Automotive. “These sessions allow members to benchmark, exchange best practices, and network,” Hain said.

The association also supports members through market research, training programs, legal guidance, and collaborative R&D. “We’re organizing regular updates on market developments and facilitating technical and commercial working groups,” he said. At the policy level, EUROFORGE continues to lobby on CBAM and the OMNIBUS process while members work on implementing the EU’s Industrial Emissions Directive and other environmental regulations at the national level.

FIA MAGAZINE | AUGUST 2025 46