Thanks to investments in advanced technology and technical know-how, PowerCoils produces in Italy and Tunisia, competing with Asian producers. Flexibility, customization in products and services and a good quality/price ratio have enabled the company to grow.
The competitive advantages of automation
Manufacturing in the EMEA region and being competitive with Asian players is possible: this is demonstrated by PowerCoils, a company that manufactures power transformers and inductors for various application areas. The company now boasts a portfolio of over 100 customers and has been able to grow over time by focusing on human resources expertise, automation, customization and diversification. It began its activities in 2001 in Merone (in the province of Como). Shortly afterwards, in 2003, a production plant was opened in Tunis. The year 2017 represents an important milestone in the history of PowerCoils: in fact, the company starts a growth path that will lead it to open a production site in the province of Pescara. For what reasons did the choice fall on Abruzzo? Is investing in this Region of Italy a challenge that is bringing good results? Ciriaco Petruzziello, sales director of PowerCoils, answers these questions.
What prompted PowerCoils to move to Abruzzo?
From the very beginning, the company focused on the skills of its human resources as a distinctive element. This is how the Loreto Aprutino plant was born, betting on the skills of its people (who now number 24) and on automation. In fact, we have invested in heavily automating production processes and this has allowed us to produce in Italy, making components at a competitive price compared to Asian companies. And customers have shown that they appreciate being able to count on a supplier located in the Mediterranean area but capable of guaranteeing prices close to those of Far Eastern companies. The critical issues encountered in recent years have led several companies to review their purchasing strategies to reduce the risks associated with long-distance logistics. Our customers are mainly European: having a partner that produces in Italy and Tunisia is a major advantage for them, not only economically but also in terms of support because we are close to their factories. The investments made in automation have brought good results and we have also managed to acquire new customers who previously bought components in Asia. In addition, we continue to focus on quality as demonstrated by the ISO 9001:2015 certification achieved in 2018 for the Pescara plant and subsequently also obtained for the Tunis plant. Between 2019 and 2020 two UL certifications for insulation systems were also added, attesting that our transformers comply with the UL 1446 standard: one concerns products that are in thermal class B 130°C and the other concerns devices in thermal class F 155°C.
How has the company evolved in recent years?
In 2021 we opened an office in China. Since many of the products we use to build our components are made in Asia, we use this location to scout for suppliers and buy directly from there. This also helps us to be competitive, because we bypass the distribution that imports products from China.
In addition, we have been working on increasing our exports in recent years. In 2022 we opened a sales office in Germany to follow this market with a view to growth. What is also new is that this year we have signed an agreement in Spain: we will open a sales office there in order to develop our presence in the Iberian market.
Regarding product design, do you support customers right from the initial phase of a project?
Yes, we are a company that does design and production of custom components. We generally work in co-design with the customers, supporting them with our expertise (also on materials) so that the component, when it goes into production, is already optimised. For example, we are able to indicate the most suitable geometry or suggest that the windings be made in a certain way so that the product is already suitable for automatic machines or otherwise optimised for lean production. Our technical department is almost always in contact with the technical departments of our customers. In addition, we also have the R&D that allows us to design from scratch and make proposals to the customer from basic data. If the proposal is accepted, the prototyping follows, which is another service we are able to offer. We provide the prototype on which the customer can make initial tests and, if there is something to be modified, we work to make the necessary changes so that everything is ready to move to the production phase.
Do you also offer customized solutions on the logistics side?
Of course, this is another of our strengths: not only do we customise the product, we also customise the service. We adapt to the different needs of our customers: for example, we are willing to find the most suitable way if they need to receive the ordered parts for a year in weekly or monthly deliveries, or if they want solutions such as consignment stock or Kanban for stock replenishment. This ability to adapt to customer requirements is also possible thanks to our information system that allows us to manage orders flexibly. All this is an added value for our customers, who range from the large, structured company to the small enterprise, therefore with different needs.
In the field of e-mobility, where do your products find application?
In this sector, our products can be used for everything related to electric charging (charging stations, wallboxes, etc.). We offer customized solutions and co-design possibilities to the e-mobility sector. Recently, for example, we supported a customer in the development of a 25 kW module that was to be integrated into a fast charging station for electric cars. Moreover, although PowerCoils’ core business is transformers and inductors, our technical know-how also allowed us to support the customer in the design of the mechanical part, which involved a die-cast aluminium mould to contain our component, which was to be placed inside a heat sink.
Is e-mobility a market in which you think you can grow?
Yes, we can. I think it is a market that can still grow a lot in Europe and there is room for us too. I am thinking for example of Spain, where there are several companies that make products such as charging stations and wallboxes. In addition, the availability of charging solutions is a key element for the spread of electric cars. Therefore, there are the conditions for us to think about expanding in this market and, based on this target, we are carefully following the technological evolution of the sector, which is moving towards miniaturised products and with increasingly high-performance systems.
PowerCoils serves several industries: do you intend to continue the diversification strategy?
We will certainly continue to focus on diversification to reduce risk. Today, we serve many sectors: from power electronics, home automation, industrial automation, to railways, electro-medical, avionics and defence. This not only protects us from possible crisis periods that may hit a specific sector, but also allows us to grow thanks to the experience we gain in the different sectors. In fact, each market has different needs and technologies, so serving different markets means growing in terms of technical know-how and the type of service we can offer to the customer.
What are your goals for the near future? And, in your opinion, what are the biggest challenges you have to face?
The goal we have set ourselves is to differentiate not only the merceologies but also the countries in which we sell our components. Currently 85 per cent of the turnover is made in Italy and only 15 per cent comes from exports. Within the next five years we want to reach 50-50 per cent. It is important to diversify the sales markets both to reduce the risks linked to the economic situation (if Italy is going through a period of crisis, maybe France is not) and to learn the different ways of working in different countries (this is also a way to grow).
As far as challenges are concerned, the main problem at the moment is widespread uncertainty, due to conflicts and political instability, which make it difficult to predict what might happen in the near future. The strategies we are putting in place – diversification of application sectors, increased exports and production in two mirror-factories (the Italian and the Tunisian one) – aim precisely at trying to reduce risks. All this is a guarantee for us but also for our customers.
(by Elena Corti)
