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Hwang Jong-sik, Advisor of the Elevator Maintenance Cooperative, says timely supply of parts and joint technology development are key to improving service quality
Jong-sik Hwang, Advisor, Korea Elevator Maintenance Cooperative Timely supply of parts and joint technology development to improve service quality Tentatively named 'Social Cooperative Elevator Safety Support Center' to be established 2013/01 Jong-sik Hwang, an advisor to the Korea Elevator Maintenance Industry Cooperative, has been in the elevator business for 40 years. Now that global companies account for more than 80 percent of the domestic elevator market, he says that small and medium-sized elevator companies must rise to the surface and overcome the current crisis through cooperative and transparent management activities. He emphasizes that it is also time for the government to play a role in protecting national property and safety by fostering the elevator industry. The year 2013 has dawned. As an industry elder, do you have any words of wisdom for the new year? I have been in the elevator industry for 40 years. Although I am no longer in the field, when I meet people in the industry, I feel a heavy weight on my shoulders because the industry environment is much different from the past. This year, the global and domestic economic outlook is not bright, but I hope that everyone in the industry will have a strong year. How would you describe the current state of the domestic elevator market? The environment of the domestic elevator manufacturing industry is changing rapidly. Since global companies entered Korea, domestic manufacturing plants have disappeared and technicians have lost their jobs. Recently, a local factory of a major company closed down, leaving about 100 technicians without a place to go. It's become commonplace to think that manufacturing elevators and escalators domestically is not competitive. The reality is that all manufacturing is being done in China or cheaper factories in Southeast Asia. In addition, with the abolition of collective bargaining agreements and the shift to limited competition, some small and medium-sized enterprises have become complacent and put consumer interests on the back burner. Couple that with the construction downturn, and the volume of new and remodeled elevators is shrinking. The cost of raw materials is rising, and the price per elevator is falling instead of rising due to excessive competition among companies, and the government's regulatory policies are making it difficult for companies, especially SMEs, to breathe. Therefore, the attitude of domestic elevator SMEs should be. But we will have to survive the crisis, and even though the world is turbid, SMEs will have to be transparent. Since the manufacturing industry must have a certain level of productivity to be competitive, SMEs will now have to grow in scale by cooperating with each other and take responsibility for consumers forever. This will also be a great advantage that can make up for the scale disadvantage to compete with large companies. Elevators are now becoming a necessity in daily life. It's time for the government to give the industry a boost rather than regulate it. Currently, the Conservative Union is in the midst of establishing a tentative social cooperative elevator safety support center. Please tell us about this. The amendments to the Elevator Safety Act will take effect in the middle of next month. Before that, the Conservative Union is preparing to establish a provisional social cooperative elevator safety support center that can smoothly supply elevator repair parts. It is a non-profit corporation under the Ministry of Finance and Economy and is currently planning a promoter convention. The center will be responsible for the prompt supply of repair parts and will be in charge of the actual business. With the active support of the members of the maintenance union, auditors and board members will be involved, and it will be effective at least within this month. For now, the center will be based in Ansan, Gyeonggi-do, and will create a single logistics center with maximum cost savings. It is expected to be of great help to many maintenance companies due to its high parts management capabilities, savings in parts storage space due to site consolidation, and low initial capital. The elevator market is now being reorganized into the field of maintenance services. Poor quality service will also shorten the lifespan of the product. Therefore, smooth and timely supply of parts, joint technology, and joint training are the future vision for the industry to grow indirectly. |