Historical
Background
Shock absorber is a necessary automobile components that is used for
absorbing shocks during ride. Not only automobile industry but also small
and big manufacturing units also install shock absorbers of required size in
the production processes. The earliest shock absorber was used in fast
racing car in early 20th century. Earlier automobile manufacturers strangely
considered shock absorber as an unnecessary item. But in 1920's, the
importance of shock absorber came to be recognized. Since then many types of
shock absorbers and dampers were designed. The shock absorbers that are
commonly used today are Hydraulic telescopic dampers, Non-pressurized twin
tube telescopic hydraulic dampers, gas charged shock absorbers, mono-tube
shock absorbers twin tube pressurized shock absorbers, spring assisted
dampers etc.
Industry structure
Shock absorber industry is located both in organized and unorganized
sector. The Manufacturing unit is usually located in small or medium scale
sector. Most of the manufacturing activities have been outsourced in Asian
countries like China and India due to cheap labor and competitive
environment. However China has emerged as the major production center in the
recent past.
Energy consumption and the pollution control
Generally all the manufacturing unit utilizes diesel oil and electricity.
Standby generator is operated by diesel. One unit of production generally
consumes 1 to 2 Kwh per unit production. The production unit making the use
of hardening process consume around 1 Kwh. When the induction hardening
process is used then it consumes, around 2 Kwh per unit production.
Issue of pollution is closely related to the manufacturing of shock
absorber. In hard chromeplating process the liquid is discharged which
contains harmful chemicals. Many manufacturers treat this waste and try to
neutralize them before discharging it into captive soaking pits.
Collaboration, and technology absorption
Collaboration has become the norm of the day. The manufacturers of
developing and developed world collaborate for mutual benefits. The
developing world manufacturer can be benefited by the superior technology,
whereas developed world manufacturers can be benefited by the cheap labor
and tax benefits scheme provided by the government. We can generalize the
steps in which this collaboration takes place. Shock absorber technology
consists of following elements:
- Shock absorber design
- Material specification of each component
- Production technology
- Quality control methods
- Product assembly
- Product testing
For every step executives are sent fort training in collaborators unit
so that the technology can be imbibed. In many cases plant is designed and
machines and tools are selected by the collaborator.
Key Drivers of Shock Absorber Industry
Shock absorber industry is driven by following marketing factors:
- Availability of raw materials
- Industrialization
- Development of automobile and other related automotive industry
- Research and development
- Import and export policy of the government