Counterfeiting Affects Our Manufacturers

Counterfeiting Affects our Manufacturers

Larry Wiechern, Manager, Maintenance and Reliability Centre, Manukau Institute of Technology has some real concerns about counterfeiting and how this practice affects our manufacturers.

What is the danger of counterfeiting to manufacturers?

Extreme in terms of cost of a product that will not perform as expected, cost of secondary damage upon failure and the possibility that people could lose their lives, and have done so already.

And then upon failure having to decide if it could have been caused by a fake product. Having had the chance to look at some major bearing failures itÕs too late to ask those sorts of questions when the bearing has been severely damaged.

The finger of blame will be directed to the fitter who didnÕt check his tolerances, the possibility of any stress raisers, an inspection of any taper or damage to the shaft before fitting. Next in line to blame is the lubrication technician who was responsible for ensuring the correct grade type and amount applied.

The last thing anyone will consider is the SKF, NSK, Fag etc bearing manufactured in Germany, when in fact it was manufactured anywhere else but Germany.

How widespread is counterfeiting?

From what we are now hearing it is widespread throughout all countries, every product you care to mention. Sometimes it is a subtle change in the wording which at first glance is difficult to detect to full blown outright theft of the product. Packaging and tape to seal the product

(brake pads filter elements, electrical fittings etc).

NASA and the US military are extremely worried as to the affects of this worldwide problem.

Are there key products that are more prone to counterfeiting?

No product is exempt where money can be made, ItÕs the world known brands that are most likely at risk because companies have invested millions of dollars on research and development to ensure these products will function as designed.

Is it affecting NZ industry?

It sure is. NSK has just seized 5000 bearings imported by a motorcycle importer and this was only picked up because customers were complaining that the bearing only lasted 10 hours.

Could you imagine a failure of the front wheel of a motorcycle should that front wheel bearing collapse?

A court case is likely to follow another company having imported a wide selection of counterfeit bearings, but you can bet your bottom dollar it will be very wide spread and only going to get worse.

Another Auckland company got caught with $30,000 worth of counterfeit SKF bearings and they still have not got there $$$ back.Fortunately those particular bearings did not get installed, which would have caused many millions of dollars worth of damage as the clearances were totally unsuitable for the application.

That company did not buy those bearings from SKF, but a local supplier, not an authorised agent of SKF.

Is it costing us money?

It sure is and if not stamped out we might find our manufacturing sector trying to perform with both hands tied behind their back in competing for that very hard to win dollar to keep the business running from fierce competition from overseas

What's the answer?

Only purchase from registered approved suppliers.

Audit all equipment brought onto site by contractors who may have won the contract, and then to improve their profit, went on and purchased from suppliers they thought were ok, to provide the product at a very competitive price.

Many of these counterfeits can arrive as an advertisement on your computer, looking very professional and attractive, encouraging you to purchase direct, cut out the middle man etc,

My advice is dont; you should look after your proven, trusted suppliers.

This article was written specifically for the NZManufacturer Magazine and published in it's August 2013 edition.