€ 12 Millionen

for a product recall

Monitoring and improving welding processes are not only essential aspects of production safety and quality, but also key factors for corporate image and brand value. Based on 2017 figures from AGES, a product recall costs an average of $12 million. Per product. The more complex and therefore the more expensive the product, the higher the cost of a recall.

The automotive industry is most affected by recalls, followed by food manufacturers. The IT and electronics industries come in third.

A lack of process control can lead to quality problems that undermine customer confidence and have a significant impact on a company’s image. The impact varies by industry, but is significant across the board. Here are some specific examples of how poor and inadequate process monitoring can damage a company’s image in the luxury goods, medical devices and consumer goods, automotive and aerospace industries.

One week of production downtime at a German car manufacturer can cost the company 100 million euros. You don’t want your company to incur these costs, do you?

Luxury Goods Manufacturer

For luxury goods manufacturers, brand image is of crucial importance. Customers expect not only high-end products, but also impeccable quality that justifies the high price level. The luxury goods segment in particular works with fine structures and high-quality materials.

Here, not only accuracy is important, but also the careful handling of high-priced raw materials. Given the high price and exclusivity of luxury goods, the loss of reputation can be serious and difficult to restore.

Medical Technology

In medical technology, patients‘ lives and health are at stake. Faulty welding processes that result in unsafe or defective medical devices can have serious and even fatal consequences.

It can also result in litigation and significant liability.

A single incident can have a lasting impact on confidence in the company and its products and jeopardize business relationships with medical facilities and healthcare providers. Product approvals may also be withdrawn.

Consumer, Automotive & Aerospace

In these industries, poor welding practices can lead to safety issues that affect both customers and the public. Product defects or failures can lead to accidents that directly affect human safety. Recalls, reports of safety issues and accidents can cause significant damage and have a major impact on customer and public confidence in the company.

As these industries are highly dependent on public perception and consumer confidence, damage to their image can have a significant financial impact and even threaten their very existence.

In recent years, entire aircraft series have been grounded due to manufacturing defects – a costly safety risk that could have been avoided with proper process control.

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weldmetrix GmbH

elevating standards, monitoring success


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