I agree that competition in industrial subcontracting is tough. AQ has an extensive network of suppliers and subcontractors, so AQ also continuously tenders for subcomponents. Generally, in the long run, price is the deciding factor in the industry, but if the cheapest supplier cannot maintain quality or delivery reliability (and the situation does not improve despite complaints), the supplier is changed. Material price changes are usually taken into account in contracts, in which case the cost is passed on to the customer.
Contracts are typically long-term, suppliers are scored, and good relationships (price, quality, delivery reliability, cooperativeness) are practically a prerequisite for long-term customer relationships.
Some of AQ’s competitors also manufacture complete sets, but my opinion on AQ’s strengths compared to competitors is the breadth of its manufacturing “under one roof,” i.e., those mentioned at the beginning:
- Electric Cabinets / System Products (systems, testing, documentation)
- Wiring Systems (wire harnesses and electromechanical modules)
- Sheet Metal (frames, enclosures, surface treatments)
- Injection Molding (also multi-component molding)
- Inductive Components (transformers, reactors, chokes for power electronics)
In addition, AQ makes specific, certified deliveries with strict quality and certification requirements (e.g., UL, CE, railway and defense standards, traceability). These emphasize documentation and testing, and in these cases, a low price alone is usually not enough.
I also count AQ’s extensive factory network around the world as an advantage.