Feature Bearings


Counterfeit bearings: A grey area I


n the last 20 years, product counterfeiting has grown sub- stantially across the world. While much has been reported about consumer problems within the music, film, home electronics and designer clothing industries, a great risk also lies in industrial counterfeiting of items such as tyres, seals and bearings – many of which are safety-critical products. Rolling bearings are used in virtually every piece of rotating plant and safety-critical machinery and vehicles, from machine tools, wind turbines and X-ray apparatus, through to automotive, aircraft and rail vehicles.


So how do purchasers of bearings know that the product they are buying is genuine and whether to trust in datasheets and rely on support from manufacturers? Most don’t have to worry because they purchase these bearings either direct from the manufac- turer or through a distributor authorised by a manufacturer, so they can address technical questions directly.


Grey market purchases


In the UK, 15% of all bearings are currently purchased via the so-called ‘grey market', a term that refers to any purchase of a bearing that is not direct from the manufacturer or via an autho- rised distributor. The Internet has opened up more opportunities (and risks) for purchasers to buy bearings manufactured in India, South East Asia, the Far East and Africa but sold through unauthorised traders across the world, including a growing number of European outlets. Cross-border trading may be legal, but there is considerable evidence that grey market traders often have surplus, obsolete or out-of-date bearings on offer, which should not be used without prior inspection and/or proper authorised refurbishment. It is also a question of meeting techni- cal requirements. Modern state-of- the-art technologies are likely to have changed from when the bearings were originally manufactured to when sold. Although buying on the grey market doesn’t necessarily mean that the product is not genuine, it increases the risk of customers ending up with old or counterfeit products.


So why do companies purchase through the grey market? Cost is the


In the UK, 15% of all bearings are currently purchased via the so-called ‘grey market', a term that refers to any purchase of a bearing that is not direct from the manufacturer or via an authorised distributor


overriding factor here. However, as Kate Hartigan, managing direc- tor at Schaeffler UK, points out: “Although the offer price for the bearings may initially look attractive, buyers on the grey market have to ask themselves what are the potential hidden costs in terms of product failure and credibility with their cus- tomers if the product turns out to be counterfeit, fails in service and things start to go wrong. For example, these could be critical bearings on high value machinery in a manufacturing plant. The buyer therefore needs to take into account the cost of any produc- tion downtime if the bearing fails early.” Purchasers run the risk of not knowing how long the ‘cheaper’ bearings have been stored, in what con- ditions and for how long. Therefore, even if genuine, the manufacturer may not support the distributor’s warranty. Hartigan cites a recent example: “We acquired bearings from the grey market and analysed the products. Schaeffler discovered that the bearings were indeed genuine product but were more than six years old. This meant that the customer of these bearings would very probably have experienced lubrication problems that in turn could have caused costly machine breakdowns. There could also be other performance- related problems due to incorrect storage and handling of the bearings during that six-year period. Under these risky circumstances, the distributor or end user of the bearing could easily be left totally isolated with no support from the manufacturer of the bearing.” When looking at the international scene, the grey market becomes an easier route for traders to supply counterfeit bearings all over the world, as was proved by a recent seizure. For a couple of years, a distributor in Singapore offered so-called ‘premium products’ at surprisingly low prices but at high availability. Test purchases showed, however, that the products were counterfeit. Thus, a seizure was prepared and conducted in 2010. Hundreds of business transactions involving counterfeit bearings world- wide were revealed, including in the UK. Customers had been supplied with counterfeit bearings – they seemed to be convinced that what they had bought


Design Solutions MECHANICAL COMPONENTS SUPPLEMENT – MARCH 2011


Current estimates indicate that the UK grey market for bearings accounts for around 15% of total UK bearing sales, putting end users and distributors at greater risk from costly breakdowns, litigation and void warranties. Schaeffler UK looks into the problem


via the grey market were genuine products, but this wasn’t the case. Buyers, therefore, can protect themselves and their customers from fake bearings only by purchasing from a reliable source; and can contact the man- ufacturers directly if there is any doubt.


Help is at hand The World Bearing Association (WBA) has launched an awareness campaign to inform users about potential safety hazards arising from counterfeit bearings. This reaches out to audiences via e-mails, website banners, social media and the campaign website www. stopfakebearings.com, and covers threats imposed by illegal counterfeiting and what is being done to stop it. The Schaeffler Group has success- fully fought against counterfeiting for many years. “We have been seeking close contact with public authorities and we’ve been cooperating closely with associations and other industrial companies in order to draw public attention to this issue time and time again. In doing so, we strictly adhere to a consistent zero tolerance strategy. This means that we examine and pursue each and every case, also seemingly petty offences – worldwide!” says Dr. Juergen M. Geissinger, president and CEO of Schaeffler Group.


Counterfeiting also violates intellec- tual property, such as patents and trademarks. Because counterfeits look like and are marketed as genuine products, it normally takes a trained expert to identify them. The competent authorities and the manufacturer’s brand concerned can also be contacted. “Our initiative is aimed at sensitising the public on the dangers associated with counterfeits,” says James W. Griffith, WBA president, and president and chief executive officer of The Timken Company. “The WBA is thus intensifying its anti-counterfeiting ini- tiatives – that means information for customers on the one hand and consis- tent prosecution of offenders through the competent authorities on the other.” Premium manufacturers invest con- tinuously to develop their technology and improve the quality and value of their products. To learn more visit www.stopfakebearings.com.


Schaeffler T: 0121 313 5870


www.schaeffler.co.uk 25 Enter 227


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