German small and medium machine tool enterprises break through internationalization
Date: 2021-06-24 14:00:04

The latest data from the German Machine Tool Manufacturers Association (hereinafter referred to as "VDW") shows that the two most important markets for the German machine tool industry exports in the first two quarters of this year - China and the United States were not performing well, with exports falling by 8% and 20% respectively. Among them, China's new machine tool orders this year dropped by 14%. Russia's third largest export market increased unexpectedly by 14% this year, but VDW explained that the growth of the market mainly depended on past orders. In fact, affected by the situation in Ukraine, in the first two quarters of this year, the new orders for machine tools in the Russian market have dropped by 40%. At present, in the key overseas markets, the US alone shows a relatively high growth momentum.

Although VDW is optimistic about the whole year, the cooling of the overseas market can not be ignored for the highly matched industry chain and the German industry that has led the whole body.

In Germany, the export of machine tools is driven by the export of vehicles; the export of tools, air purification, sensors and other products is driven by the export of machine tools; and the export of tool tools is driven through the export of the tool. At the critical moment of great changes in the way of human life, it will seize the opportunity to form a high quality production capacity and drive the export of the whole country's industrial products through the export of several key products, which has brought enlightenment to the developing countries.

However, in the face of increasingly severe market competition, the small and medium-sized German enterprises, which are deliberately far from the interference of financial capital, still adhere to the management system of family enterprises in the spirit of "craftsmen". This German model of private economy resisting capital and small and medium-sized enterprises supporting the economy will continue in the international market.

Subdivide the market

"It is very difficult to process 6 sides," HaraldHaug, director of Export Department of PaulHorn, a precision cutting tool company in Germany, told reporters in September 19th.

At the "2014 Stuttgart International Metal Processing Exhibition" (hereinafter referred to as "AMB"), PaulHorn has exhibited this plan. In fact, there are many technologies that can process 6 sides. The solution designed by PaulHorn is to increase production efficiency. It seems to be only a small innovation of processing parts, but it is such a small innovation that sustains the advanced nature of German industry. German SMEs are particularly concerned about similar technological innovations. Most of Germany's technological innovation investment is achieved through these small and medium-sized enterprises.

PaulHorn is located in the city of Germany in Germany, with an annual turnover of about 250 million euros and 1200 employees worldwide. Like many German companies, PaulHorn is not the largest enterprise in the industry, but it will have a staggering market position as soon as it enters the industrial segment. PaulHorn has the most comprehensive product line in the field of lathes and milling cutters.

"Our company is not big, but without us, many things in the world can't be done". StefanBrand, general manager of Vollmer group, a German tool and machine tool enterprise, told reporters, "this is where we are proud."

Vollmer's technology focuses on the grinder and EDM beds in tool tools. The market share of the former is about 70%, the market share of the latter is about 90%, the market share in the wood cutting circular saw reaches 98%, and almost all of the related tool manufacturers in the world purchase all the products of the Vollmer company. The corresponding company turnover is about 100 million euros.

"This is the characteristic of German small and medium-sized enterprises. Although small, it has enough innovative capacity to provide support for the development of large enterprises." StefanBrand said.

As the German small and medium-sized enterprises have the technical advantages that are difficult to replace in these segments, while the German automobile industry is going to the world, the machine tools, metal processing, sensors, air purifier, and even the exhibition enterprises are also going abroad. The Stuttgart exhibition company, which is organizing AMB, is preparing its AMB China sub exhibition in mid October. It will be held in Nanjing. The company told reporters that with the development of China's industry, China needs both international advanced equipment and the world, thus producing the demand for specialized exhibition, and the experience of organizing AMB for many years has made the Stuttgart exhibition company seize this opportunity.

Keller company is a manufacturer of air purification equipment in metal processing industry. It has technical advantages in separating explosive dust and sticky dust. It was first exported to the international market with German machine tools and lack of marketing ability abroad. HosterKeller, President of the company, told reporters that Keller will assemble products in China and strive to win customers.

Focus more than utilitarian

HaraldHaug has worked in a listed company in the same industry, while PaulHorn is a family business. In his eyes, family businesses have the advantage that listed companies do not have, that is, focus and warmth.

"There's a family atmosphere here, totally different from the listed company." HaraldHaug said.

Most of the German companies visited by reporters still insisted on family management and rejected the capital market. This rejection is not a worry about power, but a fear that companies will be lost in profits and abandon the technological advantages accumulated over the years. It is because of the nature of their family business that these enterprises are reluctant to lay off or transform in crisis time, but cherish their employees and family for a hundred years.

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