Machinery and Plant Engineering

The production networks of most medium-sized companies have evolved over time. What may have been sensible and efficient years ago often no longer serves its purpose in an era of volatile demand, fluctuating customer orders, and short product life cycles. For example, if one plant is operating at full capacity while others are underutilized, alarm bells should be ringing in the executive suite. Christian Zeller and Max Stehr explain what companies can do in such situations, when certain measures make sense, and how the production footprint becomes a competitive advantage.

Relocation, reshoring, offshoring, and rebuilding: The geographical shifts of internationally producing companies resemble a busy puzzle. While BASF closes facilities at its German headquarters and invests $10 billion in constructing a mega factory off the coast of southern China, Tesla explores alternatives to production sites in China and Taiwan. Meanwhile, Stellantis plans to scale down its electric vehicle production in China, and Neura Robotics is returning to its German headquarters from China this year. The reasons for these production relocations vary by industry, from high factor costs and geopolitical risks to tariff avoidance. Moving away from Germany, where are manufacturing companies heading? Will factory relocations increase? And what are the dos and don’ts in the relocation process itself? An expert discussion with Christian Zeller and Thorsten Holl.

„Der Mensch hat drei Wege, klug zu handeln,” lehrte einst Konfuzius. “Erstens durch Nachdenken: Das ist der edelste. Zweitens durch Nachahmen: Das ist der leichteste. Drittens durch Erfahrung: Das ist der bitterste.“ Macht es sich China leicht? Und wird es für Deutschland bitter? Wie Wirtschaftspolitik und Mittelstand auf Chinas Wirtschaftskurs reagieren könnten: Darüber spricht Christian Zeller, Partner bei enomyc, im aktuellen Interview.

Casting from China, assembly in Eastern Europe: German industry has long sought international business relationships in the course of globalization. Factor cost differences had to be exploited for this, while on the other hand local sourcing, seemed to be on the decline. In fact, it was even pushed aside as stuffy or "old school". This was all before pandemics and lockdowns cut supply chains, a hurricane hit Texas and a freighter got itself stuck in the Suez Canal. It suddenly became very clear how vulnerable - and also dependent - German industry is on certain basic materials. What's more: ESG requirements and climate targets are currently forcing industry to rethink its supply chains more than ever. Long transport routes and international business relationships with "best cost countries" are increasingly being questioned. What will the logistics of the future look like – and what’s more have to look like? How can the German economy circumvent raw material shortages and fragile supply chains? Where is the innovation potential of the future? And: Will steeple sourcing become a trend again? An outlook with Dr. Stefan Frings, Partner at enomyc.

Succession, more expensive capital and more selective valuations are increasing the number of complex ownership situations in Germany's industrial Mittelstand. The advantage goes to those who select targets early, finance them through the downside, and create value after closing.

Es führt kein Weg daran vorbei: Die Wirtschaft muss nachhaltiger werden. Schluss mit Überproduktionen, Schluss mit kurzlebigen Produkten, Schluss mit Elektro- und anderem Schrott. Her mit Produkten, die recycelt und länger haltbar sind. Her mit dem “ Recht auf Reparatur ”, her mit der Kreislaufwirtschaft!

Gerade Krisenzeiten bieten ideale Voraussetzungen für eine Verbesserung der Kostenposition. Das „Schlachten heiliger Kühe“ ist in schwierigen Zeiten naturgemäß einfacher umzusetzen als in Zeiten, in denen die Goldbarren förmlich „aus dem Fenster geworfen“ wurden. In früheren Krisen, wie z. B. in der Finanz- und Wirtschaftskrise im Jahr 2009, wurden vor allem die Overheadbereiche kräftig verschlankt. Mittlerweile wurde auch hier wieder Speck angesetzt, der dringend einer Diät unterzogen werden sollte.

Large OEMs have to do it, as do medium-sized companies whose plants in one region are underutilized while customers in another market cannot be supplied quickly enough. Whether large or small, virtually all companies have to continuously adapt their production capacities to changing requirements. In a world where what seemed like an ironclad rule yesterday may no longer apply tomorrow, this is no easy task. In their article, enomyc experts Max Stehr and Christian Zeller explain what companies should pay attention to and why involving an experienced partner at an early stage can avoid a lot of unrest, friction losses, and often also costs.