Heinz Helmut Kempkes, managing director of Kuli Hebezeuge Helmut Kempkes GmbH, based in Remscheid, recalls that he noted an upturn in business as long as one and a half years ago, but shares sentiments that the change in Government has been key. “It’s not necessarily the Govenment’s decisions or policies that is improving business – but since then investment has certainly picked up,” he says.
Kuli is benefiting from the worldwide economical boom. Not only Europe and Canada increased, but also south east Asia and Africa. The Middle Eastern market ultimately booms because of the high prices of oil. Around 80% of its products are sent overseas. Supply of complete cranes, however, is, in the main, limited to Germany. “Or at least the percentage is far less,” says Kempkes.
Having said that, on the day I visited the Kuli plant, a crane was being loaded onto lorries bound for France. “Cranes leave here every day,” boasts Kempkes. He points to another box bound for India, for example. “And this one also for France,” he adds, haring off to another part of the somewhat sprawling facility, where, interestingly, the main entrance of the six-storey adminstration building is actually on the third floor to accommodate the hilly terrain.
“Things will calm down though,” Kempkes concedes. He reckons that even as soon as next year the market will subside. At the moment, Kuli customers have to wait five months for the delivery of a big crane. This is about as long as the order backlog will get.
Peter Hering, head of Demag Cranes and Components’ German sales organisation, says he detected an economic upturn at the beginning of the year.
He believes the increased demand is primarily accounted for by the mechanical engineering sector and, in particular, by what he calls “export-oriented” companies. “The focus, here, is on standard cranes and industrial drive components,” he explains.
Hering added: “We expect moderate growth with a sustained improvement in results for the coming year.”
Crane and components manufacturer Kuhnezug, which is based further north, in Hamburg, started noting an upturn in fortunes at the turn of the year. Noteably, the change in Government happened just three months earlier. It appears that people were prepared to invest prior to this but needed something symbolic to spark them into life.
Actuated from this development, Kuhnezug’s business from the German market leaned to 40% again. As a result, its order backlog already stretches into the first quarter of next year. It doesn’t believe this figure will change as the Germans demand complete cranes and production has swelled close to its limit. “If needed, we are able to provide a double shift,” says managing director Jan Bottcher. But that is in exceptional circumstances.
Most business is for lifting gear from 25 to 250t capacity, where demand is high from a wide range of industries.
The remainder of its business is for components. Asia and Eastern Europe provide big business but, interestingly, Kuhnezug does not focus on China.
Manufacturer JD Neuhaus has a fascinating facility based in Witten where a history charted in three museums flank modern facilities. A mock-up of a blacksmith’s forge demonstrates where the journey began.
More recently, the German mining industry provided a massive source of business. However, the mining industry declined and JDN had to find new markets and customers. JDN has created a totally new range of industrial products, set up four international daughter companies and supplies in roughly 60 different industries.
Remote control manufacturer HBC-radiomatic GmbH, which is based in Crailsheim, says: “We get a sense that the market is growing.” However, HBC-radiomatic does not monitor where its kit goes once it is in the hands of OEMs. So it is hard to say exactly where this demand comes from, or what trends are driving it. Exports may be as high as 80% of the business.
Supplying equipment to OEMs is only part of HBC-radiomatic’s business. Individual requests from end users also, for example, provide the interesting challenges to supply unique remote applications.
HBC-radiomatic’s business focus is two-pronged. There are still those who need convincing of the benefits of remote controls and others who have already accepted the benefits of doing away with suspended controls.
While it is clear that business is on the up, there are universal concerns over the lack of good quality young people going into the business – or at least ones willing to get their hands dirty.
HBC-radiomatic, for example, says it struggles to find youngsters educated to the appropriate level to start trainee positions. Thus, it is actively campaigning to get local kids interested in its training programme.
Some 10% of HBC-radiomatic’s 300 employees (so, about 30) are on the scheme, which takes two and a half to three and a half years to complete – depending on a number of things – and concludes with an examination and a recognised qualification.
The latest intake included a female trainee. “We want to promote the company to young people – including girls,” explains PR and communications representative Oliver Meister. The young lady in question will actually sit engineering exams. Three other categories – namely, office administration, technician and electronics and information technology – are also available.
Youngsters must apply a year in advance around the time they start their last school year. Most are aged between 16 and 21. “The idea is to keep good people within the company,” says Meister. Even if there is not a job available immediately, good young people will be encouraged to stay at HBC-radiomatic until a position is found.
HBC-radiomatic, like other companies, hopes that the problem with the current generation of youngsters will not be long-term. But it is a national trend (Actually, I read an article recently, which said the problem in the UK, for example, is no different.) and one that is worse in the larger cities of Germany.
Kempkes shares concerns about the lack of good young people coming into the industry. “It’s easy to find people to do office work but harder to get them running around in blue suits,” he says.
However, Kempkes says the location of his company is an advantage. He explains: “We have been here since 1922. People know we are a good company.”
Kuli welcomes around five or six youngsters every autumn – similar to other companies. One or all of these will be invited to join the company long-term – depending on the individual.
JDN agrees that bringing the right youngsters into the company is now as important as ever. Actually, more. But, as we have discovered, the challenge is finding them. “We got 70 to 80 applications for our autumn intake this year,” it boasts. But, while the numbers of applicants were high, the quality is falling away.
The programme it runs operates between two and a half and three years and, again, the award of full-time employment thereafter depends on a variety of factors.
Bottcher, who took the reins from his father, says: “The first thing potential customers ask us is, are we a family business.” Bottcher says a good quality young team is essential and he declares that the company benefits from this.
After-sale service
Kuhnezug wants companies to be self-sufficient. It encourages customers to be familiar with its kit so designs are consistent and components are recognisable – even when they are redesigned. Of course, Kuhnezug has its own service technicians but, as it says, “we are always interested in a quick solution to solve problems on site.” For example, a knowledgeable customer would be able to stumble upon the cause of a problem on a new drive, simply by knowing his way around an old one. This philosophy, it says, has often met the customers requirements for more than 45 years now.
After-sale service is among the top five most important things for HBC-radiomatic. Many companies these days talk about the overall lifting solution, which includes the product life-cycle and preventative maintenance.
“If it’s a big problem then we will send someone anywhere in the world even in the middle of the night,” says HBC-radiomatic. However, more common practice is for it to contact a local partner and relay the problem to them.
HBC-radiomatic accepts that it is unrealistic to dream of a world where everyone uses remote controls. But, it says, the scope for growth in the factory market is massive.
