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In two-thirds of German mechanical engineering companies, restructuring their international business is one of their major concerns. The reason: new challenges have to be faced in the race to develop the rising economies of Asia and Latin America as sales markets. The task is to manage the change from the “extended workbench” to a sophisticated consumer market. The interaction between management in Germany and regional management in the target countries is a particular cause of problems in the positioning as global players. This has been shown in market observations by Staufen AG business consultancy and the Technical University Darmstadt. 

Six of ten industrial suppliers are too dependent on their customers – with existence-threatening risks: too much specialisation on a few major customers leaves the mainly medium-sized companies vulnerable to negative developments in particular sectors. The trend towards regular changes in the award of orders further increases the risk of revenue losses. This has been shown in market observations by the Staufen AG business consultancy as well as the chamber of Schneider, Geiwitz & Partner.

Staufen AG ranks amongst the top class of German employers. This has been confirmed by an employee survey as part of the “Great Place to Work 2013” contest. The greatest plus in business consultancy: contented employees. Nine of ten consultants emphasised team spirit and a pleasant atmosphere at work.

How to conquer China’s markets? German medium-sized companies face new challenges in further expanding into the fast-growing Chinese sales market. Market presence and customer engagement in the Middle Kingdom frequently remain under-developed: For example, 84 per cent of Chinese require better service performance from German suppliers in future – one in two customers is critical of their ‘latent arrogance’.

In March, Xi Jinping has taken office as President of the People’s Republic of China. Under his leadership, China will spend massively on promoting innovations in order to generate growth – thus the official announcement. In your view, what does this line taken by China’s new government mean for the country as a manufacturing location?

The positive image of German companies in China is getting tainted: Chinese customers attest to the strong quality awareness of German companies (97 percent). However, at the same time, one in two Chinese perceive their presence on the Chinese markets as arrogant (51 percent). The large majority of those questioned also hold the view that German manufacturers should respond more to the wishes of Chinese customers (94 percent). This is the result of a representative survey conducted by Staufen AG in the People’s Republic of China.

At the end of 2010, the Spezial-Transformatoren-Stockach GmbH, in brief: STS, found itself faced with a significant increase in demand on capacities.  The solution: a comprehensive process and plant optimisation.

A rise in the minimum wage by 2015 strengthens domestic consumption but also increases costs The new Chinese government plans to raise minimum wages in the cities and the majority of rural regions to at least 40 percent of the average wage. The aim is an 80 million reduction of the number of people living in poverty. China’s primary intention is to prevent social unrest – but also specifically to boost domestic consumption as a cornerstone for economic growth.

Germany’s aeronautical supply industry faces a further wave of consolidations: a 30% fall in the number of companies is expected by 2020. The most important reason: increasing numbers of suppliers find themselves unable to cope with the increasing speed and complexity of tasks. The Boeing “Dreamliner debacle” furthers hastens this process of concentration, as market analyses by Staufen AG show.