Against the Grain: Expansion of Manufacturing Capacity
While German industry is largely effected by weak demand, high cost pressures, and job cuts, the order situation in some business segments is developing with remarkable dynamism, bucking the general trend. Growth markets such as energy and heavy-duty engine technology, as well as defense, are driving high-capacity utilization – including the companies in our Group. Continue reading
The operating environment for manufacturing companies in Germany remains challenging: high energy and location costs, international competitive pressure, and weak demand in traditional markets pose major challenges, particularly for small and medium-sized industrial companies. Our corporate group, too, is clearly feeling the effects of these developments. At the same time, however, it is becoming apparent that a broad portfolio and the consistent alignment of existing manufacturing expertise with growing markets can open up new opportunities.
In addition to the energy sector, other application areas are also showing positive development. These include, among others, security- and defense-related applications that require high-quality, cast, and machined components. What matters most here is not so much a single booming market as the ability to flexibly deploy diverse expertise and production capacities wherever long-term growth is emerging.
Key growth drivers at present are energy and large-engine technology, as well as the defense sector. The global expansion of digital infrastructure – and in particular the enormous investments in data centers for AI, cloud, and other data-intensive applications – is also causing a sharp rise in demand for high-performance energy supply solutions.
At the same time, a European security architecture which is currently undergoing rapid development requires highly resilient and durable components from reliable and trustworthy sources. This benefits not only the technology companies themselves but also industrial suppliers throughout the value chain.
For the Kuhn Group, those trends are particularly evident in large-engine technology and mechanical machining. M. Jürgensen in Sörup has decades of experience in the development and manufacture of cylinder liners for medium-sized and large engines, while Kuhn Edelstahl in Radevormwald contributes extensive expertise in centrifugal casting and sophisticated mechanical finishing. These capabilities are increasingly being integrated within the group to meet additional demand across all locations.
The extent to which the positive trend in certain markets is now affecting production is particularly evident in our staffing needs: By mid-2027, we plan to expand our workforce within the group by approximately 60 employees in the areas of mechanical machining and foundry operations. In particular, we need qualified specialists in the machining and processing of complex components to meet the rising demand. Given the job cuts currently being observed in many parts of German industry, a staffing need of this magnitude is anything but a given.
Our willingness to invest is also anything but a given, yet absolutely necessary. We are currently making massive investments at both locations in manufacturing machinery, modernization, and automation to increase our throughput, standardize processes, and ensure consistent quality.
This positive trend does not change the fact that Germany as an industrial hub faces significant challenges. However, it shows that growth is possible even under difficult conditions if companies consistently build on their existing expertise, pool their capabilities, and adapt early on to markets with structural growth. For us, the current high demand for personnel is therefore not only a challenge but, above all, a sign that we can look to the coming years with confidence.