Investments: A Cornerstone of Future-Oriented Business
In addition to innovations, investments are undeniably the basis for forward-looking corporate management, as they are an essential factor for competitiveness and – if done correctly and with a sense of proportion – a real growth driver. Continue reading
“Companies in Germany are investing dramatically less” was a recent headline in the Handelsblatt newspaper, describing the reluctance of many German companies to invest in view of the uncertain economic environment (1). Kuhn Special Steel, on the other hand, continues to invest – regularly: in development, automation, personnel, but also quite fundamentally: in plant technology. “The decision to invest in new plant technology despite the difficult market situation is part of our long-term strategy to remain competitive,” emphasizes company owner Andre Kuhn.
The continuous modernization of the company’s own machinery should not be neglected – after all, it is a decisive competitive factor. After all, despite all efforts to increasingly streamline and automate processes, speed them up using artificial intelligence or make them completely redundant through substitution, the “bread & butter” business must continue to run – but efficiently and economically, please.
It can and does not always have to be the “big hit” to improve. Even small investments and modernizations can often lead to significant increases in efficiency. By replacing an outdated CNC lathe with a modern model, for example, we were able to significantly increase set-up and processing times in the relevant segment – an efficiency advantage that pays for itself after a short time. Similar effects were recently achieved by retrofitting a large lathe.
Another example of targeted investments at Kuhn is the purchase of a new chip processing system. Chips are a by-product of the machining work – a total of 3,000 tons per year. These metal chips are an important source of recyclable material for our foundry, as they flow back into our material cycle as raw material. Chips alone account for around 65% of our average material requirements. The prerequisite for this, however, is that the “metal scrap” is separated by type and processed. With the new system, these processes are now even more precise and efficient, and the energy required for operation is also significantly reduced.
Many business owners shy away from the risk of investing in economically uncertain times, as the Handelsblatt article clearly reflects. As a family business, however, we take a long-term view and see this as an opportunity. We are observing massive changes in the market. In plain language, this means that we too must change and adapt to the circumstances to remain competitive. Investments are therefore part of our strategy to assert ourselves against our competitors in a changing market environment with improved efficiency, increased output and greater vertical integration.
Of course, especially in economically uncertain times, major investments are a risk and a bet on the future. But those who do not invest in these times risk being left behind. However, those who survive this turbulent period and emerge from it technically stronger have a good chance of participating in the success of future upturns. This is also a clear and important signal to our employees that the company management believes that our expertise and our products will continue to give us a leading international position in the market in the future.
(1) Source: https://www.handelsblatt.com/unternehmen/mittelstand/familienunternehmer/konjunktur-unternehmen-in-deutschland-investieren-dramatisch-wenig/100124794.html