Germany as an industrial nation: How can the location be saved?

"Germany as an industrial nation: how can the location be saved?" This was the title of the 2nd Munich Management Colloquium in 1994 - and it is more relevant than ever. German mechanical and plant engineering in particular is regarded as a leading export and innovation sector that is currently under severe pressure. It reflects the entire spectrum of German industry's capabilities and is a key driver of innovation in areas such as Industry 4.0, resource-conserving production, energy efficiency and mobility. However, the list of challenges in mechanical and plant engineering is long. The most pressing issue here is certainly the ongoing supply chain problem and the associated lack of material availability. These procurement problems are offset by a good order situation, which can only be met to a limited extent due to limited internal resources, particularly due to the acute shortage of skilled workers in Germany. What can managers do in the current situation to deal with the multitude of challenges?

On March 5 and 6, 2024 the 31st Munich Management Colloquium will take place. This year's theme is: "Strong together - resilience through networking and collaboration" more than 80 renowned managers from various industries will present their solution concepts, including representatives from the mechanical and plant engineering sector. It is clear that the overall economic situation will remain challenging for industry representatives, as their often highly specialized products are subject to greater market fluctuations than is the case with consumer goods, for example. Their market environment is characterized by the current high inflation rates, the resulting restraint on the part of market participants and the significant forces of deglobalization due to geopolitical upheavals. Necessary internal restructuring due to technological upheaval must also be managed. Added to this are new climate protection laws and employee rights. The result is deadline pressure combined with a lack of material and personnel availability - effects that reinforce each other.

The challenges facing the mechanical and plant engineering industry are therefore complex and require a comprehensive strategy to secure the competitiveness of this important sector of the German economy. The ability to cooperate and communicate will be the key to mastering the ever-changing tasks. However, there are also rays of hope: some of the companies that will be presenting their concepts and solutions at the 31st Munich Management Colloquium show how mechanical and plant engineering can remain a flagship sector of the German economy. It is evident that the exchange of knowledge and information in particular leads to creative partnerships.

The GEA Group is one of the largest system providers for the food processing industry, the pharmaceutical industry and related sectors. The internationally active technology company focuses on machinery and equipment as well as process technology and components. In a persistently challenging environment, GEA has once again shown robust development recently. CEO Stefan Klebert, who will speak about GEA's climate protection plans at the upcoming MMK, says: "The development of the EBITDA margin, which has exceeded 15 percent for the first time in six years, is particularly positive." So how does GEA manage to show such a positive development in times of crisis? One success factor is certainly its innovative strength and the adaptation of new technologies. For example, GEA is making sustainability KPIs for breweries controllable using AI, further developing bioreactors with digital twins and working on new carbon capture solutions. But GEA also attaches great importance to the way it is managed. By offering sustainable solutions for the food and pharmaceutical industries, GEA aims to protect future generations. This is also reflected in its purpose: 
ZEngineering for a better world. Through a sense of responsibility, integrity and diversity, GEA employees develop a passion for their work, which leads to better collaboration and thus to manifestly outstanding results.

Thyssenkrupp Steel Europe based in Duisburg, is the lead company of the Steel segment of ThyssenKrupp AG. Most recently, the company was in the spotlight due to its "Green Hydrogen Steel - tkH₂Steel^®" in the media spotlight. The aim of the project is to achieve climate-neutral steel production with the help of hydrogen. The process of capturing the oxygen contained in iron ore does not work by converting carbon into CO₂but by hydrogen to H₂O. Instead of greenhouse gas, water is produced as a by-product in the direct reduction plants. However, this requires considerable quantities of hydrogen. The security of supply of this scarce energy source is therefore a relevant issue. The initiative is regarded as a global lighthouse project through which thyssenkrupp steel aims to set an example in the field of steel production in order to be the preferred partner for its customers as Europe's leading producer of green premium steel. They are driven by the fact that their sustainably produced raw material is the foundation of industrial value creation. The federal government and the state government of North Rhine-Westphalia are supporting the initiative with around 2 billion euros. The state is providing up to 700 million euros of this funding - making it the largest single grant in the state's history. Federal Minister of Economics Habeck presented the certificate of funding for the joint project between industry and the state. CEO Bernhard Osburg plans to start operating the new plants at the end of 2026 and will update us on the progress of the world's largest decarbonization project in March.

The Voith Group is a global technology group with a broad portfolio of systems, services and digital applications. Voith is active in the energy, paper, raw materials, transportation and automotive markets. Innovation is crucial to the success of industrial companies like Voith. This is driven by global megatrends such as digitalization and decarbonization, i.e. the transition to climate neutrality. Both developments are both an opportunity and a mission for the innovation strategy. Voith is researching various ideas in this area, such as how hydrogen can be used as an energy source. It was only recently announced that Voith technology is powering the first hydrogen truck to be built in series in Germany. This was made possible by a collaboration with two other companies that contributed experience in special vehicle construction and in the electrification of used and new commercial vehicles. Sustainable solutions are also being researched in the area of packaging materials, in particular to avoid plastic. CEO Dr. Toralf Haag emphasizes: "As a family-owned company, Voith has always been committed to sustainable thinking and value-based action. It is important to us to harmonize our business success with our responsibility towards the environment and society." Voith tries to live up to this responsibility through scholarships, cultural sponsorship programs and support for people in disaster situations. At the 31st MMK, Dr. Haag will present his "Best Practices in Times of Crisis" from the perspective of corporate management.

Giesecke+Devrient is an owner-managed, international hidden champion that has developed from a manufacturer of banknotes, securities and ID cards into a provider of security technologies in the areas of payment, identities, connectivity and digital infrastructures. Products from G+D accompany us in many places in our everyday lives without us even knowing it. Back in March 2023, Dr. Ralf Wintergerst, Group CEO of Giesecke+Devrient, reported that G+D was the global leader in highly secure connectivity solutions: 750 million Apple devices had been equipped with an eSIM including operating system from G+D to date. In total, more than three billion mobile devices are managed by the company. This figure is likely to have risen in the meantime. However, the company not only positions itself as a technology developer, but also plays a role as an opinion leader in the security and financial sector. For example, G+D is involved in discussions on how cyber security can be guaranteed in times of AI or how digital transformation can succeed. They promote TrustTech start-ups for more trust in the digital world and develop security solutions to make digital twins such as physical banknotes, SIM cards or even passports more secure. Dr. Wintergerst will outline how such a "corporate transformation in uncertain times" - from banknote manufacturer to technology leader for security solutions - can succeed in his keynote speech at the upcoming MMK.

Würth Industry is responsible for supplying the industrial sector within the Würth Group. The company was recently awarded the title "Excellent Sustainability 2023" by the F.A.Z. Institute and the IMWF Institute for Management and Economic Research. ecologically, economically and socially  was awarded. "Thanks to RFID Kanban delivery, it is possible to optimize delivery cycles based on actual demand and consumption, shorten response times and efficiently optimize transport and logistics. The actual reduction in CO₂e emissions of over 50 percent underlines the savings that can be achieved," says a press release from the C-parts expert. Particular attention is paid to the Kanban containers themselves. These are designed to be recyclable and made from 100% recycled material, so that new granulate can be produced from defective containers via a grinding process. This granulate then serves as a raw material for new containers. In addition to this best practice, the ECO LINE product line, which dispenses with environmentally hazardous and climate-damaging substances, the switch to climate-neutral energy sources and the screening of the supply chain for social and sustainability aspects were also decisive factors for the award. At the 31st MMK, Martin Jauss, Senior Vice President of the Würth Group, will talk about how networking and collaboration make companies resilient.

The order of the day is speed instead of stagnation, action instead of sitting it out, cooperation instead of squabbling. How do companies deal with the challenges of today? We will discuss tomorrow's solutions together and you will make important contacts in your professional network. The Munich Management Colloquium is the meeting place for all decision-makers from the DACH region.

Secure your ticket today to be part of the Munich Management Colloquium in March 2024, where managers will discuss and present best practices to ensure the long-term competitiveness of Germany as an industrial location. Participation is free of charge for journalists.