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German machine builders are under pressure from China

Mechanical engineering is one of the most important pillars of the German economy. But China is catching up tremendously. Can it overtake Germany soon? Zhang Danhong, and Andreas Becker have asked around at the Hannover Messe.

The Golden age for German machine manufacturers in China, has seen Stefan bachmeier. For 17 years he works for Kaeser compressors, a medium-sized business from Coburg in upper Franconia, which is known as the world’s 5000 employees and is one of the leading specialists for compressed air.

“I know the days, because it was flicking with the suspenders and simply said: This is a German machine. For this, the customer has paid, the price did not need to discuss. But these times are over,” says Bachmeier, the leads from Singapore, the Asia business of Kaeser.

Self-Confident Chinese

Of course Made am appreciated “in Germany”, but it is no good as the main argument for the sale. “The Chinese are now very self-conscious, you could also be a nationalist to say,” so bachmeier to DW “And you drag your strategy from the “Made in China” badass.”

Also, the quality of Chinese competitors have improved over the years. Their machines were less efficient and robust, but not bad. “In the meantime, they cover the market quite well,” says Bachmeier.

Then he points through the large, double-storey exhibition stand of the company (article image), which this year celebrates its hundredth birthday. “In the past, our Stand is full of Chinese, who wanted to buy something. Today they say: If You want to sell me something, then come to China.”

Cen Guojian, the founder of Ningbo Leader, on its Stand at the Hannover Messe

The infrastructure is already suspended

Cen Guojian has been the opposite experience. “A few years ago, the Chinese were sitting here in a corner and were respected by the Germans,” says the founder of Zhongda Leader, a manufacturer of gear motors from Ningbo in Zhejiang province, South of Shanghai. “Today, we no longer pass in Hanover, to the Chinese.”

Zhongda Leader is one of 1500 Chinese firms at the fair. Launched in 2006 with five employees, is listed on the company meanwhile, on the stock exchange and employs 1400 people. The founder of the Cen believes that China still has a long way to get to the top. “But in the case of infrastructure, we have beaten Germany already,” he says. “In Germany, I have not once, anywhere Internet. In China, this is unimaginable.”

Earlier, ridicule, Amazement, today

Also Fang Weizhong has determined that the balance of forces to move. “If the Chinese visited ten years ago, the production halls of German companies like Siemens, then you will not get out were Amazed,” says the managing Director of Easitech, the shows in Hannover, motors for electric cars. “Now, many of the German factories look old in comparison with the Chinese.”

For electric cars, China is the world’s largest market. Around 1.3 million E-cars were sold here last year, in Germany, there were only just under 70,000. According to Easitech sold the lion’s share of its engines in China. “Our production is highly automated,” says managing Director of fishing.

“The weakness”: the production plant of Easitech is shown at the Hannover Messe

If you look exactly, you recognize the robot from the Swiss company ABB. “Because of the weakness of China,” says Fang. “We still need the Hardware of the industrial Nations, Top-products.” Also in the Management and in the training of professionals in China have a lot of catching up to do. “Well-trained skilled workers do not enjoy in China, nor the appreciation of how in Germany,” says Fang. “But in ten years will look different.”

Competition is getting tougher

Even in the field of robotics, the distance is small. Especially in the case of small lightweight robots, which work as so-called Cobots Hand-in-Hand with human colleagues, have done a lot in recent years, says Gerald Vogt, head of the robotics business of the Swiss machine manufacturer Stäubli. “Because in China, there are already 40-50 vendors, many of which are Startups,” says Vogt. “The Chinese government is promoting the strong. And today, a third of the robots sold in China comes from Chinese manufacturers.”

“Innovation”: Gerald Vogt from the Robot manufacturer Stäubli

European companies remain in fierce competition with China only a Chance. “It is important that we remain innovative and our products even faster to develop,” says Vogt to the DW. “The Chinese are not, perhaps, so far as regards the Performance of the robot. But they bring things to market quickly. This may be at the beginning often copies, but also continue to develop.”

Stefan Bachmeier believes that the projection can only be achieved by continuous improvement maintained. Therefore, the”industry 4.0″ is a great opportunity, even if the complete digitization of the production is also connected with the tradition of companies like Kaeser compressors with Stress. “We would build today, only simple machines, we would be in a cul-de-SAC – even if the machine would always be better,” says Bachmeier. “But industry 4.0 is a Hardware and Software – and so that we can stay at the top.”

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