2/15/2024 Markets & Industries News

"Our raw material is our brains"

The future prospects of the die casting industry were discussed at the last EUROGUSS under the heading "Are we casting the future in Germany?". Depending on how you read it, this was either an encouraging appeal or a question that could also be answered with "No, better somewhere else". The panellists, including high-profile industry representatives such as Gerd Röders, President of the German Metals Trade Association (WV Metalle) and Managing Director of G. A. Röders GmbH & Co. KG, and Dr Alexander F. Marks, CCO of Frech GmbH + Co. KG, were quite clear in their view of things.

From the left: Petra Bindl, Dr Alexander Marks, Tobias Gotthardt, Sarna Röser and Gerd Röders.

Their perspective was broadened by the external viewpoint of the other participants: that of the (non-foundry-industry) entrepreneur and author Sarna Röser, until recently Federal Chairwoman of the business association "Die jungen Unternehmer", and that of Tobias Gotthardt, State Secretary in the Bavarian Ministry of Economic Affairs.

Difficult waters

There was unanimous agreement in the analysis of the current situation: despite great enthusiasm for innovation, industry in Germany is in difficult waters, characterised by high energy costs, too much bureaucracy, sluggish digitalisation and a shortage of skilled workers. A survey of family businesses revealed that 85 per cent of them have experienced a significant increase in bureaucracy in recent years, while 40 per cent complain about overregulation and slow-moving authorities. But what can be done?

Tobias Gotthardt, State Secretary in the Bavarian Ministry of Economic Affairs.

For the Free State of Bavaria, Tobias Gotthardt was able to point to the existence of a bureaucracy reduction officer and the introduction of the Standards Control Council. "We have recognised in Bavaria that bureaucracy eats into a dynamic economy like a cancer and can put the brakes on everything," said the State Secretary. It is the task of politicians to listen carefully to SMEs, develop joint solutions and establish a "culture of enabling from the ministry to the district office".

Sarna Röser, entrepreneur and author.

Sarna Röser suggested a very pragmatic way in which listening can work: "We can invite members of parliament to our companies and show them what is going wrong, otherwise they won't understand it. We have to explain it so that they take it with them into their everyday lives."

Appeal to politicians

When it comes to energy costs, the industry, and the foundry industry in particular, is also looking towards politicians. "As an industry, we are deeply disappointed with the way the problem has been tackled. It is unacceptable that we have to pay for the deliberate shortage of energy. After all, we are in international competition," Gerd Röders urged for action. "And if the bridge electricity price doesn't materialise, something should be done about bureaucracy. Supply Chain Act, Whistleblower Directive, etc. - there is so much where politicians need to take action now."

Röders critised unjustified mistrust of the economy: "Companies create jobs and reduce CO2. Politicians need to trust us, then we will make something of this country - all together."

However, it is not only in politics that there is mistrust and reservations towards entrepreneurship, the panellists criticised, and they also had examples ready. In the ARD series "Tatort", the entrepreneur is statistically most often the "bad guy", reported Röser. A negative image of entrepreneurs prevails among the German public, which contributes to the fact that every second student currently wants to become a "civil servant".

Hidden champions

There was agreement that schools also have a role to play at this point. "Children should learn: I can also set up a company," said Gotthardt. Although the permeability of the education system, university education and the dual system were seen as important plus points, "Performance must once again play a greater role in schools. Then we will also solve the issue of skills shortages in the long term," explained Dr Alexander F. Marks. In addition, however, an increase in the dwindling labour force potential through immigration to Germany is necessary, according to the manager.

Dr Alexander F. Marks, CCO of Frech GmbH + Co KG.

SMEs can also do something themselves to reduce the shortage. "We have to learn to tell stories even more and let our employees tell these stories. We have such great hidden champions among the family businesses and their names are not even known outside their own region," says Röser. High-tech die casting could serve as a suitable starting point for storytelling: "We make cool products for cars and solar systems," says Gerd Röders, who received support from Dr Alexander F. Marks: "Die casting is a sexy industry."

"Unique network in Germany"

So will the SME sector remain in Germany despite the current difficult conditions? It would appear so. However, more pragmatism, rapid digitalisation, especially in public administration, more entrepreneurial spirit and a sense of responsibility in society were named as key conditions for this. Sarna Röser: "Our raw material is our brains. We can manage change because we are innovative."

Gerd Röders, President of the Wirtschaftsvereinigung Metalle and Managing Director of G. A. Röders GmbH & Co. KG.

And for foundries in particular? Here, the industry representatives cited the consistent identification and development of all opportunities offered by die casting technology, such as e-mobility, as important points. Gerd Röders: "We have a unique network in Germany. The supply chains work, so it's important that the foundries stay here. We will definitely be staying in Germany with our company," summarised Röders.

In the final round, moderator Petra Bindl took up the title of the discussion again and asked the participants to complete the sentence "We will cast the future in Germany if ...":

We will cast the future in Germany if we continue to have ideas.

Gerd Röders, President of the Wirtschaftsvereinigung Metalle and Managing Director of G. A. Röders GmbH & Co. KG

We will cast the future in Germany if we live by the motto: Doing is like wanting, only more blatant.

Sarna Röser, entrepreneur and author

We will cast the future in Germany if we work together to develop an environment that is free of bureaucracy, gives us room to breathe and keeps the fire of entrepreneurial passion burning.

Tobias Gotthardt, State Secretary in the Bavarian Ministry of Economic Affairs