Environment, Initial Position, Task

Proceeding, Achievement

Company:
Producer of customer specific hydraulic components and systems for mobile and stationary hydraulic/ automotive/ trucks, 1.200emp./200Mio.€/a (2009)

Responsibility:
Business Unit Manager and member of the executive board (assigned responsibility for sales, R&D, calculation and logistics) 700emp./125Mio.€/a

Initial Position:
After years of strong organic growth sudden slump of revenues, triggered by the global crisis after the "Lehmann crash", despite planned growth of 10% based on current customer forecasts.

Task:
Avoidance of losses in the crisis, defending of the market position, retention of the permanent staff to keep chances after the end of the crisis.

Proceeding:
Consistent initiation of counter measures to overcome the crisis:

• Introduction of short-time working on average of 40% in the direct area for up to one year
• Introduction of short-time working of 15% also in the indirect area in agreement with the work council and the staff
  
• Reduction of overtime, labour leasing and short-term contracts
  
• Evaluation and implementation of insourcing of so far externally purchased components and processing services, if realisable
  
• Relocation of further components and products to the plant in Poland 
  
• Retention of customer service, follow-up of inquiries, project acquisition and technical project processing on usual level despite short-time working through motivation of the key staff to work extra time on voluntary basis, thereby utilisation of market chances in the crisis
  
• Renegotiation of contracts and price increases at customers
  
  

Achievements:
Obtaining of the "black zero" despite of revenue slump in the year of the crisis.

Over 60% increase of turnovers two years after the crisis at again good profit level.

Win of additional future order volume of each 20Mio.€/a in the year of the crisis and the following year and thereby securing of the future company success.

Retaining of the permanent staff and strengthen arise out of the crisis compared to the competition.