Repositioning vital for survival of industrial midsize companies
Annual outlook 2023.
Stuttgart/Ebersbach, 19. Dezember 2022 – It has been a turbulent year, both economically and politically. Especially in turbulent times like these, however, it is particularly important not to drive exclusively in crisis mode, but to set an important course for the future at the same time. This is the only way for companies to prove themselves in competition in the long term and to pursue new, innovative strategies.
Medium-sized companies are facing major challenges, key words being rising energy costs, disruptions in supply chains and a shortage of skilled workers. In this respect, 2023 will be a year of truth for many companies, especially also in Baden-Württemberg, which is traditionally economically strong and characterized by medium-sized businesses, but also in the other economic centers of the state.
Business and politics alike are called upon to overcome these challenges. The large family-owned and medium-sized companies have three main tasks to perform: First, they need to reduce dependencies in global trade - this applies to production sites, sales markets as well as the procurement of raw materials and supplies. This is particularly relevant from the point of view that supply chain problems do not appear to be resolving themselves in the near future either. While the war in Ukraine continues, China has just recently imposed another lockdown. Thus, companies are increasingly pressured to rely on more than just one supplier and just-in-time concepts, as well as to increase their inventory levels.
Second, many companies need to fundamentally rethink their ability to innovate and their attractiveness as an employer. The foundation for this is collaboration and a leadership style that emphasizes participation and breaking down silo thinking. Focusing more on diverse teams and the individual, rather than traditional top-down thinking, not only promotes collaboration, but also leads to more innovation and more efficient processes.
Finally, there needs to be a focus on sustainability and reducing energy consumption from fossil fuels. As a result of European initiatives, more companies will also have to report on this in the future.
Medium-sized companies need planning security
However, answers to rising energy costs for SMEs in Germany must also come from the political arena and thus provide planning security in the long term. Support and rescue measures from the government are also vital for the survival of small and medium-sized companies in 2023. So far, the focus has been too strongly on large corporations. An even closer exchange is needed here between business leaders and policymakers on how SMEs can be helped in this difficult situation. The recent increase in insolvency announcements shows that without a turnaround, many companies will not survive the next year.
Taking fate into one's own hands
Regardless of external circumstances, companies must drive change on their own, even in crises. ELECTROSTAR/starmix was able to reduce energy consumption by up to 50 percent by introducing energy management. Even the high costs of digitization are not slowing the company down. For example, ELECTROSTAR recently launched a new website and continues to work on the introduction of a new ERP system. With this, the company is taking the next step towards Industry 4.0. But there are also some organizational changes. While internally the goal is to further reduce hierarchies, promote teamwork and increase the speed of implementation, externally the goal is to further diversify and become more international by opening a new location. In order to always make the strategically right decisions, the family-owned company evaluates all planned investments and places a special focus on measures that achieve the greatest effect.
starmix - a piece of German industrial history that is being continued with great success in the 21st century. The industrious Swabians have been manufacturing vacuum cleaners since 1921 and invented the hot-air hand dryer four years later. In the years of the economic miracle, starmix achieved world renown: the universal starmix kitchen machine became a bestseller that no good household could do without. Today, ELECTROSTAR GmbH, which has been part of the Algo Group since 2007, stands for innovative technologies, outstanding quality and uncompromising customer orientation. Under the starmix brand, the company develops, produces and sells a wide range of powerful vacuum cleaners for trade, commerce and industry worldwide. From the starmix sanitary business field, modern warm air and high-speed hand and hair dryers as well as an extensive hospitality product range complete the portfolio. Since the acquisition of Haaga Kehrsysteme GmbH in 2012, innovative sweepers have also been part of the product range. In 2020, ELECTROSTAR/starmix and Haaga Kehrsysteme merged. The company employs around 200 people at its sites in Ebersbach. The two brands starmix and Haaga generated a turnover of around 41 million euros in 2020.
If you have any questions about the company, products or other information material, our press contact will be happy to answer them personally.
Fr. Alale Sarshar Fard
echolot pr GmbH & Co. KG
Fon: +49 711 99014-84
Fr. Gwendi Harer
Hans-Zinser Str. 1-3
Fon: +49 7163 9988-011