This year, Gebr. Heller Maschinenfabrik GmbH celebrates its 125-year company anniversary. For the two Managing Directors of the HELLER Group, Klaus Winkler and Manfred Maier, this is a good moment to reflect on the past years and to take a look at the challenges ahead.
TEXT Helmut Angeli PHOTOS Tina Trumpp
If one were to describe HELLER as a ‘manufacturer of machine tools mainly for the automotive industry’, would you be satisfied with this description?
Winkler: No, not at all. For many years, HELLER has been synonymous with the efficient production of complex components. The fact that the majority of them still comes from the automotive sector is not entirely wrong. However, we do not see this as a drawback. Indeed we are proud to be able to work with such a discerning clientele. At the same time, we are a supplier to many other users from outside of this industry.
Would you agree with that, Mr Maier?
Maier: I can only support that. What is important to me is that it means that HELLER is, above all, synonymous with productive manufacturing. This also explains our focus on the automotive sector. In this particular environment, cost-effective production of series parts is a key requirement. By ‘automotive industry’ we are not only referring to car manufacturers, or OEMs, but also to the supplier industry as well as job shops. I would also like to emphasise what Mr Winkler said about it only being a part of what HELLER does. Our strength is the development and production of manufacturing solutions, enabling high-volume production, regardless of the industry the customer belongs to. At the same time, we strive to reduce the share of automotive business by expanding our activities to other industries and fields of business …
… successfully?
Winkler: Absolutely. Since the start of the new millennium, the automotive share has decreased from more than 75 percent to currently two thirds of business.
Speaking about the turn of the millennium: the Winkler/Maier managing duo has been at the helm at HELLER virtually since then. What were your objectives when you took over leadership?
Maier: Mr Winkler and I have been members of the Management Board since 2003. At the time, Berndt Heller had already planned to retire from the operational management of the company in 2006, so when we took over, our goal was to ensure the continuous development of the company whilst promoting the internationalisation of business, with the focus directed towards growing our business in Asia.
… to what success?
Winkler: Since 1950, the company has exported its products to China. With a total of four sales and service locations in China, and further locations in India, Singapore and Thailand, we are underlining our commitment to the Asian market. In 2013, we began with the planning, assembly and delivery of machining centres at our production facilities in Changzhou. Basically, the internationalisation process initiated by the third generation of the Heller family provided the foundation for the company’s economic success of today. It is indispensable for us to offer our customers worldwide locations in their proximity. If we had tried to continue to service the world market from Nürtingen, we might not be around today. At the time, it also became increasingly clear that the demand for transfer lines would continue to decline and that our customers had a rising demand for flexible solutions. Therefore, we responded to our customers’ requirements with a newly developed portfolio of standardised machining centres.
Catch phrases like ‘success through internationalisation’ and ‘greater customer proximity’ could lead to the assumption that the Nürtingen headquarters had lost significance. Is this conclusion correct?
Maier: No, it is not. Proof of this are a number of forward-looking investments aimed at promoting further development of the location. We deliberately scheduled the expansion for our anniversary year. At Plant 2 here in Nürtingen, we are going to build an additional hall, moving the assembly of our machines to a more advanced basis. Moreover, we are going to create additional office facilities here at Plant 1.
Although none of the family members are involved in the management of the company anymore, the status as a family business will absolutely continue to have a substantial impact on our corporate philosophy. Why is that?
Winkler: First of all, it enables us to give the company long-term orientation without becoming too focused on quarterly results. Yet, above all, a family business creates a deeper bond between the company and its staff. The identification of employees with ‘their’ company is often underestimated. By all means, we are happy with the shareholder structure and the resulting engagement and commitment of HELLER staff.
Does this happiness also reflect in business results?
Winkler: In 2018, we recorded an order intake of approx. EUR 700m. In 2019, we will generate well above EUR 600m in turnover. To anticipate your question about the result: with the exception of 2009, which was dominated by recession, HELLER’s operational business has been in the black since 2003, recording approx. 5 percent growth every year.
What conclusions did HELLER draw from the recession in 2008/2009?
Winkler: One major lesson for us was to make ourselves even more independent from banks and financiers, which meant raising our equity ratio whilst striving to minimise indebtedness. The second realisation was that it was important to diversify our portfolio in order to reduce dependency on a single market. Today, I can say that we have largely achieved these goals. The third lesson we have learned is that we need to make ourselves independent from political decisions as far as possible. This means we need to prepare ourselves for the fact that globalisation may not be a goal for all countries and that we should also aim to create a local presence in order to avoid trade restrictions and tariffs. We will also need to respond to the fact that populist politicians will try to make business more difficult for us.
In the past, the so-called pork cycle was a catchword often used in the machine tool business, referring to the relatively cyclical fluctuations of ups and downs in the industry. Does that still apply?
Maier: These fluctuations still exist in some regions, of course. Today, however, the supply chains are globally distributed so that these deflections are more or less evened out. On the other hand, there are many barriers and insecurities in terms of trade policies at the moment which, in principle, could lead to the development of a crisis. Moreover, we know that the automotive industry has made large investments in new manufacturing equipment in recent years whilst entering a phase characterised by uncertainty as far as the future of powertrains is concerned.
What do you think is going to happen in the future?
Maier: As much as we all wish and work to reduce global CO2 emissions, there is still no genuinely satisfactory solution. Reading the relevant publications might lead one to believe that electric drives were an unrivalled technology. However, that is not the case. There are quite a few interesting research approaches – from fuel cells and hydrogen propulsion through to synthetic fuels – that may be developed to marketability in the near future. Serious studies project that the number of cars will see a 30 million rise in the next ten years, with a ten percent share of electric cars.
And still: for me it is hard to believe that a company like HELLER only observes the overall development as a bystander without having taken measures to be prepared for all eventualities …
Winkler: Of course. Not only have we discussed various scenarios, but we have also prepared for possible changes …
… for example?
Winkler: We have continued to diversify our market presence. In this context, Asia plays a significant role. In recent years, we optimised our sales operations by re-aligning not only our key account managers but also our regional sales team working in our back office and in the field, expanding our teams in Europe, but also in China, in a targeted manner. HELLER offers flexibly configurable machine concepts that can be used for a wide range of different applications. The goal is clearly to broaden our customer base. And we have been doing this quite successfully, as last year’s order intake shows. However, we want to and must continue to work on this.
At the same time, machine tools and also staff need to adapt to changing requirements in terms of Industry 4.0. How does HELLER respond to this development?
Maier: The boundaries between mechanics and electrics continue to dissolve. One result, for example, was the creation of the education and study programme in mechatronics. Today, a profound understanding of both areas is indispensable. At the same time, that does not make specialism redundant. After all, mechatronics engineers will sooner or later have to decide which area to focus on. What is important is to communicate with each other.
Winkler: Computer science is the third field that comes into play. However, the crucial factor for success is the team performance. And it is our task to promote exchange and team spirit.
Will all this have an impact on future machine concepts?
Maier: The mechanical design of machine tools – provided that a high chip removal rate and maximum precision are requirements – is subject to physical conditions which are not going to be fundamentally different from today’s standards in the future. Changes are to be expected in terms of the integrated sensors and actuators. As a result, the machine tool will increasingly develop into an integral part of superordinate systems.
How important is the Nürtingen location to the company?
Winkler: To this day, it remains very important. Nürtingen is still the largest individual location of the company. An enormous amount of knowledge is concentrated here. Nürtingen is a development site, but most importantly, it supports the global market units. At the same time, I am confident that the emphasis within the HELLER Group will shift in the medium term …
… in which direction?
Winkler: We will increasingly expand our workforce in those regions where our customers are located. Today, we generate 30 percent of our business in Germany, but 70 percent of our staff work here. I assume that it will be difficult in the long term to even achieve this 30 percent revenue share in Germany. Therefore, I believe that we need to expand our staff at other locations in the future. However, this is not going to have a negative effect on the Nürtingen location at all. Rather it will strengthen it. Past experience has shown that this is possible. Despite the increasing degree of internationalisation and the installation of production facilities in various regions around the world, staff numbers at Nürtingen have remained at the same level.
How high is the vertical range of manufacture at HELLER?
Maier: The electrical components through to the control are purchased parts, as are structural elements, such as bearings or guideways. For all other components, the following applies: “HELLER has the ability to manufacture everything in-house, but we do not have the capacities to do so.” It means that we also purchase specific manufacturing parts. However, we produce all components and assemblies affecting quality, such as the rotary tables and spindle units, ourselves. I would also like to mention that we have returned to producing specific parts in-house we used to purchase in the past.
By now, many competitors have incorporated additive processes into their machines. What about HELLER?
Maier: In principle, the coating of cylinder bores is an additive manufacturing process. This included, HELLER is by far the largest integrator of additive processes in the machine tool sector. This means that CBC has made us the global market leader in terms of additive manufacturing. Moreover, we will be able to use the experience gained with the CBC processes in other applications. To us, additive manufacturing is a supplement to our portfolio, nothing more. As said, HELLER’s core business is production. As a rule, it is impossible to manufacture high volumes using additive processes. Neither do they offer the precision we expect.
In what direction will HELLER develop in the coming years?
Winkler: Our objective is clearly to achieve further growth – on a global scale. To support this goal, we need to continue to expand our portfolio, develop new groups of customers whilst continuing to strengthen our relationship with the automotive industry.
Where do you see the markets of the future?
Winkler: Quite clearly in Asia and, despite the latest news, also and above all in China. Although China has meanwhile become the most important market for automobiles, the vehicle density in the country is nowhere near as high as in the US or in Europe. This means there is going to be a massive demand in the future. Moreover, it may be assumed that industrialisation is nowhere near sufficient to increase the standard of living, thus contributing to a stable political environment. This offers the international machine tool industry additional sales opportunities.
Maier: Based on the potential business volume, Asia will remain the absolute number one for many years in terms of machine tool consumption. As far as the US is concerned, I can say that, if we succeed in achieving a share in sectors outside the automotive industry there that is comparable to our share in Europe, then North America will be an important growth market for HELLER, too.
In early summer, HELLER will celebrate its 125th company anniversary. What activities are planned?
Winkler: The main event will be the Anniversary Day taking place at the beginning of July. At the event, we want to celebrate the anniversary with our staff and their families. For the public, a special exhibition is staged from May to October staged in cooperation with the town of Nürtingen at the municipal museum.
