“Normality is the exception”
Hans-Jochen Beilke has had enough of discussions about the scale of the crisis. Instead, the CEO of ebm-papst Group recommends drawing the right conclusions from the turbulence of recent months, and pleads for organic growth
Mr Beilke, what do you mean by organic growth?
I am convinced that healthy growth in the global economy can only be organic. Artificial bubbles will always burst. We all run our companies at full load while business is booming, so it is natural that the crisis will hit hard when it hits. By contrast, organic growth is orientated towards, for example, population growth. The world population is increasing at a net rate of just under 80 million per year. At some point in time, these people will become consumers. They will want a television set, a refrigerator and a car. organic grow is derived from this. But taking account of innovation to satisfy the new latent needs, I consider growth of between three and four percent per year to be organic. Only on this scale is growth sustainable and largely free from setbacks.
But we will not be able to escape the cyclical ups and downs?
We have just experienced 20 successive quarters of growth. At the moment we are in a period of decline. In truth, we all knew that the growth couldn’t go on for ever. McKinsey has followed 400 companies over the last 30 years. The result: After three to seven years of above-average results, even the top performers drop back to the pace of industry in general. Even though we at ebm-papst are relatively invulnerable because we have the benefit of being an innovation leader, we still have to learn how to stay in the fast lane, and to view normality as the exception. otherwise, we risk losing our appetite and becoming sluggish. Accordingly, the consequence is to use the period of decline to set the foundations for future growth. It is worthwhile using the time to shake off bad habits and to carefully scrutinise established processes. This is easier to do in times of decline than it is in times of growth.
How does ebm-papst compensate for market fluctuations?
Like many other companies in Germany (and unlike ten years ago), we are able to adapt better today by making use of working time accounts and short-time working. These instruments give Germany a relative advantage as an industrial location. Two further facts give ebm-papst additional advantages that will lessen the impact of the crisis. Firstly, we are globally present and broadly diversified. This allows us to compensate for developments in different industrial sectors. Secondly, growing environmental awareness around the world helps us to market our energy-efficient motors and fans, even in times of crisis. We were the first to recognise this trend.
Which key markets do you have in your sights?
The solar industry, pellet heating systems, wind power, heat pumps and condensing boiler technology – in these five future segments alone we can offer appropriate solutions for all issues relating to air, climate and drives.
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