Regional Platform: "Industrial services in mechanical engineering" (Region Stuttgart)

Regional Platform „Industrial Services in Mechanical Engineering“

Stuttgart Region

Oliver Reichert

Platform Industrial Services

Stuttgart Region Economic Development Corporation

TRES Project Meeting

Stuttgart, 19.11.2013

The Stuttgart Region

The Region – Mixed Facts and Figures

„ Population: 2.7 million from 170 countries

„ Area: 3,654 km²

„ Municipalities: 179

„ People in employment: 1.5 million

„ Members of the Regional Assembly: 91

„ Hours of sunshine: 1814 per year

„ Wine production per year: 42 million litres

„ Spa water per day: 40 million litres

„ Michelin stars: 14

„ Historic palaces and castles: 68

Economic Data of the Stuttgart Region

„ ~160.000 registered companies

„ Gross domestic product: 103 billion Euro

„ Overseas Sales (manufacturing): ~ 60 %

„ Unemployment rate: 4.3% (May 2013)

„ Extremely high research-density and -intensity

R&D expenditure by the private sector: ~7 % of

the GDP!

„ Most important industries: Automotive,

Production Technology/Mechanical Engineering,

Electrical, IT, Media, B2B Services.

„ Headquarter of corporate groups such as Daimler,

Porsche, Bosch, Festo, Trumpf, Mahle, Dürr, Stihl,

Kärcher, Celesio, EY, etc.

Industry as a backbone of the regional Economy

39,4%

38,6%

32,8%

31,9%

29,8%

28,4%

25,8%

23,3%

22,6%

20,5%

20,3%

20,0%

Region Stuttgart

Baden-Württemberg

Region Mailand

Region Barcelona

Deutschland

Region Düsseldorf-Ruhrgebiet

Region Prag

Region Birmingham

Region München

Region Frankfurt

Region Hamburg

Region Wien

Share of industry as part of the total GDP in different

regions 2008 Source: Statistisches

Landesamt Baden-Württemberg

• Very early automotive industry: Daimler, Porsche, Bosch

• Metal-working industry and mechanical engineering

developed in accordance to automotive industry

production technology for automotive sector

Mechanical engineering cluster as part of a larger

cluster of production technology industry

• Especially family-owned business

Characteristic for industry until today

Very close relations within the dense network of

automotive and metal-working industries and

mechanical engineering

• Very creative and innovative companies

Many breakthrough inventions like drilling

machine (1895), copier (1948), disc laser (1992)…

Mechanical Engineering in the Stuttgart Region

Characteristics and Historical Development

• Industrial landscape dominated by SME

• SME especially strong in niche markets and customer-

ordered individual solutions

Focus on high-tech solutions

Premium segments

• Most important customers: mainly automotive industry,

but also aerospace industry, consumer goods industry,

medical technology

• Most important products:

machine tools

assembly machines & automation technology

process technology

packaging machines

drive systems and components

printing machines

Mechanical Engineering in the Stuttgart Region

Cluster Mechanical Engineering - Companies

• 2012: 346 companies (>20 employees)

• Turnover 2012: 21.3 bn €

23 % of total Turnover of manufacturing industries

9.5% of German Mechanical Engineering Industry

• Employment: 70,000

21.9% of total employment in manufacturing

industries

7% of German Mechanical Engineering

employment

• Export quota: 63.2 % (individual up to 90%)

• Most important target markets:

largest share: Europe

Largest single market: China

Highest growth rate: Asia (without Japan), Russia,

South America

Mechanical Engineering in the Stuttgart Region

Cluster Mechanical Engineering - Companies

• Stuttgart Region: European leader in patent statistics

• Strong network of universities & research institutions

• University of Stuttgart: 2nd largest department for

mechanical engineering in Germany; 2 faculties with 35

specialised institutes

• Esslingen University: Faculty of Mechanical Engineering,

Faculty of Mechatronics

• Fraunhofer Institute for Manufacturing Engineering &

Automation (IPA)

• Institute for Micro Assembly Technology of the Hahn-

Schickard-Gesellschaft e.V. (HSG-IMAT)

• Institute for Microelectronics Stuttgart (IMS-CHIPS)

• Institute for Textile Technology and Process

Engineering Denkendorf – departments fabric &

structure technologies, modern production techn.

• …

Mechanical Engineering in the Stuttgart Region

Cluster Mechanical Engineering – Research & Education

Regional Mechanical and

Electrical Engineering Cluster

„ Founded 1995 as a GmbH („Ltd.“)

„ Major shareholder “Verband Region Stuttgart”

„ 50 full-time employees

„ Branch subsidiaries

„ Operational Budget: ~8.5 million Euro

Tasks:

1. Support for Investors

2. Location Marketing

3. Innovation and Cluster Policy

The Stuttgart Region Economic Development

Corporation (WRS)

• Technology Transfer

• Platform Industrial Services

• Studies

• Trade Fairs

• Innovation Financing Guide

• MANUFUTURE-BW

• Competence and Innovation Centres:

Mechatronics BW

Packaging Excellence Center

Virtual Dimension Center

Cleaning Excellence Center

Cluster Mechanical Engineering – Initiatives & Networks

The Stuttgart Region Economic Development

Corporation (WRS)

Potentials of Industrial Services

• New business opportunities and markets, high margins

• Differentiation in global competition

• Leaving downward tendencies in price competition

• Balancing market cycles in investment goods industry

• Customer satisfaction and customer loyalty

…

Standardisation of

products / machines

Market pressure,

decreasing

market prices

Shrinkage of

Product lifecycles

Decreasing returns

on machine sales

Industrial Services

Importance for Mechanical Engineering Industry

Regional Platform Industrial Services

Industrial Services in Mechanical Engineering

Platform for small and medium-sized enterprises of the mechanical engineering industry of Stuttgart Region; objectives:

• Information & Transparency

• Dialogue & Communication

• Networking between most important

stakeholders

Trends, Best Practice,

methods, processes,

research topics et al.

Exchange of experience

between SME,

Transfer of knowledge

& know-how

Experts from industry &

academia, further

stakeholders, e.g. advanced

training providers

• Start: Summer 2009

• Interviews with decision makers of selected mechanical engineering companies (Subject: business development and influence of service business)

• Regional survey 2009 on current status and challenges in the service business of the region‘s manufacturing industry

Regional Platform Industrial Services Build-Up Phase

Bild: Schuler-Mitarbeiter im Service-Einsatz

Bild: Bosch Einspritzpumpentechnik

• 75 % of companies plan to extend their service business

Investments into new business fields in the

service business

Target: exploit the full business potential of

„installed base“

• … but only 15% of participating companies follow a systematic innovation management in their service business (service engineering)

0% 10% 20% 30% 40% 50% 60% 70% 80%

On customer request only

Partially systematic development

Systematic Service Engineering

Regional Platform Industrial Services

Survey – Service in Mechanical Engineering Stuttgart Region (2009)

• Regional Dialogue – product related services in mechanical engineering

• Regional Industry Circle – Industrial Services in Mechanical Engineering

• Competence Team „Service in the packaging machine industry“ , managed by Packaging Excellence Center (PEC), Waiblingen

• Research project „Productivity of knowledge intensive product related services in the investment goods industry“ (BMBF-AESTIMO)

• General Networking in the mechanical engineering industry Stuttgart Region

Regional Platform Industrial Services Services and projects

• Regional Dialogue

Designed as a central get-together for the whole branch

(2 / year)

Focussing on decision makers in the service units of ME

companies

Open to the whole ME branch in the region

Methods, Know-how, Best Practices

Exchange of experience & Dialogue

• Industry Circle

Designed as a meeting for a closed network (1/year)

Focussing on decision makers of well-known pioneers in

the service business

Exchange of knowledge and experience on a high level

host: one of the network members

Open dialogue and personal contacts

Regional Platform Industrial Services Events / networking meetings

Regional Platform Industrial Services Research project AESTIMO

51%

98%

63%

85%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bedarfsanalyse Technische Beratung Machbarkeitsstudien Planung und Projektierung

Weitere Pre-Sales

How many companies offer the following Pre-Sales-Services (n=41)

Needs analysis Technical

Consultance

Feasibility

Analysis Planning,

Calculation Other

Regional Platform Industrial Services Research project AESTIMO

73%

61%

78%

90%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

How many companies offer the following Services in the sales phase (n=41)

Engineering /

Systems

integration

Transport assembly On-site

setting up

Financing

Regional Platform Industrial Services Research project AESTIMO

90% 90% 85%

68%

85%

73%

49%

39%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

How many companies offer the following After-Sales services? (n=41) M

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Regional Platform Industrial Services in Mechanical Engineering

Bild: FESTO AG

Stuttgart Region Economic Development Corporation

Oliver Reichert

Platform Industrial Services

Regional Development Department II

Phone: +49 711 228 35 -872

[email protected]