Dietmar Harting, managing director of Harting/Germany, commented on the most successful financial year 2000/ 2001 in group history, „We have successfully transformed and positioned ourselves asa technology company.“ The group posted record sales of ?308m, which is a 7% increase and about 2.5% above industry average.
The opto-electronics unit exemplifies the reason for this success, according to Harting. Its activity illustrates the ability to act as a co-operative and innovative partner, while, at the same time, contributing technological and manufacturing expertise and worldwide presence. „We regard the concept of networking with others as an essential element in satisfy-ing customer demands.“ Apart from partnerships, the group also places emphasis on co-operations with system integrators as, for example, in the automation equipment industry. Additionally, dialogues with customers as well as engagement and participation in activities are further virtues. According to Harting, this course is their „outstanding strength“.
The three divisions industrial connectors, electronic plug connectors and tools as well as special-purpose machinery have become independent subsidiaries. The parent company is responsible for strategic leadership and provides the units with corporate services. These divisions will be able to respond even faster and more effectively than ever to various demands. „Since direct customer relations account for 74% of our sales, we want to strengthen our market orientation.“ This is the ability to rapidly respond to customer requirements in terms of both development and manufacturing, as well as in service. However, the group still has the character of a medium-sized company that is significant by fast decision-making, a high level of employee commitment and highly transparent organizational units.
As a worldwide player with production facilities in Germany, Switzerland, Great Britain, the US and China, Harting wants to significantly expand its sales in Asia and America. Cause for concern is the trend in the US: sales dropped to ?58m. Here, the group expects a recovery, as the US is an important strategic market. In the Far East, a traditionally difficult market for European companies, sales were up from ?24m to 26m. Losses in Japan were offset by upbeat sales in China showing growth of just over 30%. The trend in Europe was also positive. In Germany, sales rose by nearly 13% (?116m), while in other European countries up by 8%, amounting to ?107m. The foreign share of sales declined slightly to 62.3%. An average of 2,359 people were employed, an 8% increase, 1,700 of them working at German plants.
Dietmar Harting, who is also president of the German Electrotechnical Industry Association (ZVEI) and VP of the Federal Association of German Industry (BDI), pointed to the economic situation in Germany as a critical point, despite the improvement of his own company. Germany must remain an attractive location for investors if it is to retain its traditionally strong industrial ability. „What is needed is a political culture capable of resolutely implementing reforms, creating general framework conditions that are conducive to small and medium-sized companies, and one which places great emphasis on educational policies. The most important resource is the knowledge held by our upcoming generations – knowledge that is competitively developed, and in-line with global standards.“
Harting said that the company would not be able to outdo sales of ?308m in the year to come. At present, limited employment contracts were not being extended, and applicants would be handpicked. However, there would be no policy of „severe cuts“, as in the case of large-scale industrial play-ers. This reflects the approach of a medium-sized, owner-operated enterprise. „This is our understanding of a responsible, values-oriented managerial policy.“ Eventually, he did not comment on the earnings situation. Such information must only to be revealed for publicly listed companies, not privately held firms. Gerhard B. Wolski
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