|
Although 2004 was a very challenging year, BOGE was able to hold its ground and maintain its market share. Reduced demand in the German
market pushed back turnover.
Increasing international competition put greater pressure on prices. Nevertheless, supported by some growth in foreign markets, the BOGE Group was able to stabilise its
strong performance of 2003 (78 Mil. Euro) at the end of 2004.
Export remains the growth driver. Now at 55 % (1992: 25 % - 2002: 45 %) with a targeted contribution of 75 % by 2012. BOGE
invested in a Shanghai/China production facility in April 2004 and already employs a team of 40. This is the first assembly site outside of Bielefeld in the 98-year history of BOGE. Production in Asia
provides many cost related advantages and Asia in total now accounts for a quarter of the export business. Two thirds of the export business remains in Europe though BOGE products are now sold in more
than 80 countries.
Unfavourable currency trends inhibited planned developments abroad. A strong Euro, increased energy costs and raw material costs (steel prices), all contrived to slow down
export activities. The final quarter of 2004 did see capacity return to normal levels.
As a manufacturer of product with long service lives, after market products and service are important
contributors to overall turnover. Currently some 30 % of turnover is achieved in this sector. At BOGE the after sales mantra is ‘service sells tomorrow’s machines’.
Turnover in 2004 was less than
planned and the final results were not satisfactory. Profit failed to meet expectations. Pressure on margins meant that the comparative yield of 2003 was reduced.
In 2004, BOGE invested in cost
reduction measures. Wolf D. Meier-Scheuven, Managing Director, comments; “In 2004 we successfully converted our EDP system to SAP and further developed our global purchasing strategy. This may mean a
reduction of German components in our products where the same quality can be obtained elsewhere at lower prices!”
The number of employees in BOGE did not change (500 worldwide – of these 425 in
Germany, 375 based in the main Bielefeld factory); “Against the general trend (2004: minus 4.5% in regional machine manufacturing) we have not reduced our workforce.”
BOGE believes in re-deployment
rather than reduction; “We firmly believe this policy provides a strong competitive edge. Today’s markets are real time markets. Apart from quality and price, speed is a decisive factor. We have adapted
to this principle. Therefore, we have re-organised, re-structured, re-orientated our activities in many areas and benefited by the consequent development of personnel and their competency.”
Meier-Scheuven is sceptical about economic developments in the German market; “Although at the end of February 2005 our sales were 3 % higher than last year, the investment climate in the home market
remains rather pessimistic. Confidence in output expansion has not yet re-kindled and investment decisions are still being made to retain status quo.”
From 11-15 April 2005, BOGE will present a
cross section of its products and services to an expert international public at the Hanover trade fair of “…product innovation and program expansions that will make compressed air supply more efficient
and more intelligent”, according to Meier-Scheuven.
|
