Strong together
A weak economy, global crises, political tensions: President of the Supervisory Board Matthias Altendorf and CEO Peter Selders talk about Endress+Hauser’s path through turbulent times. And why cooperation makes the company more resilient.
Mr Selders, the economic environment in 2024 was far from easy. How uncomfortable was your first year as CEO?
Selders: I wouldn’t call it uncomfortable, but it was certainly very intense. The subdued way that business developed has demanded a great deal of attention throughout the year. Furthermore, the strategic partnership with SICK has kept us very busy. However, we managed both of these well, and I deliberately say “we” because everyone was involved in this result – our employees, the Group’s management and my colleagues on the Executive Board.
Altendorf: The people at Endress+Hauser can be proud of this performance. We have achieved a great deal under the circumstances. But of course, we would have preferred better results in some markets.
So how was the year for Endress+Hauser?
Selders: Growth for the group as a whole was less than one percent. Our three largest markets – the USA, China and Germany – performed poorly for different reasons. However, our small and mid-sized sales entities successfully compensated for this. Overall, we kept our costs well under control, despite creating 500 new jobs worldwide and investing more than ever before. And with all this, we managed to maintain net profit at a stable, high level. It was a difficult year, but not a year of crisis. And to come back to the original question: On the one hand, of course I would have preferred a quieter start as CEO. On the other hand, this intense year gave me the opportunity to get to grips with the issues very quickly.
How quickly and how well did you settle into your new roles – Mr Selders as CEO, Mr Altendorf as president of the Supervisory Board?
Selders: That’s probably a question better asked of the people around us. For me, it was a year of learning. Just like in the 20 years before, as CEO I still learn something new every day. In addition to my operational tasks, I took the time to get better acquainted with our business and the Group. I traveled a lot. I visited customers and our sites all over the world. Sure, I had to deal with some big issues from the very beginning. But I’m not on my own here. I have the Executive Board and the Group management at my side; I have the support of the Supervisory Board and the family. All of this, as well as my personal preparation, has helped me to settle into my new role.
Altendorf: It always takes time to get to grips with a new role like this one – especially when you switch directly from one role to another. It also takes time for others to change their perspective of you in the new role. All in all, I think we did a good job during the first year. Mr Selders was effective from day one and has done well as CEO of the Group. He took the lead and set his own priorities, meaning that I could let go of the operational side of things. And the people who deal with me on a regular basis are probably also noticing some changes, because I certainly interpret and fulfill my new role as president of the Supervisory Board differently to my predecessor Klaus Endress. I agree with Mr Selders: We learn from each other and improve ourselves – this is true both for us and our environment. But ultimately it’s less about us and more about those to whom we are committed: our employees, our customers and our owners.
“ We can be proud of our achievements – but never complacent, because we are always in competition.”
Matthias Altendorf
President of the Supervisory Board of the Endress+Hauser Group
How is the family dealing with the changes and the new generation?
Altendorf: With customary Endress+Hauser style, the changes to the Group management and on the Supervisory Board were prepared well in advance and thoroughly coordinated between all parties. We have people in new roles and with different responsibilities, so we need to meet and get to know each other again. There are still many points of contact and lots of exchanges.
How is the shareholder family involved today?
Altendorf: Two members of the third generation, Sandra Genge and Steven Endress, represent the family on the Supervisory Board and maintain a profile as ambassadors for the family. Mr Selders and I regularly exchange ideas with Klaus Endress, who remains chair of the Family Council, and the other owners. Sarah Endress, another granddaughter of the company founder, will also increasingly act as a family ambassador. And looking to the long term, we are working on getting yet more family members involved in the company. We make sure the owners are regularly updated on developments at the company. And of course we have our formal get-togethers, such as the shareholders’ meeting and the family general meeting, which connect the business and the family. The family makes an impact on the company through its proximity and visibility, its connection and affiliations. And it has an influence through the choice of people it has entrusted to fulfill management positions in the Group. This is how the family ensures the values and culture that are important to them stay alive in the company.
Why is this so important?
Altendorf: The family contributes values, warmth and experience – as well as capital. It shapes our culture and provides stability. Security, reliability and cohesion are particularly important in today’s world. They are enduring success factors.
We are seeing massive upheavals in the world around us. Crises and conflicts seem to never let up. What does this climate mean for Endress+Hauser?
Selders: We’re experiencing a seemingly unhinged world. Wars, extremism, migration patterns, protectionism, climate change and more, descending on us all at once. And much of it is interconnected. We have to find our way in a world where nothing can be relied upon, one that offers no certainties, a world that is more and more confusing and unfathomable. So what should we choose to guide us? As a physicist, I love models – and there are models that describe and explain the world as it is. These help me to better understand the challenges we face and to recognize the choices for action so that we arrive at good decisions. Our aim is not to have the wave crash upon us but rather to ride that wave, staying one step ahead. We want to act before we must react.
How is Endress+Hauser adapting to these new conditions?
Selders: In a nutshell, it is about strengthening the company’s resilience. Above all, we must learn to cope with the complexity and dynamics of this new world. We need structures and processes able to withstand challenge. By evolving one step at a time, we promote agility and flexibility. The culture and stability of our family business underpins the security we need to continue developing Endress+Hauser without fear. We face up to the unpredictability of this new world with cooperation and our network. This enables us to be fast and adapt quickly. Or to compensate for unanticipated developments like those of last year, when the small entities made up for the unexpected weaknesses of the large ones. The important thing in all of this is that we keep clear and steady goals in mind. And our strategy ensures that we do.
Altendorf: We are strategically, organizationally and culturally well prepared for the world we are presented with today. Our business is diversified across regions and industries. Our product portfolio is as strong as ever and the strategic partnership with SICK in process automation has made that portfolio better and broader still. Our customers trust and value us. We have employees who are committed to our company. And we have shareholders who think and act long term. We pursue long-term goals and have a strong set of values. Endress+Hauser has a solid foundation because we always operate on a sound basis. And so it will stay. Thus we can achieve the best for the company, even in challenging times. Indeed, we must maintain the courage and strength to question ourselves so that we can adapt to change and improve. We can be proud of our achievements – but never complacent, because we are always in competition.
Selders: It basically helps that we are in a growing industry – process and laboratory automation – even if this growth is neither uniform nor common to all industries. Digitalization, demographics, biotechnology, decarbonization, energy source change and energy efficiency are all powerful drivers for our business.
"We are experiencing a seemingly unhinged world. We must learn to cope with its new complexity and dynamics.”
Peter Selders
CEO of the Endress+Hauser Group
Aren’t issues such as climate and environmental protection taking a back seat in the light of current upheavals?
Selders: I wouldn’t over-generalize here. There is no shaking the scientific facts. If life on this planet is to be worth living in the future, we must take action. Behind such efforts is always the aim to be more efficient, make better use of resources and develop new methods and processes. That is our core business. All our customers have to do this too; there’s no stopping it. This isn’t new and it cannot be done without measurement technology.
Altendorf: It’s certainly true that politicians must pay more attention to the feasibility of climate targets and have more confidence in business to implement them. We must make the environmental transition work in an economically and socially sustainable way. This takes time and social consensus – as well as innovation and new technologies. We humans are seldom prepared to make personal lifestyle changes quickly, but we are good at adapting to new, better circumstances.
In this context, what are the implications of the strategic partnership with SICK in the field of process automation?
Selders: It fits our strategy as well as our brand identity. The gas analyzers and flowmeters fill important gaps in our product range. And with more than 800 new employees, we are gaining considerable expertise in these areas. For customers, this makes us an even more valuable partner – both now and looking ahead. We can better support them on important matters such as energy and resource efficiency and assist them long term with decarbonizing their production processes. To this end we will drive forward innovations in the production and development joint venture for gas analysis and measurement technology. Circling back to my previous points: We are establishing a broader and therefore more stable footing, strengthening our structures and expanding our network.
And what firm expectations do you have for the current year?
Selders: We anticipate another challenging year, with uneven economic development around the world and major political upheavals that will impact the global economy. We will stay alert, act prudently and keep an eye on costs. We believe that five to six percent growth is possible. But that’s not a given. We have to be proactive and further develop ourselves. We are well positioned for major global trends and developments. Demand for measurement technology is increasing worldwide. So, opportunities exist,
and we aim to use them.
Do you share this assessment, Mr Altendorf?
Altendorf: You know I’m always optimistic! We need to hope for the best, prepare for the worst and look to the future with as much confidence as we look back on the past with pride. A lot rests in our own hands. This is what we need to concentrate on: staying close to our customers, developing innovative products and maintaining excellent production and logistics networks. Our corporate culture helps us achieve this. Not least because it places “we” above “me”. Team spirit and cooperation – inside the company, with the owners, with customers and partners – those matter more today than ever before.
Published 26.03.2025, last updated 08.04.2025.
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