Company

Joining forces

mjitaru — Thu, 17 Oct 2024 09:58:57 +0000

Joining forces mjitaru Thu, 17.10.2024 - 11:58

News+Facts

Joining forces

Whether it’s efficiency, compliance or decarbonization, companies in the process industry are facing an array of challenges. Endress+Hauser and SICK have entered into a strategic partnership in process automation to provide customers with even better support.

Text: Martin Raab

Photography: SICK, Endress+Hauser

More than a year ago, German sensor specialist SICK and Endress+Hauser announced their intention to join forces in the field of process automation. In summer of this year, representatives of the two family-owned businesses concluded an agreement to this effect. Subject to approval of the transaction by antitrust authorities, the strategic partnership can come into effect at the turn of the year 2024/2025.

Essentially, the aim is to sell SICK’s process analysis and gas flow measurement technology exclusively via Endress+Hauser in the future. To that end, around 800 specialized sales and service employees in 43 countries are set to transfer from SICK to Endress+Hauser at the turn of the year. At the same time, production and development of devices will be taken over by a joint venture in which each partner intends to hold a 50 percent stake. It will employ over 730 people at several German locations.

2 Many customers in the process industry already use both SICK and Endress+Hauser products to increase their efficiency.

1 Process analyzers and gas flowmeters from SICK are to be distributed solely by Endress+Hauser from 2025.

Broader portfolio, broader expertise

The two companies’ process technology product portfolios complement and augment each other. SICK’s process analyzers and gas flowmeters are used primarily in waste incineration plants, power, steel and cement plants, in the oil & gas industry, in chemical and petrochemical plants, and in maritime operations, including applications such as measuring the flow of natural gas and hydrogen or measuring emissions from flue gas scrubbing.

The partnership’s aim is to provide customers in the process industry with even better support to improve efficiency and sustainability. They will benefit from a broader range of solutions and a faster pace of innovation. The two companies have already cooperated on an order, project and customer basis. In the future, the global Endress+Hauser sales network will enable the partnership to handle additional customers, reach more industries and develop new areas of application. To drive innovation and leverage synergies, the joint venture for production and development will be closely interlinked with Endress+Hauser’s competence centers.

Partners with much in common

As family-owned businesses, SICK and Endress+Hauser share a similar set of values, a people-focused corporate culture and a long-term strategic stance. Both companies see business opportunities in the process industry’s transition to sustainability. Together, they aim to support their customers in key areas such as energy and resource efficiency and help them decarbonize their production processes in the long term.

Both sides are currently working at high priority to prepare for a seamless transition of business. Until the deal is closed, SICK and Endress+Hauser will continue to support their process automation customers independently. SICK’s strong core business of factory and logistics automation will be unaffected by the merger with Endress+Hauser and will benefit from a stronger focus.

Smart sensor solutions

Light, combined with precise optics and smart electronics, can be used to perform a multitude of tasks. Dr Erwin Sick saw this potential early on and founded his own company in 1946. One of its first products was a safety light curtain that prevented accidents around machinery in operation. From those beginnings, SICK has developed into one of the world’s leading providers of smart sensors and solutions for industrial automation. Today’s company, based in Waldkirch in Germany, is among the technology and market leaders. It has a presence around the globe with 60 subsidiaries and holdings, plus numerous agencies. SICK employs more than 12,000 people worldwide and generated consolidated sales of 2.3 billion euros in the 2023 financial year. At the core of the business is factory and logistics automation, where SICK generates over 80 percent of its sales.

2023

OCTOBER: Memorandum of understanding is signed between SICK and Endress+Hauser on a strategic partnership in process automation.

The possibility of close cooperation is examined; a business model is designed for marketing process technology via Endress+Hauser.

2024

JULY: Following approval by their respective supervisory bodies, SICK and Endress+Hauser sign a strategic partnership agreement.

Systems and processes are readied for integration; a production and development joint venture is formed.

2025

JANUARY: The joint venture commences operations; process technology sales are handled exclusively by Endress+Hauser.

Champions of change Company

Achieving more together

smanetsch — Tue, 08 Oct 2024 06:26:24 +0000

Achieving more together smanetsch Tue, 08.10.2024 - 08:26

People+Culture

Achieving more together

Why are SICK and Endress+Hauser joining forces on process automation? What is the benefit to customers? And what is required for this partnership to be a success? Mats Gökstorp and Peter Selders take the time to answer our questions.

Questions: Martin Raab

Photos: Andreas Mader

Dr Gökstorp, what prompted you to team up with another company on process automation?

Gökstorp: Many industrial companies are seeing rapid global change. High energy costs, mandatory sustainability goals, political and societal expectations, all those are drivers of sweeping transformation processes. That's why companies want and need to restructure their production processes to make them more energy efficient. And yet, for such transformation to be a success, companies cannot afford to lose sight of their profitability. This is where we see a major market opportunity. Process automation is a relatively small part of SICK’s business. Our core fields are factory and logistic automation, which together account for more than 80 percent of our revenue. That's why we have come to the conclusion that a strategic partnership makes sense from both a technological and a sales perspective. We know that with a suitable partner, we can better support our customers and benefit more from growth opportunities.

What made Endress+Hauser stand out in your search for a partner?

Gökstorp: It was an obvious choice for at least two reasons: First, like SICK, Endress+Hauser is a technology leader in its field of activity, and our respective product portfolios match up very well. Second, there are a lot of similarities between our two companies. So, I was sure from the start that this would be a good fit in terms of technology, culture and people. And this turned out to be the case when we set about establishing our partnership.

Dr Selders, why does it make sense for Endress+Hauser to go down this path of partnership?

Selders: Quite simply, because here is a case where we are more than the sum of our parts. After looking carefully at the potential of close collaboration, we have concluded that pooling our strengths in process automation will bring great benefits to both sides. This strategic partnership opens up opportunities for growth and development. Together, we can achieve more, and faster than either company could on its own.

Endress+Hauser and SICK are no strangers to working together on orders and projects, with mutual customers. What does the partnership mean beyond that?

Selders: We at Endress+Hauser have always seen partnerships as opportunities to build something new together. That isn’t possible with ad hoc collaboration. So in this partnership we want to grow in tandem and continue our long-term development, adding value for our customers through cooperation, networking and interaction between people. Technology and products matter – they are what our business is based on. But people are crucial. They make the difference. They contribute their knowledge, skills and personality. This is what we’re looking forward to!

Gökstorp: Our common goal is to give customers the best possible support all along the value chain. Together, we want to offer first-class technologies and services that will best address our customers’ challenges. Parallel to this, we put special emphasis on our employees. My goal has always been to find good solutions for them. Only then can our partnership be successful.

“We want to grow in tandem in this partnership and further evolve over the long term, adding value for our customers through cooperation, networking and interaction between people.”

Peter Selders

CEO of the Endress+Hauser Group

Advancing with farsighted vision

Physicist Dr Peter Selders (54) took over as CEO of the Endress+Hauser Group in 2024. He previously worked for 20 years at the Group’s product center for level and pressure measurement in Maulburg, Germany, serving as managing director from 2019. Paraphrasing the mountaineer Rainer Petek, he says, “We overestimate our ability to plan for things and underestimate our ability to deal with uncertainty.” Yet as a keen hiker himself, he knows how essential good preparation is, and not just up in the mountains.

The partnership will expand Endress+Hauser’s offering to include process analysis and gas flow measurement technology from SICK. How will customers benefit?

Selders: Our customers are interested in improving their processes and increasing their efficiency. Being able to purchase more products from a single source will make their lives easier. For instance, SICK’s gas flowmeters make it possible to switch to low-emission and non-fossil energy sources; emissions can be reliably monitored with their process analyzers. These products ideally complement our own portfolio. Their products, like ours, are high quality and lead the field in their respective applications.

A joint venture will handle the production and further development of SICK process technology. What can customers expect from this partnership?

Gökstorp: Customers will experience a professional partner combining the strengths of Endress+Hauser and SICK. They will benefit from a series of new solutions in emissions monitoring and flow measurement, plus expert advice on the best one for their needs.

Selders: The joint venture will be integrated into our innovation, production and logistics networks. Medium term, we are looking to gain momentum and leverage synergies through exchange and collaboration. But the current focus is on integration into the new structures. It’s about getting to know each other, making contacts, building trust. We are embarking on a journey together.

In the future, it will be Endress+Hauser handling sales and service. What prompted you to bring the sales and service teams into the partnership?

Selders: A joint sales organization offers many opportunities. Through our global network, we can reach new customers for SICK’s process analyzers and gas flowmeters, gain access to more industries and open up new application areas. In addition, we envisage SICK process technology bringing in more opportunities for our current portfolio. This entails all of the various product specialists working very closely together, exchanging ideas, coordinating their activities. Which in turn calls for an overarching organization and a shared IT infrastructure. Wherever you look, digital platforms and seamless service feature increasingly in customer interactions. So deep integration on the sales and service side makes a lot of sense.

Gökstorp: Pooling sales and service is important and the right thing to do. Only then can we truly combine the immense expertise of both companies and provide yet more comprehensive advice and support to our customers. They in turn will reap the benefits, especially in light of all the new applications that the industry needs.

“The fact that our product portfolios are complementary was a basic premise for our partnership. But we would never have come together without a foundation of shared culture and values.”

Mats Gökstorp

Chairman of the Executive Board of SICK AG

A passion for innovation

Computer scientist and engineer Dr Mats Gökstorp (59) attended university in his native Sweden and in the USA. He began his career at a Swedish start-up that was acquired by the sensor specialist SICK in 2003. Since 2007, he has worked for the group in Germany. In 2013 he was appointed to the Executive Board of SICK AG and has been chairman since 2021. The company has retained the spirit of a start-up, he says: “We are developers. We are passionate about using technology for good.”

The contract was signed in the summer. What tasks and challenges are there still to overcome before the deal is finalized?

Gökstorp: First of all, I am very grateful to the many colleagues on both sides who got things ready for the contract signing. Now it’s a matter of taking the steps necessary for the joint venture to start operations. The present focus is shifting to very specific issues like the design of the joint venture’s IT landscape. In customers’ best interests, we are doing everything possible to ensure seamless continuation of business. And of course, we are getting ready for the transfer of our sales and service experts to Endress+Hauser. It is of personal importance to me that this changeover goes smoothly for the people involved.

Both companies are breaking new ground with this partnership. What convinced you that teaming up would be successful?

Gökstorp: As I mentioned, Endress+Hauser and SICK have been collaborators for many years. The fact that our existing product portfolios are complementary technology-wise was a basic premise for our partnership. But we would never have come together without a foundation of shared culture and values. Ultimately, it is people who shape partnerships like this one and steer them to success.

Selders: Our companies have so much in common. Not least a shared conviction that our work contributes to solving major societal challenges. SICK and Endress+Hauser both see sustainable transformation as an opportunity. What’s more, we are joining forces from a position of strength. Both companies are market successes in their own right. But we are convinced that together we can achieve more: for our customers, for our employees and for our respective companies. This has been reinforced by our consistently constructive and forward-looking work together in the lead-up to the contract signing, notwithstanding the challenges.

Assuming we meet again in five years’ time – what do you hope you will be able to say about the partnership?

Selders: I hope that we’ll look back and say that we made the right decision back then, that we acted at the right time to guide our customers effectively into a sustainable future and that together we resolved the issues that we faced in our partnership.

Gökstorp: I want to be able to say that we made a progressive, farsighted decision in the interests of our customers as well as the employees at SICK and Endress+Hauser. By making the most of the available market opportunities, we aim for customers, employees and society as a whole to reap the benefits of our strategic partnership in the long term. And I am convinced that we will achieve this together.

Champions of change Company

A never-ending story

smanetsch — Wed, 29 Mar 2023 05:38:46 +0000

A never-ending story smanetsch Wed, 29.03.2023 - 07:38

People+Culture

A never-ending story

Endress+Hauser could still be flourishing in a hundred years’ time. And the family could still bear responsibility without involvement in the day-to-day business. Klaus Endress, President of the Supervisory Board, and Matthias Altendorf, CEO of the Group, talk about the past and future of the family-owned company.

Questions: Martin Raab, Alexander Marzahn

Photography: Andreas Mader

Mr Endress, Endress+Hauser turned 70 this year. Does a company age like a human? Or is there an elixir for keeping it young and vital?

Endress: We humans will hopefully become old. But then we’re subject to biological restrictions. Companies are different. I like to describe them as a collection of nice things. Buildings, like the one we’re sitting in, machinery and equipment, products, processes, strategies – everything a company needs. But that’s all those are: just things. They don’t set themselves in motion, that is done by people: the customers, the employees and the shareholders. And when these groups work and interact well together, then the company will do well. Customers, employees and shareholders age too and other, younger people follow in their footsteps. This is an unfolding process, which is why a company has no inherent age limitations.

What does it take for this to happen?

Endress: Top of the list come the shareholders – the family. There has to be unity. And that means cultivating common ground and solidarity. That’s why we created a Family Charter in 2006 with jointly defined guidelines for interaction within the family and its relationship with the company. Various institutions exist to ensure that our creation retains its zest and vitality.

Mr Altendorf, Endress+Hauser posted solid business figures for 2022 despite strained supply and logistics chains, energy shortages and a war in Europe, and in the face of inflation and rising interest rates in many countries. What underpins this success?

Altendorf: It’s the same things that made us successful in the past. First, our employees who handled every challenge with dedication, skill and flexibility. Second, the efficient structures that we have built and improved over many years and decades. Combined, they enabled us to operate successfully and uphold our ability to deliver despite all the adversities.

What is necessary if the company is to continue developing well in the future?

Altendorf: Like any team aiming for success, we need to concentrate on the factors that we can influence: stay close to the customers, develop innovative products, maintain excellent production and logistics networks. Our corporate culture helps us do that. And today, with our experience from the pandemic, I would emphasize that we is more important than I. Cohesion makes us competitive.

Link to the family

Dr Klaus Endress, born in 1948, earned a degree in industrial engineering from the Technical University Berlin. He joined his father’s company in 1979, took over Group management in 1995 as CEO and moved to the Supervisory Board in 2014 as President. Klaus Endress is married and the father of two grown children. Whenever possible, the passionate horse rider and mountain biker heads outdoors and into nature, accompanied frequently by Maya, the family dog.

“The sense of responsibility, the spirit of Endress+Hauser, knowledge of the business and products, all of that has to stay alive in the minds of the Endress family.”

Klaus Endress

Supervisory Board President of the Endress+Hauser Group

If you look back 10 years, what has changed the most?

Endress: Back then our strategic focus on biotech was still new. It was the only industry that continued to boom during the financial crisis. But we were a nobody in this sector. That’s why we headed down this path. We strengthened the analysis business and reinforced our expertise in the field of advanced analyses. And we learned a lot about the industry and its processes. That took a lot of hard work. But it paid off, as became evident during the pandemic. Our products have a dominant presence in every plant manufacturing the Covid vaccine. Today we can claim to be someone in the biotech industry! We have also made considerable improvements in the way we collaborate within the company compared to before. This is where Mr Altendorf has accomplished things that I was no longer able to achieve…

Altendorf: …and with me, there will be other issues I’ve been working on but cannot finish.

Endress: We were also still a long way from the goal of acting as a single company. Hopefully we can bring that to completion now. Yes, a lot has happened in the past 10 years – and that’s a good thing!

Endress+Hauser experienced strong growth during that timeframe. What do you attribute this to?

Altendorf: We simply continued to improve the good things of the past. The essential structures have stayed the same. To some extent, much was already foreshadowed. I may have fine-tuned some things, rethought them or brought in other approaches. But the success factors remain the same.

And those are?

Altendorf: Being close to customers has always been a strength of ours. Digitalization broadened the perspective here, but the underlying principle remains unchanged. Our portfolio has always been characterized by high standards of quality and innovative products. We internationalized sales early on, then established sales support in important regions. We internationalized production beginning in the mid-90s – from the region, for the region. That’s certainly an important success factor. Moreover, despite the growth, we were good at integrating smaller business acquisitions into the Group. This comes down to putting our trust in people, and them putting their trust in us. You get that through excellence in leadership culture and the leaders themselves.

You just listed a lot of things… What sets Endress+Hauser apart from other companies?

Altendorf: You have to look at every company on its own merits, including the ecosystem in which it operates. But I’m convinced that an excellent corporate culture and practicing what you preach on customer closeness are always fundamental to a company’s success, regardless of industry or region. Here at Endress+Hauser, we have always put people first. A company is composed of people and it is they who make the difference. All of this has been rooted in the company for 70 years. And behind that are decades of work and extensive investments – in people, buildings, plants, networks… things that aren’t copied so easily. We can do so many good things at Endress+Hauser because we have shareholders who think long term. Shareholders who offer the company knowledge, warmth, values and protection. And who show respect for people’s achievements.

Roots in the company

Matthias Altendorf, born in 1967, began his career at Endress+Hauser with vocational training as a technician, followed by studies, stints abroad and further education. He was appointed to
the Executive Board in 2009 and became the Group’s CEO in 2014. He balances his work life by sailing, playing chess, riding his motorcycle and spending time working in the woods. Travel, the arts and reading round out his hobbies. Matthias Altendorf is married and the father of a grown son.

“An excellent corporate culture and practicing what you preach on customer closeness are always fundamental to the success of a company, regardless of industry or region.”

Matthias Altendorf

CEO of the Endress+Hauser Group

The people at the top are likewise important to a company’s success. Mr Endress, you once said that you will only have done your job well when you have an able successor. Will that also be the case when you step down from the Supervisory Board at the end of the year?

Endress: Things continue to work out wonderfully with my successor as CEO. But it always brings up the question of what comes next. I’ve known for 10 years that I need a good successor when I reach the age limit of 75. Having given it a lot of thought, I found my ideal candidate: Matthias Altendorf. He has known the company for 35 years and for almost a decade has led the Group as CEO with prudence and success. Moreover, he exemplifies the values that define Endress+Hauser. We have gotten along very well over the course of many years and trust one another, which is why I’m pleased that he agreed to take this step and join the Supervisory Board as President.

But it wasn’t your decision alone…

Endress: That’s correct – and it shouldn’t be. The decision was made in consultation with the Family Council and with the agreement of the shareholders, the Supervisory Board and the entire family. Considerable thought and discussion went into making this decision, which took shape over time.

That also means a new hole has to be filled…

Endress: Internal succession arrangements have the advantage that we know the people very well – often for many years. That lowers the risk. The downside is the need to fill the gaps that such changes open up. And Mr Altendorf’s move creates a big one. The CEO has operative responsibility. That’s a heavy load. Endress+Hauser is a technology company. For that reason, the CEO has to understand not only the business side but also our technologies and markets. After all, the CEO has to see where new opportunities are opening up and where we can find other customers. Growing into this role is demanding. But Mr Altendorf and I agreed that there was a person we could trust to do so: Dr Peter Selders, Managing Director of Endress+Hauser Level+Pressure. For years, he has done a great job overseeing one of our biggest worldwide operations. And he is up to the task.

Altendorf: I’m firmly convinced that the way we have arranged this succession is exemplary. We have examined these questions intensively time and again.
If this most recent succession works as well as it did with the transition from Mr Endress to me, then we will have done everything right…

Endress: …and done the company a lot of good.

What does this decision mean for you, Mr Altendorf?

Altendorf: One important aspect for me is that, provided I stay healthy, I can apply all of my knowledge, skills and commitment to help guide this company for another 12 years into the next generation. Then hopefully the young members of the family and a new generation of management will carry this mindset even further forward.

What does the change in the Supervisory Board mean for the family?

Altendorf: Even if the President is not a family member, two people from the family should always be on the Supervisory Board. This allows the family to continue to have a formative influence on the company. No one can better represent the family on the Supervisory Board than the family itself.

Endress: Steven Endress, my eldest brother’s eldest son, will hand over responsibility for Endress+Hauser UK and eventually join the Supervisory Board. It’s a pity that he is leaving the operational side of the business because he has done a fine job. On the other hand, we’re pleased that he is joining the board where he can contribute his operational experience.

What is the implication of no longer having a family member involved in the day-to-day business?

Endress: The shareholders must always bear responsibility for the company. They needn’t necessarily be involved in its day-to-day business, but they should be active! The sense of responsibility, the spirit of Endress+Hauser, knowledge of the business and products, all of that has to stay alive in the minds of the Endress family. Along with Sandra Genge and Steven Endress, my daughter Sarah is heading down this path. All three are at different stages, with Sandra and Steven on the Supervisory Board and Sarah as President of the Georg H Endress Foundation. They should grow more and more into the company, participate in events, be visible and approachable figures for our employees and continue to carry the torch as ambassadors. And there will be further members of the younger generation joining the company. Perhaps someone from this circle will emerge to take an operative role. There is a lot of history yet to be written!

Then let us look forward again… Mr Altendorf, the news seems filled with crises. How confident are you heading into the anniversary year?

Altendorf: Personally, I am always confident. And collectively we have reason to be confident. 2022 was a good year for us. We have lots of orders in hand for the current year. Inflation and interest rate increases will of course cause the economy to cool. Much will depend on how quickly the Chinese market recovers from the effects of the pandemic and how strongly interest rate increases affect the American economy. As soon as these two engines pick up steam again, the global economy will follow. As for Europe, the war in Ukraine is hanging over us like a dark cloud. We must simply wait and see how this develops. We can only influence what lies within our own capability: customer closeness, innovative products, good logistics… We have invested heavily and will continue to do so. We’re primed for growth!

Do you share this confidence, Mr Endress?

Endress: Absolutely! After so many consecutive years of success, of course we ask whether we can better it yet again. Other companies are not doing badly either… but few are doing as well as Endress+Hauser. That’s something special! Orders in hand will certainly help us this year. And then, as Mr Altendorf points out, we have to stay flexible and customer focused and continue to build on what we have done well in the past. But this will not be enough over the long term. We need new customers – again and again, we just have to find them! In this regard there are many ideas and opportunities – of that I’m confident. In my presentations I always say that a hundred years from now we will still have work to do – well-paid work – just as long as we stay focused on the markets and customers and continue to improve. For me, it’s a never-ending story!

Corporate culture Company Champions of change Leadership Shareholder family

„Die Familie muss sich aktiv engagieren“

smanetsch — Fri, 30 Sep 2022 11:54:15 +0000

“The family has to play an active role” smanetsch Fri, 30.09.2022 - 13:59

People+Culture

“The family has to play an active role”

A generational change lies ahead for the Endress family. How does this growing circle of shareholders plan to shape the company in future? And how can the younger generation grow into its responsibilities? Sandra Genge, the latest addition to the Supervisory Board, and CEO Matthias Altendorf discuss the issue.

Questions: Martin Raab

Photography: Andreas Mader

The coronavirus pandemic is not yet over, and already the war in Ukraine is generating the next crisis. Has this overshadowed your start as a member of the Supervisory Board, Ms Genge?

Genge: Personally speaking, both events are giving me major pause for thought. They show us just how fragile our world is. Which is something we, the post-war generations, are unaccustomed to: we enjoyed a very sheltered upbringing. However, the coronavirus pandemic and the war in Ukraine are not overshadowing my start. On the contrary: the Supervisory Board has debated difficult and important questions. We are demonstrating what we, as a family business, are capable of doing differently compared
to other companies.

Namely?

Genge: As a family business, our focus is not on short-term economic success. We value sustainable, long-term success that serves all stakeholders – including our employees, customers and business partners. We face up to our responsibilities, even through difficult times.

Altendorf: Because we maintain solid finances in good times as well, Endress+Hauser has a sound foundation. Our business is widely diversified among regions and industries; we are not dependent on any one market.
We pursue long-term goals and share strong values. We have customers who rely on our support and employees who are dedicated to our common
goals. And we have shareholders who trust in us to achieve the best results for Endress+Hauser even in difficult situations.

Representing the younger generation

Sandra Genge has been a member of the Endress+Hauser Group Supervisory Board since 2022. Beginning in 2006 she represented the younger generation on the Family Council, which serves as a link between the shareholder family and the company. Genge studied communications sciences and is a federally certified marketing and communications manager in Switzerland. She currently works freelance as a design and communications consultant. For the company founder’s granddaughter, hosting the Endress+Hauser 60th anniversary celebration in Basel was a defining experience: “When I looked out and saw the faces of 5,000 employees, I realized just how much of a responsibility we bear as the shareholder family and that we have to do everything in our power to live up to this responsibility.” Genge (born in 1977) is the mother of three children. In her free time she enjoys jogging outdoors. Since her childhood, traveling – at first with her grandfather, today with her own family – has been a source of inspiration and relaxation. “Traveling opens the mind and the heart. It teaches us to respect other people, cultures and religions. To paraphrase Mark Twain: ‘One must travel, to learn.’ ”

Interview

Sandra Genge und Matthias Altendorf

Ms Genge, you represent the interests of the shareholder family on the Supervisory Board. What are these interests?

Genge: I can sum it up very succinctly: the Endress family’s primary interest lies in Endress+Hauser continuing as a successful family business. Hence,
the entire family including me places great importance on the company’s values and culture – the Spirit of Endress+Hauser. That Spirit is a differentiating factor and contributes to our success. My task is to ensure that important decisions align with these values.

The family is growing, and the second generation is increasingly stepping back. What challenges does this create?

Altendorf: Up until now, the second generation has been a major influence. Four sons and one daughter of Alice and Georg H Endress have worked
for the company. Klaus Endress was the Group CEO for many years. Today, he is president of both the Supervisory Board and the Family Council. Urs Endress continues to serve as an ambassador. Of the third generation, only Steven Endress – who manages our business in the United Kingdom – is actively involved. And Sandra Genge, likewise a granddaughter of our company founder, has recently joined the Supervisory Board. We now have to work toward ensuring that more family members develop long-term involvement with the company.

Genge: The fewer family members who work on an operative level, the more our direct involvement declines. That brings on challenges in communication between the family and the company, and in transferring business expertise.

Expertise in the sense of insights, information and understanding?

Genge: Exactly. The company’s professionalism has vastly increased over time. As a growing family of business owners, we too must become more professional. That’s something the family has come to realize. It’s why we created the family charter in 2006, with its principles, rules and institutions. They enable precisely this exchange and flow of information. The charter is a key element for remaining a successful family business.

“The entire family including me places great importance on the company’s values and culture – the Spirit of Endress+Hauser. That Spirit contributes to our success.”

Sandra Genge

Supervisory Board member at the Endress+Hauser Group

What is necessary for the continued existence of the family business?

Genge: From the family’s point of view, it is important that members continue playing an active role in the company. By that I mean more than just involvement in the traditional sense, or operative responsibility. We have various committees, institutions and other opportunities for family members to contribute. Such involvement reinforces the family’s identification and connection with the company. Moreover, we as a family have to demonstrate good community spirit, and we need consensus to keep discord and disputes out of the company.

Altendorf: The family contributes values, warmth, knowledge and experience – as well as capital. That is why financial success is the fundamental prerequisite for continued existence of the company. The shareholder family also provides stability. Security, reliability and solidarity are invaluable, especially in a highly creative and innovative environment. These have been important elements of our success over the past 70 years and will remain so going forward. There is more to Endress+Hauser than just assets, buildings and machinery. A company is always a social system.

The family charter states that the shareholder family intends to “continue to shape the company”. How is this done?

Genge: By having family members work for the company, for example.
We formulated that as one of the goals in our family charter. For a number of years now, family members have been able to work at every level within Endress+Hauser, according to their suitability and skills. We have precisely defined how family members must be qualified in order to hold senior positions. Not least to protect the company itself, we want to select only the most suitable people.

Altendorf: Our founder shaped the company through his personality and leadership style – and through his choice of people. The second generation did the same. Today, the family’s involvement is more strongly institutionalized. However, the family and the company are in constant communication, and family members regularly confer among themselves. Besides the Supervisory Board, where Klaus Endress and Sandra Genge represent the family, there is also a Family Council, the General Meeting of the shareholders and the Family General Meeting. The family exercises its influence through the strategic decisions it makes and through selecting the people who manage the company. The family also has a presence at many occasions and celebrations. Thus it demonstrates cohesion, connection with the company and pride in what the company and the family have jointly achieved.

Close connection to the company

Matthias Altendorf has been CEO of the Endress+Hauser Group since 2014. He began his career at the company as an apprentice mechanic before proceeding to earn a degree, spending time abroad and undertaking further training. Even as an apprentice, the family business spirit fascinated him. He found the company’s founder to be an approachable employer: “We apprentices once took a trip by train to Locarno. Georg H Endress came along and enjoyed it with us. He knew that young people are the future. Personal growth was important to him.” Matthias Altendorf (born in 1967) is married and the father of an adult son. In his free time he enjoys sailing, chess, motorcycling and forestry work. His other hobbies include traveling, art and reading.

What are you doing to recruit young family members to work at the company?

Genge: We are specifically working to guide the younger generation into the company. For all family members aged between 16 and 35, we have the Family Camp. The program is a blend of education and an informal atmosphere where they can interact. We tour the production and sales companies, visit customers and see our products in use. Sometimes, we even take a hands-on approach: once, we drove around Switzerland in minibuses and measured the water quality of the river Rhine at various locations.

Altendorf: At the Family Day, we also attempt to gather all of the family members together so that they can grow better acquainted and join in a shared experience. Being a company owner can be a real pleasure. But it is also a responsibility, since ownership brings obligations. We have to reduce the burden of this responsibility somewhat and shift the focus to the benefits and community spirit. By working at the company, we can achieve something that is bigger than ourselves. That goes for employees and family members alike.
If we can awaken this sense of delight, then I am certain that we will be able to inspire subsequent generations as well!

And what if that does not succeed?

Genge: That is not an option!

Altendorf: Currently, no family members are represented in the Group’s operative management. Among the third generation, however, we have numerous people with interest or actual involvement in the company. Phases like this will always occur. That is why we have to find people for the Executive Board, Supervisory Board and management who share the
family’s entrepreneurial spirit and values and exemplify all of this in daily life. Furthermore, the family has to play a decisive role at critical junctures.

Genge: I am very optimistic that we will continue being able to do so in
the future. The family remains visible and tangible for people at the company. The fact that we have opened up working opportunities at every level contributes in both respects. Two of my cousins recently completed internships at Endress+Hauser companies. And I can say with considerable certainty that these two young women were not the only ones who found it inspiring!

“We have to find people for the Executive Board, Supervisory Board and management who share the family’s entrepreneurial spirit and values.”

Matthias Altendorf

CEO of the Endress+Hauser Group

As CEO, how important is the shareholder family to you – and how important is the fact that Endress+Hauser is a family business?

Altendorf: For me personally, it is exceptionally important to work for a company whose values I share. As CEO, I live on the trust that the family grants me. The family entrusts me and the company’s management with all of its employees and assets. We strive to guide this company wisely and continue its successful development. It is important that we also establish a trustful relationship with the younger generation. To this end we must work with each other, learn from each other and listen to each other.

How do you experience shareholder and family influence over the company?

Altendorf: Thanks to the family’s trust, I have an insight into all of its institutions and committees. That benefits both sides. We collaborate to develop a consensual direction for the company’s long-term development. This give-and-take is a challenge for every family business. At publicly traded companies, the roles are clearly assigned. A family business requires greater tact and mutual understanding. However, this interplay also makes us more successful than other companies, since constant dialog leads to better, sustainable decisions.

Genge: It is important that we, as the shareholders, allow the management entrepreneurial freedom. Only in this way can Endress+Hauser stay successful.

Corporate culture Company Shareholder family Corona

Ein Auge fürs Detail

smanetsch — Sun, 01 Jan 2017 14:03:56 +0000

An eye for detail smanetsch Sun, 01.01.2017 - 15:39

Customers+Markets

An eye for detail

Wherever a biotechnology system is being installed around the world, chances are American manufacturer Cotter Brothers is among the suppliers. The company is one of the premier specialists in this business.

Text: Martin Raab

Photos: Jeremy Farrow, Martin Raab

The list of customers reads like a Who’s Who of the biotech industry. From A for Abbott to Z for Zymogenetics, the Cotter Brothers partner with all of the big names. The family-owned company, located outside of Boston, was one of the very first manufacturers of biopharmaceutical systems and remains a global leader. “Our customers trust us to handle even the most difficult tasks,” says President Randy Cotter Jr.

The company’s reputation has been built over the years on a foundation of in-depth understanding of bioprocesses and uncompromising quality of the systems made in Danvers, Massachusetts. Cotter Brothers designs, manufactures and installs process skid modules for all stages of biopharmaceutical production.

Comprehensive offering

On average, two fabrications leave the manufacturing facilities located on the outskirts of Danvers each month. The process skids come in various dimensions, from refrigerator format to the size of an upright container. “We build 50-liter single-use systems as well as 12,000-liter stainless steel bioreactors,” explains Randy Cotter Jr.

Many of the skids are equipped with measurement technology from Endress+Hauser. “We share the Cotter Brothers’ strategy of clearly aligning with the needs of the industry,” says Ravi Shankar, Industry Manager Life Sciences at Endress+Hauser, USA. “We need partners who understand the requirements of the industry,” confirms Randy Cotter Jr. Last but not least, the two companies are connected through their activities within the Bioprocessing Equipment (BPE) Standards Committee of the reputable American Society of Mechanical Engineers (ASME).

“We need partners who understand the requirements of the industry.”

Randy Cotter Jr.

President Cotter Brothers

Active from the start

The ASME-BPE guidelines developed by the committee are considered the international standard for building biopharmaceutical manufacturing systems. Many sections of the guidelines carry the handwriting of company founder Randy Cotter Sr. He gained his experience in stainless steel in both the semiconductor and nuclear industries, before he recognized an opportunity to become involved in the nascent biotech industry nearly four decades ago. In delivering his first module in 1981, in essence he was involved from the very start.

Thoroughly analyzing, understanding and acquiring a command of a subject, Randy Cotter Sr. is an engineer through and through. In the early 80s, there was no blueprint for building production modules for bioprocesses. Even where the requirements were obvious, engineers lacked the experience to implement them. “It was a painstaking learning curve,” recalls the company founder.

One-of-a-kind expertise

Randy Cotter Sr. tackled many of these challenges systematically. What is the optimal flow rate for liquids? What is the ideal slope for the pipes? What should a weld profile really look like? Randy Cotter Sr. worked tirelessly, in effect performing basic research to achieve technology advances. It was only a few years ago that he obtained funding and worked with industry leaders to understand dead legs in biopharmaceutical piping systems, which can lead to hygiene problems.

The know-how developed by the family-owned company over the years is unique in the industry. “We scored points with our measurement technology expertise,” reports Alan Senecal, who spent years building up the customer relationship with Cotter Brothers for industrial supplier F.W. Webb, one of the select representatives on which Endress+Hauser’s US sales force is based. “We made ourselves constantly available with consulting and support services. We always delivered the right device for the respective application. And we never left Cotter Brothers high and dry when problems arose.”

Passion for quality

If the customer has no specific instrumentation requirements, Cotter Brothers recommends products from Endress+Hauser. The company integrates flow, pressure, level and temperature measurement devices into its skids, as well as liquid analysis technology. “We hear time and again that Endress+Hauser has a technological edge,” explains Mark Braatz, who currently manages the relationship with Cotter Brothers for F. W. Webb. “Endress+Hauser’s attention to detail,” as reflected in the introduction of 1.4435-grade stainless steel instruments for life sciences applications for instance, “repeatedly serves as a persuasive selling point.”

When Endress+Hauser representatives talk about Heartbeat Technology, for self-monitoring of sensors, and Raman analyzers for process control applications, Randy Cotter Sr. takes interest. “Technology transfer is important in our industry,” he says. “We have to be in a position to tell our customers and employees about new innovations, and we have to convey our knowledge to the next generation of engineers,” adds the company founder with confidence.

In close contact

“One advantage for Endress+Hauser is that we can offer global support,” says Industry Manager Ravi Shankar. Cotter Brothers generates one-third of its revenues with global customers, an area of the business that Randy Cotter Jr. wants to develop further. He knows he can rely on an experienced workforce to carry out his plans – not to mention loyal customers. “The biotech industry is not very forgiving,” says Randy Cotter Jr. “The fact that our customers return to us time and again, that means something in this business!”

What’s behind Cotter Brothers’ market

success?

“We always had the ability to feel the pulse of the industry. We pay attention to our customers and give them what they need. When I started in 1979 it was like a new frontier. It was like when Ford started with the Model A. You wanted to buy a car? It had two doors, four wheels and it was black. And that’s how the industry started with fermenters, bioreactors and chromatography systems. They were always packaged units. As the industry matured, clients also matured and decided they didn’t want that Model A anymore. They wanted a red Model A with three doors and a retractable top. The same thing happened with bioreactors and process equipment. Customers became smarter, and we had to become smarter, too!”

Randy Cotter Sr., company founder and pioneer in the life sciences industry.

Watchful eye: an employee inspects a component.

Decades of experience: Cotter Brothers is among the pioneers of skid module manufacturing for the life sciences industry.

Reputable name: the Cotters have been in business for more than 30 years.

Biotech cluster Boston

Boston is a global center for biotechnology. The breeding ground is made up of several world-class universities and leading medical facilities, as well as easy access to venture capital through one of the key financial centers in the United States. The cluster's origins can be traced back nearly four decades when companies such as Biogen and Genzyme evolved from the university scene. The one-time start-ups have long grown into industry leaders. Scores of established pharmaceutical companies also have a presence in the region with their own labs. The biotechnology industry in and around Boston benefits from a constant stream of young scientists and university and clinical research work, as well as an information-sharing network and close cooperation between the companies and various institutes.

Facts

& Figures

Highly specialized provider

Cotter Brothers Corporation, headquartered in Danvers, Massachusetts, near Boston, is a global leader in custom-fabricated process skid systems for biotech manufacturing. The company was originally founded in 1979 by Randy Cotter Sr. and sold to global conglomerate ITT in 2001. Unhappy with the new course, the founder’s three sons – Randy Jr., Tim and David – left the successor company and set up shop again on their own in 2003, bringing a large part of their former staff with them. Today, Cotter Brothers employs 60 people.

USA Industry expertise Company Chemistry #e94e0f