The HARTING Technology Group in Espelkamp (Minden-Lübbecke district) held its ground in the 2019/20 financial year (September 30) despite the coronavirus pandemic and the associated global economic slump. Sales at the internationally active family business rose slightly by 1.2% to € 759 million (previous year: € 750 million).
"We have defied the global coronavirus pandemic. We are satisfied with the result," said CEO Philip Harting. As the coronavirus situation will continue to dominate economic and social life, the CEO expects the 2020/21 financial year to be a challenging one for the technology group.
Different development in the regions
The regions in which HARTING operates worldwide developed differently in the 2019/20 financial year. In addition to declines, there was also significant growth. Sales in Europe (excluding Germany) and the Middle East and Africa, also known as EMEA, remained stable at € 278 million (previous year: € 278 million). In the Asia region, HARTING sales rose sharply by 9% to € 202 million (previous year: € 186 million). Growth in the Americas region was even more pronounced, with an increase of 15% to € 82 million (previous year: € 72 million). In Germany, sales fell by 8% to € 197 million (previous year: € 214 million).
205 new jobs created worldwide
The number of employees (including trainees) rose to 5,473 in the course of the 2019/20 financial year (previous year: 5,268). This corresponds to an increase of 3.9% or 205 jobs. In Germany, nine positions were not filled (- 0.3%), while 214 employees were hired at the foreign production sites and subsidiaries (+ 8.0%). As of September 30, 2020, a total of 2,869 people were employed abroad and 2,604 in Germany, reflecting the growth in the Americas and Asia regions.
Fast and flexible response to the pandemic
The Technology Group reacted quickly and flexibly right at the start of the pandemic. Protecting employees and supplying customers was the top priority from the outset. This applies in particular to well-known manufacturers of medical and respiratory equipment with customer-specific cable assemblies that HARTING supplies. "We are and will remain a reliable partner," Philip Harting made clear.
This also applies in particular to customer and market communication. This has therefore been restructured and expanded to include digital formats. Since spring, events and web seminars have been held in a dedicated studio and streamed to customers, distributors and the media worldwide. "We are networked worldwide and can therefore react very quickly to changing conditions - and we are close to our customers," emphasized Philip Harting. With this new form of communication, HARTING is positioning itself for the future, as the CEO emphasized.
The technology group will be following the further course of the pandemic very closely. A corona pandemic team is evaluating developments on a daily basis and recommending or taking measures, as Chief Human Resources Officer Dr. Michael Pütz emphasized. As examples, he cited the free coronavirus tests in certain clinics in the Minden-Lübbecke district and the free face masks for employees. "The extended home office regulation has also worked very well in collaboration with our IT department and has been very well received by employees," said Dr. Pütz.
Focus on future topics DC Industry, Single Pair Ethernet and e-mobility
The HARTING Technology Group has clearly identified the future topics of Single Pair Ethernet (SPE), DC Industry and E-Mobility and is driving these forward at full speed. HARTING combines these three topics under the term Connectivity+.
HARTING is focusing on the topic of direct current infrastructure and is working on the next revolution in industrial power supply in the DC-INDUSTRIE research project, which is funded by the Federal Ministry of Economics. Direct current can save enormous energy costs. HARTING is developing the right connectivity for this. Large areas of renewable energies and storage technology are DC-based. In combination with energy recovery measures, the increase in renewable energies is leading to an overall decrease in energy consumption from the AC grid. Industrial companies that use DC generation save considerably on energy costs and contribute to meeting CO2 emission targets. Around 40 industrial companies are involved in the DC-INDUSTRIE joint project. "Key requirements for future interfaces will be derived from the work in the joint project," emphasized Dr. Kurt D. Bettenhausen, Director of New Technologies and Development. This will create added value for the customer.
HARTING is also continuing to push the topic of e-mobility: As a pioneer for reliable, clean and environmentally friendly e-mobility, the technology group offers customized solutions and components for all relevant markets and develops and produces charging equipment for electric and plug-in hybrid vehicles. For example, HARTING supplies charging solutions for Volkswagen's modular electric drive matrix (MEB), the Audi e-tron and the Porsche Taycan. In the peripheral area of decentralized energy storage for mobile applications, HARTING also offers a wide range of connectivity solutions that contribute to the sustainable, CO2-reduced mobility of the future.
IIoT and the associated Ethernet connectivity are also moving forward. HARTING recognized developments here early on and created connectors for Single Pair Ethernet (SPE) that set new standards. Partnership is a top priority: HARTING cooperates with the SPE Industrial Partner Network for an end-to-end SPE eco-system and creates the high-performance infrastructure for the digitalization of industry. SPE brings the data from the cloud down to the field and application level and back again.
Another high investment volume
The technology group once again invested heavily in the past financial year. "With a total of around € 65 million, we almost reached the record volume of the previous year," explained Maresa Harting-Hertz, Chief Financial Officer, Purchasing and Facility Management. In the 2018/19 financial year, investments reached a record total of € 66 million.
A large part of this in the 2019/20 financial year went into the digitalization of production at the subsidiary HARTING Electric in Espelkamp. In Romania, capacities were expanded in Agnita for Automotive and in Sibiu for Connectivity & Networks. The plant in the USA (Elgin) now also has expanded production facilities in order to supply the market and customers more quickly. "We are now even more flexible worldwide in order to better respond to regional needs. With these investments, we remain clearly on course for growth," emphasized Andreas Conrad, Chief Operations Officer.
75 years of HARTING: Magnificent ceremony in the Botta Building in Minden
This year's highlight was the anniversary: the technology group celebrated its 75th anniversary on September 1 at the Botta-Bau in Minden with an atmospheric ceremony in the presence of former German presidents Dr. Joachim Gauck and Christian Wulff. Guests from the worlds of business, politics and administration accepted the invitation from the Harting family, who own the company. Philip Harting emphasized that the company would have liked to celebrate this highlight much more intensively together with customers and employees to thank them for their many years of partnership and support. But Corona did not allow this.
"Creating value for people": Sustainability and climate protection
"We want to create value for people" is the third part of the corporate vision formulated in 1996. The entrepreneurial family has always felt particularly committed to social responsibility - and lives up to it. The company has been working on reconciling ecology and economy for a good four decades and introduced an internal company environmental award back in 1989. In addition, the technology group has consistently focused on the energy transition and is a founding member of the Association of Climate Protection Companies.
HARTING has been using 100 percentCO2-free energy in production since 2012. Further steps to minimize thecarbon footprint include the construction of two biomethane-powered combined heat and power plants for Plants 2 and 9 in Espelkamp. This will further improve the energy balance and efficiency. "Sustainability and climate protection are HARTING's DNA, we are consistently sustainable out of conviction," emphasized Philip Harting.
Cautious outlook
Philip Harting was cautious about the further development of the current 2020/21 financial year. The outlook is gloomy in view of the coronavirus situation. The business situation depends very much on the further global development of the pandemic and how quickly vaccinations can be carried out for large parts of the population. "Global demand therefore varies from region to region. We are continuing to operate on sight," says Philip Harting. Nevertheless, he believes a moderate increase in sales in the low single-digit range is possible. "We have convincing products, a customer-oriented positioning and a first-class team - we can do it."
