Ulrich Flatken is Chairman of the Board of the German Sheet Metal Forming Industry Association (IBU) and Vice President of the German Steel and Metal Products Association (WSM).
Interview: Heinz Käsinger
In your role, you are very close to politics. How close is politics to SMEs?
It feels gigantically far away, especially the politicians in Berlin. Politicians hardly take the SME sector into account. Although they are an issue, they tend to pay lip service to them. Small companies receive too little media attention. Yet SMEs provide the majority of jobs in Germany.
Do politicians think too little in this area?
They often don't think issues through to the end. The best example is working from home. Personally, I am a friend of flexible working models - if they are feasible. If there is a lack of high-performance internet, as is the case in many rural areas, it becomes difficult to implement.
After the pandemic, there is now a shortage.
Politicians are protecting our steel industry, for example. It is now crucial that this protected industrial sector fulfills its duty, which stems from the protection: a market supply at acceptable prices. This is lacking - we are experiencing a dramatic supply situation and peak prices.
What are the serious consequences of the steel shortage for companies?
Pre-financing will soon be twice as high as normal, and the limits for trade credit insurance will be exceeded. The negative side effects are enormous. And further price increases are foreseeable if the half-year contracts with steel suppliers that are common in many places now expire. We will have to expect insolvencies as a result of the steel price.
Trade barriers are planned as part of the EU Green Deal, e.g. as countervailing duties.
Our typical German mindset - we have to be better, faster, further - is problematic. High energy costs, stringent climate targets, far-reaching social and ethical issues, massive tax burdens - all of this jeopardizes our competitiveness.
Do SMEs even have enough substance and time to take on all the challenges?
It is crucial for SMEs to be open to cooperation and exchange, to deal with changing framework conditions, to think of solutions to problems and to offer technological solutions. One advantage is their greater adaptability and flexibility. SMEs are full of ideas, have leaner structures, all employees are allowed to think for themselves - that is clearly an asset.
Will all SMEs be able to cope with the change?
Probably not every one, but that also applies to large corporations. It's also a question of the product, the general company orientation, etc. - companies with few unique selling points have a harder time.
Looking into the crystal ball: cars are losing - niche markets are winning ... Is that the future?
There is no general answer to this question. "Individual mobility" is the topic of the future. We need to look at all needs, not just those of the urban population. As with working from home, the small village in the Sauerland region has different requirements.
ABOUT THE PERSON
Ulrich Flatken is Chairman of the Board of the German Sheet Metal Forming Industry Association (IBU) and Vice President of the German Trade Association for Steel and Metal Products (WSM). In both functions, he is a political advocate for SMEs.
