An interview with Dr Uwe-Peter Weigmann and Ralf Kappert, Presidents of VDKM and IWCEA
By developing energy-efficient machines and at the same time using modern, resource-saving, sustainable machines for production, the wire and cable industry is contributing to energy savings and thus to climate protection. A classic win-win situation. However, the war in Ukraine is “another uncertainty in the already tense current situation,” explain the presidents of VDKM and IWCEA, Dr Uwe-Peter Weigmann and – Ing. Ralf Kappertz.
wire & Tube NEWS: How are the manufacturers of cable/wire drawing and wire processing machines doing economically?
Before the start of the global pandemic in 2020, the wire and cable industry could look back on predominantly good business development; only part of the industry was affected by the transformation in the automotive industry. A slow recovery from the pandemic could already be seen at the end of 2020, which continued in 2021 and the first months of 2022. Hardly any sector in the industrial environment has grown as rapidly as ours.
For 2022, there are signs of a market recovery, also due to catch-up effects. However, known risk factors have arisen in the pandemic, such as logistics problems in goods traffic due to regional lockdowns, with serious consequences for container shipping, for example, which will only ease in the medium term. In addition, there are bottlenecks in the procurement markets and interrupted supply chains for certain groups of goods with corresponding delivery delays for electronic parts, for example, which have affected parts of the sales market, including in the automotive supply industry. The increases in cost prices associated with the shortages burden the manufacturers of cable/wire drawing and wire processing machines, who have to pass on this cost pressure to the market.
What impact do you expect the war in Ukraine to have on your association members in the second half of the year?
First of all, please allow us to say that we are stunned by this terrible war and the suffering it has caused so many people; our deepest sympathy and condolences go to the victims, families and their loved ones.
Of course, this is another uncertainty in the already tense current situation. It is not yet foreseeable what the final impact of the war in Ukraine will be on the market recovery. It is already clear that the shortage of raw materials, starting with energy sources and metals and food, has massive consequences for price development and is one of the drivers of inflation.
In the worst case, this shortage can lead to stagflation, i.e. a combination of stagnation and inflation, as we last saw during the oil crisis in the 1970s.
This new geopolitical situation calls into question important sales markets and the ability to supply. Just think of the wiring harnesses produced in Ukraine and installed in cars, trucks, planes and trains. Irrespective of industrial-political interests, please consider that Ukraine is the breadbasket of Europe and thus one of the most important food suppliers also for poorer countries worldwide.
New imponderables can always be expected. We are in the greatest exceptional situation since the Second World War!
How well are the manufacturers of cable/wire drawing and wire processing machines structurally prepared for such crises?
It is in the nature of things that unforeseeable events such as the pandemic and, unfortunately, the war in Ukraine cannot be calculated in advance. After all, companies do not plan for a global pandemic that can break out at any time or a war in the heart of Europe. In any case, the increasing tensions worldwide and the danger of a “déja vu” with a relapse into the times of the Cold War can no longer be completely dismissed. This would hit the German economy in particular, and thus also our association members, one of the hardest due to our global orientation and networking. In this exceptional situation, the helpfulness, flexibility, ability to react and improvisation of all, including our member companies, is in demand.
How is increasing digitalisation and industry affecting wire and cable manufacturers? What new perspectives are opening up?
Our industry has seen itself as a driver of digitalisation for years, and manufacturers are investing a high percentage of their development budgets in transforming companies and products towards the “fourth industrial revolution”—the buzzword “Industry 4.0”. Machines today have numerous interfaces and are networked in the production network to increase the degree of automation. Cloud technologies are increasingly being used, and artificial intelligence is making inroads. Terms such as “Smart Manufacturing”, “Smart Factories”, “Lights Out Manufacturing”, and “Industrial Internet of Things” are occupying the engineers and production specialists of wire and cable manufacturers and their suppliers. The range of digital services the machine and plant suppliers offer continuously expands and creates added value for our customers, especially through new software solutions.
Prospects arise, for example, through intelligent maintenance with intuitive manufacturer-independent software for machines and plants. Access is possible via web and mobile apps through cloud technology. An open system for the complete networking of machines is already a reality for many association members. It offers end customers tangible economic advantages and a wide range of technical possibilities.
What contribution can your association members make to sustainability and efficiency?
Of course, the usual measures are also implemented in our industry, for example, energy-saving, which is sustainable and efficient and can also reduce the high costs for our members in energy management in the current situation. Keywords here can be: Combined heat and power plants, photovoltaics, LED lighting and so on…
By re-engineering processes, they can be made more efficient and thus more cost-effective, but are also an important basis for sustainability, also with regard to resource conservation, for example, waste reduction or even waste avoidance.
But our association members are also actively involved in expanding renewable energy generation and the associated energy transport, keyword: direct current grids.
Furthermore, by participating in the transformation of the automotive drive system, our members make a not inconsiderable contribution to sustainability; the industry is an important component of electromobility!
It is also important for our members to integrate the new technology trends (e.g., e-drive, fuel cell) into their respective companies and develop new products, processes, and services. A wide variety of measures are initiated to ensure sustainability, i.e., to protect the earth and safeguard the interests of future generations.
By developing energy-efficient machines and at the same time using modern, resource-saving, sustainable machines for their production, our association members contribute to energy saving and thus to climate protection.
The global political challenges, such as climate change and the reduction of CO₂ emissions, present us with enormous challenges, if only because of the technological changes. Germany’s technological leadership in many branches of mechanical engineering naturally also offers opportunities here, which also applies to our members.
Incidentally, sustainability in mechanical engineering benefits the environment and reduces companies’ operating costs!
