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In 2012, Bosch Rexroth again achieved a good growth performance and achieved sales of 6.5 billion euros. Despite the slowdown in the Chinese market and the economic downturn in Europe, Bosch Rexroth, the world's leading partner in machinery manufacturing and automation equipment, has set a record of the company’s highest sales ever. “The global machinery manufacturing market has gradually lost its growth momentum in the second half of 2012 after experiencing a turbulent recovery in 2010 and 2011,†Dr. Karl Tragl, Chairman of the Bosch Rexroth Executive Board stated at the press conference at the Hannover Messe: “In the long run, this market will continue to show growth.†The company is well prepared to meet the challenges of 2013.
The market performed well in the first quarter of 2012, but global investment has cooled significantly in the later period. This trend is expected to continue until mid-2013, which will have a negative impact on machinery and equipment manufacturing. Bosch Rexroth has also been affected by the industry's background. For example, the demand for China's construction machinery industry has been reduced by 40%. “In the economic crisis of 2008 to 2009, China was the main pillar of global industrial development. In the past year, the United States took on this role,†Dr. Tragl said. “Our business covers all the core of the world. The market, so we can adjust the strategy flexibly according to the changes in market demand, this is the reason that we can rise against the market."
At the same time, the economic crisis in many European countries has intensified. "When the demand for the Chinese market is expected to decline in a certain period of time, we believe that the European market will continue to be weak," Dr. Dragl explained. From the second half of 2012, the volume of orders dropped significantly, which affected the start of the factories and the 2013 business. As of the end of 2012, the company had approximately 37,500 employees worldwide, including 18,900 German employees. In view of the lack of underemployment, some factories have already taken relevant measures in terms of working hours, such as reducing working hours to cope with the reduction of orders.
Bosch Rexroth is expected to usher in a new round of development in the summer of 2013, such as the Chinese market. In the U.S. market, the company is expected to continue its good momentum, while in Europe, the uncertainty of the European debt crisis will still have an impact on the investment environment. “Combining these factors, 2013 will still be a difficult year, but we will still strive to expand our market share in the current sluggish market environment,†Dr. Dragl said frankly.
More than 10% of sales are spent on R&D and new investment projects
Even with the current economic downturn, the company still invested 370 million euros in research and development, which accounted for 5.7% of total sales, again exceeding the industry average. In 2012, Bosch Rexroth invested a total of 678 million euros in the construction of new plants, newer machinery, equipment and investment in research and development. “Our high investment shows that Bosch Rexroth focuses on long-term development and expects continued growth in future performance,†said Dr. Dragl. In 2012, Bosch Rexroth China's Wujin new plant went into operation. The factory has 1,200 employees and a local R&D center. "Understanding the impact of the current temporary economic shocks, we are still in close contact with customers during this difficult period and stand with our customers. This performance has been unanimously praised by our Chinese customers," said Dr. Dragl. In 2012, Bosch Rexroth also launched a construction project at the Ahmedabad plant in India, which will not only replace the currently rented plant but also increase its scale. In addition, the factory site in Fortein, United States has also doubled.
High Energy Efficiency Innovative Solutions
Higher energy efficiency and more comprehensive connectivity are important trends in the two major industry revolutions of mechanical manufacturing and automation equipment. In response to these trends, the company proposed the "Rexroth 4EE Energy Efficiency Concept", which advocates not only testing and reducing the energy requirements of individual equipment, but also assessing and optimizing the energy demand of the entire system. In addition, the company also focused its R&D on the development of energy-efficient components and system solutions. Innovative maintenance concepts are also crucial, such as improving the availability of wind power equipment. For another example, Rexroth's rotor blade continuous monitoring system can not only accurately monitor whether the blades are frozen, but also can detect when they are melted and when the equipment can be restarted. At present, technicians must also check the icing conditions of each device one by one, and manually complete the operation of the device. With Rexroth's proven system, customers can automatically control wind power equipment to make it more quickly generate electricity for greater efficiency.
Industrial Integration: Helming by Machinery Manufacturers
The theme of the Hannover Fair in 2013 was "industrial integration", and Bosch Rexroth has always stood at the forefront of this technological trend. "We believe that machinery manufacturers will become the main driving force of this trend with their unmatched process control capabilities and engineering expertise," Dr. Dragl stressed. Therefore, Bosch Rexroth is also working to open its industrial control systems to IT high-level language programming and integrate with a wide range of mobile devices such as smartphones and tablets. This new attempt will enable machine builders to customize their own software functions and more easily achieve full-scale networking across all divisions of the company.
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