"You Have to Understand Markets and Customers to Succeed"

Global cooperation offers opportunities: CEO Claus Möhlenkamp talks in the ESSENTIAL about globalization, trade policy and Covid-19.

What does that mean?

It means we set out into the world with our customers. Today, we are wherever our customers are at work in their respective markets and there is a need for our products. Our principle is “local for local” – manufacturing locally for the local market. For example, in China for China. The same applies to India, the United States or Europe.

That is helpful if supply chains are disrupted.

It’s a huge help. So far, we haven’t had an interruption in customer deliveries. And our suppliers have continued to supply us. Even in the case of our internal supply chains between individual plant sites, there have been no significant disruptions.

You’ve touched on something important there: “facilities” are a major issue, especially since the coronavirus emerged. How will this issue unfold?

Having a range of facilities makes good sense in a globalized world filled with supply chains that are rather complicated. Our plant policy generally has two aspects. We are strengthening our customers and supporting them in their market. We also keep an eye on demographic and economic trends. Where are new markets emerging and increasing demand for our products and services? And where can we find a highly educated workforce? Of course, the outlook and our assessment will change based on our experience with the pandemic, and it already has, though perhaps less in the direct manufacturing environment. The change has mainly been in mobility and digital communication. The pandemic’s impact on manufacturing at Freudenberg Sealing Technologies has varied tremendously. The auto and aviation sectors, among others, have been hit particularly hard.

What lessons have you learned that go beyond the coronavirus?

Travel, in-person activities, personal contacts, trade fairs and major events have been key features of the past few decades. The pandemic changed that virtually overnight. We shifted to digital tools incredibly quickly. When I look back, it seems as though I have never worked any differently than I did over the last six months. For example, I haven’t made an intercontinental trip since March. All appointments are scheduled online and carried out by video. This has all worked flawlessly from a technical standpoint and has been extremely efficient. Still, I made my first visits to production facilities as soon the travel rules and the COVID-related limitations permitted. It’s hard to describe how great it was to get together and meet with people in-person again. Nothing will replace personal contact. It will continue to be an element of our work in the future.

Are you unsettled by the growing tendency of governments to close off their countries?

No, although it is aggravating and hard to understand at times. In the past, there have been protectionist efforts and trade restrictions by individual countries again and again. As a company, we’ve been able to deal with them and adapt. Think about the trade conflict between the United States and China. So far, Brexit has certainly been something of a unique phenomenon. There are military conflicts and natural catastrophes. We are an agile company and can make the adjustments.