Growth in a Tough Market Environment
JUMO corporate group remains on road to success in 2014
The JUMO corporate group based in Fulda, Germany, can look back at an altogether satisfying financial year for 2014. Despite great uncertainty on the international markets the consolidated turnover increased by 2.3 percent. The total number of employees increased by around four percent.
"The last financial year brought us great challenges. Nonetheless, we were able to increase our turnover from 216 million euro to 221 million euro in 2014. This means that our turnover has increased by 30 percent since 2010," said Bernhard Juchheim, managing partner of the JUMO corporate group. In Germany, JUMO increased the previous year's turnover by 1.2 percent to 163 million euro. The growth of the subsidiaries amounted to 6.3 percent.
The company's export rate remained stable at 54 percent. This is around two percent more than the industry average in Germany. "At the Fulda site we develop high-tech products that are globally successful. At the same time we are continually tapping into new emerging markets of the future through our own efforts," confirmed Michael Juchheim, who leads the company with his father as managing partner.
Thanks to the solid financial position and good liquidity, investments amounting to 9.2 million euro were made in Germany in 2014, of which 1.9 million euro was spent for buildings. More than 600,000 euro alone was invested in a new photovoltaic plant. A further 900,000 euro was invested in technical equipment such as a milling machine or a new hammering machine. "Increasing automation maintains our international competitive edge," confirms Michael Juchheim.
The JUMO corporate group employed 2,225 employees around the world at the end of 2014, which is four percent, or 85 employees, more than in the previous year. "We are growing across all our sites, with the highest growth rates naturally being recorded in Germany and China," emphasizes Bernhard Juchheim. At the Fulda site, 1,312 people were employed, of which 109 were apprentices. The German branch offices and offices employed 41 people; 872 were employed in the foreign subsidiaries. The training rate at JUMO is still exceptionally high. This has meant that JUMO could employ 38 new apprentices, BA students, and year-long interns over the last year – seven more than in the previous year.
News from the subsidiaries
JUMO has been operating in China since the beginning of 1990, and in 2000 a subsidiary was established. As a result of further positive forecasts, a decision was made to open a new site for the subsidiary JUMO Automation Dalian Co. Ltd. The new building has an area of 15,000 m2 available for production and administration. This is almost double the size of the previous area. The firm's relocation will be completed in September 2015. The Italian subsidiary's move to new premises is also due to take place in the fall.
The production area of the subsidiary in Belgium is doubling due to an extension to the building, with an investment of around one million euro being made here.
Prospects for 2015
The German gross national product increased by around 1.5 percent in 2014, according to the latest estimates. Forecasts for 2015 are very cautious due to the economic uncertainty and fluctuate between 1.1 and two percent. The German electrical industry estimates a 1.5 percent increase in turnover. The JUMO corporate group has clearly committed to an above-average increase and is planning a six percent increase in turnover to 235 million euro in 2015.
"As a result of high labor costs it is becoming increasingly difficult to produce at internationally competitive prices at the German site," explains Michael Juchheim. With the ultra-modern plant that will be developed in the Fulda West industrial area by 2017, JUMO is strengthening the site for the long term and creating the conditions for further growth. "The planning application for the building is due to be submitted in fall 2015, and the groundbreaking ceremony will take place in spring 2016. The total investment volume amounts to 50 million euro," said Michael Juchheim.
JUMO is continuing its internal restructuring with further expansion of market segment management. "We are evolving more and more from a provider of components to a system provider. This also includes an ever-increasing focus on clearly-defined target areas and their needs," explains Michael Juchheim. As a result, since the start of the year additional market segment managers have been recruited for the areas "renewable energies", "safety", "heat meters", and "water/wastewater".
"Our many years of project experience in industrial measurement, control, and automation technology have also been pooled in the new "JUMO Engineering" service," continues Michael Juchheim. The engineering team develops customized applications for a variety of industries.
Strong growth in the area of "liquid analysis"
The turnover in the "liquid analysis" product area of JUMO GmbH & Co. KG has increased by almost 30 percent over the last four years and is currently around 16 million euro. "Here, for example, sensors and analyzers are manufactured which are used around the globe in the area of water and wastewater engineering," explains Matthias Kremer, JUMO's market segment manager for the area of water. A few days ago a cooperation agreement dealing with the delivery of JUMO measurement technology was concluded with the French group VEOLIA. "Inclusion in international invitations to tender and collaboration with such a large partner opens up new opportunities for growth and new business areas for JUMO," says Matthias Kremer.
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