Why the grass is greener

London – Visits to overseas facilities often reveal some interesting takes on manufacturing issues – approaches that are generally untried in the UK, and that could explain why the ‘grass is greener’ for industry on the other side of the Channel.

This was the case on a recent press trip to Bürkert – a German-based maker of fluid-control components, including sensors, valves, controllers and related systems.

At one of its facilities, near Ingelfingen in southern Gerrnany, Bürkert CEO Heribert Rohrbeck explained how the family-owned group each year invests 5-8% of sales in R&D, even during times of economic difficulty.

This strategy has paid off in recent years, with an 11% sales rise between 2010 and 2011, to Euro382 million, following a 40%-plus increase in the previous 12 months – despite the global economic downturn.

“We invest anti-cyclically,” Rohrbeck said. “Whenever there is a crisis we invest. We could not have recovered [so quickly] if we had not invested in new capacity during the downturn.”

The group also invests in its 2,200 employees worldwide, said the CEO, who went on explain the progressive work culture at Bürkert. This, he said, is based on “a hierarchy that defines itself as a willingness to take on responsibility.”

Within this approach, groups comprising both blue-collar and white-collar workers from various company departments get together at the start of each new project at the company.

“Every time a project is completed, the teams are recombined,” explained Rohrbeck. “This boosts creativity … and allows us to respond even more flexibly and more quickly to changes.”

But, perhaps the most significant difference between Bürkert and similarly sized UK industrial companies is its financial independence.

“There is no outside capital in the company: all investments are made with the company’s own funds,” said Rohrbeck, who described this independence – alongside skills and technology – as the third pillar of the business.

This type of financial autonomy would likely be envied by many UK industrial businesses – particularly those relying on a financial sector, which – from developments at Barclays – seems much more interested in quick returns than the long-term needs of manufacturing industry.