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The key to success – customer proximity

 

Over the past 45 years, ifm electronic gmbh has developed, manufactured, and sold quality sensors, controllers, and systems for industrial automation processes around the world. Today, the (still) family-run company has a physical presence in over 70 countries and has become a global leader in the industry due, in part, to its innovative strength and its ability to listen and adapt to the customers' needs in any given market. We recently had the chance to speak to Mr. Andreas Fobbe, the Export Sales Manager for North and South America and the Managing Director of ifm electronic Chile, about the factors ifm electronic gmbh takes into consideration before beginning operations in a new country. Mr. Fobbe will be a featured speaker at the upcoming Strategic Investment Summit: USA, during which he will join in a discussion on regional industry clusters and the benefits of pursuing R&D in the U.S.

 

GSC: With locations in over 70 countries, it is fair to say that ifm electronic has a global presence. As far as production goes, ifm operates plants in Germany, Poland, Singapore, and the United States, and is about to open another in Romania. As you will appear as a speaker at the upcoming Strategic Investment Summit: USA, Mr. Fobbe, can you please explain to us which factors led to ifm's decision to initiate manufacturing activities in the U.S.?

Mr. Fobbe: We chose to initiate manufacturing activities in the U.S. for three main reasons. First, the U.S. is our biggest market outside of Germany. Second, with a production site in the country, it is easier to get approvals for the market. And third, of course a production facility in the U.S. allows us to carry out product development and production close to our customer base in the U.S., but it also gives us access to the Canadian and Mexican markets. In the U.S. we invent and produce cables, inductive sensors, and photo sensors to match the needs of our customers located there. ifm prover, a subsidiary of ifm electronic, is also active in the U.S. The development and assembly of temperature sensors and controls that occurs in the States is not only for the U.S. market, but for the global market.

Additionally, we have a warehouse close to the production site, from which we deliver to the entire U.S. and Canadian markets. We can ship within 24 hours to our customers in the U.S. and Canada. This gives us a great opportunity to be close to customers and give them the best delivery time. We live by our slogan "close to you" in terms of development, production, delivery, and service.

In the coming years, we are planning to invest more in the U.S. in regard to employees, engineering, finance, information technology, and marketing. Why? Because we believe that the U.S. market is a market with a great future.

 

GSC: Many of ifm's locations worldwide are focused on the application of practical innovation to simplify technology and develop brand new products. Before beginning R&D processes in a new country, what are the most important issues that ifm takes into consideration?

Mr. Fobbe: Before investing, regardless of the country and whether or not we are considering establishing a sales office (with or without a warehouse) or a production site, there are a number of questions that ifm must consider, including:

  • What are the legal circumstances in the country?
  • Is the political situation stable?
  • What is the profile of the workforce available, and what kinds of skills do they have?
  • Is the market big enough for our needs?
  • What does the market look like, and which types of industry already exist?
  • What is the state of the country's infrastructure (incl. highway systems, transportation, airports, universities)?
  • Can the plant be used as a hub for nearby countries or even worldwide?
  • How easily can ifm export from the country to the rest of the world? And, more generally, what are the import/export conditions for goods?
  • What sort of products make sense to develop and produce in the country?
  • Which parts of the production process in Germany can we shift to the country to allow more space in Germany for new product lines?

 

GSC: Thank you very much for this interview, Mr. Fobbe.

Further information: ifm electronic gmbh