Motion Control Resources
Bosch Rexroth Back on Course for Growth
Bosch Rexroth Corporation Posted 05/04/2011
* Core team retained despite crisis
* Capacities increased in Asia
* Competitive advantages thanks to global network
Lohr/Frankfurt/Hoffman Estates. Bosch Rexroth returned to a growth course in 2010 and will make considerable gains again this year. The supplier for machinery construction, mobile machines, and renewable energies increased sales by 22% to €5.1B. “Bosch Rexroth understood the market changes as an opportunity and translated them into strong growth,” explained Dr. Karl Tragl, President of Bosch Rexroth AG, at the annual press conference in Frankfurt. 2011 is set to be yet another year of growth – the number of incoming orders doubled last year to approximately €6B. “That puts pre-crisis peak values back onto the horizon faster than assumed just one year ago,” highlighted Dr. Tragl. This year, the company will continue to expand its international activities and again anticipates double-digit growth.
Bosch Rexroth was able to gain global market shares during the first half of 2010 in markets still suffering from the effects of the crisis. The company achieved the strongest growth in Asia, where it increased sales by 38% to €1.4B. Within Asia, China, by far, became the largest single market outside of Germany. Business volumes in North and South America increased by 36% to €829M. For the first time ever, Brazil was among the company’s top ten countries with the strongest sales. “Just like it did in India, our longtime local presence is paying off in Brazil. We are experiencing above-average growth in these markets,” said Dr. Tragl. Overall business increased by 9% to €1.6B in Europe (without Germany). Sales in Germany developed significantly stronger, where 2010 sales were 18% above the previous year’s value at €1.3B.
Berend Bracht, president and CEO of Bosch Rexroth Americas concurs: “We’re extremely pleased with our progress in Brazil, and also with the better-than-expected recovery in our business sectors in North America in 2010. Our strategy of combining global and local capabilities for the best possible customer result should also position us well for continued success in 2011.”
Significant research and development investments
In 2010 Bosch Rexroth invested over €260M in research and development. Last year’s R&D share was 5.3%, a figure well above the industry average. German developers work together in close collaboration with their colleagues in Asia and America within the framework of the global network. The company hopes to take better advantage of the high-growth regions of Asia and South America with the continual expansion of its international development and production network. For example, products and solutions will be adapted to the specific requirements of each region based on platforms developed in Germany.
Core workforce retained throughout crisis
“We combine our traditional strengths in Germany with our global potential,” highlighted Dr. Tragl, who expressly thanked all associates for their dedication and commitment during the last fiscal year. The President pointed out the fact that the company’s worldwide success helped to secure jobs, including those in Germany. Despite the difficult crisis, Bosch Rexroth was able to retain its core workforce at its 67 global production sites. At the turn of the year, the company employed 34,900 individuals, around 18,200 of whom are located in Germany. While the number of associates in Germany remained stable, the company added to its workforce, especially in Asia. Bosch Rexroth increased capacities by 13% in that region, where 5,100 associates now work for the company.
Expanded leadership for mobile and industrial applications
Mobile applications activities experienced particularly positive developments during the last fiscal year. As the global market leader for mobile applications equipment, Bosch Rexroth offers innovative system solutions. They support manufacturers of mobile machines to adhere to internationally tightened exhaust emissions regulations. The objective is to gradually decrease emissions in North America, Europe and Japan by 90% in accordance with the TIER 4 final standards for types of mobile machines, including excavators, bulldozers, harvesters, tractors, and forestry vehicles. In order to realize these values, manufacturers in addition to the after-treatment of exhaust gases also will probably have to use smaller motors and reduced motor speeds. Moreover, Bosch Rexroth developers are linking diesel motors with hydraulic controls, reducing fuel consumption by up to 20 percent without affecting performance.
“Our introduction of these TIER-4-capable technologies at the March 2011 CONEXPO-CON/AGG trade show was a tremendous success,” says Bracht. “It showed us that many of our customers in the Americas are looking for partners who can help them address these 2014 standards now, especially with the ongoing growth in mobile hydraulics applications worldwide.”
In plant engineering and factory automation, early-cycle industries, such as plastics machines, made a particularly positive recovery. More and more, both users and machine manufacturers are coming to expect one-source mechatronics solutions. As a supplier for all drive and control technologies, Bosch Rexroth benefits from an innovative advantage with cross-technological drive and control solutions. Those solutions reduce engineering expenditure from design to commissioning and increase machine energy efficiency.
Bosch Rexroth is also expanding its solution spectrum in the fields of primary production and recycling. The company is currently delivering components for building the first fully-hydraulic plant for producing ethanol from sugarcane in Bolivia. The manufacturing process requires significant effort. Hydraulics meets such requirements and is a field where high-performance drives from Swedish subsidiary Hägglunds are a perfect compliment to the hydraulic power units and cylinders from Bosch Rexroth. “This example demonstrates how the acquisition has provided us with additional market opportunities in primary production, recycling, and heavy loads handling,” says Tragl.
“The Bolivia project really is a great example of the types of opportunities Hägglunds gives us in markets we weren’t very active in before,” says Bracht.
Positive outlook for renewable energies
For wind energy, the number of new plant installations in Europe and the USA experienced a sharp decline. By contrast, the market continued to expand in China, where half of the world’s wind turbines were put into operation in 2010. In addition, the company works in close collaboration with ocean energy plant manufacturers. “It will still take several years until we achieve series production readiness with our partners, but ocean energy holds just as much potential as wind energy,” highlighted Dr. Tragl.
Bosch Rexroth AG is one of the world’s leading specialists in the field of drive and control technologies. Under the Rexroth brand name, the company supplies more than 500,000 customers with tailored solutions for driving, controlling, and moving. Bosch Rexroth is a partner for Mobile Applications, Machinery Applications and Engineering, Factory Automation and Renewable Energies. The company provides customized solutions tailored to the needs and specifications of each individual market. As The Drive & Control Company, Bosch Rexroth develops, produces, and sells components and systems in over 80 countries. As part of the Bosch Group, Bosch Rexroth and its 34,900 associates generated approximately 5.1 billion euros in revenue ($6.8 billion) in 2010.
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 285,000 associates generated sales of 47.3 billion euros ($62.7 billion) in fiscal 2010. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent 3.8 billion euros (approximately $5 billion) for research and development in 2010, and applied for over 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. Bosch is celebrating its 125th anniversary in 2011.