Stuttgart Bertram Kandziora generally does not tend to be exuberant. “The five billion are within reach,” says the Stihl boss almost without emotion, assessing his counterpart and then smiling slightly mischievously. The soberly presented sales figure is a sensation.
Seldom before has a non-family manager set such a brilliant final chord as the 65-year-old did in the two corona years at the end of his career. In 2019, the manufacturer of forest and garden equipment still had sales of 3.9 billion euros; in 2020 it was 4.5 billion. That corresponds to 25 percent growth within just 24 months.
“That was a team effort,” says Kandziora, albeit with him in a crucial position. At the beginning of the pandemic last year, the engineer did not throttle production, but filled the warehouse to the edge of the roof. With the investment, Kandziora had boldly bet that the ability to deliver would become the decisive success factor.
He takes a close look at the numbers, says Kandziora, but in the end, “in this special situation, his gut instinct” made him take the step. And he immediately puts that into perspective with courage: “You have to be able to afford it.” Stihl has an equity ratio of 70 percent. The family company does not generally provide any information on profits.
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Stihl achieved sales records, although the scarcity of raw materials, a lack of production capacities at suppliers and Stihl itself, as well as limited transport capacities led to considerable disruptions in the supply chains.
Stihl continues to work on Sunday shifts
Without these restrictions, Stihl would have been able to sell a million more engines or devices – the current gap is still that great. Given the record numbers, that’s a luxury problem. The Swabians work on Sunday shifts until further notice; around 100 million euros were invested in additional production capacities.
Since the beginning of the pandemic, the demand for gardening and forestry equipment has been booming, as people were able to travel significantly less and turned to projects in their gardens, among other things. In addition, professional customers working outdoors – landscapers, foresters and road maintenance companies – were largely spared from Corona restrictions. Kandziora was right: The demand for gardening and forestry equipment rose by double digits.
The manager turned out to be a stroke of luck for the Stihl family after the first attempt with an external manager failed after a few months. The engineer, who received his doctorate in Karlsruhe, moved from the automotive supplier Bosch to Stihl in Waiblingen in 2002. After the owner family withdrew, he has been running the chainsaw and power tool manufacturer since 2003.
During his tenure, total sales tripled, and the number of employees rose from 7,000 to around 20,000. “I am delighted to have made my contribution,” says Kandziora in all modesty in a company in which the personally liable partner Hans Peter Stihl still has the very last word at the age of 89 and where his son Nikolas Stihl as head of the advisory board defines the strategy.
Kandziora obviously got along well with this constellation. Humility alone is not enough. “Values and procedures have to fit between the external manager and the owner. Then trust arises, ”says Kandziora. “And that is what you need for difficult decisions.” It is also important how you deal with people.
Certain things also take time. “You can’t hit the wall with your head,” the Stihl boss sums up. But he’s not the type either. Based on facts, his decisions are not only comprehensible for the owner.
“We sometimes even fly steel to the USA”
But there are also problems with the Swabian model company that require an unconventional approach. In the meantime, Stihl is also struggling with considerable bottlenecks, despite the generous storage capacity. This applies to steel, plastic granulate and electronic components, for example.
This leads to previously unthinkable methods. “We even fly some steel to the USA,” says Kandziora. What is meant is the steel strip used to manufacture the guide rails on which the chains of the saws run. Machines have also been chartered to distribute the carburetors. “During the pandemic, we learned that the country risks are greater than expected,” admits the Stihl boss. “It is clear that you should always have at least two suppliers for a part. What’s new is that the two shouldn’t come from the same country. “
Due to the pandemic, there were also problems with the battery cell supply. This is also a neuralgic point, because the demand for the significantly quieter cordless tools is booming. Every fifth machine is now running on a battery, and next year it should be every fourth machine.
The demand for the much quieter devices is booming.
(Photo: dpa)
What is less well known: Stihl is experiencing a special boom due to the pandemic-related e-bike boom: In its magnesium die-casting plant in Weinsheim, Rhineland-Palatinate, Stihl produces particularly light housing parts for e-bike drives and supplies them to companies in the bicycle industry. Kandziora anticipates an increase in the volume of orders. The capacities have already been expanded.
Successor Michael Traub also comes from Bosch
The fact that market leader Bosch is one of the customers is an open secret in the industry. Despite the size differences, both companies are on friendly terms. Bosch’s supervisory board chairman, Franz Fehrenbach, also sits on the Stihl advisory board. Kandziora’s successor Michael Traub, 52, also comes from Bosch Siemens Hausgeräte.
Kandziora emphasizes that he can judge his performance there very well. Both managers have known each other for a long time. Traub not only has extensive experience in leading large business units on different continents, but also in product and sales topics, IT, smart solutions and in the start-up world.
“Mr. Traub fits perfectly into the new organization,” says Kandziora after two of the three months of training are over. The newcomer can concentrate fully on the topics of strategy and digitization. By contrast, Kandziora was also responsible for production for years. Martin Schwarz took over the role as a new board member at the beginning of 2020. The official handover will take place on February 1, 2022.
Kandziora will, however, make a clear cut and not switch to the advisory board. Nikolas Stihl has been chaired by a family member with extensive operational experience in the company for nine years.
In any case, the departing Stihl boss wants to enjoy his new freedom, preferably without boundaries above the clouds. He got his pilot’s license at Stuttgart Airport last year. So far he was only allowed to fly by sight. Now the license for instrument flight is to be added. There is already an indication of future travel destinations. He is learning spanish right now.
More: Stihl has again brought in an ex-Bosch manager as CEO