1. Regional Platform
„Industrial Services in Mechanical Engineering“
Stuttgart Region
Oliver Reichert
Platform Industrial Services
Stuttgart Region Economic Development Corporation
TRES Project Meeting
Stuttgart, 19.11.2013

2. The Stuttgart Region

3. The Region – Mixed Facts and Figures
„ Population: 2.7 million from 170 countries
„ Area: 3,654 km²
„ Municipalities: 179
„ People in employment: 1.5 million
„ Members of the Regional Assembly: 91
„ Hours of sunshine: 1814 per year
„ Wine production per year: 42 million litres
„ Spa water per day: 40 million litres
„ Michelin stars: 14
„ Historic palaces and castles: 68

4. Economic Data of the Stuttgart Region
„ ~160.000 registered companies
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Gross domestic product: 103 billion Euro
Overseas Sales (manufacturing): ~ 60 %
Unemployment rate: 4.3% (May 2013)
Extremely high research-density and -intensity
R&D expenditure by the private sector: ~7 % of
the GDP!
„ Most important industries: Automotive,
Production Technology/Mechanical Engineering,
Electrical, IT, Media, B2B Services.
„ Headquarter of corporate groups such as Daimler,
Porsche, Bosch, Festo, Trumpf, Mahle, Dürr, Stihl,
Kärcher, Celesio, EY, etc.

5. Industry as a backbone of the regional Economy
Region Stuttgart
39,4%
Baden-Württemberg
38,6%
Region Mailand
32,8%
Region Barcelona
31,9%
Deutschland
29,8%
Region Düsseldorf-Ruhrgebiet
28,4%
Region Prag
Region Birmingham
Region München
25,8%
23,3%
22,6%
Region Frankfurt
20,5%
Region Hamburg
20,3%
Region Wien
20,0%
Share of industry
as part of the total
GDP in different
regions 2008
Source: Statistisches
Landesamt BadenWürttemberg

6. Mechanical Engineering in the Stuttgart Region
Characteristics and Historical Development
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Very early automotive industry: Daimler, Porsche, Bosch
•
Metal-working industry and mechanical engineering
developed in accordance to automotive industry
 production technology for automotive sector
 Mechanical engineering cluster as part of a larger
cluster of production technology industry
•
Especially family-owned business
 Characteristic for industry until today
 Very close relations within the dense network of
automotive and metal-working industries and
mechanical engineering
•
Very creative and innovative companies
 Many breakthrough inventions like drilling
machine (1895), copier (1948), disc laser (1992)…

7. Mechanical Engineering in the Stuttgart Region
Cluster Mechanical Engineering - Companies
•
Industrial landscape dominated by SME
•
SME especially strong in niche markets and customerordered individual solutions
 Focus on high-tech solutions
 Premium segments
•
Most important customers: mainly automotive industry,
but also aerospace industry, consumer goods industry,
medical technology
•
Most important products:
machine tools
assembly machines & automation technology
process technology
packaging machines
drive systems and components
printing machines

8. Mechanical Engineering in the Stuttgart Region
Cluster Mechanical Engineering - Companies
•
2012: 346 companies (>20 employees)
•
Turnover 2012: 21.3 bn €
 23 % of total Turnover of manufacturing industries
 9.5% of German Mechanical Engineering Industry
•
Employment: 70,000
 21.9% of total employment in manufacturing
industries
 7% of German Mechanical Engineering
employment
•
Export quota: 63.2 % (individual up to 90%)
•
Most important target markets:
largest share: Europe
Largest single market: China
Highest growth rate: Asia (without Japan), Russia,
South America

9. Mechanical Engineering in the Stuttgart Region
Cluster Mechanical Engineering – Research & Education
•
Stuttgart Region: European leader in patent statistics
•
Strong network of universities & research institutions
•
University of Stuttgart: 2nd largest department for
mechanical engineering in Germany; 2 faculties with 35
specialised institutes
•
Esslingen University: Faculty of Mechanical Engineering,
Faculty of Mechatronics
•
Fraunhofer Institute for Manufacturing Engineering &
Automation (IPA)
•
Institute for Micro Assembly Technology of the HahnSchickard-Gesellschaft e.V. (HSG-IMAT)
•
Institute for Microelectronics Stuttgart (IMS-CHIPS)
•
Institute for Textile Technology and Process
Engineering Denkendorf – departments fabric &
structure technologies, modern production techn.
•
…

10. Regional Mechanical and
Electrical Engineering Cluster

11. The Stuttgart Region Economic Development
Corporation (WRS)
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Founded 1995 as a GmbH („Ltd.“)
Major shareholder “Verband Region Stuttgart”
50 full-time employees
Branch subsidiaries
Operational Budget: ~8.5 million Euro
Tasks:
1. Support for Investors
2. Location Marketing
3. Innovation and Cluster Policy

12. The Stuttgart Region Economic Development
Corporation (WRS)
Cluster Mechanical Engineering – Initiatives & Networks
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Technology Transfer
Platform Industrial Services
Studies
Trade Fairs
Innovation Financing Guide
MANUFUTURE-BW
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Competence and Innovation Centres:
Mechatronics BW
Packaging Excellence Center
Virtual Dimension Center
Cleaning Excellence Center

13. Industrial Services
Importance for Mechanical Engineering Industry
Standardisation of
products / machines
Market pressure,
decreasing
market prices
Shrinkage of
Product lifecycles
Decreasing returns
on machine sales
Potentials of Industrial Services
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New business opportunities and markets, high margins
Differentiation in global competition
Leaving downward tendencies in price competition
Balancing market cycles in investment goods industry
Customer satisfaction and customer loyalty

14. Regional Platform Industrial Services
Industrial Services in Mechanical Engineering
Platform for small and medium-sized enterprises
of the mechanical engineering industry of Stuttgart Region;
objectives:
• Information & Transparency
• Dialogue & Communication
• Networking between most important
stakeholders
Trends, Best Practice,
methods, processes,
research topics et al.
Exchange of experience
between SME,
Transfer of knowledge
& know-how
Experts from industry &
academia, further
stakeholders, e.g. advanced
training providers

15. Regional Platform Industrial Services
Build-Up Phase
• Start: Summer 2009
• Interviews
with decision makers of selected mechanical
engineering companies (Subject: business
development and influence of service
business)
Bild: Bosch Einspritzpumpentechnik
• Regional survey 2009
on current status and challenges in the
service business of the region‘s
manufacturing industry
Bild: Schuler-Mitarbeiter im Service-Einsatz

16. Regional Platform Industrial Services
Survey – Service in Mechanical Engineering Stuttgart Region (2009)
On customer request only
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75 % of companies plan to extend their
service business
Investments into new business fields in the
service business
Partially systematic development
Target: exploit the full business potential of
„installed base“
Systematic Service Engineering
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0% 10% 20% 30% 40% 50% 60% 70% 80%
… but only 15% of participating companies
follow a systematic innovation management
in their service business (service engineering)

17. Regional Platform Industrial Services
Services and projects
• Regional Dialogue – product related services in
mechanical engineering
• Regional Industry Circle – Industrial Services in
Mechanical Engineering
• Competence Team „Service in the packaging
machine industry“ , managed by Packaging
Excellence Center (PEC), Waiblingen
• Research project „Productivity of knowledge
intensive product related services in the
investment goods industry“ (BMBF-AESTIMO)
• General Networking in the mechanical
engineering industry Stuttgart Region

18. Regional Platform Industrial Services
Events / networking meetings
• Regional Dialogue
Designed as a central get-together for the whole branch
(2 / year)
Focussing on decision makers in the service units of ME
companies
Open to the whole ME branch in the region
Methods, Know-how, Best Practices
Exchange of experience & Dialogue
• Industry Circle
Designed as a meeting for a closed network (1/year)
Focussing on decision makers of well-known pioneers in
the service business
Exchange of knowledge and experience on a high level
host: one of the network members
Open dialogue and personal contacts

19. Regional Platform Industrial Services
Research project AESTIMO
How many companies offer the following Pre-Sales-Services
(n=41)
98%
100%
90%
85%
80%
70%
60%
63%
51%
50%
40%
30%
20%
10%
10%
0%
Bedarfsanalyse
Needs analysis
Technische Beratung
Technical
Consultance
Machbarkeitsstudien
Feasibility
Analysis
Planung und
Planning,
Projektierung
Calculation
Weitere Pre-Sales
Other

20. Regional Platform Industrial Services
Research project AESTIMO
How many companies offer the following Services in the
sales phase (n=41)
100%
90%
90%
80%
78%
73%
70%
61%
60%
50%
37%
40%
30%
20%
10%
0%
Engineering /
Systems
integration
Transport
assembly
On-site
setting up
Financing

21. Regional Platform Industrial Services
Research project AESTIMO
How many companies offer the following After-Sales services? (n=41)
100%
90%
90%
90%
85%
85%
80%
73%
68%
70%
60%
49%
50%
39%
40%
30%
20%
10%
10%
Other
Withdrawal,
recycling,
disposal
Optimization
of processes
and Costs
Remote
diagnosis
Service
Hotline
Updates
Training
Spare Parts
Maintenance,
Overhaul,
Repair
0%

22. Regional Platform
Industrial Services in Mechanical Engineering
Bild: FESTO AG
Stuttgart Region Economic Development Corporation
Oliver Reichert
Platform Industrial Services
Regional Development Department II
Phone: +49 711 228 35 -872
oliver.reichert@region-stuttgart.de