The Impact of the World Economic Crisis in Europe and the Strategy of Industry |
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| Dipl. Wirt. Ing. Thomas Bongard |
President of Bongard Group
Advisory board Barme GmbH
Assistant of business management company ACS RI
USA |
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| Prof. Dr.-Ing. Thomas Reiner |
President of SIEBE Engineering GmbH
Past-President of LEONI CABLES
Vice-President of German Industrial Research Association
Professor of Corporate Management at the Technical University Aachen |
Overview
• Crisis: Reasons and Numbers
• Analysis of Crisis
• Impact on German Economy
• Strategy of Survival
• Development of Industrial Markets
• Solutions for Wire and Cable Industry
Crisis Reasons
| • Credit financing of oversized lifestyle |
| • USA: |
GDP 9.795 bn € |
TBD –755 bn € |
| • EU: |
GDP 9.810 bn € |
TBD –110 bn € |
| • D: |
GDP 2.030 bn € |
TBD +102 bn € |
| • Russia: |
GDP 1.310 bn € |
TBD +113 bn € |
| • China: |
GDP 7.660 bn € |
TBD +260 bn € |
| • WORLD: |
GDP 49.500 bn€ |
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Crisis Reasons
| • US mortgage volume |
: 8.000 bn € |
| • US high-risk mortgage |
: 4.000 bn € |
| • world wide trading of subprime bonds |
| • nobody knows the exact risk of TOXIC papers |
Crisis of world banking system
450.000.000.000.000 €
WORLD TRADE VOLUME OF BONDS
Crisis Reasons
World Banking Crisis
• Confidence crisis (interbank business)
• Credit crisis (liquidity shortage)
• Industrial crisis (Investment delay, job cutting)
• Consumer crisis (psychology)
Analysis of Crisis
• Financial Crisis
• Liquidity
• Equity
• Leverage
• Structural Crisis
• Products
• Management
• Global Sales Market Crisis
• consumer fears (psychological)
• less expenditure (consumer, investment)
Impact on Germany
| • GDP 2008 |
(+1,3%) |
2.235 bn € |
| • GDP 2009 estimated |
(-6,5%) |
2.090 bn€ |
| INDUSTRY |
TURNOVER |
EMPLOYEES |
IMPACT |
| Automotive |
337 bn € |
780.000 |
 |
| Consumer |
329 bn € |
1.120.000 |
 |
| Machinery |
219 bn € |
925.000 |
 |
| Electrics |
198 bn € |
770.000 |
 |
| Chemicals |
174 bn € |
417.000 |
 |
| Steel |
106 bn € |
248.000 |
 |
| Construction |
82 bn € |
720.000 |
 |
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Strategy of Survival



Strategy of Survival
• New Products
• Modernizing Production
• Cost Cutting
• Shutdown and Translocation
• Government Funds
• Innovations
Development of Cable Markets
• Automotive Industry
• Energy Industry
• Telecom Industry
• Transport Infrastructure
Automotive Industry
• 2007 55,48 mio cars worldwide
• 2009 50,40 mio cars worldwide
Technology change (Hybrid, Electric....)
• 2007 1,5 km cable/car
• 2012 1,8 km cable/car
• 2020 1 mio Electric Cars in Germany
Energy Industry
• growing infrastructure
• replacement of infrastructure
Technology Trend (water, wind, sun)
• G20 package 830 bn €
• Ca. 330 bn € for Green Energy
Telecom Industry
• Telecom Network growing
• LAN /FTTx growing
GSM - Internet fast growing
• 2008 200-300 mio people
• 2013 2.400 mio people
• Investment 420 bn € by Telecoms committed at G20 by GSM Association
Transport Infrastructure
• Railway
• Industrial Ports
• Airports
• Road Infrastructure
• Public Buildings
G20 Package 500 bn €
Who we are??
| Technology Leader in Extrusion Lines for |
Purchase, Reconditioning and Sales of Cable Machinery |
| Communication Cables |
New and Second Hand Machinery for |
| Special Cables |
Wire Drawing (Cu, Fe) |
| Automotive Cables |
Trolley Wire |
| RF- Cables |
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Solutions by SIEBE and BONGARD
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| New Products |
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| Modernizing Production |
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| Cost Cutting |
+ |
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| Shutdown and Translocation |
- |
+ |
| Government Funds |
- |
- |
| Only with cash we cannot help!!
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