WP 1405216

German} 's midsize companies have a lot to teach thc world. Although the term ‘midsize’ is sottnetimes applied to qutte smali tirms. the most interesting ones are rather bigger and «*ward-k>aking. 90% of them operate in the business-to-business market and 70% are based is the country side.

k ........Dórma makes doors and all things door-related. Tema specializes in castors for

hospical fceds. Rational makes ovens for professional kitchens. This strateg}’ helps them avoid head-to-head competition with global giants. It has also helped them esccel ax what they do.

c .......They have spent the past 30 years woiking ąuietly but telentlessly to tum their

daminatian of German market niches into domination of global ones. They have provided Hm with its machine-tools. they have grasped oppommities in eastem Europę and Russia. The midsized companies dominate the global market in an astonishing rangę of areas: printing presses I Koenig & Bauer), license piates (Utsch). shaving brushes (Muli), high-pressure cJeaners iKarchner). industńai chains (RUD).

Ł .........Emerging -world companies wili Ieam to produce their o wn clever machines at a

fracuoo of the cosL They also woiry that German midsize companies are tóo conser\ative. American start-ups can become global giants soon wtulę German companies are content to n imih relaUveiy smali.

«. „____They have thrown their energtes into building morę powerfii) defences. They

coosuatiy ioaovatc to stay ahead of potendal ri vals. They me relcntkss about customer lence. Their saicspcople are passionate about their products. These firms have subsidiaries in 24 fcretgn countrics. offering śemce and advice. Ali in all. the record of the German midsize coaapames over the past three decades has been a history of global conąuest rather than missed •pparaaśńc*.