The Pfleiderer Group is starting 2017 with a great deal of momentum, a new structure and a new collection. We talk to the CEO , Michael Wolff, about the current optimistic mood and the plans for the future. interview: Guido Klinker photos: www.thomastratnik.de
Mr Wolff, a lot has happened at Pfleiderer since the last BAU trade fair in Munich. As 2017 begins, you are presenting a new organisation and a new collection, along with a whole host of ‘Inspirations close to you’. What are the innovations that you are presenting to your clients and partners? Wolff: BAU is one of the three large international trade fairs taking place this year at which we will be presenting a completely new range of Pfleiderer colours and designs. For the first time, we will be presenting a global collection that is the same across the whole company. With our eleven schemes, our clients are sure to be inspired by the wide range of solutions we are offering.
The new collection is an outward sign of our great enthusiasm for trends and the future. At the same time, the collection marks the end of a phase of restructuring the company. What were the milestones in the years preceding the emergence of the new Pfleiderer in 2017? Wolff: We are one of the leading providers of wood-based materials in Germany, Poland and Central Europe but previously we had two separate organisational entities. In the last two years, we have been working hard to merge these entities and thus to form an integrated company. This has included creating a central organisation, merging processes, setting up an integrated SAP system and establishing a new legal structure.
The new collection is an inward and an outward statement that there is now only ONE Pfleiderer on the market.
How do your clients and business partners benefit from this internal restructuring? Wolff: As the Pfleiderer Group, our performance capacity is significantly higher. We offer one single collection that includes all of the products we produce at our various factories. This means that all over the world, our clients can order any product from any factory to any specification. As a result, the whole range of our products can be accessed from one provider.
With these developments, how would you describe Pfleiderer’s position on the market? Wolff: With our current market position, we are exactly where we had hoped to be. We are a design-oriented premium supplier. We are a supplier of interior construction solutions yet at the same time, we are the go-to contact in the high-quality sector – we are consulted by architects during the planning phase of their projects. All of this is evident in the new collection, which allows us to offer genuine added value. This is a position that we will continue to strengthen.
I think that our current appearance – the integrated nature of the collection and the way we are thinking, presenting and living in terms of colour worlds, spaces and areas of application – is a huge step forward when compared to our previous market image.
Products are one part of what your company offers. The services offered are just as important. What have you changed in this area? Wolff: We make a clear promise to our clients: We will stick to the agreed order turnaround times and delivery times. This is of the utmost importance. In addition to this, we are making a wide range of the products in the new collection available at short notice because we have them on stock. At our factory in Leutkirch, we have the advantage of manufacturing in lot sizes of one – any core material with any surface in any colour. This allows us to offer a high degree of customisation.
„The new collection is an inward and an outward statement that there is now only ONE Pfleiderer on the market.”
Michael Wolff
With these developments, how would you describe Pfleiderer’s position on the market? Wolff: With our current market position, we are exactly where we had hoped to be. We are a design-oriented premium supplier. We are a supplier of interior construction solutions yet at the same time, we are the go-to contact in the high-quality sector – we are consulted by architects during the planning phase of their projects. All of this is evident in the new collection, which allows us to offer genuine added value. This is a position that we will continue to strengthen.
I think that our current appearance – the integrated nature of the collection and the way we are thinking, presenting and living in terms of colour worlds, spaces and areas of application – is a huge step forward when compared to our previous market image.
Products are one part of what your company offers. The services offered are just as important. What have you changed in this area? Wolff: We make a clear promise to our clients: We will stick to the agreed order turnaround times and delivery times. This is of the utmost importance. In addition to this, we are making a wide range of the products in the new collection available at short notice because we have them on stock. At our factory in Leutkirch, we have the advantage of manufacturing in lot sizes of one – any core material with any surface in any colour. This allows us to offer a high degree of customisation.
Following a phase of consolidation and restructuring, you have announced a clear growth trajectory for Pfleiderer. In which areas do you hope and expect to see growth? Wolff: We will definitely see continued growth in our core business – within trade, interior construction, the construction industry and the furniture industry in our core markets of Germany, Poland and Central Europe. We also see potential in the bordering countries. We have already made investments in England and France. We are developing quickly in Italy and we recently opened a sales office in Romania. Internationalisation, with a focus on Europe, is a key growth area.
Are you also considering new production sites in those locations? Wolff: To begin with we are talking about sales offices. But I don’t want to rule out the possibility of adding production capacity in these locations in the medium term. More than ever before, this era is being shaped by transformation and changes in markets and society.
How do you deal with external changes and how is this reflected in terms of strategy? Wolff: This is a very important issue. We focused on it intensively last year as part of a strategic process. On the one hand, we consider that we will be in a very positive environment within the construction industry, solely due to the current interest rate situation – the markets are flooded with capital and they are likely to remain in this state for the foreseeable future. Investment in property will therefore increase.
Michael Wolff (56) is the CEO of the publicly listed company Pfleiderer Group S.A. In this role he takes responsibility for business strategy, business communications, HR, revision and quality management. He is also the Chairman of the Supervisory Board of Pfleiderer Deutschland GmbH.
Before he joined Pfleiderer, the qualified industrial engineer held numerous management positions, including roles at Freetime Group Germany GmbH, Rodenstock GmbH, Villeroy & Boch AG and Glunz AG.
Michael Wolff is married and has three children.
Are there any other important trends? Wolff: Another important trend relates to our material: wood. This sustainable material, which regrows quickly, binds CO2 and makes an active contribution to protecting the environment. This will accelerate the use of wood for construction. Timber frame construction is already used for 16 percent of newly built housing. This market is currently growing by 30 percent each year. The resulting sustainability impact is also being recognised by politics. In the future, this will lead to improvements being made to the framework conditions for the use of wood.
With this in mind, in the coming years we will be investing in customisation, surface materials and excellent designs for the markets within which we operate. We will also be making investments relating to sustainability.
Nowadays, everyone is talking about Industry 4.0. What are its implications for your company? Wolff: The first step is to define what Industry 4.0 actually is. I have spent a lot of time focusing on this topic, which included taking part in a round table discussion with top-level participants about this subject. The conclusion was that everyone has their own interpretation of what Industry 4.0 is. In my view, it is in part about the digitisation of the world and the constant availability of data, which is now accessible at an unprecedented speed.
The importance of this development for us is that we can optimise the machines at our production sites. For example, sensors can inform us at an early stage if the temperature of a machine is too high, or if we need to replace a bearing. This reduces down time.
Industry 4.0 is also about networking. Wolff: That’s right. From our perspective, this means that there will be increased networking between industry and its clients. But this is nothing new really. What I find interesting here is actually the usability of new technologies, which is sometimes confused with networking. Here is an example: By using a 3D printer to produce components, we can manufacture replacement parts.
This will result in changes to the online turnover. End users are increasingly presented with online offers that allow them to plan projects themselves in a way that is convenient, customisable and precise. The products are then custom-made in the workshops and installed at the client’s location. In this way, the end user becomes a more independent part of the planning process. Yet we will still be the ones delivering the panels. This means that although the product and the consumer will not change, the journey between them most definitely will. In short, I do not think the production of particleboard will change substantially as a result of Industry 4.0.
