Networking in the old telegraph office

Around 150 suppliers and members accepted E/D/E’s invitation and met in Berlin in mid-November for the ESH FORUM to discuss and exchange information about developments in the steel trade in Germany and Europe. The event covered general economic aspects that are currently affecting the steel trade or will affect it in the future, as well as how E/D/E partners are responding to these developments.

In the traditional halls of the former Imperial Telegraph Office in Berlin, connections were already being made and communicative exchanges were taking place at the end of the 19th century. The venue for the XIV ESH FORUM could not have been chosen more appropriately.

ESH used the premises for this year’s Steel Forum to actively network suppliers, members and the association. ESH Authorized Representative Jürgen Laukandt and co-organizer of the ESH FORUM: “As in previous years, it was important for us to provide an informative communication platform for members and supply partners.”

Presence on the European market
ESH sees itself as a partner to German SMEs. In this role, one of the association’s most important tasks is to provide the individual small and medium-sized companies under its umbrella with opportunities that they would not have on their own. Large, globally active steelworks in particular work with minimum purchase quantities that SMEs are unable or unwilling to meet (see p. 22).

The most important task of ESH is to buy goods in large quantities in bundles. Through economies of scale, members not only receive the best conditions, but also have access to markets that would otherwise be denied to them as medium-sized companies. The goods also come from all over Europe, which means that distributors receive their steel from the continent’s heavyweights and are not limited to the German market.

The steelworks are long-standing contractual partners who attach great importance to consistent trading. This has also proven to be very positive for members during the current raw material shortage (see p. 20/21). Especially in the flat products market, which was particularly affected by the shortage, ESH was able to strengthen its members with high product availability and reliable supply partnerships.

The presentations during the forum outlined the change process at E/D/E and ESH. In addition, the guests were informed about changes in the market of tomorrow and about the perception and handling of risks.

EVOLUTION implementation in full swing
Dr. Andreas Trautwein, Chairman of the E/D/E Management Board, focused his speech on developments within E/D/E. He highlighted the current status of the implementation of the strategic and organisational development process EVOLUTION, which E/D/E has been undergoing since 2016.

The core areas of change include strengthening the product areas and focusing on members and suppliers as well as shaping and establishing the Digital Services and IT business divisions. In 2020, E/D/E wants to continue to make an impact with EVOLUTION. The coming year will be dominated by the implementation of the reorganization derived from the strategy. The EVOLUTION process uses and networks all of the E/D/E Group’s knowledge in order to ensure sustainability for the benefit of its members in the long term. “We need to continue to think about our motto ‘hand in hand’, actively bring it to life and lead E/D/E safely and successfully into the future,” said Dr. Trautwein, describing the work in the buying association. The market is changing more than ever with new national and international players. The members of E/D/E need answers to the developments and trends in the market. According to Dr. Trautwein, this situation requires a change of perspective: “Change is necessary to ensure success. And change requires energy, attention and perseverance as well as the willingness to engage in a learning process. Our drive is to shape our future together.” Based on the changed structural conditions, the result will be an improved and future-proof market performance.

Unity and unity in the association
As host of the ESH FORUM, E/D/E Managing Director Peter Jüngst, who is responsible for steel, was delighted to welcome the numerous guests and began the event by once again highlighting the tasks assigned to the association. In particular, he emphasized the importance of joint action and the need to refrain from individual solutions.

In his subsequent presentation, Peter Jüngst also had clear words on the developments in the market and the necessary measures in the association. A look at the general conditions made the challenges for the near future clear. The metalworking industry, characterized in particular by the automotive sector, is under pressure.

Across all sectors, the overall economic forecast is rather subdued, not least due to the numerous political and financial challenges in the EU and eurozone. “After years of ups and downs, the normality of an economic cycle is now setting in,” says Jüngst.

Jüngst also referred to the increasing concentration in the production connection trade and named the two primary strategies in the market: size or niche. Jüngst identified various developments as the challenges facing the market: batch sizes in the steel trade are becoming smaller and smaller and at the same time distributors are increasingly becoming an active part of the value chain – they are developing into system service providers. In addition, online stores are becoming increasingly important.

Risk minimization through communication
Guest speaker Manfred Müller, Head of Flight Safety Research at Deutsche Lufthansa AG, led the guests through the world of risks and their avoidance under the title “The art of admitting mistakes – thoughts on risk management”. In a vivid presentation, the safety expert made it clear that the greatest danger of failure lies in a lack of effective communication between the parties involved. He also vividly underlined the importance of communication in a business context. Increasing digitalization and the use of new technologies will not be able to replace personal encounters. According to the security expert, risks cannot be minimized through the use of technology without smooth communication between the partners involved.

Europe ina critical sandwich position
Another guest speaker at the ESH FORUM was EU Commissioner Günther Oettinger, who brought with him impressions from over 30 years of political work. In his presentation, he emphasized Europe’s “critical sandwich position” between China and the USA. He called for a “European Plan 2050”, i.e. long-term planning “as we often find in family-run companies”.

Oettinger considers “fairness in competition and clear rules of the game” to be the basic prerequisite for functioning global trade, “and the EU Commission is the referee”. He once again made it clear that only the EU as a group can protect against being torn between the USA and China. Individual states within the EU are too small to negotiate on an equal footing and bring a position of power to the negotiating table.

Lively discussions and active exchange
The breaks during the daytime event were used by the participants for lively discussions, which were continued in the evening in the Arminiushalle. ESH Authorized Representative Jürgen Laukandt was satisfied with the forum: “We have once again fulfilled our self-imposed task of being the link between supply partners and members.” He was supported in the organization by E/D/E Marketing.

The first-time expansion of the event on the second day to include an ESH DIALOG, which was held exclusively for members at the Volkswagen Group Forum DRIVE, was also a success. The agenda included numerous workshops and presentations on various topics in PVH.

Workshops on many specific questions
Jürgen Laukandt on the new event concept: “Like the E/D/E, the ESH has also changed its perspective. The format of the event was developed from the findings. Questions about ESH and E/D/E, the tasks and challenges of day-to-day work were addressed in the workshops. And we were able to transparently explain our bonus system and take up suggestions for improvement. The program also included the presentation of new concepts for training and recruiting as well as suggestions for planning an online store. The participants also received answers to business management questions, and ETRIS BANK employees were available as sparring partners in matters of financing.

On Friday evening, the participants of the ESH DIALOGUE were invited to the roof garden restaurant in the German Bundestag. Franz Josef Fendt joined Peter Jüngst in welcoming the participants and took the opportunity to thank them for the successful event on behalf of all participating members.

Jürgen Laukandt was delighted with this successful first ESH DIALOGUE: “We have also shown here how transparently ESH acts and, together with E/D/E and the members, can shape concepts for a successful future beyond the steel trade.”

Oettinger considers “fairness in competition and clear rules of the game” to be the basic prerequisite for functioning global trade, “and the EU Commission is the referee”. He once again made it clear that only the EU as a group can protect against being torn between the USA and China. Individual states within the EU are too small to negotiate on an equal footing and bring a position of power to the negotiating table.

Lively discussions and active exchange
The breaks during the daytime event were used by the participants for lively discussions, which were continued in the evening in the Arminiushalle. ESH Authorized Representative Jürgen Laukandt was satisfied with the forum: “We have once again fulfilled our self-imposed task of being the link between supply partners and members.” He was supported in the organization by E/D/E Marketing.

The first-time expansion of the event on the second day to include an ESH DIALOG, which was held exclusively for members at the Volkswagen Group Forum DRIVE, was also a success. The agenda included numerous workshops and presentations on various topics in PVH.

Workshops on many specific questions
Jürgen Laukandt on the new event concept: “Like the E/D/E, the ESH has also changed its perspective. The format of the event was developed from the findings. Questions about ESH and E/D/E, the tasks and challenges of day-to-day work were addressed in the workshops. And we were able to transparently explain our bonus system and take up suggestions for improvement. The program also included the presentation of new concepts for training and recruiting as well as suggestions for planning an online store. The participants also received answers to business management questions, and ETRIS BANK employees were available as sparring partners in matters of financing.

On Friday evening, the participants of the ESH DIALOGUE were invited to the roof garden restaurant in the German Bundestag. Franz Josef Fendt joined Peter Jüngst in welcoming the participants and took the opportunity to thank them for the successful event on behalf of all participating members.

Jürgen Laukandt was delighted with this successful first ESH DIALOGUE: “We have also shown here how transparently ESH acts and, together with E/D/E and the members, can shape concepts for a successful future beyond the steel trade.”