Sometimes the time is just right for a change. “Let’s say, I was open for opportunities,” says Alexander Knecht on his switch in allegiance. It’s almost a mindset not befitting the significance of themove fromTerex Demag to Tadano Faun. But, as he eludes to later, there are actuallymany similarities between the two companies, and his roles old and new.
Like so many who get in and don’t get out again, Knecht has worked in the crane industry for over 30 years. Having begun his career as a designer, various roles charted his path to board member.
“For various reasons, I had got to the point of asking myself whether it would be favourable to stay within the same company or look for a new challenge, carefully considering the fact that I still have a long time ahead of me in my career within the crane industry.”
Knecht left his previous post in July last year, sparking speculation as to where his next position would be: Cranes Today had heard he was due to join a Chinese company with an operation in Europe, for example. What grain of truth there may have initially been in these reports was lost in the rumour mill.
On his personal achievements at Terex, Knecht says, “I would rather call them achievements under my leadership. My previous team and I can certainly look back on substantial successes within different areas.” Take the “upgrade of the production
programme and extensive technical developments” as examples. “Organisational-wise, the integration of Demag Cranes into the Terex Group was certainly a milestone.”
So what challenges remain? “My major challenge presently is to support and extend the existing spirit of the Tadano Group, achieving its goal to play a more important role within the AT crane manufacturing business by combining long-term expertise, theirs and mine alike.”
One of the first things Knecht did in his new role was visit the Japanese headquarters and production facilities— he has also joined the board of Tadano in Japan as director and executive officer— where he saw the launch of the first ATF 360G-6 into the Japanese market.
Small cranes
I put it to him that Tadano Faun seems to make a lot of small cranes, which seems to be the hardest hit market.
“I would not really call cranes above 100t ‘small’. Tadano Faun has substantially increased its production programme in recent years, even more rapidly compared to other manufacturers. Particularly the ATF 160G-5 and ATF 220G-5 enjoy a first class worldwide reputation confirmed by increasing shipping numbers and market share. The same is expected of the ATF 130G-5”, having been launched earlier this year. True though, “we do wish to broaden our product range and enter the really big classes, too.”
Knecht vows to be hands-on with the product range. “Surely, that’s what we are here for: developing and selling products for the global demand. But the organisational needs are also to be taken care of, in line with intended growth and improving market share.
“I will improve, change or adjust the company’s direction as appropriate in favour of the Tadano Group. But, as a first step, I think it is important to draw a picture for myself about exactly what’s going on rather than implementing major changes right from the start. Where obvious and necessary, some amendments are already being taken care of.”
The responsibilities between roles old and new are “sometimes very similar”, he says. “Both [companies] are cosmopolitan and even though the roots are different, the top priority remains: to comply and adjust in line with the demands of our global business partners.”
Gaining new business is a further personal challenge: “Efficient management and leadership is a must anywhere. Just the areas of duties might be different.” Knecht will work in close cooperation with the board members in both Germany, where he will be predominantly based, and Japan.
“Tadano is presently the world leader among the RT manufacturers. As I’ve said, the goal is to improve our standing among the AT manufacturers worldwide, subsequently increasing the importance of the Germany-based Tadano Faun group to the whole Tadano operation. We also want to improve our market shares for RTs and other Tadano products in Europe.”
Perhaps we’ll see one of these new RTs as early as next year: Knecht says Tadano Faun is presently focusing on Bauma 2010, where it will “lift the curtain” on other developments. Could one of these developments be the Tadano RTs, or a very heavy AT?
Knecht concludes: “Unfortunately, the industry is facing difficult times, but that also represents the challenge. Froma global viewpoint, keeping the world wide demand and expectations in mind, quality and value within crane life cycles are mirrored in the resale values, demonstrated y long-term, satisfied customers.”
In the extent and speed of the latest economic hit to the industry, “it is certainly different to what the crane business has xperienced before. To recover we must adjust to the present demand in a flexible manner.” He explains: “Equalizing the production programme, evenmore carefully watching and reducing costs, avoiding unnecessary spending and improving efficiency,”are some examples of how this can be done.