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Economic downturn forces industry to be resilient

Economic downturn forces industry to be resilient

Articles

Since the beginning of 2019, the injection moulding machine manufacturer DESMA has already been experiencing the economic downturn, especially in the automotive industry, at increasing intensity and pace. For this reason, and additionally increased by the effects of the corona crisis, DESMA will cut 48 of the 281 jobs at its Fridingen location during the rest of this year. Of these, 16 jobs will be cut due to natural fluctuation.

csm Bild 2 DESMA Spritzgiessmaschine im Technikum

The establishment of a transfer company financed by DESMA for further qualification and outplacement enables the 32 employees to separate from DESMA in a socially acceptable way, especially in these difficult times. This measure is part of the "Resilience" project meant to reorganise the company and complements the short-time working, which has already been ongoing since last September, the voluntary salary waiver of all executives and the extensive process cost optimization measures initiated.

While preparing and implementing this personnel adjustment the company prudently and responsibly keeps a close eye on the future, not only for those employees who continue to be employed, but equally for those who have been participating in the company’s growth so far and are now leaving. DESMA is also continuing the significant investment in the SAP project for the standardization of the business processes encompassing the 5 international locations’, reported Managing Director Martin Schürmann on the occasion of the works meeting already held on 11 May via internet conference. His colleague, Dr. Harald Zebedin, in charge of technology, added that the focus of development is on new products that are currently being built to secure the future of the company.

The DESMA company group operating at 5 international locations will, according to corporate planning, employ a staff of 517 worldwide at the end of the year, 233 of them in Fridingen. Due to the current situation, the company is unable to make a sales forecast for the current fiscal year. DESMA is the market leader in the production of injection moulding machines used for the manufacture of demanding technical silicone and rubber articles used, for example, in the automotive, electrical and medical engineering industries.

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