Markus Schnyder, the long-standing COO of Mikron Switzerland AG, Division Tool, has passed on the baton to Elio Lupica. In recent years, Mikron Tool has enjoyed an exceptional market performance. In the interview, Elio Lupica appears highly optimistic for 2023.
Congratulations on your new role, Mr Lupica. Your company achieved another record year in 2022. Can we expect great changes from your management?
Markus Schnyder and I have been working side by side for more than 15 years. With him as the COO and me as his deputy together with our outstanding team, we shaped the reality of Mikron Tool.
Our company is characterised by a solid innovative spirit. This includes constant investments in the latest technologies for production and product development. We have a tremendous commitment to quality and are always looking to top our high standards. This way, we guarantee our customers continuous performance improvement with our products.
With respect to our market strategy, we make every effort to expand into future markets. I will continue to pursue this course with the involvement of the entire Mikron Tool team. It is tremendously encouraging that our future-oriented new developments are already bearing fruit.
Nevertheless, your company continues to face the current challenges. How are you handling these?
I believe that the biggest challenge for the mechanical engineering and metalworking industries in the coming years will be in the automotive industry. It is still unpredictable because of the transition from the combustion engine to electric vehicles with negative volume trends – regarding machined parts – and high price pressure.
How is Mikron Tool responding to this?
In 2008, we had to deal with the automotive industry’s greatest crisis. At that time, our product portfolio was oriented towards the machining of steel components, which are the preferred choice in the automotive industry. We quickly realised that we needed decrease our dependence on this industry to avoid jeopardising stability and job security.
Has that been successful?
Yes, absolutely. We responded with new ideas. Finding new markets became out leitmotiv. In a stroke of genius, Mikron Tool turned to processing materials that are difficult to machine: “super materials” such as stainless and heat-resistant steels, super alloys, titanium, and cobalt-chromium alloys. The big advantage was that the competition in high-performance tools for very small machining operations was still in its early stage. We have also become more internationally oriented and have begun to tap into high-tech countries such as China and the US, where heat-resistant materials and stainless steels are gaining ground. This because the aerospace market was much more pronounced in the US than in Europe. Furthermore, stainless steel has prevailed in many industries thanks to its outstanding properties. This trend has also reached Europe. The decision to diversify our product range opened completely new outlets, including in the “future markets”.
Before we address the future markets in more detail, to what extent have the geopolitical situation and the pandemic affected your company?
During the pandemic, it was a huge advantage to have globally four locations. The COVID policies of Switzerland, Germany, the US, and China differed greatly. When we suffered sales losses in one country because of the restrictions imposed, we were able to compensate for this in the other markets. Another advantage was our two production facilities: one in Switzerland and one in Germany. This meant that we were never really at risk of a total production shut-down in the event of a lock-down and stayed always able to meet our customers’ needs. In the end, we managed to achieve growth even in this difficult period. 2022 was really our best year since the foundation of the company.
As far as the geopolitical situation is concerned, we are affected by its indirect consequences such as inflation, rising prices, and the energy shortage. In the latter, energy-saving measures or the use of renewable energies are taking effect. At the Agno facility, we use a state-of-the-art mixing plant to recover heat from production and therefore no longer consume any fossil fuels. And we save 370,000 kWh a year thanks to a new refrigeration system.
In order to counteract the rising costs of materials or services, we needed sustainable measures that increase productivity and optimise processes. To this end, we can invest in new technologies and software. In times of rising prices and currency instability, it is sensible to push ahead with the necessary investments in this direction.
What influence do the most important industry trends have on your company’s strategy? What are your future markets?
One important theme is medical technology market. The growing and ageing population has led to an increased demand for medical devices. The application areas that are relevant to us are orthopaedic bone plates and screws, implants, and surgical instruments.
Another important trend is miniaturisation. It takes the conventional materials to their limits. The more future-oriented the industry, the more it needs the corresponding materials. A reduction in the weight and mass of products and an increase in their mechanical, thermal, and chemical loads lead to the use of high-performance materials.
This is what gives our company its position as a solution provider for sophisticated materials of the kind used in medical and dental technology as well as in the aerospace industry. The energy sector, the food industry, and the watch-making industry are, for the same reasons, also important growing markets. Not to forget the electric/electronic industry, which must deal with lead-free brass.
