On course for growth in niche markets

Mr Sonderegger, your company is perceived as a "hidden champion" in Switzerland. Why is that?
Our products are used, among other things, in engine development and monitoring as well as vehicle technology. The automotive industry is one of Kistler's most important markets. Foreign sales markets are therefore highly relevant to us: 98 percent of the products manufactured at our headquarters in Winterthur are exported. The increased development work requires a high number of qualified employees. In Switzerland, we therefore position ourselves first and foremost as an employer that seeks out talent and specialists and offers them opportunities for development. We maintain close contacts with universities and colleges and offer internships. Our relationship with the ETH is part of our company history, but also has a personal aspect: the president of the university is a member of the Board of Directors of the Kistler Group.

Kistler is the "world market leader in dynamic measurement technology for the acquisition of pressure, force, torque and acceleration" ...
Yes, Kistler measures extremely fast processes - and does so in a highly competitive international environment. Our business model is not primarily focused on products, but on solutions for specific applications on the market. We therefore encounter international competitors not in the overall market, but in the individual application fields. Our strategy is characterized by a focus on various niche markets. Our comprehensive portfolio is used in areas such as engine development and monitoring, automotive technology, plastics and metal processing, assembly technology and biomechanics.

"Advantage through innovation" is your motto ...
Each year, around six new fields of application are tested for their suitability for Kistler. We invest in market entry depending on the opportunities and growth potential. Our "Innovation Machine" is based on a guided and structured process, which is supported in the course of the year by clearly defined
"Gates" through.

Here are three examples:

- A few years ago, Kistler developed the new business field of dynamic axle load weighing "Weigh in Motion" on the basis of piezoelectric measuring technology. We launched completely new products on the market that are much easier to use (insertion into the road) and significantly cheaper than existing products. This was very quickly successful.

- Kistler's technology is also at home in Formula 1: cylinder pressure measurements ensure that the driver has maximum engine power available at all times.

- And an example from the "bio-mechanical applications" market niche: Kistler's highly sensitive starting blocks for sprinters and top swimmers are used in top-level sport.

How do you plan company acquisitions?
Last year, we exceeded the 2000-employee mark. With the acquisitions made in 2018 - LIK Mechanical and Electrical Technology Co., Ltd. in Shanghai and SMETEC Gesellschaft für Sensor-, Motor- und Energietechnik mbH - Kistler has strategically expanded its own market position, particularly in optical metrology and automated manufacturing. Together with our M & A department, we define the strategy and search fields for future acquisitions. Our experts constantly monitor the market and maintain close contacts. In recent years, we have been able to acquire 13 companies in this way. All of them have developed positively. As we have a self-financing ratio of over 80 percent and substantial cash resources, we finance the transactions ourselves.

They say cutting-edge technology requires "not only excellence along the entire measurement chain, but also a commitment to quality" ...
Exactly. We can keep this promise at the highest level worldwide because we have the entire value chain, including distribution, in our own hands. We work practically without external distributors. Our own people ensure that the products are competently offered on the market.

What is your experience with the management system?
The market dictates new certifications time and again. We have to comply with these requirements. The SQS-certified management system works well, as does the cooperation with the auditors. As CEO, I am personally present at the audits.

"Digital transformation is a top priority," is another of Kistler's guiding principles ...
In terms of our product strategy, we have been active in this field for many years. Industry 4.0, as part of digitization, aims to automate the entire industrial value chain. Because we measure in the process, we can use the signal to control this process, the machine or the entire plant. We understand digitalization as a concept, less as an individual project.

Where are you heading into the future?
My father was a co-founder of the company. As an economist and CEO for 17 years, I also pay attention to continuous development. This is what shapes our company history. Until 2001, we were a classic component manufacturer. In 2003, high production costs and currency dependencies prompted us to change our business model and position ourselves as a systems manufacturer. In 2011, with "Kistler Next", we took the development step as a provider of customer-specific solutions with the aim of achieving sales of 500 million Swiss francs. The new organizational structure according to divisions and applications was introduced. Kistler is involved in the automotive industry, research and development, and production monitoring. We have around 14 000 active customers worldwide. The product portfolio is being continuously expanded in order to generate additional customer benefits. We are currently transforming ourselves once again by increasingly offering services in addition to solutions.