Category: News

Profitability and Profit Increase through Laser Cutting in the Industry

by Ngocin News

Laser cutting is revolutionizing the industry, offering companies the opportunity to significantly increase their profitability and profit margins. Top-of-the-line laser systems are specifically designed for precise cutting, engraving, and marking of metals and non-metals. The combination of high-quality components ensures not only maximum efficiency but also remarkable precision and ease of use – a real benefit to any production facility!

Based on our many years of experience in interim management for companies in the automotive, mechanical engineering, and environmental technology industries, we can say that efficiency is the key to modern production. The right choice of laser cutting machines is crucial for securing competitive advantages. In a fast-moving industry where quality and speed must go hand in hand, a strategic approach is essential.

But we go one step further: the integration of artificial intelligence into the laser cutting process takes the performance of our machines to a new level. Intelligent algorithms not only optimize cutting parameters but also make the entire production line more efficient. This technological support leads to better results, reduces error rates, and maximizes material usage.

Overall, laser cutting systems equipped with the latest technology enable a significant increase in profitability. Companies that rely on these innovative solutions are not only able to reduce their production costs but also significantly improve their market position. Harness the potential of laser cutting and artificial intelligence to get ahead in today’s competitive environment!

Factors to consider when choosing a laser-cutting machine

Choosing a laser-cutting machine is an important decision that depends on several factors. Here are six key aspects to consider to ensure the machine meets your specific needs and provides the best value for your money.

1. Cut Quality and Accuracy

Precise, high-quality processing is paramount with a laser cutting machine. Pay attention to accuracy and cut quality, especially clean, burr-free edges, and maintain dimensional accuracy with different materials. The maximum material thickness the cutting head can handle and the ability to produce intricate designs with minimal material loss are also critical. Modern fiber lasers often offer higher precision and narrower cutting widths than CO2 lasers.

2. Material Compatibility

Lasers adapt differently to materials: CO2 lasers are excellent at cutting non-metallic materials such as wood and acrylic, while fiber lasers are ideal for metals, including reflective materials. Make sure the machine can easily process the materials you frequently work with.

3. Power and speed

The power of the laser has a direct impact on the cutting capabilities. Entry-level machines often have a power of 30W to 100W, while industrial machines can reach up to 20kW. Higher power levels allow for faster cutting speeds and the ability to cut thicker materials, which is beneficial for mid-sized manufacturers.

4. Cost Considerations

Consider the total cost of ownership, including purchase price, operating costs, expected life, and potential resale value. The price of a laser cutting machine can vary widely – from $3,000 for entry-level models to over $1 million for high-performance systems. The cost/benefit factor should be carefully weighed to maximize profitability.

5. Service and support

Reliable customer service is critical to minimizing downtime. Check the availability of service locations and the response time of support. Finally, the quality of service and the manufacturer’s reputation for service and warranties are critical to long-term use.

6. Machine customization and integration

Consider the machine’s flexibility and customization options. Modular machines that can be easily integrated into existing production processes and proven to be future-proof tend to offer greater value in the long run. Smooth integration with CAD/CAM systems and production management software can also be critical to success.

By carefully considering these factors, you can make the right decision when selecting a laser cutting machine and significantly increase the efficiency and productivity of your manufacturing processes.

AI and Automation in Laser Cutting: A look at the future

The integration of AI into laser cutting is changing not only the technology itself, but the entire manufacturing landscape. Machines are learning to adapt to different materials and working conditions. Machine learning and data analytics are being used to optimize cutting parameters such as laser power, speed and focus, resulting in improved precision and efficiency. Companies are using AI to refine their machines and identify optimal parameters for different materials. This results in faster cutting times and less material waste.

Industry benefits

  • Increased precision and quality:

 AI and automation provide more precise control over the cutting process, resulting in consistently high-quality products with lower defect rates.

  • Cost reduction:

By streamlining processes and reducing manual labor, manufacturers can reduce production costs and increase efficiency.

  • Flexibility:

AI-powered systems quickly adapt to new designs or material types, allowing manufacturers to be agile and responsive to market demands.

Example:

TRUMPF (see at Hannover Messe 2025) sets new standards with the “Cutting Assistant” In the age of digital transformation, the integration of artificial intelligence (AI) into production processes is becoming increasingly important. At the trade show, TRUMPF is proud to present its new “Cutting Assistant”, a groundbreaking application that is revolutionizing laser cutting. This intelligent solution optimizes cutting edges with the help of AI and not only saves users valuable time but also addresses the shortage of skilled workers in the industry.

Imagine your production workers scanning the cut edge of a part with a handheld scanner. Once they capture the image, the Cutting Assistant analyzes the quality of the edge and evaluates objective criteria such as burr formation. Based on these findings, an optimization algorithm suggests improved parameters for the cutting process. The machine then performs the cut again. If the quality still does not meet expectations, the user can repeat the process. With this intelligent approach, TRUMPF is demonstrating that it is at the forefront of AI development in the industry. “With the Cutting Assistant, TRUMPF is giving its customers the tools to combat the shortage of skilled workers while saving time and money. This gives them a competitive advantage in terms of productivity.

Mastering the challenges of conventional processes

When it comes to laser cutting, users often find it difficult to determine the right parameters for different material qualities. Materials that are not optimized for laser cutting often result in inconsistent edge quality. This forces production personnel to constantly adjust technology parameters – a time-consuming and error-prone process, especially in companies with inexperienced specialists. The Cutting Assistant integrates seamlessly with the machine software, so optimized parameters are transferred directly to the software without programming.  This not only saves time but also minimizes errors.

Author Karlheinz Zuerl

Partner of ESG-Lotsen.com (PM, Interim Management Service)

Partner of BRICS+ Project Network (PM, Interim Management Provider Service)

Executive Director of SENIO TOP IA  (Project Management of Intelligent Industrial Automation for BRICS countries)

CEO of GTEC (German Technology & Engineering Cooperation) with GTEC Profit Growth Academy and GTEC-Shop

The System Doctor and Troubleshooter for Your Industry in Asia

Offices in China: Shanghai, Suzhou

Office Hongkong: Kowloon

Office Thailand: Chiang Mai

Office Germany: Mitwitz

Office USA: New Mexico

Partner offices so far in Shenyang, Shenzhen, Moskau, Sao Paulo, Johannesburg, and Bangalore.

Website: https://gtec.asia

Email: [email protected]

Cell: +86 13482438080

WhatsApp: +86 13482438080

WeChat: +86 13482438080

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Wirtschaftsreport 2025

by Ngocin News

“In Asien und BRICS+ steckt großes Potential für die deutsche Wirtschaft!”

Interimmanager packen aus: Deutschlands Wirtschaft auf dem Prüfstand! 🚀📊

550 Interimmanager haben in einer branchenübergreifenden Befragung Klartext gesprochen: Wie steht es um die deutsche Wirtschaft – und wohin geht die Reise? Die Antworten sind da – ausgewertet, analysiert und mit ordentlich Praxiswissen untermauert.

💡 Klar ist: Interimmanager werden oft in Krisenzeiten gerufen – wenn es brennt, wenn es klemmt, wenn’s nach vorne gehen muss. Wer also könnte die Lage besser beurteilen als diese erfahrenen Macher?

🔍 Wo muss die Bundesregierung jetzt Tempo machen? Zehn der renommiertesten Interimmanager zeigen den Weg aus der Krise: 👉 Dr. Bodo Antonic, Ulvi I. AYDIN, Ulf Camehn, Ruben Faust, Christian Florschütz, Eckhart Hilgenstock, Jane Enny Van Lambalgen, Klaus-Peter Stöppler, Roland Streibich und Karlheinz Zuerl – sie alle teilen ihre Einsichten und Lösungsansätze.

📢 UNITEDINTERIM GmbH Wirtschaftsreport 2025 📌 Exklusive Statements der Top-Interimmanager 📌 Handlungsempfehlungen für die Politik und Wirtschaft

Wer’s genau wissen will: Jetzt reinschauen! 🔎💼

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Are your Plastic Injection parts competitive? How to stay ahead in Asia?

by Ngocin News

1. Cost Management of Plastic Injection parts

Your company needs cost management in your supply chain department to calculate and reduce the total costs of purchased parts from your suppliers. Negotiation with suppliers will fail to get the best price if your purchasing staff does not know the true prime costs. Or your enterprise needs to calculate sales prices to send offers to your existing and potential customers.

Only if you know your true internal costs, do you know your bottom line for negotiations of your sales staff with customers to avoid losses. Due to our comprehensive experience in sales, purchasing, logistics, and general management, our company can help you find the true cost and support you in negotiations with customers and suppliers.

Because of the lack of manpower and knowledge along with other reasons, either you need our service to find the true costs or we will calculate them for you. Or we train your staff to do the work by yourself. Additionally, we can consult you in preparation and negotiation with your international clients and vendors. Our GTEC professionals speak Chinese, English, and German.

2. Reporting

Do you as our customer like to have a report to show the results of our cost calculations? Creating a calculation helps customers understand the interconnected relationships between cost parameters that result in the part price. Analyses are required to effectively achieve cost optimization objectives. From the broad range of reports available, we offer a “Result Report,” which is a summary of all of the cost parameters and is an excellent basis for negotiations and similar tasks. Currencies: ECOCUT™ supports the major currencies of the world. Different currency modes can be selected.

3. Manufacturing

The cycle time is usually a very sensitive operation. This is why various cycle time calculators can calculate these values themselves based on physical dimensions. The geometric properties of cast and injection molding parts enable us to calculate the machine dimensions (clamping force). The cycle time is then influenced considerably by the solidification time. The cycle time calculators query all of the dimensions that are relevant to and later indicate the cycle time. Machined parts (turning/milling parts) require the most extensive knowledge. Here, they refer to the work sequences that are listed step by step and analyzed with processing times due to our experience and knowledge.

We are currently using the following cycle time calculators for our cost calculations:

• Die casting

• Plastic injection molding

• Lathing/turning

• Milling

• Assembly

• Stamping, deep drawing

The knowledge domain provides access via the explorer to manufacturing steps that have already been calculated and have yielded robust results and allows them to copy these steps. In the process, we can copy entire manufacturing steps and their components and embed them into the calculation to be created. In the knowledge domain, standardized manufacturing processes are predefined by the users and created as independent modules. The more consistently a knowledge domain is constructed and maintained by us, the faster calculations can be created in the future: and the higher the qualitative value of those calculations. External (supplier) and internal manufacturing process know-how is stored in the ECOCUT™ knowledge domain. If we switch to the “Manufacturing Details” window, ECOCUT™ queries all of the cost-related components within one single manufacturing step.

• Output quantity

• Machine hourly rate

• Setup costs

• Direct labor costs

• Tool costs

• Residual manufacturing overhead cost surcharge

4. Cost Calculations

How were our calculations performed? The part, assembly, and even the system prices are derived from the three cost pools:

A. Material costs: raw material, subparts, consumables, material overhead costs (MOC). We offer a selection of specific material cost calculators that address the unique technical specifications of the various manufacturing processes.

B. Manufacturing costs: production system, setup costs, direct labor, tools, residual manufacturing overhead costs (RMOC). The “Manufacturing” spreadsheet initiates all of the manufacturing steps and displays them graphically in an arrow diagram. At the same time, this information is also listed in tabular form directly below the graphical representation and presented with three different “manufacturing arrows” (Fig. 1).

C. Overheads: overheads on production costs, profit, payment terms, and delivery terms. (Fig. 2).

Overhead of production costs

Sources: Perfect ProCalc, a software and trademark of Perfect Costing Solutions GmbH, which was sold to Siemens in 2012 and named Product Costing. Text and Pictures published under exclusive license of Springer Nature Switzerland AG 2022, Author Karlheinz Zuerl, Effective Cost Cutting in Asia, Management for Professionals, ISBN 978-3-030-82782-3_1 1, Amazon 978-3030827816 (hardcover book, 404 pages), ASIN B09TP1KCMZ, ISBN: 978-3-030-82782-3 (ebook, 596 pages). https://link.springer.com/book/10.1007/978-3-030-82782-3

ECOCUT™ is registered in China by GTEC, German Technology and Engineering Cooperation

Who is author Karlheinz ZUERL?

Please have a look at www.gtec.asia/karlheinz-zuerl/ or at German business magazine CAPITAL https://native.adalliance.io/share/?cid=1&special=spezial_717042_orfanidis_ml&url=https%3A%2F%2Fwww.capital.de%2Fnative%2F1234567890-31565006.html%3Fan%3Ds%3Aspezial_717042_orfanidis_ml-a%3A1-t%3An

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Consultants And Interim Managers Launch BRICS Network

by adrianin News

Karlheinz Zuerl, Interim Manager of the Year 2024*, has set up an international business network to bridge the gap between Western industrialized nations and the BRICS countries.

Karlheinz Zuerl, CEO der German Technology & Engineering Corporation (GTEC)

A new international network of consultants and interim managers has been launched under the name “BRICS Project Network” to support Western companies in expanding their business in BRICS countries and vice versa. “The BRICS nations account for nearly half of the global population and produce over a third of the world’s economic output, surpassing the G7 countries,” explained Karlheinz Zuerl, CEO of the German Technology & Engineering Corporation (GTEC) based in Shanghai, China, which spearheads this initiative.

Karlheinz Zuerl said: “The further development of economic relations between the Western industrialized nations and the BRICS community helps all parties involved. The new network reportedly includes China, Hong Kong, India and Southeast Asia (Malaysia, Indonesia, Vietnam, Thailand), the United Arab Emirates, Iran, Brazil and South America, Mexico, Canada (USMCA customs union), Russia, Eastern Europe and a number of African countries in the global south, such as South Africa, Ethiopia and Egypt.

Wide Range Of Services

Acting as a “bridge-builder” between these countries and the Western industrialized world, the new network offers a wide range of services: Management Consulting, Business Development, Project Management, Interim Management, Training and Education. Karlheinz Zuerl gave specific examples: “We carry out market analyses, set up international sales networks, initiate business partnerships and takeovers, represent companies at trade fairs and other events, take care of organizational development, look after human resources, set up branches on behalf of companies, carry out relocations and company transfers, optimize finances and local production and carry out restructuring to improve earnings.”

According to the information provided, the consultants and managers in the network have many years of experience in a wide range of sectors. Examples given include: Manufacturing, automotive, mechanical and plant engineering, construction, electrical and electronics, domestic appliances, environmental technology, information technology, pharmaceuticals and communications technology. If required, interim managers can take on operational roles such as general management, commercial management, project or quality management, research and development, human resources and finance, sales and marketing or change management.

Trade Disputes And Sanctions Weigh On Relations

Trade disputes between the US and China and sanctions against Russia are putting a strain on economic relations. The economic relationship between the Western industrialized nations and the BRICS countries is under severe strain. These tensions have led the BRICS to seek alternatives to reduce their dependence on Western financial systems, for example by discussing a common currency or reducing the use of the US dollar in trade.

“We are not politicians,” said Karlheinz Zuerl, “but business consultants and interim managers who build cross-border business relationships and investments that benefit all parties. Given the geopolitical tensions, the enormous economic potential for both parties is often underestimated. With experienced professionals like those in our network, this potential can be realized.”

He points out that a number of BRICS countries play an important role in technological development, as attractive manufacturing locations and as suppliers of raw materials and energy to the Western industrial world. Without China, India, Russia and Brazil, the Western economy would be much poorer,” said Karlheinz Zuerl, underlining the importance of the BRICS countries today.

* Karlheinz Zuerl was honoured by United Interim, the leading community for interim managers in Germany, Austria and Switzerland, and Steinbeis Augsburg Business School.

GTEC (https://gtec.asia) helps Western industrial companies to overcome challenges in Asia. The focus is on business development, the establishment and expansion of branches and production facilities, as well as restructuring and turnaround measures to bring automotive suppliers and mechanical engineering companies in critical phases back into the profit zone. Under the direction of CEO Karlheinz Zuerl, a team of consultants, experts and interim managers is on hand to work on-site with the client if necessary. The CEO himself is available for tasks as an interim general manager and for executive consulting. GTEC’s list of references includes corporations such as BMW, Bosch, General Motors and Siemens, large medium-sized companies such as Hella, Schaeffler, Valeo and ZF, as well as smaller medium-sized companies that are less well known but are operating all the more

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Berater und Interim Manager starten BRICS-Netzwerk

by adrianin News

Karlheinz Zuerl, Interim Manager des Jahres 2024*, hat ein internationales Businessnetzwerk als Brücke zwischen den westlichen Industrienationen und den BRICS-Staaten aufgebaut

Karlheinz Zuerl, CEO der German Technology & Engineering Corporation (GTEC)

Unter der Bezeichnung „BRICS Project Network“ ist ein neues internationales Netzwerk von Beratern und Interim Managern an den Start gegangen, das westliche Unternehmen bei der Geschäftsentwicklung in den BRICS-Ländern unterstützt und vice versa. „Die BRICS-Staaten repräsentieren beinahe die Hälfte der Weltbevölkerung, und erwirtschaften mehr als ein Drittel der weltweiten Wirtschaftsleistung, womit sie die G7-Länder übertreffen“, erklärt Karlheinz Zuerl, CEO der German Technology & Engineering Corporation (GTEC) mit Sitz in Shanghai/China, der die Federführung des neuen Netzwerks obliegt.

Karlheinz Zuerl sagt: „Die Weiterentwicklung der Wirtschaftsbeziehungen zwischen den westlichen Industrie­nationen und der BRICS-Staatengemeinschaft hilft allen Beteiligten.“ Das neue Netzwerk deckt den Angaben zufolge die Länder China, Hongkong, Indien und Südostasien (Malaysia, Indonesien, Vietnam, Thailand), die Vereinigten Arabischen Emirate, Iran, Brasilien und Südamerika, Mexiko, Kanada (USMCA-Zollunion), Russland, Osteuropa und eine Reihe afrikanischer Staaten des globalen Südens wie beispielsweise Südafrika, Äthiopien und Ägypten ab.

Breites Spektrum an Dienstleistungen

Als „Brückenbauer“ zwischen diesen Ländern und den westlichen Industrienationen bietet das neue Netzwerk ein breites Spektrum an Dienstleistungen an: Managementberatung, Business Development, Projektmanagement, Interim Management, Weiterbildung und Trainings. Karlheinz Zuerl gibt konkrete Beispiele: „Wir führen Marktanalysen durch, bauen internationale Vertriebsnetze auf, bahnen Geschäftspartnerschaften und Übernahmen an, repräsentieren Firmen auf Messen und anderen Veranstaltungen, übernehmen die Organisationsentwicklung, kümmern uns um das Personal­wesen, gründen im Auftrag Niederlassungen, führen Verlagerungen und Betriebs­ansiedlungen durch, optimieren die Finanzen und die Produktion vor Ort und führen Restrukturierungen durch, um die Ertragslage zu verbessern.“

Die im Netzwerk gebündelten Berater und Führungskräfte verfügen laut Angaben über langjährige Erfahrung in zahlreichen Branchen. Exemplarisch werden genannt: Produzierendes Gewerbe, Automobil, Maschinen- und Anlagenbau, Bauwesen, Elektrik und Elektronik, Haushaltsgeräte, Umwelttechnik, Informationstechnologie, Pharmazie und Kommunikationstechnik. Bei Bedarf übernehmen die Interim Manager vor Ort operationale Aufgaben wie Geschäftsführung, Kauf­männische Steuerung, Projekt- oder Qualitätsmanagement, Forschung und Entwicklung, Personal- und Finanzwesen, Vertrieb und Marketing oder Change-Management.

Handelskonflikte und Sanktionen belasten die Beziehungen

Durch Handelskonflikte zwischen den USA und China sowie Sanktionen gegen Russland sind die Wirtschaftsbeziehungen zwischen den westlichen Industrienationen und den BRICS-Staaten stark belastet. Diese Spannungen haben die BRICS dazu veranlasst, nach Alternativen zu suchen, um weniger von westlichen Finanzsystemen abhängig zu sein, wie etwa durch die Diskussion um eine gemeinsame Währung oder die Reduzierung der Verwendung des US-Dollars im Handel.

„Wir sind keine Politiker“, betont Karlheinz Zuerl, „sondern Unternehmensberater und Interim Manager, die Wirtschaftsbeziehungen und Investments über Grenzen hinweg etablieren, von denen alle Beteiligten profitieren. Angesichts der geopolitischen Spannungen wird das enorme Wirtschafts­potenzial, das sich für beide ergibt, häufig unterschätzt. Mit praxiserfahrenen Profis, wie sie in unserem Netzwerk vorhanden sind, lassen sich diese Potenziale erschließen.“

Er verweist darauf, dass eine ganze Reihe der BRICS-Staaten bei technologischen Entwicklungen, als attraktive Fertigungsstandorte und als Rohstoff- und Energielieferanten eine wichtige Rolle für die westliche Industriewelt spielen. „Ohne China, Indien, Russland oder Brasilien wäre die westliche Wirtschaft um einiges ärmer“, gibt Karlheinz Zuerl zu bedenken, welche hohe Bedeutung den BRICS-Staaten heute schon zukommt.

* Karlheinz Zuerl wurde ausgezeichnet von United Interim, der führenden Community für Interim Manager in Deutschland, Österreich und der Schweiz sowie der Steinbeis Augsburg Business School.

GTEC (https://gtec.asia) hilft westlichen Industrie-Unternehmen, Herausforderungen in Asien zu bewältigen. Der Schwer­punkt liegt dabei auf der Geschäftsentwicklung, dem Auf- und Ausbau von Niederlassungen und Produktions­stätten, sowie Sanierungs- und Turnaround-Maßnahmen, um vorwiegend Automobilzuliefer- und Maschinenbaufirmen in kritischen Phasen wieder in die Gewinn­zone zu bringen. Unter der Leitung von CEO Karlheinz Zuerl ist ein Team von Beratern, Experten und Interim Managern aktiv, das im Bedarfsfall beim Kunden vor Ort zum Einsatz kommt. Der Chef selbst steht für Aufgaben als Interim General Manager und für Executive Consulting zur Verfügung. Auf der Referenzliste von GTEC stehen Konzerne wie bspw. BMW, Bosch, General Motors und Siemens, große Mittelständler wie Hella, Schaeffler, Valeo und ZF sowie kleinere mittelständische Firmen, die wenig bekannt sind, aber dank GTEC umso erfolgreicher in Asien agieren.

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What happened in Asia in 2024?

by adrianin News
  1. Karlheinz Zuerl wrote and published together with others another important book for managers: “Human Resources During Time of Crisis”

2. Karlheinz Zuerl has been accepted into the ATTA Club as an expert in corporate restructuring. ATTA stands for Asia Turnaround and Transformation Association.

3. In spring times, GTEC opens its office in Chiang Mai, Northern Thailand as a hub for Western companies

  • Office space
  • Co-working
  • Virtual office
  • Conference rooms
  • Superfast WLAN
  • Overnight stays in a “king size bedroom” (2 p), with kitchen, gym and swimming pool (25x 20m)

4. Karlheinz Zuerl completed the “AI” course at Steinbeis Business School in Augsburg in summer 2024.

5. GTEC and HJM won a new consulting project “ESG Reporting” in Germany, which will be completed in January 2025.

6. Karlheinz Zuerl was named Interim Management Expert of the Year 2024 in June 2024.

7. GTEC won a new consulting project “Turnaround and Restructuring” for a Thai restaurant in Chiang Mai (Northern Thailand), which will run until 2025.

  1. Karlheinz Zuerl was invited to consult for several companies and universities in Guangdong Province, South China.

7. GTEC and partner companies have established the “BRICS Project Network”. Other experts, managers, consultants, and companies can also join to participate.

    8. Karlheinz Zuerl presented “Smart Investments in BRICS for Rotary” in Suzhou, China, on 9 December.

    11. GTEC invested as a business angel in a startup company in Hamburg.

      12. GTEC invested in an effective sustainable income system, run by a German company, to let the capital work, instead of working for money. Other business partners and companies can also participate, after the application.

      What are the prospects for 2025? See my articles

      Here you will also find the interim managers, consultants, and companies that can help you in Asia and worldwide in the BRICS countries.

      Do you need restructuring, turnaround, or profit growth? Or are you looking to invest profitably or find investors for your business? We put our experts on the ground and deliver fast, demonstrable results. Please book an appointment with me to help you: https://calendly.com/karlheinzzuerl 

      Please note: An ounce of prevention is worth a pound of cure.

      Best regards

      Karlheinz Zuerl

      CEO of German Technology & Engineering Cooperation (GTEC)

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      China’s Automotive Industry: Facing New Challenges

      by adrianin News

      The automotive industry in China remains a cornerstone of its economy, especially in the electric mobility sector. According to the Center of Automotive Management (CAM), over 25% of new cars sold in China are expected to be electric, solidifying the country’s role as a global leader in alternative drive systems.

      Minsk, Belarus – Dec 15, 2021: Car bodies are on assembly line. Factory for production of cars. Modern automotive industry. A car being checked before being painted in a high-tech enterprise.

      However, competition is intensifying. German manufacturers not only contend with each other but also face a surge of domestic rivals. The market’s fierce nature has already led to bankruptcies among some Chinese manufacturers.

      Adding to the challenges are growing trade tensions with key partners like the EU, which have negatively impacted China’s electric vehicle exports. Industry leaders are urging the government to extend trade concessions for older vehicles to boost domestic sales.

      Even industry giant BYD, despite a late-2024 sales boom and strengthened market leadership, faces mounting challenges in 2025 as it continues to edge out smaller suppliers.

      #AutomotiveIndustry #ElectricVehicles #ChinaMarket #EVCompetition

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      China Business 2025 Issue 1: The bleak outlook for 2025 and our approach to solving it

      by Ngocin News

      China’s Economy in 2025: Challenges and Prospects

      China’s economy had a tough time in 2024 – and 2025 could be even more challenging. In addition to long-term structural problems, the trade and technology war with the US threatens to intensify after the US elections in 2024. The uncertainties have already left their mark: Swiss bank UBS has cut its forecast for China’s economic growth in 2025 from 4.5 percent to 4.0 percent.

      Shrinking margins and fierce competition

      The situation for companies in China remains tense. Profit margins have continued to fall in many sectors due to intense price pressure. Weak consumption is a particular drag: Consumers are reluctant to spend, indicating waning confidence in the economic recovery.

      Overcapacity in key sectors

      Government subsidies have led to overcapacity in promising sectors such as solar systems, electric cars and batteries. This overproduction is depressing prices and hurting profitability. What once began as a strategic subsidy is now creating new challenges for companies.

      Debt and the housing crisis

      Another problem is the high level of debt of regional governments. Including local government financial vehicles (LGFVs), their debt amounts to about 80 percent of GDP. Debt restructuring and reduction are progressing slowly. At the same time, the real estate crisis is exacerbating the situation: many local governments were heavily dependent on land sales revenues, which have now collapsed. The link between the real estate sector and public finances is proving to be a key vulnerability in the economy.

      Looking ahead

      China’s economic challenges are complex and multifaceted. The government must act decisively to regain the confidence of businesses and consumers. Structural reforms, a more efficient allocation of resources and a reduction in geopolitical tensions could be important steps in setting the stage for a more stable future.

      Recent developments in the Chinese economy and sector overview

      China’s economy continues to be in the global spotlight. How is the Chinese economy performing and what location factors continue to make the country attractive? What trends are shaping the key sectors and what should companies be aware of in terms of the legal framework? Here we give you an insight into our combined knowledge of the country. Take advantage of the expertise of our interim management and consulting teams to successfully meet the challenges in Asia and the BRICS countries.

      Recommended action: Respond quickly

      One thing is certain: there is bad news coming out of China every week that needs to be assessed on the ground before any decisions are made. Do not hesitate to take the necessary steps to respond to the dynamics of the market.

      Focus on key sectors

      Automotive Industry

      The automotive industry in China remains a key sector of the economy, especially in the area of electric mobility. According to a forecast by the Center of Automotive Management (CAM), more than one in four new cars in China will be electric. The country is thus maintaining its position as a leading market for alternative drive systems. But the competition is getting tougher. German manufacturers are not only facing each other, but also a growing number of domestic competitors. The first bankruptcies among Chinese manufacturers show how tough the market has become.

      Increasing trade tensions with key partners such as the European Union are having a negative impact on exports of electric vehicles from China. Leading industry players have called on the government to extend trade concessions for older vehicles to support domestic sales. Despite a sales boom at the end of 2024, even an industry leader like BYD faces new challenges in 2025. The company has strengthened its role as a market leader and is increasingly squeezing out smaller suppliers.

      Construction Industry

      Construction remains a mainstay of the Chinese economy. However, the sector is struggling with high debt levels and weakening demand. Land sales, which have been an important source of revenue for local governments, are in sharp decline. This is having a ripple effect throughout the construction and ancillary industries.

      Legal framework

      Companies operating in China should keep a close eye on the regulatory environment. Regulatory changes can occur at short notice and have a significant impact on day-to-day business. Working closely with local experts is essential to minimize risks and maximize opportunities.

      The bottom line

      Despite the challenges, China remains a key market for many industries. Companies need to remain flexible and responsive to take advantage of the opportunities this dynamic market offers. Our experts are here to help you make informed and efficient strategic decisions.

      The smart way

      Running a subsidiary in China in these turbulent times is not a project to be undertaken on the side. The key is planning and a willingness to trust experts. GTEC has successfully completed numerous downsizing and restructuring projects in China – and could offer the right solution for your company.

      Sound interesting? Book a no-obligation meeting at https://calendly.com/karlheinzzuerl  and request relevant case studies. With the right support, even the most challenging project can be a success.

      Best regards

      Karlheinz Zuerl

      CEO of German Technology & Engineering Cooperation (GTEC)

      The system doctor and problem solver in your industry in Asia

      • Expert of the Year 2024 in Interim Management (Steinbeis Business School)
      • President 2023/2024 of Rotary Club Suzhou/China
      • Top Interim Manager 2022 (Capital Magazine)
      • Quality-assured interim manager (United Interim)
      • ATTA (Asia Transformation and Turnaround Association)
      • Diplomatic Council Think Tank (Consulting of United Nations)
      • Financial professional: Profitable investments in GTEC with an interest rate of 6-12%/year
      • Book author Springer/Hanser/Oldenbourg/GTEC (see Amazon.com)

      You will find the latest publication at Effective Cost Cutting in Asia at Amazon.de and Amazon.com (English edition):

      Effective Cost Cutting in Asia: Practical Modern Approach for Managers and Engineers in Industry to Achieve Profit Growth (Management for Professionals)

      Experts in the Automotive Industry Asia

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      China Business: Der düstere Ausblick 2025 und unser Lösungsansatz

      by Ngocin News

      Chinas Wirtschaft 2025: Herausforderungen und Aussichten

      Chinas Wirtschaft hatte es 2024 schwer – und 2025 könnte noch herausfordernder werden. Neben langanhaltenden strukturellen Problemen droht nach den US-Wahlen 2024 eine Verschärfung des Handels- und Technologiekriegs mit den USA. Bereits jetzt haben die Unsicherheiten ihre Spuren hinterlassen: Die Schweizer Bank UBS hat ihre Prognose für das Wirtschaftswachstum Chinas für 2025 von 4,5 Prozent auf 4,0 Prozent gesenkt.

      Chinese EV makers are challenging market leaders at the Auto Show 2024 in Bangkok.

      Sinkende Gewinnspannen und harter Wettbewerb

      Die Lage für Unternehmen in China bleibt angespannt. In vielen Branchen sind die Gewinnspannen durch intensiven Preisdruck weiter gesunken. Besonders die Konsumschwäche belastet: Verbraucher zeigen sich zurückhaltend, was auf ein schwindendes Vertrauen in die wirtschaftliche Erholung hindeutet.

      Überkapazitäten in Schlüsselbranchen

      In zukunftsträchtigen Sektoren wie Solaranlagen, Elektroautos und Akkus haben staatliche Subventionen zu Überkapazitäten geführt. Diese Überproduktion setzt die Preise unter Druck und beeinträchtigt die Profitabilität. Was einst als strategische Förderung begann, stellt Unternehmen nun vor neue Herausforderungen.

      Verschuldung und Immobilienkrise

      Ein weiteres Problem ist die hohe Verschuldung der Regionalregierungen. Einschließlich sogenannter Finanzvehikel (LGFV) beläuft sich ihre Verschuldung auf etwa 80 Prozent des BIP. Die Umschuldung und Schuldenreduzierung verlaufen schleppend. Gleichzeitig verschärft die Immobilienkrise die Situation: Viele Lokalregierungen waren bisher stark auf Einnahmen aus Landverkäufen angewiesen, die nun eingebrochen sind. Die Verknüpfung von Immobiliensektor und öffentlichen Finanzen erweist sich als zentrale Schwachstelle der Wirtschaft.

      Blick nach vorne

      Die wirtschaftlichen Herausforderungen Chinas sind komplex und vielschichtig. Um das Vertrauen von Unternehmen und Verbrauchern zurückzugewinnen, muss die Regierung entschlossen handeln. Strukturelle Reformen, eine effizientere Allokation von Ressourcen und eine Abmilderung der geopolitischen Spannungen könnten wichtige Schritte sein, um die Weichen für eine stabilere Zukunft zu stellen.

      Aktuelle Entwicklungen in der chinesischen Wirtschaft und Branchenübersicht

      Chinas Wirtschaft steht weiterhin im Fokus globaler Beobachtungen. Wie entwickelt sich die chinesische Wirtschaft aktuell, und welche Standortfaktoren machen das Land nach wie vor attraktiv? Welche Trends bestimmen die wichtigsten Branchen, und worauf sollten Unternehmen bei rechtlichen Rahmenbedingungen achten? Hier geben wir Ihnen einen Einblick in unser gebündeltes Wissen über das Land. Nutzen Sie die Expertise unserer Interim-Management- und Beratungsteams, um Herausforderungen in Asien und den BRICS-Ländern erfolgreich zu bewältigen.

      Handlungsempfehlung: Reagieren Sie schnell

      Eines ist sicher: In China gibt es jede Woche neue Hiobsbotschaften, die vor Ort geprüft werden müssen, bevor Entscheidungen getroffen werden. Zögern Sie nicht, die notwendigen Schritte einzuleiten, um auf die Dynamik des Marktes zu reagieren.

      Wichtige Branchen im Fokus

      Automobilindustrie

      Die Automobilindustrie in China bleibt ein zentraler Wirtschaftszweig – insbesondere im Bereich Elektromobilität. Laut einer Prognose des Center of Automotive Management (CAM) wird mehr als jeder vierte Neuwagen in China ein E-Auto sein. Damit behauptet das Land seine Position als Leitmarkt für alternative Antriebe. Doch der Wettbewerb wird zunehmend intensiver. Deutsche Hersteller sehen sich nicht nur untereinander, sondern auch mit einer wachsenden Zahl einheimischer Wettbewerber konfrontiert. Erste Pleiten unter chinesischen Herstellern zeigen, wie hart der Markt geworden ist.

      Zunehmende Handelsspannungen mit wichtigen Partnern wie der Europäischen Union belasten die Exporte von Elektrofahrzeugen aus China. Führende Industrieunternehmen haben die Regierung aufgefordert, Handelskonzessionen für ältere Fahrzeuge auszuweiten, um den Inlandsabsatz zu stützen. Trotz eines Absatzbooms Ende 2024 sieht sich selbst ein Branchenprimus wie BYD 2025 mit neuen Herausforderungen konfrontiert. Der Konzern hat seine Marktführerrolle gestärkt und kleinere Anbieter zunehmend verdrängt.

      Bauindustrie

      Die Bauindustrie bleibt eine tragende Säule der chinesischen Wirtschaft. Der Sektor kämpft jedoch mit hohen Verschuldungen und einer schwächelnden Nachfrage. Landverkäufe, die bisher eine wichtige Einnahmequelle für Lokalregierungen waren, sind stark rückläufig. Dies wirkt sich auf die gesamte Bauwirtschaft und deren Zulieferindustrien aus.

      Rechtliche Rahmenbedingungen

      Unternehmen, die in China tätig sind, sollten die rechtlichen Rahmenbedingungen genau im Blick behalten. Regulatorische Änderungen können kurzfristig erfolgen und erhebliche Auswirkungen auf den Geschäftsalltag haben. Eine enge Zusammenarbeit mit lokalen Experten ist unverzichtbar, um Risiken zu minimieren und Chancen effektiv zu nutzen.

      Fazit

      China bleibt trotz aller Herausforderungen ein Schlüsselmarkt für viele Branchen. Unternehmen sollten flexibel und reaktionsfähig bleiben, um von den Chancen zu profitieren, die sich in diesem dynamischen Markt bieten. Unsere Experten stehen Ihnen zur Seite, um strategische Entscheidungen fundiert und effizient umzusetzen.

      Der clevere Weg

      Eine Niederlassung in China zu führen in diesen turbulenten Zeiten ist kein Projekt für nebenbei. Der Schlüssel liegt in der Planung und der Bereitschaft, Experten zu vertrauen. GTEC hat bereits zahlreiche Downsizing- und Restrukturierungsprojekte in China erfolgreich abgeschlossen – und könnte auch für Ihr Unternehmen die passende Lösung bieten.

      Klingt interessant? Buchen Sie ein unverbindliches Gespräch unter https://calendly.com/karlheinzzuerl und fordern Sie relevante Case Studies an. Denn mit der richtigen Unterstützung wird auch das schwierigste Projekt ein Erfolg.

      Experts in the Automotive Industry Asia

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      2024, a year in review with deep insights and innovations

      by Ngocin News

      We completed my last assignment as an active Interim General Manager at the end of 2023, and my company recorded its last active revenue in the spring of 2024. Since then, like many of my IM colleagues, I have not received a single call from a German headhunter or directly from CEOs, even after being named “Interim Manager of the Year 2024”. My expensive and time-consuming marketing campaigns have not yet borne fruit.

      Nevertheless, 2024 has been an extraordinary year for me in many ways. Despite the challenges in the interim business, it was a record year for our company GTEC with profit growth and growing cash flow despite the ongoing interesting consulting project in Thailand.  How does this happen?

      Well, I didn’t spend my hard-earned money. Still, I invested it in other companies and built a very good sustainable income far exceeding my daily rate as Interim General Manager in 2024. “Haha,” you may say, “Where’s the catch? How is that possible?”

      • First of all, I had to change course at short notice because the China track leads to a siding.
      • In Thailand, I have surrounded myself with people who inspire and challenge me.
      • These are business partners who are already where I want to be or who are on the same path. They inspire me and we share visions that take us further.
      • A motivating environment is key to innovation, collaboration, and growth.
      • I surround myself with people who support me and help me grow.
      • Finally, I boldly let go of what holds me back.

      Email me at [email protected] and we will explain in detail how it works. You will be surprised, but also delighted.

      I wish you and your family a very Happy New Year 2025!

      Greetings from Chiang Mai (Northern Thailand)

      Karlheinz Zuerl

      CEO of the German Technology & Engineering Cooperation (GTEC)

      Experts in the Automotive Industry Asia

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