The KATEK group believes in autonomy across its companies, allowing individual leadership to manage each business in the group. That’s called a “speedboat” strategy, but when you have a veritable fleet of speedboats, how do you maintain that entrepreneurial approach and avoid becoming a cumbersome supertanker?
In the final interview of this series, KATEK CEO Rainer Koppitz explains the answer to what he calls “the $100,000 question.” KATEK has evolved, quite deliberately, with a very small central management team. That may need to change when the electronics manufacturing services provider (EMS) grows beyond $750 million.
Koppitz explains that this depends on the acquisitions that fuel that growth. If KATEK acquires several smaller companies, it may require a different approach. Alternatively, they may get there with one major merger, which could change the management approach again. What is clear is the approach is both dynamic and adaptable, building something unique and ideally suited to the needs of the OEMs they serve.
In October, KATEK acquired 10 percent of the shares of iOX Mobility GmbH which develops innovations for eMobility on water. Industry-leading companies in the marine industry and a leading manufacturer in the automotive industry are among the company’s partners. The launch of the first products is planned for 2022.
The market has room for growth: the European EMS market is projected to reach $68.61 billion by 2028, expanding at a CAGR exceeding 7.1, according to ResearchandMarkets.com.
The market witnessed a slump in 2020 as a result of the Covid-19 pandemic, which triggered supply chain disruptions and resulted in a shortage of semiconductor components.
However, as the electronics industry continues to get competitive and electronics products continue to get complex, OEMs are increasingly under pressure to reduce costs and shorten product lifecycles. At this juncture, contract manufacturers can potentially provide services in electronic product design for manufacturing at reduced costs.