The pandemic and the attack on Ukraine have sparked a discussion about the future of global economic relations. But what trends are now emerging in the companies? What challenges are they facing? And how will this impact their sustainability goals? Christoph Klenk, CEO of Krones AG, answers these and further questions in our interview.
Mr. Klenk, in the long term do you anticipate increasing or decreasing globalization, or stable international networks based on existing economic relationships?
KLENK Trade relations contribute very strongly to economic and political stability. Therefore, I don't think things will be any less global in the future. However, we need to become better at seeing the coexistence of different political systems as an important building block again – and we must once more invest more in diplomacy. This capability has unfortunately been lost in recent decades.
What specific trends are emerging in terms of globalization in your industry, i.e., in mechanical and plant engineering?
KLENK For us at Krones, as for most large companies, diversification in the regions is currently a key issue. In addition, our disposition and procurement strategy is very high on the agenda – something I wouldn't have expected a few years ago. Dual sourcing is an important concept here in terms of hedging risks in the value chains. In recent years, the focus has tended to be on optimizing working capital. Due to the changes in the supply chain, however, the current focus is more on the ability to deliver. But one thing is clear: We will remain deeply intertwined economically in the long term.
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