Dr. Michael Prochaska, Board Member HR & Legal at STIHL

PROCHASKA For us, these are not contradictions, but rather complement each other. Entrepreneurship has always been a combination of striving for innovation and responsible risk and cost management. Only an efficient cost structure enables resources to be invested in strategically important areas. This includes digital technologies such as automation and AI applications, as well as technologies for decarbonization. 

Not only the automotive industry, but also we as manufacturers of garden and forestry equipment are gradually moving away from combustion engines and focusing on battery technologies instead. Regulatory requirements force us as manufacturers to rethink established business models and develop new products and services. These developments are extremely cost-intensive. Investments must be made long before the innovations are established on the market and generate returns. This is a tremendous challenge and requires consistent cost management to ensure economic success with new technologies in the future. 

PROCHASKA In our sustainability strategy with the focus areas of ecosystems, cycles, and care, we have set ambitious goals that we consistently pursue with a great number of projects and activities – and these certainly do not take a back seat in priority for us. As a company that has its roots in forestry and manufactures products for working in nature, we have always been committed to a sustainable way of life and sustainable business practices. As a family-run company, we think in terms of generations, not quarters. 

For us, the requirements of the Green Deal are an incentive and an opportunity for further development, rather than a mere obligation or risk. We are investing large budgets in the development of battery drives and devices, resource-efficient and recyclable products, eco-fuels and new business models. In addition, we ensure through targeted investments that our products are repairable at our over 55,000 specialist dealers. 

It is important that sustainability is interwoven into all functional areas of the company and does not remain the task of a sustainability department. The transformation towards more sustainability requires perseverance and high investments – it is a marathon, not a sprint. 

PROCHASKA STIHL has had a functioning global production network for decades; for example, our plants in Brazil and the USA have been in existence for about 50 years. We are also present in Asia and Eastern Europe. The key success factor of our global production is the specialization of individual plants in certain products and components. However, one thing always remains constant: the proven STIHL quality. All locations produce according to the same quality standards and at the highest technological level. To ensure this, we also focus on continuous knowledge transfer and regular training. Job rotations, employee secondments, and active exchange across continents are firmly anchored in our everyday corporate life. 

PROCHASKA With the technological transformations from combustion engines to battery drives, but also due to increasing digitalization and further developments, the integration of new competencies into our company is essential. We are primarily looking for skilled workers in the fields of battery technology, electronics, mechatronics, robotics, computer science, and digitalization. 

At the same time, competencies in combustion technology remain important for the advancement of our products, for example, to reduce fuel consumption. We also continue to focus on improving applications in forestry and gardening - for example sawing, mowing and cutting. Our expertise in these areas is the basis for the success of our products on the global markets.  

PROCHASKA Good and tailored training is an essential prerequisite for the economic success of industries. The German education system will retain its high status because it is unique. It supplies companies with competent and well-trained professionals. Especially in a time that is very much characterized by transformation and rapidly changing conditions, the right qualifications and competencies must be developed by schools, universities and companies. Transformation topics, digitalization, data science, and artificial intelligence are particularly in focus today. 

After acquiring a basic qualification, it is crucial for all employees to be ready to learn throughout their entire careers. Companies must adapt to this and create training opportunities tailored to specific needs. The responsibility for successful education and training activities is therefore spread across several shoulders: learners, schools, universities, further education institutions and companies. Politicians and companies are particularly called upon to play their part. 

PROCHASKA Within the STIHL Group, many departments and employees have been exploring the possibilities of AI for years. AI applications in the form of chatbots have already been tried and tested and are being used very successfully in the HR department, particularly in recruiting. In production, for example, AI is used for quality management. During the assembly process, an image recognition AI can differentiate between sprocket variants or whether a component is missing. The AI analyzes the captured image and thus the installed component. This identified component is compared with the order bill of materials, and if there are any discrepancies, the assembly process is interrupted. This ensures that the installed variant corresponds to the target state. This is an enormous progress that would have been unthinkable just five years ago. We are convinced of the potential of digital innovations and AI technology and are working tirelessly on these topics to further strengthen our competitiveness.