Bertram Kawlath says he has always been an optimist – and it's easy to believe him. The new face of the German Engineering Federation (VDMA) always seems to be smiling, with no sign of the industry's concerns. However, the mechanical engineering sector has been struggling with weak demand, and the recovery seen after the pandemic has long since faded.

Even during a visit to Schubert & Salzer, the medium-sized company that Kawlath leads, there is no obvious sign of the challenges. The company’s headquarters in Ingolstadt is what one might call „representative“ in business terms: tastefully decorated visitor areas, walls adorned with paintings, hallways and gardens featuring cacti and sculptures, and a ceiling decorated with a red neon light installation. A large aluminum plaque reads „Continuity through change“, with a timeline underneath that reflects the company's proud history: the line begins in 1883 when Carl Schubert and Bruno Salzer began producing hosiery machines in Chemnitz, laying the foundation for the company. The timeline ends with the infinity symbol.

The wide range of applications for the industrial control and stop valves that Schubert & Salzer produces today makes the company’s future seem secure. Whether in the food, plastics, textile, chemical, or pharmaceutical industries, or in automotive or aerospace engineering, the list of sectors where these components are used to control liquid, vapour, or gaseous media seems endless. Schubert & Salzer serves 10,000 customers across 93 countries. Although the company also offers software for manufacturing businesses, its valve business accounts for the lion’s share of its 60 million euros in annual revenue.

Despite the importance of valves, actuators, and positioners, the industrial downturn is also felt in Bavaria. „Order intake has recently slowed compared to the previous year“, states Kawlath. But he quickly returns to his optimistic tone: last year was particularly strong, and compared to the overall mechanical engineering sector, the company is still doing well. The margins are high enough to continue investing in new product development.

Kawlath admits he prefers words to numbers, which may be why he doesn't disclose Schubert & Salzer's exact margin. He noticed this inclination early on during a short-lived stint in business administration studies. Instead, Kawlath, born in 1970 in Kronberg im Taunus and raised in Seligenstadt and later in Kempen on the Lower Rhine, found his path in history studies, with his thesis focusing on Ostpolitik (the new Eastern policy.

The eastern part of Germany would later become Kawlath’s second home for many years. After his original ambition of joining the Foreign Office didn’t pan out, he moved to the Ore Mountains in Saxony. There, the family business – his father Arnold, along with other investors, had acquired parts of the former group in 1991 – had been running a foundry, Eisenwerk Erla GmbH, since 1994. From 2004 to 2010, Kawlath served as its managing director and supervisory board member.

„As a historian, it was quite fascinating for me,“ he recalls. „The factory was over 600 years old, with the first documented mention dating back to 1380.“ Kawlath remembers that they long claimed to be the oldest industrial company in Germany. „But the Swabian Ironworks later complained to me about that.“

In 2010, after the foundry was sold to the Indian Sanmar Group, Kawlath moved to Bad Lobenstein in Thuringia. There, Schubert & Salzer had a plant specialising in precision casting –„a completely different process,“ Kawlath emphasises. „In stainless steel precision casting, smaller parts for smaller machines are typically produced.“

At that time, Kawlath was the managing partner of the plant and also the managing partner of the group. „I always commuted from Thuringia to Ingolstadt,“ he recounts. He had been a commuting professional for 25 years, but "eventually got tired of packing my suitcase.“ In 2023, Schubert & Salzer sold the precision foundry, which had temporarily shifted its production to larger parts. The valves and software remain.

As VDMA president and successor to Karl Haeusgen, Kawlath crowns a long career in industry associations. He began at the German Foundry Association (BDG), and later served on the board of the SME Committee of the Federation of German Industries (BDI). „I’ve been doing this for 24 years. I’ll retire from it next year“, he says. He also spent many years on the SME advisory board of the Federal Ministry for Economic Affairs and Energy. Before his promotion in the VDMA, he was president of VDMA Bavaria and vice president of the federal association.

„Political work has always interested me“, notes Kawlath. At home, watching TV bores him quickly. This comes in handy because association work can be slow, and „people with a lot of time are always welcome“. However, his family business, where his four siblings are silent partners, remains his priority.

When not engaged in political talks or managing the family business, Kawlath enjoys photography. „I love taking pictures, and my family has gotten used to being photographed constantly.", he says. While the new VDMA president isn’t entirely comfortable in front of the camera, he wouldn’t shy away from appearing in political talk shows in the future, though "it has to be the right fit and make sense.“

There is no shortage of issues for the industry to discuss publicly. Bureaucracy, a complex tax system, and, above all, a shortage of skilled workers are among the biggest challenges facing companies. „The biggest medium-term problem is the lack of skilled workers“, says Kawlath, which also involves migration policy. „If a medium-sized company in Germany wants to hire a skilled worker from India through a temporary employment agency, it can take up to three years before that person can start working. That’s too long for both the company and the worker.“ Visa procedures need to be streamlined.

Kawlath and the VDMA oppose calls for an industrial electricity price, and reject broader demands for subsidies. „I’m uncomfortable with the idea of socialising risk and privatising profits“, he states. With 3,600 member companies, the VDMA is too broad an organisation to advocate for subsidies benefiting only large corporations. Instead, the association focuses on better business conditions. „We don’t want subsidies. We want better conditions“, says Kawlath. „I’m also confident that I can talk to Habeck and ensure that happens.“

Furthermore, the advocate of a well ordered economy would not describe the state of the industry as bleak as some others. „I am cautious with the term deindustrialisation, and would advise a bit of moderation“, Kawlath states. „Yes, we had to lower our production forecast for this year by 8%, which is not something you can just brush off.“ However, the situation was worse during the Covid pandemic. In 2020, production among companies fell by 12% compared to the previous year.

To improve things in the future, his predecessor Karl Haeusgen initiated many important topics that Kawlath would like to explore further. One of these is European integration. „The major issues are now also being decided on a European level.", he says. The association must take this into account, and has already done so more explicitly than other lobbying organisations, many of which are still „very nationally focused.“ The former long-distance commuter may soon find himself packing his bags more often again.