Controlled and Regulated
Interview with Thomas Zirk, CEO of AuCom MCS GmbH & Co. KG
In many companies, they are still standard: motors without controlled drive that consume more energy than necessary. Precise speed controls are optimally solved with frequency converters - they allow for energy savings of up to 70%. AuCom MCS GmbH & Co. KG from Sendenhorst in Westphalia has recognized this potential in time and is now one of the world leaders in this field.
Wirtschaftsforum: Mr. Zirk, AuCom is the world leader in soft starter and motor control solutions, and thus operates in the field of electrical drive technology. How does a company from Sendenhorst near Münster reach the top of the world market dominated by global players?
Thomas Zirk: The company's origins are not in Münsterland, but in New Zealand, where AuCom, an abbreviation for Audio Communication, was founded in 1978. Initially, two people developed amplifier stages, but abandoned this area after a year to focus on motors, specifically on the development of starter technology for three-phase motors, which was distributed globally through partners all over the world. In 2000, the decision was made to focus on medium voltages, meaning on custom solutions. Because New Zealand is geographically inconveniently located with its time zone, the construction of the German site began in 2014. Development continued in New Zealand, while Germany was responsible for global distribution. This decision significantly accelerated the company's growth. In addition to distribution activities, the entire production for medium voltage was established in 2014.
Wirtschaftsforum: AuCom has been producing in Sendenhorst for over ten years. Were there any special milestones?
Thomas Zirk: We have worked to technically advance our core product, the soft starters, to set benchmarks, gained market shares, and became the global market leader in 2020. At the same time, it was always clear to us that we are operating in a limited market; therefore, we began developing frequency converters in 2018 and launched them in 2021. This new AuCom product represents a technology that allows for speed control as well, to save energy and increase efficiency. Old, purely mechanical technologies can thus be electrified.
Wirtschaftsforum: In light of increasing electrification, the market offers great potential. Has AuCom been able to evolve with the market?
Thomas Zirk: Yes. The product was a big success in 2021. As a result, AuCom was able to quadruple its revenues over the past four years. Today, the total revenue of the corporate group stands at 300 million EUR, with 600 employees working for the group. In Germany, we are an essential part of the company with nearly 200 employees.
Wirtschaftsforum: This development is particularly noteworthy because the new product was launched in 2021 – amid the Corona crisis. How did AuCom get through the crises of the past years?
Thomas Zirk: In 2020, thanks to our market leadership, we were able to win new projects without needing to be on-site. During that time, we had the opportunity to launch the new product with focus. Since there were no trade fairs, we relied on digital marketing; for example, campaigns on LinkedIn. With the war in Ukraine, new challenges arose. Until then, we had generated 15% of our revenue in Russia; so, we had to reposition ourselves.
Wirtschaftsforum: AuCom has been successful. The company is among the top players in its market. What exactly does the market position look like and what success factors are responsible for this?
Thomas Zirk: In the area of soft starters, there are three or four comparable competitors; here, we have positioned ourselves at the top of the market in terms of unit numbers and technology. In the case of frequency converters, there are more competitors, major players. As a small provider that is very flexible, we play in the top league with our technology and can also offer customer-specific solutions for individual unit numbers; this sets us apart from the market. In addition to innovative technology, our quick response time is a strength. Above all, we have employees who are competent, committed, and motivated. It's very personal with us; there's a kind of start-up atmosphere, although we are not a start-up.
Wirtschaftsforum: Are there long-term goals or visions?
Thomas Zirk: We aim to solidify our market leadership in the area of soft starters and be among the top 5 in frequency converters. In addition, plans are being made to build a customer center where we can create special customer experiences. Above all, we hope to make the right decisions and develop products that meet our customers' expectations.