Small yet mighty: creative, colorful, individual
Interview with Horst Neidhard, Managing Partner of Gebr. FALLER GmbH
Model building is not just a pastime, but a passion. Since 1946, Gebr. FALLER GmbH, based in Gütenbach in the Black Forest, offers everything a model builder's heart desires. A sense of tradition combined with continuous innovations has made the company from the Black Forest the world leader in model railroad accessories. The product range inspires creativity and building one's own little world.
That a 75-year-old traditional company is by no means outdated is proven by Gebr. FALLER GmbH. 'Increasing innovation capability is a big topic for us. Against this backdrop, three important new products should be seen,' says CEO Horst Neidhard. Thus, the digital vehicle and traffic control system FALLER CAR SYSTEM DIGITAL receives an extensive upgrade with a new generation of vehicles, new control hardware, and a new software release.
Horst Neidhard also describes the introduction of FALLER CREATE as an important milestone. 'Now, the customer can design their individual structure, we manufacture it using 3D printing technology and send it to them.' In addition, attractive new kits are being offered in the anniversary year 2021, foremost among them the anniversary model 'Schloss Bran'.
FALLER has remained loyal to the historic administrative and production site in Gütenbach. About 100 employees work there. The turnover has grown annually by between 5 and 9% since 2010, and even by 30% last year.
Sustainability and hybrid workplaces
The strong growth in 2020 was a result of the Corona crisis, explains Horst Neidhard: 'Since people stayed at home, they increasingly engaged with home hobbies. We noticed this with our existing customers, but we also gained new customers.'
The positive trend was not slowed down by the closure of brick-and-mortar specialty stores, as the online business could be significantly increased. Not only domestically, but also internationally the demand has increased during the pandemic, reports the managing director who observes similar trends across the industry in the gaming and hobby sector.
For his company, he expects growth to stabilize between 7 and 10%. Before he decided on the private sector, Horst Neidhard was a judge. Since 2006, he has been the managing director of FALLER, and since 2010, also a partner. For him, in addition to innovations, other major topics are in focus.
One important topic among them is to become more sustainable. 'Not harming the environment is something we all hold dear in the company. Our goal is to improve the CO2 footprint and be more climate-friendly. With the help of an MFTA program, we can now map material flows well, create material flow accounting, and perform CO2 balancing.'
Horst Neidhard
Managing Partner
"Not everyone has the temperament of a competitive athlete. There needs to be a human touch in the company."
Horst Neidhard
Managing Partner
In the packaging sector, plastics are to be reduced. Hybrid workplaces are another area that occupies him. "It's about supporting employees with robots in simpler, but strenuous tasks. We work closely with universities and partners," he says, emphasizing the high importance of employees: "With our traditional product, we need to move forward. It is important to always involve the employees and to inspire them for product topics."
Classics repositioned
In FALLER's range, in addition to vehicles, buildings, figures, landscape elements, and technology, there are also model building paints, tools, and other aids for model building. "Consumers are a diverse group of people who enjoy model building. One has a model railway setup, another is interested in landscape construction. The models are also bought as small gifts, such as a scene for a wedding," reports Horst Neidhard.
25 to 30% of FALLER's revenue comes from abroad in Europe, especially the DACH region, but also worldwide, including the USA and Asia. There are also country-specific offers. Horst Neidhard sees the crafting area overall on the rise. "People want to be creative, take their time, and slow down. We are well positioned to join in on this trend and even set and enhance our own trends."
In the last ten years, the entire industry has become innovatively positioned. "Competition in the leisure environment is fierce. The budget of consumers in this area is limited," says the managing director. In the industry, there is also a trend toward repositioning old classics. Accordingly, new editions of 40 to 50-year-old FALLER models are well received.
"People are excited about this. But customization is also becoming increasingly important. The product should meet the individual ideas and imagination of the consumers. For example, with FALLER CREATE, we can fulfill this wish."
Making people happy with good products
The employees in the company should have the greatest possible freedom. "Our hierarchies are therefore only slightly pronounced. We want to offer opportunities to our employees. I'm also not a fan of too much pressure. Not everyone has the temperament of a competitive athlete."
Horst Neidhard's goal is to continue the positive development of the company. In doing so, he is thinking about a strategically good succession plan. "The freedom to be able to stop at any time is a great asset to me and I want to be sure that the future of the company after me is well arranged."
In the process, he values the freedom to shape his environment in a way that he creates values. In everything he does, one thing is particularly important to him: "I want to be able to look in the mirror in the evening. I can only do that if I am sure that I have contributed positively and treated my fellow human beings well." However, the most important thing for him is to have a good product. "Bringing joy to people with our range also brings me joy."