With Great Success on the Wrong Track
Interview with Thomas Möhring, Managing Director of Julius Ulrich GmbH & Co. KG
Wood has fascinated people for ages – as a building material, an energy source, and a design element. The natural material captivates with a unique combination of aesthetics and functionality. It is timeless and yet highly contemporary, scoring points as a renewable resource in terms of sustainability. Julius Ulrich GmbH & Co. KG has been working with wood for over 100 years, understanding its advantages, but also challenges. The timber wholesale company is traditionally innovative – a proven combination.
Wirtschaftsforum: Mr. Möhring, you and your brother Ulrich Möhring run the company Julius Ulrich. Does the company fit the stereotype of a classic family business?
Thomas Möhring: We are a traditional family-owned business with roots that stretch back more than 100 years. My grandmother's family already owned a sawmill; when my grandmother married a wood dealer named Ulrich, it was a typical merger for that time. It was similar with my parents. My father came from a sawmill and carpentry business in Nuremberg, moved here, and married my mother. That's why none of us carry the Ulrich name anymore, but Möhring. My brother and I have been connected to the company from day one and represent the 4th generation.
Wirtschaftsforum: The company has been shaped over more than 100 years. Have there been any particular milestones in recent history?
Thomas Möhring: We had many years of normal development. Eleven years ago, we made a big leap when we invested in a state-of-the-art warehouse and IT. These were decisive investments with a view to the future.
Wirtschaftsforum: Why did you make these investments?
Thomas Möhring: Because we need to be future-ready and present for our craftsmen. They must be able to rely on being able to access services reliably. This is only possible with appropriate storage capacities and modern IT.
Wirtschaftsforum: Where do you see Julius Ulrich in the market after these future-oriented investments?
Thomas Möhring: We only operate in the greater Stuttgart area and are among the leading providers in the timber trade here. Our advantage is that we can serve directly the around 65 to 70 craftsmen who come to us daily. They pick up the required material and head to the construction sites. Being able to provide this as a local dealer is a unique selling point.
Wirtschaftsforum: Let's talk about the portfolio. Are there any focal points?
Thomas Möhring: We have three main pillars: constructive products such as construction timber (KVH) or laminated timber (BSH) for roofers and carpenters, panels and doors for joiners, and traditional products for assembly companies. Since last year, we have also been offering prefabricated furniture components for joiners and assembly companies, which we design and manufacture with a special planning program. We target joiners, roofers, and carpenters, but also directly the end consumer.
Wirtschaftsforum: During the Corona period, many people became active themselves, renovating and crafting. How did Julius Ulrich get through this time and how is the company positioned for current challenges?
Thomas Möhring: We are relatively crisis-proof, among other things, because we do a lot of renovations and refurbishments with our craftsman customers. But of course, we feel a sense of uncertainty in the market; investments are not being made as we would wish. We are dependent on roundwood in our industry. In recent years, there have been many storms in Central Germany, resulting in a lot of storm-damaged wood. Additionally, the increasingly hot summers present problems with beetles, leading to a lot of beetle-infested wood. This inexpensive wood has kept the prices relatively stable. Of course, the rising energy prices and the shortage of skilled workers are challenging. We have always placed great emphasis on training, educating merchants, warehouse staff, and truck drivers, and thus staff ourselves from our own pool of apprentices.
Wirtschaftsforum: How does Julius Ulrich address the issue of sustainability?
Thomas Möhring: We have always had organic products, are certified by FSC and PEFC, and work with suppliers who can guarantee that 75% of their wood comes from renewable forests. We are currently working on the new RAL environmental label. In addition, we try to avoid and reduce waste, have a 120 KW photovoltaic system, and heat entirely with wood.
Wirtschaftsforum: Over 100 years in the market - what is the secret of this long success story?
Thomas Möhring: We are straightforward, quick in handling, always available by phone, and have a large stock program. Customers appreciate that.
Wirtschaftsforum: What are the plans for the future?
Thomas Möhring: We want to attract even more customers and continue our ongoing projects. To strengthen our position, we are planning a new 2,000 m2 area for offices, exhibitions, and social spaces. Above all, we want to continue providing good products and services at reasonable prices.