The measuring instruments manufacturer is looking to the future with confidence

testo AG broke with tradition in 2009. For the first time since the company was founded more than 50 years ago, the Germany-based measuring instruments manufacturer failed to make record-breaking sales. “We weathered the crisis year 2009 better than feared”, is the verdict from Chairman of the Board of Directors Burkart Knospe. Incoming orders ex works were about 4% lower than those for the previous year. Group sales were around EUR 160 million compared to EUR 162 million in 2008 - an eminently respectable result in view of the difficulties prevailing in 2009. Testo has ambitious plans for the new year: the company wants to grow again – and with double-figure growth, no less.

The crisis had a particularly heavy impact on demand in Germany. The marked reluctance of industry in particular to invest left a mark, Knospe explained. In the European market, on the other hand, the company managed to recover the deficit from the first half of the year by the end of the year. In the intercontinental sector, sales have also increased in 2010.
“We already saw further growth in incoming orders in the second half of 2009 and we are convinced that this trend will continue in 2010,” Knospe confirmed. Not to mention the large number of new products that are set to boost the measuring technology manufacturer‘s sales worldwide in the course of 2010. “The speed of innovation in our markets is rapid and we are feeling the stimulating effect of new measuring instruments on our order book very strongly,” explained Knospe. That explains why testo AG did not shrink away from maintaining a high speed of innovation in the first six months of 2009, in order to save costs, for example, but instead stepped up its efforts in research and development. Everyone in Lenzkirch is convinced that this will pay dividends over the coming years.

Innovation as a route to success
The measuring technology specialist is therefore very much focusing on the future. How has testo come through the financial crisis seemingly unscathed? “The fact that our product range and target groups are very broad has undoubtedly played a huge role,” Knospe asserted. “However, our internal focus on “innovation” and “process improvements” has also ensured that we have come through the crisis more quickly than others,” the successful businessman reported. Testo’s expectations for the new year are optimistic and confident. Incoming orders and sales are expected to show double-figure growth compared to 2009.

Start of new building work
This growth is also reflected in the number of employees. Despite the decline in sales, testo created further jobs in Germany and abroad in 2009. Around 80 new jobs were created in Germany in 2009 and about 150 worldwide. It therefore comes as no surprise to anyone at Lenzkirch that – just 30 months after they moved into the huge extension building in 2007 – there is once again a shortage of space.
Building work is thus to begin in Titisee this spring, weather permitting. It will take 18 months to complete and will create space for an additional 300 employees. Then there should be enough space again. For the time being.

Testo headquarters: testo created 80 new jobs in Germany in 2009 – more than 700 employees are now based at the headquarters in Lenzkirch. Testo also plans to recruit more employees in 2010.