Quality tools for global markets

The Hoffmann Group is Europe’s leading system partner for quality tools. A combination of trading, manufacturing and service competence has given rise to a modern, progressive company which serves over 135,000 customers worldwide and achieved its first billion in turnover in 2014. Romana Moares reports.

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The Hoffmann Group wrote the first chapter in its story back in 1919. Ever since its early days the business has grown organically, pursuing its path to success using a simple recipe: a passion for quality tools that create perfect results in customers’ hands.

Almost one hundred years later, Hoffmann, now Europe’s largest tooling logistics provider, boasts impressive figures: with its worldwide partners and around 2700 staff, the company serves global leaders as well as small and medium size businesses in over 50 countries, currently offering 500,000 listed items of which 65,000 are in stock. With a comprehensive customer service and 99 per cent delivery quality certified by TÜV, the company ensures that its customers experience efficient cooperation on a partnership basis.

In 2014 the Hoffmann Group reached a significant milestone: For the first time in almost 100 years of history, its annual global turnover has crossed the billion threshold to come in at €1.047 billion. This represents an increase of 8.9 per cent compared with the previous year.

Unparalleled offer

Inside the company’s product catalogue, printed in 18 languages, an unparalleled range of more than 65,000 articles showcase the very latest its in-house GARANT premium brand, HOLEX quality brand and 500 leading manufacturer’s brands have to offer. The range covers tools used for machining, clamping, drilling, milling, cutting and many more.

“The bestseller, successfully growing for over 40 years, is our own product range, the exclusive GARANT premium brand, covering around 25,000 items,” says Reinhard Banasch, the group’s CEO. In July 2015, the Hoffmann Group made an evolutionary step in machining technology with its GARANT MasterSteel HPC milling cutter – the new HPC roughing end mill offers an impressively long service life, high metal removal rate and excellent tool life.

“GARANT allows our customers to benefit from the technical knowhow and solutions expertise of the entire Hoffmann Group. We offer a premium range of products for all areas of application, from machining, clamping, measuring and assembling through to complete sets of works equipment from a single source,” says Mr Banasch.

In a test on high-alloy tool steel the MasterSteel outperformed the competition to the extent of an 83 per cent longer tool life. In addition, during field tests with welded fabrications of ST52 and an extremely high number of flame-cut edges, the MasterSteel displayed a 150 per cent longer tool life at the same time as achieving 66 per cent higher feed rates. As the CEO points out, the user benefits twice over: using GARANT MasterSteel, they can work longer and faster.

Largest in Europe

Reinhard Banasch further explains that it is the range of modular as well as mono grinding tools currently enjoying the biggest sales and further growth of this product group is expected. “In addition to the grinding tool range we would like to further grow in the area of tailored workstations and storage solutions. To support this, we opened our own Logistics Centre near Munich in 2014,” he adds.

It is worth mentioning that, since 2009, the Hoffmann Group has been operating Europe’s largest Logistics Centre in Nurnberg, boasting 36,000m² and 60,000 positions per day. “The latest development in the field of store logistics has been the centre of our attention for some time,” says Mr Banasch. “Should we come to the conclusion that justified, necessary investment is further needed in this area, we will go ahead.”

As Europe’s largest tooling logistics provider, the group can ensure over 99 per cent supply availability, an error rate of just 0.1 per cent, and preferred-supplier status among more than 95 per cent of customers. Every single day, Hoffmann consistently pursues a zero-error policy to provide 60,000 items – with turnaround times of 24 hours in Germany and 48 hours throughout the rest of Europe.

The 46th issue of the catalogue lists more than 65,000 quality tools.

Going stronger

Does the group plan further capacity expansion? “In principle, it is not true that family businesses like ours need to grow at all costs, unlike companies listed on the stock exchange,” says Mr Banasch.

“We do want to grow further but this growth needs to be carefully controlled. Other aspects of the business are important for us also, such as the well-being of our staff, our environmental impact and social awareness. We will strive to secure healthy growth while making sure that all of these other aspects are carefully considered also. Potential investments will reflect these considerations.”

The group has consolidated its market position both internationally and in Germany, which remains, as before, its most important market. Nevertheless 28 per cent (€46 million) of the group’s overall turnover was generated internationally. It believes there is still great potential for growth worldwide, and has plans to enter additional new markets this year.

“Our model as a system partner with a unique, three-fold combination of trading, manufacturing and service expertise is not only being successfully embraced in Europe, as our international experience shows. We are therefore convinced that we can support small, medium-sized and large companies throughout the world in optimising their procurement processes and improving productivity. We are perfectly equipped for the task,” Mr Banasch concludes. n

Investing into the future of the manufacturing competence of Hoffmann Group: CEO Reinhard Banasch with manager colleagues in December 2015.