A Machine for Growth

With solutions for the production and personalization of cards and passports as its prime business, the Mühlbauer Group also supplies systems for microchip die sorting, solar cell manufacture and electronic component tracking. Their 'Precision Parts & Systems' division produces highly accurate components, not only for company-internal use but also for demanding customers in aerospace, motorsport and medicine. Matthias Erler of GIT-SECURITY.com questioned the key figure behind the company name about the company's philosophy, products and potential.

GIT SECURITY: Mr Mühlbauer, the company you founded, Mühlbauer AG, is a classic example of a successful German medium-sized enterprise. You could describe yourselves today as worldwide market leader in innovative system and software solutions for the production and personalization of plastic and chip cards, passports and RFID applications. What do you consider to be the main reasons for this international success?

J. Mühlbauer: Short and sweet: innovation, stamina and the principle of ‘everything from one source'. Our markets are filled with highly technical machines and systems. It is hard to believe how much high-tech is necessary to manufacture a plastic card and to personalize it. Of course, there are simpler machines, but the higher the production volume and more complex the card, the more important it is to have the right partner at one's side. Innovative thinking and dealing are the main maxims in our business ­because this market moves at an impressive speed and only an innovative company has a chance to survive. Add to this the subject of ‘everything from one source': these days many companies talk about restricting themselves to their core competencies and letting the rest be done by partners, but exactly this approach often carries risks. Our customers appreciate being able to get a complete solution from one supplier - software and hardware. One point of contact for all matters, a competent service team with locations around the world and no interfaces between different systems are just some of the advantages when, like us, everything is in-house. The flexibility and speed with which we can react to enquiries should also not be forgotten. This extends from R&D through the production process to installation and long-term support. Our customers become our partners, and our success over 30 years justifies this approach.

Could you give us an overview of the most important products currently in your portfolio?

J. Mühlbauer: Our personalization solutions are of course an important pillar of our company's success. Suitable software systems are necessary for each line of business so that the total package is right. Currently the market for ‘Smart ID' is very interesting; the whole world expects high security from identification solutions. That begins with biometric data collection and ends with automatic border crossing. But as I already mentioned, it is important that one supplier can provide everything. From that point of view, all of our products are important.

In which sectors do you find your most ­important customers?

J. Mühlbauer: Although our customers, or partners, come from the most varied sectors, two fundamental types can be recognized: on the one hand we work a lot together with the card production industry and high-security printers; on the other hand, there are governments and security institutions, in particular when it's to do with ID cards and passports. State projects usually have a higher volume, but business with them is of course more protracted and complex than when we simply sell a machine. But I can promise you one thing: we will do everything we can in the future to provide cost efficient, innovative products. It is very important that we satisfy all our customers, not only from a technological standpoint but also with regard to our service.

Where are you currently directing your energies with regard to new product development - could you give us an outlook?

J. Mühlbauer: The markets are highly competitive and are continuously changing. We were able to survive the recent commercial crisis with just a few scratches, thanks to our broad positioning, but this has nevertheless led us to focus more strongly on the efficiency of our solutions. A pre-condition for this is a correspondingly high quality. Many customers concentrate on the so-called ‘cost-per-card' relationship because they also have to remain competitive. Therefore we develop machines and systems together with our customers with the aim of maintaining an optimum product margin whilst still achieving a cost-oriented price. This should not be confused with the word "cheap". We work to high quality standards and deliver a tailored total package of consultancy and service that is unique worldwide - every customer gets exactly what he wants. We have developed our new ‘ecoline' for standard solutions because machines for standard processes are built here in large numbers and can be offered at prices that can even keep pace with the cheap products that are flooding the market, but without any loss of quality. If a customer requires a special solution tailored to his specific needs, that is no problem.

If you could sum up your company philosophy towards your customer in just a few words, what is the most important aspect for you?

J. Mühlbauer: I can explain our philosophy using very few key words: speed, quality and absolute customer focus - that is what drives us forward. Every individual employee is working towards the same goal: to keep the customer satisfied, now and in the future. In my opinion, that is only possible if you can offer the customer everything that he needs, that is, a complete solution.

Mr Mühlbauer, in recent years you have expanded your presence abroad a lot - in the USA but also in Slovakia and in Malaysia. What is happening in these subsidiaries and why have you chosen these locations?

J. Mühlbauer: Our motto is "Always close to the customer". We are flying our flag locally. The locations that you mentioned are currently our technology centers for the American and Asian markets. Our head office in Roding in Bavaria serves as the central point for our European markets. But the Mühlbauer Group is also represented in over 30 other locations worldwide with sales and service centers, for example in India, South Africa, Brazil or China. Each of these technology centers has a well-equipped demonstration room because we cannot only convince people by using words, so we let our customers experience the products and solutions live. Regional presence is simply essential for our complex and consultancy-intensive products.

You currently have around 2,000 employees worldwide - geographically, where do you see the most important growth markets of the future?

J. Mühlbauer: We are currently concentrating strongly on Africa and South America. Those are two regions with significant growth potential, not only in the field of security technology but also in card production. The semiconductor industry is concentrated in Asia, above all the mass production, but the USA is not to be underestimated. Although RFID technology is still in its infancy, we are convinced that nothing can stop it. The emphasis here lies in industrialized countries with a large logistics volume; the rationalization potential here is enormous. Basically, we are so flexible that we can quickly adapt to changing market conditions. An example of this is our market entry in the solar industry with automatic manufacturing solutions for flexible solar cells - definitely a growth market of the future.

And finally: you have founded the Josef Mühlbauer Trust. What are the objectives of this Trust? Can you give us some examples of its activities?

J. Mühlbauer: I always consider commercial success as a responsibility toward people. With this Trust we have the aim of taking responsibility for people who are not enjoying the sunny side of life and who need our help. We therefore support both national and international social and charitable projects, and the annual high point is certainly the Mühlbauer Run. All income from this is given to the Trust, which is then able to support specially selected projects. As a result of the 5th Mühlbauer Run in 2009, the Trust was able to hand over a donation of a total of 40,000 Euro. The Run will take place on the 12th June this year, by the way. Our donation target this time is for the expansion and redevelopment of a school in Uganda to make it easier for children to learn, safe from environmental influences, and to open up better future opportunities for them.