Today was an eventful day as we visited two companies: Grob and Forvia. Our first stop was at Grob, the largest battery cell producer in Europe. Second stop was at Forvia, previously known as Faurecia.

Grob

Grob is a multinational company based in Germany and particularly focuses on manufacturing and automation systems. They also create the machines that produce machines that other companies can use to create their “products.”

Because it would be a long weekend for the company workers (with the next day being a public holiday), most of the workers chose to take off today — leading to slightly less staffed plants. One of the first buildings we visited was their training place, and our guide pointed out a chart showing the different age and tenure demographics of this particular Grob plant. About 3% of the workforce at was aged between 60 and 70. It was initially surprising to me that a larger number of employees than I thought (I forgot the specific percentage) have had a long tenure with the company, having climbed the ranks from apprenticeships. However, after thinking about it, I feel that tenure within the manufacturing business is longer than for other industries due to the need for specialized skills and knowledge that develop over many years.

Innovations & Challenges

It was mind-boggling to me how there was such a big gender discrepancy at Grob. I understand that engineering (STEM in general) is a male-dominated industry, but at Grob I believe our tour guide said the proportion was something like 30% women and 70% men, which is insane. Some of the older buildings even lack female restrooms because back then only the men worked in these plants. Even tying into that, because Europe contains many older buildings and infrastructure, there are many accessibility challenges for individuals with disabilities — for example, the absence of elevators and narrow doorways.

One innovation of Grob’s that I was fascinated by was liquid 3D printing with aluminum, and I believe they were also the first to do so. While the most prominent application currently is for medical implants such as knee and hip replacements, I think the applications are limitless; possibilities are opened up not only in healthcare but also in aerospace, automotive, and even consumer electronics because of the precision and customization offered.

The company’s approach to collaboration and security also caught my attention. I was curious about the extent of customer involvement in their processes, as engineering the machines/products to customer specifications needs to be 100%. Furthermore, the protection of intellectual property is a major concern for Grob, as the hardware-based nature of their business makes them vulnerable to reverse engineering and technology theft. I see why many venture capitalists don’t invest in hardware startups now as it is easy for their competitors to disassemble and backward engineer the product to create similar versions. I asked if there was anything Grob could do (or do better) to protect against their software/hardware being stolen — perhaps patents? Grob’s response was that there is no global regulation for patents, so it is difficult for them to protect their product/technology. The only way to stay ahead is to be continuously innovating.

Forvia

Our next visit was to Forvia, which is also the company that I will be doing the company/industry analysis with my group. The specific plant that we visited produced exhaust car engines.

Forvia has a diversified customer base, which ensures they are not dependent on any single customer. As the seventh largest automotive supplier worldwide, Forvia holds over 14,000 patents. They produce components for a wide range of vehicles, from luxury sports cars like the Porsche GT3 to everyday vehicles from Volkswagen and BMW, as well as tractor engine parts for John Deere and Deutz.

The new European Union regulations stipulating that all new cars sold must be zero-emission by 2035 phases out combustion engine vehicles, which means that this specific plant will need to pivot their operations to focus on something else, which they are already working on with their hydrogen fuel cells. It was interesting seeing the differences in how car regulation across continents influence the design of the car. For example, our guide showed us the valve they have for car diesels and how it has low pressure re-circulation, which decreases carbon emissions. They don’t have that in the United States as the European market is much more restrictive than the American market.

Maintaining Competitiveness

Out of the three companies we’ve visited so far, I believe Grob is best equipped to navigate the transition to the electric vehicle (EV) landscape. This is primarily because they manufacture the machines that vehicle makers, including Tesla, need to create their parts. The demand for these machines will likely remain consistent.

Forvia could also be a strong contender due to their substantial financial resources, which allow them to invest heavily in R&D, particularly in hydrogen fuel cells. If Forvia can establish themselves as a market leader in this area, they could significantly benefit from the growing demand for alternative fuel technologies.