“Small orange devices that drive us – not money”

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Belimo in Hinwil ZH: The mighty industrial building is just above the main road to the Zurich Oberland. On the other side is the Sauber racing team. Every child knows cleaning, Belimo is a term used almost exclusively in specialist circles. But there, the company has the reputation of a true champion. A glance at the evolution of the share price shows how much it stands out from the rest.

It has increased 4000 percent in the last 25 years. Anyone who invested 10,000 francs in the company back then has 410,000 francs today – excluding dividend payments. Anyone who spent that much money on CS stock back then has 300 francs today. A CHF 10,000 investment in UBS would still be worth CHF 8,600 today.

There aren’t many companies in Switzerland with a stock market career as steep as Belimo. These include names like Bossard, Comet, Interroll, Sika and VAT. The Hinwil-based company employs 2,000 people, half of them in Switzerland. Market cap: CHF 5.4 billion. Stadler Rail revenue of 3.57 billion.

Focus on core business

But what makes the difference? Patrick Burkhalter is one of the founding families and has been the Chairman of the Board of Belimo for four years. He thinks about it and then says, “From the very beginning, we had a clear focus on the customer. If customers get more benefits, we get more profits, then we can grow.” Second guiding principle: “We only do what we can do better than others.” Belimo works closely with suppliers, for example, who deliver housings or valves.

Components are assembled and tested at the manufacturing facility in Hinwil. This is also where engineers and software developers rely. 7 percent of sales flow into this area. No other company invests so much in research and development.

You can recognize Belimo products by their color: orange. In the company they are called “gadgets”. They have many shapes and functions. But it’s really all about the same thing: Devices are installed in the heating, air-conditioning and ventilation systems of large office, commercial or industrial buildings. Well-known examples are the Roche Towers in Basel, as well as the Apple headquarters in Cupertino, where Hinwil’s more than 27,000 controllers and sensors operate.

With a 20 percent share, the company is the world market leader in its niche. CEO Lars van der Haegen (54) believes the success story will continue: From his perspective, trends such as energy savings and a pure indoor climate (keyword Covid) will continue to drive demand in the future.

Van der Haegen says the potential is huge. The construction industry alone is responsible for 40 percent of all CO₂ emissions. If you get efficiency here, it makes a big difference. Politicians, who have long focused on issues like flying in the climate debate, have gradually realized this. Air traffic has much less savings potential than buildings.

Independent of banks

Financially, Belimo is doing a great job. Van der Haegen says it also has to do with being “humble.” The advantage of this attitude: With an 80 percent self-financing level, Belimo is not dependent on banks. Chairman Burkhalter: “We need banks first and foremost to move money back and forth.” The company is hardly dependent on the services of an investment bank.

What distinguishes an industrial company like Belimo from a bank? “We live for our orange ‘devices’ – that’s our job,” says Burkhalter. “A banker lives for money. If he wants to win you over as a customer, he has to bring you more money. So the only thing in his world is money. That’s why bonuses are so important to him.” Making money is also “somewhat important” in Belimo, but the issue is orange colored products. “You’re the one running us, not the money!”

Vera Eichenauer (35) is an economist at ETH’s Center for Economic Research in Zurich (KOF). “Our final economic forecast was made shortly before the famous CS on Sunday evening,” she says. However, the CS crisis should not be exaggerated: “There may be corrections in the thousand range, but otherwise we do not expect a change in the economy.” This means: Let’s keep growing!

The importance of the banking sector is declining

“The banking sector used to be more important. Both in people’s perception and in reality,” says the economist. Today, Swiss banks account for just under four percent of Swiss economic output, with insurance and reinsurance accounting for a good four percent.

In general, large corporations are less important to the Swiss economy than is often thought. “Nestlé is one of Switzerland’s largest companies. But Nestlé does almost nothing in Switzerland.” There is management and research here, but many jobs are abroad.

Eichenauer says it’s important for an economy where the real jobs are. Especially SMEs are counted. Because they provide many jobs in Switzerland. «I see the future of the Swiss economy in companies that produce innovative and high-quality products.»

This is the only reason Switzerland can compete internationally despite its high salaries. That’s why the Swiss economy needs patents, niche and cutting edge technology to sell worldwide. To stay on top, research and innovation must be continually improved.

So Switzerland needs companies like Belimo. Or Kistler: Headquartered in Winterthur ZH, the company uses highly specialized sensors like those used in the automotive industry. Every new car is tested with crash test dummies. Test dummies of most European and Asian car dealers are equipped with Kistler sensors. Small devices record everything: from a slight twitch to a devastating blow.

CEO Rolf Sonderegger was in China last week. The German auto industry is weak there – it sees the future in Asia. “We are experiencing a complete disruption: from the combustion engine to e-mobility with new possibilities. We set the route early and invested in China.”

No image damage

Sonderegger says he was asked “of course” about the CS crisis in China. “People want to know: what’s going on in Switzerland?” But he is not concerned about the Confederation’s image: “Other countries are taking note of the CS crisis and that’s it. It’s primarily a debate within Switzerland.” But he expects more humility from bankers. A “keep going” is not acceptable in bonus culture. “We only get bonuses if the company is doing well. That should apply to banks as well.”

Compared to Belimo or Kistler, The Powder Company in Einsiedeln SZ is a small company. Only 55 people work here. Despite this, the company manages to keep up with powder products in the highly competitive German market. “For example, we supply the pharmacy chain Müller,” says CEO Alexander Zurkinden (58). Whether it’s baby powder, bath salts or dry shaving: The Powder Company does it all in Einsiedeln. “We have higher salaries than in Germany. But with Swiss efficiency, reliability and excellence, we manage to be of interest to our customers there.»

take responsibility

Katharina Lehmann (51), CEO of Blumer Lehmann at Gossau SG, says the market is also highly competitive in the timber trade. The company has 450 employees, mostly in Gossau: “It’s hard to make money by processing Swiss wood. We can only achieve this with good employees.”

Blumer Lehmann AG can look at many prestigious projects: the mosque in Cambridge, the Apple Store in Bangkok or golf centers around the world.

Lehmann has a clear view of the CS crisis: “As a family business, we do not tolerate escapism. I have to take responsibility with us and expect it from a top bank.”

Source :Blick