Georg Silbermann

Linde AG plans to reach a double digit market share in North America within three to five years. Currently the European market leader's share in the US market is below five per cent.

In an interview with Forkliftaction.com News's European correspondent Luc de Smet at CeMAT 2005, Linde managing director Georg Silbermann said: "Specialists know us, but we lack fleet and brand position. We must think and work bigger. Obviously there are some serious opportunities. The US market is estimated at 200,000 units for 2006."

Silbermann said Linde's vast range of trucks was an important differentiator in the market. Therefore, in addressing the American market, Linde would not focus on any industry in particular but would hit the market with its full range of trucks, some 80 to100 base models.

"If we want to grow there, we must offer standard classes from 1 to 6. We must meet US specifications and be present in the field."

In North America (Canada, Mexico and the USA) Linde currently has a network of 100 dealers with a total of 200 outlets. "With a market share of only below 5 per cent we must accept that they are multibrand," Silbermann said.

Linde was not looking for more dealers nor was it interested in acquiring existing dealerships. "We are satisfied with the market coverage our current set up can provide. We must feed our current dealers. Naturally we will encourage them to go mono-brand with the full range of Linde trucks," he said.

Linde has 200 people in North America. Two years ago it established a head office in South Carolina. Linked to the head office is an assembly/modification line with a warehouse and stock. It also has a training centre.

Current workshop production is 1,500 units, "but that can easily be brought up to 5,000 without major changes", Silbermann said. "The most critical thing is to have the right product that meets local specifications and the network."

Georg Silbermann with Forkliftaction.com executive director Michael Leu at CeMAT 2005.

Currently production for the US comes from Europe. The assembly line runs on CKD (complete knock down) and SKD (semi knock down). CKD and SKD refer to types of manufacturing in which products are sold in kit form, for later re-assembly. The automotive industry pioneered CKD/SKD. The approach takes advantage of differing labour rates, shipping, and savings on import/export tariffs.

"We must move towards localisation," Silbermann said. Special modifications,like switches, signs and flashlights, are done in the USA. Production of certain components or sets, like hydrostatic drives that require high-precision tooling, will remain in Europe.

Silbermann said Linde realised North American and European forklift requirements differed. Addressing the US market required cultural flexibility. "We are used to thinking in terms of what is good enough for Germany, is good enough for any market."

Silbermann said Linde needed to adapt to local market characteristics. That meant some "refining" of the product. The company would "get rid of whistles and bells", he said. "That means we will continue to focus on ergonomics, efficiency, safety, design and hydrostatic drive so we can deliver premium performance, value and price."

On the Eastern European market, Linde AG is predicting growth in sales of counterbalance machines will slow down and there will be a move towards warehousing trucks.

Silbermann said Linde's ventures in Eastern Europe were little older than a decade. As more clients from Western Europe moved their activities into Eastern Europe the company also built its presence and branding there.

In Poland and the Czech Republic, Linde has acquired former dealerships. Depending on the countries, Linde's market share in Eastern Europe is between 15 per cent and 23 per cent. "In Europe we expect an annual growth of three per cent to four per cent. Warehousing will grow seven per cent to eight per cent and counterbalance one per cent to two per cent," Silbermann said. Expected growth in China was eight per cent, driven mostly by IC-machines.