Germany is in a recession. L.I.T. is also feeling the effects of the downturn, but has nevertheless implemented further major projects this year. In this interview, our board talks about the challenges and opportunities facing the Group.

2023 was not an easy year economically for companies in Germany. How did L.I.T. cope, Mr. Fels?

Fokke Fels: If we look at the first half of the year, we are very satisfied with our figures. This was particularly due to the fact that 2022 was simply overheated. Although we had a comparatively weak start of the year, we were able to call on and utilise our resources optimally. There is no question that the recession that has developed over the past few months has not left us unscathed. The construction industry has been lying idle for some time now, and demand in the automotive sector is also falling, which is only understandable when people have less money at their disposal. We at L.I.T. have always seen such phases as opportunities. For example, our investments benefit from the lower costs resulting from the slowdown. That’s why we remain bold in the market!

You have already mentioned the automotive industry. Due to the downturn, demand is also declining and the number of transports has also fallen over the course of the year. However, two L.I.T. companies, Automotive Solutions and Air & Sea, are developing very positively. Why?

Simeon Breuer: It is true that the two units within our Group are developing anti-cyclically and against the trend, which of course pleases us. Both have the courage to make decisions even in difficult situations. At Automotive Solutions, we already have the first challenging months behind us – including the semiconductor bottleneck and plant closures – as we founded it during the coronavirus pandemic. However, it has developed extremely well and recently expanded to Regensburg this year. Our aim is to be close to our customers. We are now represented at seven locations. That’s very impressive for such a short time.

And the Air & Sea will also take the next steps. In addition to establishing organisational structures at our existing locations, we are focusing on other countries in order to open up new markets and offer our customers a comprehensive product portfolio. That’s why we will soon be opening branches in India and China.

One of the major topics in 2023 was and is the decision to increase the truck toll. As a transport service provider with more than 1,400 towing units on the road, this change will have a massive impact on you.

Ingo Schreiber: Definitely. We have already said that we consider the toll increase to be counterproductive at such an economically challenging time. Although we support the efforts to achieve greater sustainability in the transport sector, many companies will find it very difficult in this form and will find themselves in economic difficulties, as the transport and logistics industry will be faced with considerable additional costs. Nevertheless, our strategy, which has been successful for years, is also evident here. We are resilient and are always looking for new opportunities to offer and expand our services.

Among other things, you indicate the block train between Osnabrück and Heilbronn.

Breuer: We do not see a turnaround in transport without intermodal transport. That is why we have been successfully launching rail projects for years and will continue to invest heavily in them. As a transport service provider, we make a significant contribution to climate change, so it is our duty to reduce our CO2 emissions enormously. Together with our joint venture, SmartRail Logistics GmbH, we have been successfully realising the plant supply in Emden for one of our customers for several years now. We have been looking for ways to organise as many runs as possible by rail. With the block train on the route between Heilbronn and Osnabrück, we have succeeded in doing this together with our customer. Although such projects also require the existing infrastructure, intermodal and multimodal transport is fundamental to our strategy.

You have also realised several projects in the area of warehouse logistics in recent months. What makes them so special?

Julian Lachnitt: In addition to the ground-breaking ceremony for our own logistics property in Bassum in the Diepholz district, we will also gain a foothold in the UK with our warehouse logistics solutions. To this end, we have leased a property in the Midlands, the logistics triangle there. This is a very exciting project because the British market is very different to the German market and it is more difficult to establish something there for the first time.

In what way?

Lachnitt: The conversion from pounds per square inch to euros per square metre alone is an issue that we don’t have to deal with in the EU countries. Brexit has also made the framework conditions more difficult. owever, the United Kingdom is an attractive market. That’s why we need colleagues on the ground who know the market and its special features. The UK as a consumer market is a great opportunity for us.

Finding the right employees is not just an issue for the UK. This year, almost 45 trainees have started at L.I.T. again. Do you feel the shortage of skilled labour?

Lachnitt:It’s true that we were able to fill every vacancy this year. Nevertheless, the effort involved is now enormous. Our HR department is doing a lot more advertising to fill vacancies – and not just for trainee positions. We are also constantly on the lookout for new colleagues in personnel logistics – particularly in the area of truck drivers and warehouse staff. One possibility is to use so-called driver hubs for certain intermodal transport operations, so that we can make the job of truck driver more attractive again. We use trucks for the initial and final leg of the journey, while the train takes over the main leg. In this way, we create more regular working hours for our staff. We are currently in a good position, thanks to our dedicated team. But we will have to work even harder in the future to maintain this situation.

Let’s take a final look at 2023: What were the lighthouse projects in your view?

Breuer: We are particularly proud of the good start made by Automotive Solutions. The company has developed excellently despite the adverse circumstances and has been able to generate significant added value for our automotive customers. As part of this, we launched a traileryard in the port of Hamburg for a well-known customer at the beginning of the year. The customer is completely satisfied with our work. We recently ramped up a second block train there in order to further improve the supply of the production plants and at the same time act more sustainably.

With all the challenges: How do you view the year 2024?

Fels: Cautiously optimistic. assume that the economy will pick up speed again over the course of the year. This is because the forecasts predict a renewed increase in Germany’s gross domestic product. This will not be evident right from the start, but may take until the second half of the year. However, I am convinced that we will emerge from this »trough« that companies are currently experiencing. We will therefore continue to pursue our proven strategy of growth and make acquisitions in order to further diversify our services and grow organically. In 2024, we will continue to pursue our motto »Together for success « and, together with our colleagues, do everything we can to ensure that L.I.T. continues to operate successfully and boldly on the market.

Curios?
In the current issue of our company magazine L.I.T.ERATUR ou will find further insights into the L.I.T. world.