Last year, the economy in Germany faced a variety of challenges. The commercial vehicle sector, for example, had to contend with trade barriers and significant customer reluctance to purchase, partly due to the uncertain global political situation. Despite countermeasures, more and more companies are becoming insolvent and consequently have to file for bankruptcy.
Customers currently prefer to keep using their commercial vehicles and agricultural machinery for longer and have them repaired instead of buying new ones. This trend is also being felt by the Lower Saxony-based Krone Group, which specializes in the agricultural technology and trailer segment, recording a drop in sales from 3.2 billion euros to around 2.4 billion euros for the past fiscal year 2023/2024. However, the manufacturer of agricultural technology and transport vehicles is showing ingenuity in new solutions.
Digitization and Robotics
Thus, the agricultural technology and trailer expert, which employs around 6,500 people, persistently counters the lack of new investments from customers with its counter-strategy initiated last year – and invests in modern facilities with automated functions. For example, around 40 million euros went into a state-of-the-art spare parts warehouse at the headquarters in Spelle, which was commissioned in 2024. And in the same year, they teamed up with the struggling Austrian body manufacturer Schwarzmüller to play to their strengths together. Regarding his expansive corporate strategy, managing partner Bernard Krone says:
"In an enormously challenging market environment, we have nonetheless consistently implemented our necessary investments in future projects, such as the completion of the ultra-modern spare parts warehouse in Spelle, the strategic partnership with the Schwarzmüller Group, or various realignments in the field of digitization or robotics."
Production Outsourcing
But that's not all. According to Krone, they are currently considering whether they should also manufacture agricultural machinery for the US market at the Krone North America site, located in Olive Branch, Mississippi. "This mainly concerns mowers and tedders." According to the statements, the overall offering is to be optimized with increased customer proximity and loyalty.
Short-Time Work
A slight easing of the market situation is not expected "until at least mid-2025." The political framework conditions, as well as the overall economic situation, are too difficult to assess. The CEO of Bernard Krone Holding SE & Co. KG, Dr. David Frink, indicates the sentiment in the industry and says that at the moment many customers are in a wait-and-see position and hope for positive political signals that also point to long-term stability, sustainability, and growth. Until the conditions are clarified, they are forced to adapt best and, if necessary, to restrict:
"As long as the German and other international markets remain at a low level, we will have to respond flexibly to the fluctuations – for example, through the instrument of short-time work."
This attitude alone gives the family business the necessary leeway to maintain independent decision-making ability, says the doctorate in business administration. And so they continue to remain fundamentally positive: Agricultural machinery will always be needed, or as Dr. Frink puts it: "the global demand for high-quality agricultural products, innovative agricultural technology, and efficient transport solutions remains consistently high."
The Krone Group consists of two business sectors: commercial vehicles and agricultural machinery. The company, founded in 1906, generates most of its revenue in Western Europe and Germany, with its products available in 74 countries worldwide. Another significant share of revenue from commercial vehicles comes from the Eastern Europe region, while for agricultural machinery, it is from North America.
