AAE is not a well-known name for everyone. What exactly do you do?
“We have been around since 1976 and over the years have developed into a leading designer and producer of machines for high-tech and manufacturing companies. We make subsystems for ASML's chip machines as well as instruments for DNA analysis by LUMICKS that are used in scientific research centers around the world. Also, partially due to COVID, we started supplying more machines for printing, assembling, and packaging medical materials such as pipettes, syringes, and cryo tubes.”
By the end of this decade, AAE aims to roughly double its turnover to €200 million. Can all this be done from Helmond?
“That €200 million is a direction, it's not a goal in itself. And for that, we are also specifically looking at foreign markets. Traditionally, we have always worked a lot for international companies, and this has only increased due to consolidation in our markets. At the same time, the projects we do with clients are becoming larger and more complex. To manage this properly, our clients want us as a supplier to get as close as possible to them and do more for them.
That's why we are considering a local-for-local position in our main foreign markets. Just like in Europe, we want to open local branches in Asia and North America where we do everything: from design to production. We also believe this will help us attract new clients in these markets. That is the orientation we are currently working on.”
How far have you gotten and what are you encountering?
“When we decided a few years ago to focus on foreign markets, we really didn't know where to start. This was especially true for Asia. Just at that time, I came into contact with BOM and we were invited to join them on a mission to the Chinese province of Jiangsu. That trip was hugely valuable, but we also learned a lot from the preparation. Before departure, we participated in a number of breakfast sessions with the other participating companies organized by BOM, covering topics like marketing: what are you going to do there, what are you going to sell, and what are you strong in? We were also provided with tools to determine how large the potential market is and whether you can recoup the investments in international growth.”
What are the key insights you have gained from this?
“How important cultural differences are, something that is more pronounced in Asia than in North America. In China, I saw Western companies trying to create a copy of themselves, with European management. That doesn't work optimally, the differences are just too great. The best thing is to have a branch in Asia with a local management team. Otherwise, you are not part of the culture and you are essentially always one step behind.
The conclusion is that you can't just casually include China. In the past year, restrictions due to COVID have been added, preventing us from going there to meet people. Partly for this reason, we have put the plans for China on the back burner for now, and are first concentrating on North America. Unlike in China, we find that we can adapt more easily to the culture here.”
You've been working on internationalization for a few years now. What steps are you going to take in the coming years?
“COVID has once again shown how important it is for a company to be locally present. Then, for example, you are less dependent on supply from other regions, which suddenly came to a halt for many companies during the corona crisis. For us, this underscores the necessity for foreign expansion. If we want to continue growing and serve our clients in the best possible way, we need to be close to them. Whether it's Europe, Asia, or North America, we must do everywhere in the world what we are good at. That is what we will be working hard on in the coming years.”
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Good health and well-being
- With the "Expedition Fit" program, all AAE employees are on their way to climb the Stelvio in Italy in August 2022. Through lectures and activities, Expedition Fit promotes healthy eating and exercise, so employees find a good balance between emotional, physical, and spiritual well-being.
Decent work and economic growth
- FTEs working: since 2016, the number of employees increased from 150 to 380. By the end of the decade, it should be 600
- Annual turnover: €40 million in 2016, €100 million in 2021, and an ambition to grow further to €200 million within ten years
- Number of patent applications: 6
Industry, innovation, and infrastructure
Climate action
- AAE is a member of the CDP (Carbon Disclosure Project)
- Each year, AAE achieves a 50% reduction in its Carbon Footprint. By the end of 2022, AAE will be CO2-neutral in terms of energy consumption
‘Good preparation is everything’
In early 2021, BOM launched a new development program for companies looking to become internationally active. The Export Accelerator Program, an initiative of the national collaboration Trade and Innovate NL, aims to ensure that companies start their foreign venture better prepared.
Ruud Schenning, Manager of New Business at AAE, knows from personal experience how important this is: “Good preparation is everything. The knowledge and network of BOM have greatly helped us to get an understanding of our possibilities and pitfalls in a complex country like China. This has led us to put China on a back burner and focus on America first.”
Meanwhile, AAE, which has been collaborating with BOM since 2019, is also a participant in the IRP program itself. “For us, the program is a perfect stepping stone to further refine our business strategy,” says Schenning. “BOM employees hold up a mirror to us and continue to confront us with sharp questions. They do this in a pleasant and practical way, backed by the most up-to-date theoretical marketing models. As a result, we come back to the core and get a better picture of how we can best position our company internationally.”