Kärcher boss: “If this continues, everyone will have a problem”

DELIVERY MAN: The economy is weakening. How is business going at Kärcher?

Hartmut Jenner: It’s not an easy year; we’re at the same level as last year and are slightly behind expectations. Our business is massively impacted by the blockade of the Strait of Hormuz. We can no longer deliver to certain regions. Conversely, the flow of goods is still hindered and we cannot get certain raw materials. In addition, freight costs are rising massively because we have to avoid routes. In the end, prices will certainly have to be increased.

How much will device prices increase?

We will not increase prices across the board, but will do so specifically depending on the product and markets. But many companies will not be able to avoid price increases.

Do you have contingency plans should the blockade continue?

We are trying to tap other sources to maintain supply chains. At the moment we are still able to do this, but of course the prices are rising. If the blockade continues for another six months, everyone will have a problem.

How is the demand? Are you noticing a certain reluctance to buy?

We are noticing a strong reluctance to buy, especially in core Europe, where the private customer market in particular is declining. The commercial sector is somewhat more stable.

The ECB raised the key interest rate, which many medium-sized companies criticized. You too?

Yes, this decision is not beneficial for us. This sends the wrong signal and affects medium-sized businesses massively, for example when it comes to loans and because it creates uncertainty. Since Corona, we have de facto no longer had a stable business.

Is the competition from China getting stronger?

Yes, definitely. Everyone is feeling the growing competition from China. Because the USA sales market is no longer available due to the high tariffs, more is sold in Europe. And China has of course also become better technologically, for example in robotics or battery technology.

Chinese online retailers like Shein and Temu are on the rise. Is the EU not doing enough about it?

Yes, I’m just using the example of sustainability. We have to comply with a lot of regulations here and this has always been a top priority at Kärcher. Since 1996, we have converted every factory to recycling and test all of our new devices not with fresh water, but with used water. At the same time, Chinese traders fly all of their goods into Europe on cargo planes. So much for sustainability. You don’t have to provide any supply chain evidence either.

Do we need protection through tariffs?

It has been proven that tariffs have never brought prosperity and have not been successful in the long term. But I am worried that China will destroy the structures with dumping prices. The customs question is definitely justified. Maybe the market needs to be protected with tariffs for a few years because competition isn’t fair.

Is it worth producing in Europe again because of the supply chain bottlenecks?

We are already positioned to be resilient here; most of our 17 plants are in Europe. We are also expanding here and have built new plants in Latvia and Romania and expanded our production facilities in Italy.

On the subject of innovation: What role does artificial intelligence now play in your products?

AI is a huge opportunity for high-wage countries like Germany or Austria to increase productivity and thus remain competitive. AI is state of the art for us, we have a lot of AI in our cleaning robots, for example for recognizing routes or for voice control by AI agents.

What’s new at Kärcher this year?

Many. For example, we have a new window cleaning robot and a mattress cleaner with special UV light as well as a cleaning mob for small commercial kitchens. And we have brought new high-pressure cleaner models onto the market for our private customers, as well as new steam cleaners and wet/dry vacuum cleaners. The hand-held and very maneuverable K-Mop scrubber dryer is also particularly well received.

When will there be a robot that cleans my toilet?

That will definitely come in the next few years. First for the professional sector. Cleaning is not that trivial because the robot has to recognize the surfaces and have the mechanics to do the things. And then the price has to be right. But there are actually huge leaps in innovation.

For example?

For example, our new nozzle for the high-pressure cleaner, which requires 50 percent less water and 50 percent less electricity. This is a purely mechanical solution and the Eco Booster can be retrofitted to any cleaner.

The USA had the largest IPO of all time. An incentive for Kärcher?

No, we are a family business and will remain a family business.