The plastics industry needs to attract young talent. And to attract talent, it must show it has opportunities for the future that embrace sustainability and technology, Anatol Sattel, chief sales officer for Sumitomo (SHI) Demag told German plastics industry trade group VDMA.
In this conversation with VDMA in advance of K 2025, Oct. 8-15 in Düsseldorf, Germany, Sattel discusses how Sumitomo is addressing those issues.
Q: To what extent does the motto of K 2025 — The Power of Plastics - Green - Smart - Responsible — strike the right note?
Sattel: It is certainly right to demonstrate self-assurance. The simple fact is that at least 75 per cent of all plastic products will continue to be without alternatives in the future. The motto can also be used to shed a better light on our industry for the urgently needed young talent. After all, the negative image that plastics often have makes recruiting considerably more difficult. However, it is no longer enough for a company to simply declare its commitment to environmental and climate protection, which tends to annoy people because it is perceived as hot air. You won't win any advocates for plastics if you just skim the surface.
What needs to be done?
Sattel: We are obliged to explain to the public that we are not only open to sustainable products, but that we are also willing to push for technologies that may not immediately lead to increased profits. And, that we are striving for innovations whose benefits will only become clear in a few years' time. This is one key point.
The second important point is publicly recruiting new employees, so that we are still able to employ highly qualified people within our field in the future and drive our innovative technologies forward. We are in competition with many industries. If we don't stand up for sustainability in a credible manner, we won't be able to attract young people.
Where do you need to start to secure the next generation?
Sattel: We have to address people directly, starting in our immediate surroundings. We need to become visible as a company, as an employer, and as part of the region. We also need to show that we are serious about sustainability, both on a small and wider scale.
We need to appeal to people before they possibly consider applying for a job with us, and build a good image as a company. That is why we are planning to introduce a family day in the autumn, so employees can then show their children what they do, and what kind of company we are. We will push ahead with those activities, regardless of the current economic headwinds.
The shortage of young talent also affects your customers. Will this accelerate the development towards "unmanned" machines?
Sattel: That is indeed the path we are taking, which is being paved by digitalization. Thanks to our networked production, we now have data on how the machines are utilized in a system as a whole. Current customer pressure for efficiency has led us to offer highly automated systems that are easy to operate; this pressure didn’t exist previously. Today, the aim is for a system to run autonomously.
What role does efficiency play?
Sattel: We were among the first in our industry to switch to all-electric machines. Because energy costs have risen dramatically over the last ten years, the demand for them is correspondingly high. Traditional hydraulic injection molding machines are very energy-intensive, as an example: oil pumps are always in operation, even when production is not taking place.
Thanks to our Japanese parent company, we have been able to add all-electric machines to our product portfolio. So, we were already very well positioned when the sustainability trend hit with force. The goal of sustainability on the one hand, and the high energy costs on the other, are causing production to become much more energy-efficient in all areas. We have the advantage that we have been using this technology for a long time, while others have yet to develop it. Due to the efficiency advantages of all-electric machines, we have also decided that we will no longer build fully hydraulic machines in Europe from 2026. However, we will continue to manufacture them in Asia and offer them in the relevant markets.
Can alternative materials also be processed on the all-electric machines?
Sattel: The development of new materials, such as biodegradable ones, is the next step on the road to greater sustainability. It is a major challenge, but also a great opportunity, because if we succeed in developing ground-breaking new materials here in Europe, we can open up completely new markets. We would then have the strategic edge over our non-European competitors. The pressure to innovate triggered by the sustainability trend would also bring a major economic advantage.
Where do the challenges lie?
Sattel: They are manifold; the general conditions are not good. Technology is improving considerably, but new materials and recyclates are usually more expensive than new products based on crude oil. When the price of the fossil-based raw material is very low, people are no longer interested in recyclates. In addition, traditional plastic manufacturers are usually not interested in supporting alternative materials. Another challenge is the generational change that is currently taking place. We need a lot of expertise right now, but the people who have it are gradually retiring. The younger ones are also good, but they have much less experience. Basically, I am convinced that the change in society as a whole definitely harbors great potential for innovation.