22/11/2024
How Bormann Elektrobau, once a four-person operation, became top dog in a competitive sector – without losing the human touch.

What on earth is Weyhe? In terms of geography, it's the southern extension of Bremen on the opposite bank of the Weser River. In fact, it is one of the many places in Germany where the heart of the Federal Republic truly beats: the small and medium-sized companies that account for three quarters of all employees and 90 percent of trainees. Weyhe is also home to a company that has done extraordinary things for the region without making a lot of noise nationwide. The company in question is Bormann Elektrobau.

Bormann Elektrobau was founded in 1977, an ordinary electrical business with four employees, supplying local households with everything from kitchen stoves to cellar lights and anything else that used electricity. Today it is a company with 110 employees based in the parent company, 40 more divided between two subsidiaries, and a number of contract workers hired for individual projects. In 2020, annual turnover amounted to €14 million.

"A family business with an eye on the future"

Bormann Elektrobau has long since moved on from residential properties to large-scale projects such as schools, hotels and office complexes. The company is in a class of its own in the local region – and today its operations extend from Hanover to the Baltic states, and from Magdeburg to the Netherlands. This significant achievement has taken place in less than two generations – and is all the more significant for having occurred in such a competitive market. So how has the company achieved this?

The short answer is that Bormann offers everything from a single source. While other companies are only capable of installing lamps or smoke detectors because they lack the personnel or the know-how to offer more, this company from Weyhe offers everything to do with electricity. From simple power cables to complex IT systems, orders are fulfilled in-house from beginning to end. As a result, the customer can rely on the different groups of tradespeople working seamlessly together. This saves the customer a lot of issues, and ultimately the customer saves money.

"There are always times when you have to leave your comfort zone"

The longer answer is due to the philosophy and the nature of the company. From the outset, this family-run business has always looked ahead to the future. When its competitors were still completing timesheets by hand, Bormann had fully digitised its internal administration for over a decade. This forward-looking approach is evident to anyone outside the company. At a time when information technology was still uncharted territory for the vast majority, Bormann was offering a comprehensive range of IT services, thereby remaining well ahead of the competition. By the time others caught up, the Weyhe-based family business had long since consolidated its position.

Patrick von Hagen is one of the company’s trio of managing directors and embodies this corporate philosophy down to his fingertips. “There are always times when you have to leave your comfort zone,” are words he lives by – and could easily be the company motto. As he puts on a mischievous grin and chats in his openly engaging manner, it’s easy to forget this is a seasoned professional – and one who never lets the reins slacken. His career path is testament to this.

Interview with Patrick von Hagen
From a simple power cable to a complex IT system, Bormann keeps the entire order in-house.

Von Hagen joined Bormann Elektrobau as a trainee in August 2002; today he is the boss. In fact, when he began his training, he only intended to stay a year. While a student, he had already built up his own business selling gaming servers. Before long, however, electrical engineering captured his imagination. He sold his server business and took the decision to stay. Not being the type to sit still for long, von Hagen completed an advanced course for technicians in 2010. He did so because he wanted to dig deeper into this field (and because he wanted to improve his bargaining position for the next salary round). Von Hagen brings together a fascination for this field and a strong sense of business acumen, much like a perfectly connected power line. He is well-grounded and yet pulsing with energy.

In 2014, he gained his master craftsman’s diploma as an Electrical Engineer. Although his company encourages further training, von Hagen politely declined, kept working, attended evening school after work and pored over his books at weekends. He paid for his costs out of his own pocket. “Because I’m good with figures,” he says with a grin – and indeed, his approach did prove more cost-effective once the student allowance for the master craftsman’s course and tax depreciation were offset against loss of earnings. “It also helps when negotiating with the boss,” von Hagen says. Soon he was heading up a newly created department. Yet that wasn’t enough for him.

Three years later, he passed his examination in Business Administration (with distinction). To do this, he again sat behind a school desk after work, enduring business administration lessons in an overheated classroom with three dozen other students – once again, at his own expense. It wasn’t much fun for anyone, he says, but it was worthwhile. Since 2019, the one-time trainee has been a member of the Management Board. According to von Hagen, “I always wanted to take responsibility, not just follow plans on a construction site.”

"Sometimes a foreign eye helps in the business"

Patrick von Bormann's cost-efficient approach is in keeping with the company’s business philosophy: for many years now, only very young used vans fill the company’s car park, because the depreciation on new cars is simply too high. After all, his company is driven not just by high value items, but primarily by a plethora of small things like cables, switches and terminals, and he can’t possibly keep an eye on them all. “For this we depend on reliable partners,” says von Hagen, “and we always offer a warm welcome to field staff.” Indeed, a lot a problems can only be identified with fresh eyes.

Just recently, a representative from HellermannTyton dropped by and, during a visit to the workshop, suddenly stopped in front of the electrical panels and suggested a new cable duct. “None of us would have thought about replacing a part like that,” says von Hagen. “I mean, how innovative can you be when it comes to cable ducts?” Yet the new part has proved its worth: it closes better than the previous model (from another supplier) and is more cost-effective as well. A trial delivery was ordered, and staff at the workshop and construction site agreed that the new duct was a blessing in the highly conservative environment of panel building. A problem that nobody had been aware of was duly resolved. “For this we rely on ideas from outside,” says von Hagen.

"For this we rely on ideas from outside"

Von Hagen working on his Electrical Panel
Patrick von Hagen is one of the company's three managing directors and embodies the company's philosophy

This requires a high level of trust. The same goes for internal relationships. “Whenever a colleague is having problems, we always find a solution,” explains von Hagen. We know each other, and communication lines are short; just recently he had to leave the premises for two hours to take his daughter to a swimming lesson. The electric Olympia typewriter on a first floor desk is not just for decoration; it's there for a long-standing employee who rattles off parcel labels for dispatch. This has given her a sense of purpose that she has missed since the death of her husband. Working in the Weyhe branch – without a smartphone or a laptop in sight – gives her the positive feeling of still being needed by the world. That’s also what a family-run company is all about.

"Investing in a satisfied workforce pays"

And it also makes business sense. Given the skills shortage, investing in a satisfied workforce pays off. For the same reason, Bormann Elektrobau trains its own next generation by taking on five to nine trainees per year. Instead of relying on vocational schools and sending young people to construction sites as cheap labour, a master craftsman within the company takes responsibility for trainees. As Patrick von Hagen puts it, “We train people according to our needs, not according to how we have to.”   

"We train people according to our needs, not according to how we have to."

One foreman has been around since the day the business was founded; he watched as the good old VW T2 vans were gradually displaced by new Mercedes Sprinters in the company car park. If he stays a little longer, he will also witness the arrival of the e-vehicles – because Bormann Elektrobau has a clear view of its next step here, too. It wants to gear up for the big wave of e-mobility to come. The company is already preparing for the difficult issue of electric charging and thinking about buffer systems, which are complex in both technical and regulatory terms. In this way, Bormann Elektrobau intends to stay at least one cable length ahead of the competition.

The company’s second headquarters building, newly constructed opposite, has plenty of empty offices to accommodate the coming generation. Once again, growth remains the goal. With someone like Patrick von Hagen on the team, there’s really no alternative.

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