DEKRA creates a further 1,000 new jobs

Expert organization with around 5,000 additional jobs in 5 years

As a recognized partner for the testing, inspection and certification of intelligent and networked products, DEKRA has continued to impress as a reliable employer in the coronavirus crisis year 2020: The core workforce was increased by 400 employees to almost 30,000. “Thanks to our broad professional positioning, our global presence and a consistent optimization program, we were able to keep the effects of the pandemic within narrow limits,” said DEKRA CEO Stefan Kölbl at the virtual annual press conference in Stuttgart. At 3.2 billion euros, DEKRA achieved sales almost at the previous year's level - excluding the decline in sales in the temporary staffing division. The operating cash flow increased by 70 million euros. The decline in earnings was lower than expected. Kölbl sees 2021 as a year of setting out on new growth paths, which is also reflected in the new appointments to the Executive Board: IT expert Ulrike Hetzel, who moved from Bosch, is continuing to drive forward the development of new digital skills as CTO. Stan Zurkiewicz has headed the important growth region of East & South Asia for five years and is now responsible for further global expansion as COO. In 2021, DEKRA wants to take advantage of the two megatrends of digitalization and sustainability: By expanding digital services, the core workforce is to be increased by at least another 1,000 employees. The total workforce, including temporary staff, will then comprise more than 45,000 employees.

• 500 million investment volume, increasingly in digitalization, by 2025
• The entire service portfolio will be digitalized by 2025
• Key future fields are cyber security and artificial intelligence
• Asian market promises above-average growth in 2021
• Sales in 2020 almost at the previous year's level with higher operating cash flow
• EcoVadis honors testing company as sustainability champion

This increase in personnel follows on seamlessly from previous years: Since 2015, DEKRA has increased its permanent workforce by a good fifth, from around 25,000 to the current 30,000, with the majority of this growth being achieved outside of Germany, particularly in Asia. According to Kölbl, this will also apply to the future. “Even in the coronavirus year, our sales in China, for example, grew at a double-digit rate,” reported the DEKRA boss. “That's why we will create around 400 new jobs in the Asia-Pacific growth region alone in the current financial year, in addition to the current 3,500.”

DEKRA will drive forward the digitalization of existing services and the development of new digital services to ensure further growth. By 2025 - when DEKRA will be looking back on 100 years of commitment to greater technical safety - the expert organization will have digitalized its entire service portfolio. “The entire company will be consistently aligned with the opportunities of digitalization: This includes new forms of work as well as increased digital interaction and innovation through to data-driven services,” said the DEKRA CEO.

“Security is crucial as we continue to transform the economy and society,” said Kölbl. In line with its self-image as a thought leader, DEKRA therefore invested more heavily in the future-oriented fields of “cyber security” and “artificial intelligence” in 2020. The expert organization is concentrating know-how and developing new services in two “hubs” of the same name. DEKRA has already demonstrated its initial AI expertise by testing voice assistants such as Amazon's Alexa and a vehicle scanner that can identify damage with the help of algorithms. DEKRA's aim is to become a trustworthy and neutral third party for the regulation and certification of artificial intelligence.

“Without independently confirmed safety, consumers will not trust smart products that use AI,” explained the DEKRA boss. The more digital vehicles become, for example, the more verifiable standards and intelligent technologies are required to check compliance. DEKRA is therefore advocating a legal framework that defines AI standards and makes compliance verifiable. DEKRA is also expanding its expertise in AI testing and big data at its Málaga (Spain) site as part of the International Test Network Asia-Europe-USA. Cooperation with partners and start-ups is also being intensified.

When it comes to data-driven products or services - as is the case with AI - the megatopics of cyber security and functional safety also come into play. For example, DEKRA is already developing solutions in the field of automotive cyber security that can be used to check the security of software updates “over the air” (wirelessly) in vehicles. Kölbl: “We will continue to expand our position in the market for cyber security services. We want to become the global partner for automotive cyber security by 2025.” DEKRA is already working closely with international automotive OEMs and suppliers for automotive cyber security (UNECE R155 / 156 & ISO 21434). To this end, expert hubs for testing, certification, consulting and training are being set up on several continents.

Securing the mobility of the future

The future of mobility is closely linked to AI and cyber security. “As an expert organization whose success has been closely linked to safe mobility for almost 100 years, we are supporting our customers in this transformation process,” says DEKRA CEO Stefan Kölbl. In all service divisions, DEKRA is developing new offerings for growth markets such as automated driving, electric and micromobility and car sharing.

As a provider of end-to-end tests, DEKRA is already a pioneer in the testing of charging infrastructure for electromobility. With a new specialist laboratory in Stuttgart and the acquisition of the laboratories of the South Korean Movon Corporation, DEKRA has also been able to further strengthen its market position in the measurement of electromagnetic compatibility (EMC) and radio frequency (RF) testing, particularly for automotive manufacturers and suppliers. In China, the world's largest automotive market, DEKRA is currently working with a domestic partner to set up a state-of-the-art test center for testing key technologies relating to wireless communication, connectivity, AI, geo-information systems and cyber security. The first tests are due to start next year.

Expansion in the vehicle testing business

In its traditional core business, the periodic inspection of motor vehicles (Service Division Vehicle Inspection), DEKRA is preparing for the necessary monitoring of over-the-air updates for networked vehicles, among other things. Further growth in the coming years will result from the development of new markets. In vehicle testing, DEKRA increased its turnover in 2020 by around 6 percent to 1.1 billion euros despite coronavirus. Kölbl: “With our recent market entry in Chile and Mexico, we have once again strengthened our position as global market leader.” DEKRA is currently active in 22 countries and will continue to participate in further tenders for the construction of test stations in the future. Around 27 million vehicles are currently inspected every year, of which around ten million are in Germany.

Digital learning worlds on the rise

Further growth opportunities are opening up for DEKRA through the virtualization of services - for example in the Service Division Industrial Inspection in the form of online monitoring of systems, in the Service Division Audit through remote testing of quality management processes or in the Service Division Training through digital learning environments. In particular, DEKRA has significantly expanded its range of digital training and qualifications for private individuals, companies and public clients during the coronavirus pandemic. One example is the High-Voltage Vehicles Training HiVo: “The new digital offering comes at the right time, as working with and on high-voltage vehicles such as e-cars, for example in sales, towing services and vehicle workshops, requires special knowledge in order to avoid risks and accidents,” said the DEKRA CEO.

The millennium theme of sustainability

DEKRA further developed its own sustainability strategy in 2020 and will halve its carbon footprint by 2025. DEKRA already ranks among the top 1 percent of sustainable companies with a platinum rating from EcoVadis. “DEKRA is a sustainable company in two senses of the word - on the one hand, we are consistently reducing our own ecological footprint and, on the other, we are helping others to operate more sustainably with our services,” explained DEKRA CFO Wolfgang Linsenmaier. For example, six professional soccer clubs have taken part in DEKRA's “sustainClub” sustainability certification - and more professional clubs will be joining them soon. In view of the enormous demand for more climate neutrality, DEKRA will continue to expand its range of sustainability services in the coming years.

Outlook

DEKRA has made a good start to the current year. Turnover in the first quarter exceeded both the previous year's level and the forecast. “Thanks to our consistent focus on digitalization, innovation and the markets of the future, we will take off and return to our growth trajectory, provided the coronavirus pandemic does not slow us down,” said DEKRA CEO Stefan Kölbl. “From today's perspective, a new growth cycle for DEKRA and the TIC industry will begin in 2022. After all, safety is a key basic human need - especially in a digitalized world.” DEKRA will therefore continue to focus strongly on organic growth and invest around 500 million euros in this area by 2025. “However, we are also ready for further sustainable acquisitions to round off our digital service offering,” says Stefan Kölbl.