Siemens monitoring Red Sea situation, no big impact so far

DAVOS, Switzerland (Reuters) – Siemens is monitoring the situation in the Red Sea but so far sees “no big impact” on its supply chain from the crisis that has seen ships diverting to avoid missile attacks, an executive board member said on Tuesday.

The German engineering group is using lessons learned from previous crises as well as its own technology to reduce problems, Matthias Rebellius told the Reuters Global Markets Forum in Davos.

“We learned a lot in the different supply chain crisis and after COVID also to make our supply chain more resilient,” he said. “We have almost a digital twin of our supply chain, we can also simulate different scenarios and that’s how we prepare for it.”

Despite tepid global signals, with its home market of Germany for example on Monday reporting a shrinking economy in 2023, Siemens is not seeing a slackening of demand in all of its businesses, the executive said.

The picture varied from industry to industry, with Siemens aiming to tap into mega-trends like the need for increased electrification, grid investments, and the integration of renewable energy, he said.

“These are hyper-cycles that are still growing at roughly double-digit and continue to grow,” said Rebellius.

While some areas like commercial buildings, particularly offices, are seeing weaker demand for products and systems that operate smart buildings, there is growth in other areas like buildings for health care, life science and data centres, he added.

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(Reporting by John Revill,Divya Chowdhury in Davos and Savio Shetty in Mumbai Editing by Louise Heavens and Mark Potter)