CEO (Vorstandsvorsitzender), Lapp Holding SE, Lapp Holding SE (LAPP Gruppe)
Podcast „Alles neu Aus dem Maschinenraum“ | Folge #48 Matthias Lapp
Das Stuttgarter Unternehmen Lapp ist Weltmarktführer für Verbindungslösungen und Spezialkabel. Oskar und Ursula Ida Lapp haben es 1959 gegründet, seit zwei Jahren steht ihr Enkel Matthias Lapp an der Spitze. Im Podcast „Alles neu...? Aus dem Maschinenraum” spricht er über die Anfänge des Unternehmens, über die aktuellen wirtschaftlichen Herausforderungen am Standort Deutschland genauso wie über seine ganz persönlichen. Lapp erzählt, wieso seine Großmutter als Frau in der Bundesrepublik der späten 50er Jahre ganze drei Anläufe brauchte, um das Unternehmen anzumelden, und wie sein Großvater eine...
About Matthias Lapp
Matthias Lapp became chairman of the board (Vorstandsvorsitzender) of Lapp Holding SE in October 2022, succeeding his father Siegbert Lapp and uncle Andreas Lapp in a generational transition. In a joint video message, Siegbert and Andreas Lapp announced their retirement, with Matthias Lapp and his cousin Katharina Lapp taking over leadership roles. Matthias Lapp expressed gratitude for the trust placed in the third generation and stated his intention to continue developing the company founded by his grandparents, with the goal of eventually passing it to the fourth generation. In a December 2024 podcast interview, Lapp discussed the company's position as a global market leader for connection solutions and special cables. He described Germany as "a topic" for the company, noting that as a globally operating firm, Lapp is somewhat more independent. Lapp contrasted what he described as a different mindset in Asia, saying he sees a lack of "will to achieve, to make things happen, to want a better life" in Germany. He also emphasized that Lapp will remain a family business, stating this is the company's main foundation, and highlighted the advantage of not being bound to quarterly reporting, allowing for long-term, sustainable investment.
Transcript (56 segments)
H
Host0:09
Welcome to Everything New from the Machine Room, the podcast for German SMEs. I'm Katja Michel from the business magazine Kapital, and I'm Tobias Rappers, managing director of the Machine Room ecosystem for family businesses. Our guest today is Matthias Lapp, CEO of the Lapp Group. Before we start, thanks to our partner Asana. Now let's begin with 'What happened so far' by Katja. Lapp is a global market leader in cables for over 50 years. It started in the 1950s when Oscar Lapp invented the Ölflex cable at the kitchen table. Today, Lapp cables are in breweries, wind farms, airports, and forest excavators worldwide. Nearly 6,000 employees, revenue of 1.8 billion euros. Matthias Lapp, grandson of the founders, has been CEO for two years.
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Matthias Lapp2:29
Hello.
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Host2:31
Everything New from the Machine Room is not quite right, because we are guests at your place in Stuttgart at the European headquarters of Lapp today. Thank you for the invitation. And we were whispered in advance that you sometimes come to work by bike.
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Matthias Lapp2:48
Yes, if it can be arranged.
H
Host2:51
What kind of bike is that? What bike?
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Matthias Lapp2:55
Yes, it was a mountain bike, and during the crisis I rewarded myself with a gravel bike.
H
Host3:01
Well, if your life were a trail, which you ride with gravel bikes, I also bought a gravel bike during the Corona time. On what section would you be? Steep climb, fast descent, or relaxing straight?
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Matthias Lapp3:19
A continuous up and down. Just in these weeks rather the ascent, but you see the end at the light of the tunnel? So the next descent, the next trail is coming.
H
Host3:30
And which mountain is that that you are climbing?
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Matthias Lapp3:35
Yes, whether that - I think the Alps are not enough. We would have to go further away. The Alps are too low. There are difficult things, but in the Transalp it might be too simple. Let's go somewhere else to the really difficult mountains.
H
Host3:53
But the mountain is a symbol. When you say it's such a high mountain, can you fill that in a bit more concretely? What does that mean? Why this high mountain and what does it represent?
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Matthias Lapp4:07
Good question. The mountain refers to my current situation and the company's situation. It's the CEO role plus Matthias Lapp personally. We have many changes, challenges with the economy, statements from the US, and my father's death last year, leaving inheritance processing. That's the mountain. But hopefully most will be done and we can enjoy the flow on a trail.
H
Host5:25
Matthias, Lapp was founded 60 years ago. You are now in the third generation. What for you personally is the core of Lapp that must not change over the next generations?
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Matthias Lapp5:46
The core is being a family business. It brings advantages, like not being bound to quarterly reporting, allowing long-term investment. Despite economic challenges, we stick to our strategic investments. We want to maintain the benefits for employees and remain a healthy employer. Our strategy from 2021 is being executed and we are not postponing investments.
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Host7:25
Yes, and what is the strategy you adopted in 2021? Can you say a few sentences about it?
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Matthias Lapp7:31
Strategy 27 is to put the customer back in focus. We originated from a customer need. We want to align everything to the customer, give decision-making power to local employees, explore new industries beyond machine building, like renewable energy, medical, logistics. We have a huge product portfolio of over 40,000 items. We aim to be customer-close and expand in all industries except aviation and automotive.
H
Host11:04
You mentioned something interesting: long-term thinking, customer focus, and giving employees decision power. How do you balance short-term reactions with long-term responsibility?
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Matthias Lapp11:37
Balance is key. In tough times, we must satisfy customers but also keep investing. After the pandemic, we had to deal with high demand. We find the balance and are ready for the upswing after every crisis. We invest wisely in the right things.
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Host13:04
You are investing in a new logistics center with groundbreaking in Ludwigsburg. Given weak German economy, is this a rational or emotional decision?
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Matthias Lapp13:20
It's both rational and emotional. As a Stuttgart company, we feel connected to the location. Geographically, Germany is central in the EU. Our logistics center will serve 50% of global customers. We need stable framework conditions for such long-term investments.
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Host15:34
What preoccupies you more: political situation in Germany, economy, or overseas events?
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Matthias Lapp15:46
Both. Germany faces structural issues. As a global company, we are local for local. The new US government and our political situation complicate things. I miss the German will to achieve. We are like a 'big fat happy cat' expecting to be fed. We need to become active again, change the mindset.
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Host18:26
How could that change? That's a mindset question. Do you have ideas?
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Matthias Lapp18:33
Everyone must start with themselves. Don't demand a three-day week. We need to work to earn enough. Companies shouldn't relocate everything. We need personal initiative, like picking up litter. We must develop that attitude internally, not wait for others.
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Host20:22
I like that attitude, moving away from learned helplessness. Let's go back to family: your grandmother founded the company. What role did she have and how present was she until the end?
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Matthias Lapp20:50
She was very present for long-term employees. The story: she founded the company on the third try because as a woman, officials laughed at her initially. My grandfather was her first employee. She did administration, he did sales. They had a clear division. She ensured the company could continue.
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Host22:55
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When you visit our European headquarters in Stuttgart, you see a bronze head statue of your grandfather Oscar Lapp. Below it stood his identity: pioneer, inventor, entrepreneur. Which of these do you want to be?
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Matthias Lapp24:25
I am more the entrepreneurial type who tries to see things holistically with meaning and common sense. Pioneer and inventor are not my strongest traits.
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Host25:08
You entered the third generation leadership. Most people don't find cables sexy. What fascinates you about cables?
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Matthias Lapp25:29
Cables are full of technology. I love the diversity of applications, from wind turbines to mines.
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Host26:34
You want to develop from cable manufacturer to system provider. What does that mean concretely for you?
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Matthias Lapp27:15
We have always offered more than just cables. Now we provide complete solutions and services. Our products are the arteries of industry.
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Host29:08
You are in your early 40s. What is your vision for Lapp in 10 years?
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Matthias Lapp30:22
Our family culture will remain. In 10 years, we will reach more customers globally. In 30 years, I have other plans.
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Host31:50
You were born into this family business. What shaped you?
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Matthias Lapp32:15
Responsibility, courage to make decisions, common sense, and trust in the team.
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Host33:52
You have children. How do you balance being CEO and father?
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Matthias Lapp34:23
It's not easy. My advice: don't become CEO and have small kids simultaneously. But it gives balance.
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Host35:06
Your children are 3 and 3/4. About leadership: you mentioned decentralization. How do you manage the cultural change?
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Matthias Lapp36:12
Lead as you want to be led. We train managers through our Oscar Lapp Academy, including cross-functional and social projects.
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Host38:42
What social projects? Examples?
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Matthias Lapp38:54
We work with Joblinge to help youth find apprenticeships. It broadens horizons.
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Host40:30
Signal word for end. We have a book club. Which book inspired you recently?
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Matthias Lapp41:13
Stefanie Stahl's 'The Inner Child in Me' helped me understand myself better.
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Host42:29
Did you gain an insight from it?
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Matthias Lapp42:37
I learned that some reactions stem from childhood experiences. Awareness helps me react differently.
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Host43:07
Thanks for sharing. Katja's question: If you could live a different life tomorrow, what adventure would you start?
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Matthias Lapp43:24
I like my life.
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Host43:26
That's a beautiful answer. It sounds adventurous.
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Matthias Lapp43:31
As an entrepreneur, I have many challenges and freedom. I'm married with kids, wouldn't change it. But I'd love to travel through all US states.
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Host44:24
Next question: Which chapter of family business history would you like to write?
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Matthias Lapp44:37
To pass on a healthy, sustainable, global company to the fourth generation.
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Host45:51
Thank you for the personal conversation. We wish you success. Thanks for being a guest.
That was the last episode of the year. Send suggestions to email. And another ad for Asana to boost productivity.