Interview with Manuela Suter - CFO Bucher Industries

Deloitte: As CFO what would you particularly like to push ahead within the next 12 months?

Manuela Suter: Given the general downturn in the economy, production capacities need to be adjusted at the right time and to the right extent, and inventories must also be reduced accordingly. To take the right measures we need relevant, meaningful indicators to measure the effectiveness and success of what we do. We will also be very busy with non-financial reporting, where the first step is to implement the new regulations.

In the medium and long term global population growth, the growing middle class, urbanisation, and climate change are the most important global trends and they represent both risks and opportunities for the business. Our focus will be on what measures to adopt. Significantly more food needs to be produced more sustainably on limited agricultural land, while using less water, fertiliser, and pesticides. Bucher Industries can make a significant contribution to technical progress in this area.

Deloitte: There were federal elections in October. If you had one wish for the newly elected parliament, what would it be?

Manuela Suter: I would like our parliamentarians to adopt a solution-oriented approach to the challenges facing Switzerland, such as the significant demographic change that is taking place and its effects. I’d like them to think as though they were running a company that has to function commercially. This means not just 'administering' problems, but actively tackling them. Switzerland needs sustainable long-term solutions for the impacts of an ageing society, the shortage of skilled workers, and the pension system. I hope that common sense and tolerance will guide our parliamentarians in their decisions.

Deloitte: What potential do you see for generative artificial intelligence in the finance function, not least in light of the labour shortage?

Manuela Suter: The sheer volume of data and its diversity and importance have increased. Stakeholders have a growing need for information – for additional reporting, for example. This need can only be met by using digitisation and automation for repetitive data processing tasks. Otherwise it would be necessary to constantly increase the number of staff in finance departments, which would be too costly and, in fact, impossible because of the labour shortage. At Bucher Industries we have a very lean corporate structure. We believe that focusing on the essentials is crucial to us remaining efficient in the future while still meeting the growing number of regulatory requirements. And we are not leaving these decisions to artificial intelligence, at least for the time being. For us, the people who can assess whether a key indicator is relevant and meaningful remain vital.

Deloitte: How do you think the role of the CFO will change in the next few years?

Manuela Suter: As CFOs we are facing significant changes to our role, presenting us with both challenges and fresh opportunities. We need to continue to ensure financial stability and also make the most of new digital technologies. Digital tools and data analysis is playing an increasingly important role. You need it to be able to make efficiency gains. At the same time we need continuously to take steps to counter the growing threat of cyber attacks.

Social and cultural change is also influencing our role. Working from home and other types of more flexible working arrangements are needed, as well as new ways of recruiting workers. Reporting on sustainability issues will also play a greater role for CFOs, especially if they are pursuing the objectives in a serious way. For this what’s needed is not just an understanding of operational processes but also collaboration between departments. In all of this we CFOs need to anticipate rapidly changing economic conditions and crises and adapt successfully to what is happening.

Deloitte: How do you see interest rates and therefore the financing conditions for companies developing over the next 12 months?

Manuela Suter: We assume that there will be no more interest rate hikes in industrialised countries over the next twelve months. But inflation is likely to persist and interest rates will therefore remain at a high level. Bucher Industries' solid financial position and good credit ratings mean we do not expect financing conditions to become more difficult for us. But we realise that clients of ours who, for example, are partly financing purchases of our products with loans, are going to be affected by higher interest rates. And, as a result of that, they may be postponing investments for the time being.