Three challenges to growth: Thermo Fisher's vision for energy, talent and supply chain

Thermo Fisher Scientific, a global leader in a broad arsenal of life science solutions, faces a substantial growth task. During his keynote address at Brainport Industries' annual conference, Senior Director Maurits Smits emphasized that today's challenges - energy, talent, and the supply chain - can only be overcome through collaboration, innovation, and sustainable strategies. Guided by the slogan “We help others improve the world,” Smits shared how the company works toward a future-proof vision, focusing on innovative solutions and social responsibility.

Smits made his speech in the theater auditorium of Brainport Industries Campus.

Thermo Fisher, best known for producing electron microscopes, is in the midst of a growth phase. The company has set itself the goal of doubling production in the next five years. However, this ambitious plan faces three major challenges: energy supply, attracting talent, and strengthening the supply chain. According to Smits, the company can achieve these goals only by remaining innovative and leveraging local and international partnerships.

Thanks to the supply chain

“We have grown thanks to our supply chain,” Smits emphasized to an audience that consisted mainly of representatives from exactly these supply companies. “Innovation in the supply chain is vital to our success. We cannot fulfill our ambitions without our suppliers and their ability to grow with us.” But therein lies at once the vulnerability: with dozens of locations around the world and supply chains that move with the business cycle and geopolitics, it is no certainty that the company - once originated in Eindhoven as Philips electron microscopes and FEI - will remain eternally loyal to the Brainport region.

Smits not only had a story full of impressive figures for the 124 member companies of Brainport Industries on Thursday afternoon but also sprinkled some warnings. No less than 120,000 people worldwide work daily to produce dozens of products in four main categories. With an annual turnover of more than 40 billion euros, the company, currently directed from the United States, scores considerably higher than the 26 billion ASML recorded last year. Eindhoven, with 1,250 employees, is still a major player, even if Smits had to admit to a question that the “Silicon Valley of Europe” for the top boss is not necessarily rated much higher than the multinational's other sites.

Energy: smart and sustainable solutions

Despite its enormous scale and innovative nature, Thermo Fisher, like many other companies in the Brainport region, faces the same structural challenges. One of the biggest obstacles to further growth is the availability of energy. Smits explained that the company in the Netherlands is currently drastically reducing its energy consumption while working to become self-sufficient in its energy needs. “We bought the building next door and are covering the entire roof with solar panels,” he explained. “This will give us 1 megawatt of solar power when the sun shines.”

But this is only part of the solution. Thermo Fisher is also looking at ways to make energy use more efficient. The company is optimizing air handling systems, using LED lighting, and building battery systems to store excess solar energy. These sustainable measures are designed not only to save costs, but also to future-proof the company in a world where energy supplies are increasingly unpredictable.

“We need 2.5 megawatts of additional energy in the near future, but we can't wait to be allocated that,” Smits emphasized. “We have to find solutions today to keep our production going. That means we must move quickly, both within our company and with our regional partners.”

Talent: collaborating instead of competing

The second major bottleneck Smits mentioned is the shortage of qualified talent. In a region such as Brainport, where companies like ASML, NXP, and Thermo Fisher compete for the same technical specialists, the emphasis is increasingly on attracting international talent. “The battle for talent is fierce, but we should not compete against each other,” Smits stated. “We must work together to bring talent from outside the region here.”

To make this happen, Thermo Fisher works with local and international educational institutions to develop and retain talent. However, Smits also stresses the importance of good social policies to retain talent. “Nowadays, talent chooses the company they want to work for, not vice versa. Companies have to adapt to the changing needs and expectations of employees. That means that as a company, we must also be socially responsible.”

According to Smits, it is not enough just to offer an attractive salary; companies must also pay attention to the well-being of their employees and the social impact of their work. Thermo Fisher is, therefore, actively working on initiatives to create an inclusive and diverse work environment where international employees feel at home and where there is room for personal and professional development.

Supply chain: innovation and resilience

The third challenge Smits discussed is the vulnerability of the supply chain. During the COVID-19 pandemic and subsequent geopolitical tensions, the importance of a robust and flexible supply chain became apparent. “We need innovation, not only in our products but also in our supply chain,” Smits said. He referred to the close cooperation with suppliers in the Brainport region, where Thermo Fisher sources many of its high-tech components.

“Innovation in the supply chain means that we have to look not only at costs but also at our suppliers' sustainability,” Smits explained. “We have to make sure that our suppliers can grow with us and that they are also able to make their processes more sustainable.”

Smits emphasized the importance of regional cooperation. Thermo Fisher works with other regional players, such as ASML and NXP, to share knowledge and resources. “We don't need Silicon Valley; we have everything we need here in Brainport,” he said. This collaboration allows companies in the region to operate more efficiently and respond faster to changes in the market.

Innovation as key to success

Despite the challenges Smits outlined, he is optimistic about the future. He emphasized that continuous innovation is the only way to ensure the growth of Thermo Fisher and the Brainport region. “Whether it's electron microscopes, sustainability, or attracting talent, innovation is the key to success.”

Smits also admitted that the impact of the current political climate in the Netherlands does not make innovation and international cooperation any easier. In Eindhoven alone, Thermo Fisher counts as many as 45 nationalities among its employees. “Minister Klever was with us last week and asked what language we speak here,” Smits told us. “Well, that makes sense: we speak the employee's language. If two Chinese people understand each other better in their own language, then by all means do so.”

Stricter immigration and work permit regulations make it more difficult for international talent to arrive, which is essential to the success of companies such as Thermo Fisher. Smits pointed out that there are not enough qualified people in the Netherlands to meet the demand. “We cannot do without international employees in the Brainport region. Without them, we would not be able to fulfill our ambitions.”

That said, Thermo Fisher continues to invest in research and development, with more than 1.3 billion euros in R&D spending per year worldwide. The company is determined to continue to grow in the coming years and further strengthen its position as a world leader in electron microscopy. “We believe that with our innovative solutions, we can improve not only ourselves but also the world,” Smits concluded. “And we do that together with our partners, our employees, and our customers.”