Nextsense’s U.S. Success Story

How this SMB from Austria in the Electrical/Electronic Manufacturing industry made it in the U.S.A

Country Of Origin Austria

U.S. HQ. Atlanta, USA

Industry Electrical/Electronic Manufacturing

Year Founded 2007

Number Of Employees 85

Annual revenue1 2 MUER (2017), 10 MUER as at OCT 2018

 

About Nextsense

Next sense is a world leader in mobile profile measurement and surface inspection. With its unique CALIPRI principle, the company has become popular for its prowess in the fields of the gap and flush measurement. Moreover, they are famous with excellence in wear measurement of train & rail and in the measurement of hot metal profiles. Most of its customers include numerous renowned international automobile manufacturers, all major railway companies, and major steel producers. Some of the customers comprise of Daimler, JLR, Audi, BMW, Deutsche Bahn, SNCF, CRC, voestalpine, ArcelorMittal, among others. In 2007, NEXTSENSE was formed as a derivative of Joanneum Research, an Austrian research company. Currently, the company has 85 employees. It is worthwhile to note that the company also has over 40 sales partners and sales & service centers all over the world. This numbers could change amid proposals to establish more oversea subsidiary offices.

Nextsense Opens Us Office

 

Apparently, South and North American customers should benefit from faster response time and customer proximity. This will be achieved through the newly opened subsidiary office in Atlanta, Georgia.

Clemens Gasser notes how the company’s sales partners have been serving the US market. Currently, only the company’s sales partners serve the U.S. market. However, the move to have an office in the US will make things better for customers. According to the company, the office will operate as a sales and service coordination center for North and South America.

Gasser also indicates that the office will help in prompt addressing of customer’s complains. Further, intensifying NEXTSENCE’s presence in a market with huge potential like the US is a crucial move. He notes that this is an important step for the company’s ambitious growth goals. “It with such a move that we can fully exploit the great market potential and take the local interest into account,” explains Clemens. The company confirmed it plans to open a second subsidiary in China this year. 

The Conversion From Start-up to Internationalization

 

NEXTSENSE was founded about nine years ago by four young researchers. Today, this company is at the industries forefront with almost 60 employees in Austria only. At the start, NEXTSENSE developed a technology based on laser light section that enables contactless and handheld profile measurement. They use a patented tilt correction method that eliminates any imprecision and potential measurement errors. One can move the handy devices called CALIPRI around the object to be measured.

This young company offers different versions of this innovative technology depending on specific market requirements. The company develops and produces portable gauges, in-line robots, and large stationary systems in Graz.  It is worth noting that almost every major player in the automotive, railway and metal industries relies on this cutting-edge technology.

With the subsidiary office in Atlanta, the specialist in optical sensor technology will strive to pursue its growth strategy. Gasser delineates that the company wants to triple sales and increase the number of employees over 100 by 2020.for this reason, the company is steadily recruiting motivated employees. The main areas of interest include mechatronics, electronics, and software technology.

The United States of America is the first milestone in the course of NEXTSENSE´s international expansion. Moreover, the company will open another subsidiary in China next year. “In the coming days, we want to be closer to our customers all over the world. Direct contact is particularly important for us. This is the only way we can react fast enough to the needs of our demanding market,” says Clemens Gasser.

Financing of the US Expansion Plan

 

The US expansion project has received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement No 726903.

Remarkably, Horizon 2020 is the biggest EU Research and Innovation program ever. The primary aim of the program is to have nearly €80 billion of funding available over 7 years (2014 to 2020).  In addition, the beneficiaries will benefit from the private investment that this money will attract. The program assures more breakthroughs, discoveries, and world-firsts by taking great ideas from the lab to the market.

Horizon 2020 helps to achieve this with its emphasis on excellent science, industrial leadership, and tackling societal challenges by combining research and innovation. The main goal is to ensure that Europe produces excellent science, removes barriers to innovation. It also wants to make it easier for the public and private sectors to coexist in delivering innovation.

Horizon 2020 is open to European companies that focus on science and innovation. Further measures to complete and further develop the European Research Area will complement the EU Framework Program for Research and Innovation. Such measures will create a genuine single market for knowledge, research, and innovation by breaking down barriers.

Due to its global expansion, NEXTSENSE has received a multi-million-euro grant from the SME section of the Horizon 2020 program. The innovative edge and the ambitious globalization plans of the company were sufficient to convince the EU Commission auditors. The company received a 2 million euro grant from Horizon 2020 program. This is a good investment, in terms of value creation and expansion.

Reliable data indicates that over 550 European SME projects were submitted after the call for tenders in February last year. Fortunately, NEXTSENSE was the only Austrian company to be awarded the grant. The managing director says that this achievement is based on the strength of the company’s capabilities. Moreover, the company’s market opportunities are global and the company. With all this combined, the company managed to present in a very plausible manner in our grant application.

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