At the era of industrial upgrading in 1961, be the bridge to quench the thirst for funds

When the second-generation family member Ernst Johann Schmid took over the baton in 1961, Swiss manufacturing was already renowned worldwide for its "precision + reliability," but a new round of technological revolution brought fresh survival challenges: CNC machine tool technology was introduced to Switzerland from the US and Germany in the late 1950s. In the 1960s, Tornos launched its first CNC automatic lathe, whose procurement cost was 6-8 times that of traditional cam automatic lathes. The equipment commissioning cycle extended to 3-6 months, and the payment term stretched from 90 to 180 days. For small and medium-sized enterprises (SMEs), which accounted for 85% of Swiss manufacturing companies, the common dilemma was "wanting to upgrade but lacking funds, daring to upgrade but fearing risks" — HMS’s 40-year-old traditional "equipment + process" trade model could no longer meet partners’ composite needs of "cost reduction, efficiency improvement + risk control."

Instead of clinging to the comfort zone of a "trader," HMS continued the founding generation’s gene of "taking partners’ needs as the core" and launched a transformation from a "product service provider" to a "capital enabler." Leveraging credit data of over 100 corporate clients accumulated in the previous 40 years, it collaborated with Switzerland’s Basler Kantonalbank to launch customized equipment leasing financial solutions for SMEs:

• 1965: Pioneered the "installment payment + process package" model. When SMEs purchased Tornos TC8 CNC lathes, they could enjoy a 30% down payment and 3-year interest-free installments, bundled with HMS’s integrated services of "machine tool commissioning + operation training + process optimization." For example, when upgrading equipment for Geneva-based watch part manufacturer A. Schild SA, HMS not only reduced the one-time investment by 70% through installments but also helped match the TC8’s maximum spindle speed (3000rpm) with watch gear machining processes. This increased gear machining efficiency by 2.5 times compared to traditional equipment, with tolerances controlled at ±0.01mm, enabling the enterprise to recover equipment costs within 3 years.

• 1978: Deepened the "financial leasing + residual value guarantee" service. Responding to the initiative of "promoting technology inclusiveness" by the Swiss Mechanical and Electrical Engineering Industry Association (SMTI), HMS established a specialized leasing company and launched a three-choice plan: "renew lease, purchase, or return" upon expiration. For medical device enterprise Mathys Medical purchasing the Tornos Multidec 20/8 multi-spindle CNC lathe — supporting 8-axis linkage — HMS provided a 5-year financial lease with a monthly rent accounting for only 1.2% of the total equipment price. It also promised that if the enterprise chose to return the equipment upon expiration, HMS would bear a residual value guarantee of no less than 20% of the original equipment value. This model addressed the pain point of medical device enterprises "fast equipment renewal and high capital occupation," allowing Mathys to successfully complete the precision machining upgrade of orthopedic implants in the 1980s.

Starting from the 1980s, HMS further ventured into the linkage of "industrial equity investment + equipment services," making small equity investments in potential SMEs and having them adopt HMS’s equipment and financial solutions. For instance, it provided advanced machine tools on highly favorable terms to start-up precision technology companies in exchange for partial equity. This approach not only solved the funding difficulties of start-ups but also closely bound their technological growth to HMS’s business development.

By the 1990s, the core of HMS’s "value creation" during this phase was "breaking the dual barriers of capital and technology" — extending services from the "equipment usage level" to the "capital operation level." The achievement of "value realization" was the "mutual prosperity of partners and the ecosystem": it helped over 200 enterprises complete CNC machine tool upgrades, driving the average machining precision of Swiss precision manufacturing from ±0.03mm in the 1960s to ±0.008mm in the 1990s. HMS itself also grew from a single agent to a diversified "trade + finance" composite enterprise.

Amid the wave of industrial upgrading, HMS proved again: true stability lies not in rigid adherence to conventions, but in iterative development in sync with partners’ needs — from the founding generation’s "efficiency partner" to the second generation’s "financial partner," the unchanging is the original aspiration of "taking partners’ needs as the starting point." This became HMS’s core competitiveness to weather the 1970s oil crisis and the 1990s European economic recession.