Julius Schroeder continued to expand Gebrüder Schroeder producing anchors, tie rods, heavy screws and 'Verbesserte SpannSchlösser' (improved turnbuckles). Investment was made into forging methods and plant allowing customer and market requirements to be met.
The supply of anchors and accessories for the hydraulic steel structure market became increasingly important and the company was successful in supplying to the port of Helgoland and boat lifts in Rothensee and Niederfinow.
Tragedy struck in the autumn of 1938 when the charismatic Julius died suddenly at the young age of 51. Shortly before his death Julius had stipulated that the company be sold immediately in the event of his death as he believed that, without his management, the company may not survive and he wished for his family to be supported by the proceeds.
However, his eldest son Ernst Schroeder had recently completed his apprenticeship showing promise as a manager so the Schroeder family council decided that the company should be continued under his leadership. The 19-year-old Ernst accepted the challenge and became the general manager of the now 32 employee "Maschinenfabrik Julius Schroeder".