The internationally active Häfele Group for hardware technology, electronic locking systems and LED lighting recorded a 7.3 percent (currency-adjusted -4.6%) decline in sales to 1.39 billion euros in the crisis-ridden year of the 2020 pandemic. Against the backdrop of a significant recovery from the third quarter onwards, the effects of the global crisis were kept within manageable bounds, according to the company’s management.
Group sales in the months October to December last year were again at the level of the previous year. Adjusted for foreign exchange, growth of over five percent was even achieved compared to the same period of the previous year. This gives cause for hope for 2021.
As was the case during the global economic crisis in 2009, when Häfele had to cope with an even greater drop in sales, the family-owned company from the Black Forest is also benefiting from its international diversification in this crisis. Its presence in 150 countries around the world is once again an important anchor of stability, as the company’s figures and developments in the various regions of the world show.
Business at the parent company in Germany was almost stable, down 1.3 percent, while Western Europe reported a decline of 9.3 percent. The UK (United Kingdom), Italy and Spain suffered the greatest loss of sales here. South and Southeast Asia (incl. India) suffered even greater losses of -20 percent, while other regions, such as East Asia and Oceania with the important markets of Australia and China, as well as Eastern Europe, actually closed slightly above the level of the previous year.
A significant influence on the decline in Häfele’s sales was the worldwide standstill in business and tourist travel. This was particularly noticeable in the Asian markets. Häfele has positioned itself very well in the hospitality industry there in recent years with its 360-degree property service – but in 2020 many properties were stopped.
In contrast, the traditional Häfele market segment of handicrafts proved to be extremely crisis-resistant worldwide over the course of the year. The situation was quite different in the furniture industry, where the situation was highly volatile, starting with a deep fall and a subsequent rapid recovery due to the pandemic-related “homing” trend.
Against the backdrop of the pandemic, the Häfele Group took measures as early as February 2020 to secure the supply chain – even beyond the crisis – and to interlink the Group companies more closely. Worldwide requirements were matched with worldwide inventories in order to be able to better meet the supply of goods to customers. Thanks to tight inventory management, we succeeded in remaining ready to deliver throughout the year without any significant bottlenecks. The supply of the companies with the required inventories was ensured.
Overall, Häfele responded quickly and dynamically to the adversities and challenges posed by the pandemic during the year. All work processes were adapted to the pandemic risks in a very short time and with great commitment from employees in all areas of the company. Comprehensive arrangements in administration, for home office use, in logistics as well as in sales guaranteed that operations could be maintained without interruption.
“As we have all learned, the pandemic has a dynamic all of its own that is difficult to predict and influence,” notes company manager Sibylle Thierer. Throughout the 2020 reporting period, Häfele performed better than forecast in May. The upturn in the fall provided such a positive effect that the massive impact of the virus pandemic on Häfele’s business, which had still been predicted in the second quarter, was clearly limited in the overall picture.
Against the backdrop of this experience, the company will cautiously continue to operate on sight in 2021. Planned investments in the amount of 60 million are primarily to be viewed strategically and will flow into logistics, IT-supported processes, and new services that will provide relief for customers. Overall, Häfele is looking ahead to the new year with confidence.
This is helped by the fact that nothing remains in the medium term of the far deeper dent made by the global economic crisis in 2009. “Häfele has the courage, creativity and strength to emerge stronger from a crisis. We are also tackling the 2020/2021 crisis with confidence and, as a family business that thinks long-term, we are looking at the opportunities that are available to us,” says Sibylle Thierer.
