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Hailo

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Receives EcoVadis award in silver

At Hailo, sustainability is part of our corporate culture. The fact that the company lives up to its social responsibility has now been confirmed by an independent authority: For 2020, Hailo has received the “Silver” award from EcoVadis. In the overall assessment of corporate social responsibility, or CSR for short, Hailo scored 83 percent in the ranking. This means that Hailo is among the top 17 percent of the ranking, which is well above the average for companies evaluated by EcoVadis.

“We are very pleased about the silver rating from EcoVadis as recognition of our responsible actions,” says Jörg Lindemann, CEO of Hailo (photo). “This recognition confirms that we are committed to deploying further resources that contribute to our sustainable economic success”.

With EcoVadis, the award comes from one of the most renowned providers of sustainability assessments. More than 50,000 companies belong to the EcoVadis network. EcoVadis offers a unique assessment methodology and intelligent, collaborative tools that allow participants to see not only where they stand in terms of CSR, but also how they can improve their sustainable business performance. EcoVadis has defined four pillars for this purpose: Environment, labour and human rights, ethics and sustainable procurement. EcoVadis monitoring enables companies to develop a comprehensive CSR concept that takes into account every element of their business activities.

For Hailo, social responsibility has been an inseparable part of its business activities since its foundation. This can be seen in the products with which Hailo makes the world of work safer and more comfortable – and this thinking is also manifested in the CSR activity with which the group of companies started early on and which is reflected, for example, in the code of conduct.

The EcoVadis award confirms the company’s commitment to continue on this path of ethical and at the same time economical corporate management.

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Acimall

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Presents the balance sheet for the year 2019

The statistics office of the Italian association Acimall presents the balance of the country’s woodworking machinery manufacturers. “Never before has it been so important to understand the economic situation of the industry we represent,” says Dario Corbetta, head of Acimall, the industry’s employers’ umbrella organization. “A season awaits us in which strong nerves and a central economic policy are needed, a policy that is stronger and offers good approaches than ever before, because without it, the price the woodworking machinery industry has to pay would probably be immense. Unfortunately, as our statistics office has pointed out, in addition to the effects of Covid-19, we have to add up a 2019 financial year in which the sector suffered a significant decline, so we are now even more challenged to return to the level of 2016-2018”.

The Italian woodworking machinery and tooling sector generated a turnover of 2,266 million euros in 2019, a decrease of 9.9% compared to 2018. After an initial “acceptable” course, there were more significant slumps that affected all the major international players, with Germany leading the way.

In 2019, exports shrank by eight percentage points, with the core markets essentially holding their own. Fortunately, Italy enjoys a good export network, although significant problems were felt in some markets. The decline in the domestic market was 13.5 percent, a reversal of the trend that has always been positive over the past five years, not least thanks to the tax incentives that enabled many Italian companies to renew their machinery in 2016-2018, but inevitably led to declining purchases in subsequent years.

Imports were hit even harder, with a minus of 17 percent, while the trade balance amounted to an impressive 1.4 billion euros. Once again, the Italian woodworking technology sector confirms its strong orientation towards exports and thus contributes significantly to Italy’s active trade balance.

Contrary to the trend, the target market France increased by five percentage points and thus accounted for a turnover of 110 million euros. Exports to Germany soared by 9.3 percent to a volume of 102 million euros and sales to Poland slumped by 20 percent. Exports to Spain fell by 8.9 percent and to the United Kingdom by 13 percent. Russia and Turkey deserve special mention: Russia, which has been limping for years due to currency tensions and credit difficulties, fell by a further 9 per cent to 38 million euros, while exports to Turkey even fell by 50 per cent to a volume of 100 million euros in 2019. The USA remains the most important sales market with sales of 200 million euros, but also fell by five percent. In South America, the negative trend in Argentina continued and fell by 50 percent to six million euros. Brazil, on the other hand, invested 30 percent more last year, achieving a sales volume of 20 million euros.

The total Middle East market achieved a sales volume of 33 million euros, 14 percent less than in 2018. The Far East is dominated by China. Italian manufacturers were able to generate sales of 63 million euros here. This decline deserves special attention, as Italian companies are showing increasing difficulties with internationalization. The ever-increasing competence of local machine manufacturers is also leading to a reduction in the number of market niches from which foreign producers can benefit. Added to this are the customs duties that weigh heavily on the Asian furniture industry and thus have a negative impact on demand for woodworking machinery.

In Australia, purchases of Italian woodworking machinery in 2019 have shrunk by 38 percent to 20 million euros. However, as in Poland and other countries, extremely strong figures from 2018 apply here, which subsequently led to a simple normalisation of the market.

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VDMA

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New study – Product piracy causes billions of euros worth of damage in mechanical engineering

Product and brand piracy causes billions of euros worth of damage in the mechanical engineering industry, and the damage has become even greater in the last two years. According to the current study “Product Piracy 2020”, the annual damage has now grown to 7.6 billion euros – in 2018 it was 7.3 billion euros. A turnover of this amount would mean the equivalent of almost 35,000 jobs in the mechanical engineering industry. “What is alarming is that 57 percent of the companies report counterfeits that pose a danger to machines and plant equipment. This demonstrates that plagiarism is not a trivial offence, because operating fake machines or plants with fake components can pose a real danger to the operator,” says Steffen Zimmermann, Head of the VDMA Competence Center Industrial Security.

Every two years the VDMA holds a survey among its member companies on the threats and effects of counterfeiting. In the current study, which was carried out by the Fraunhofer Institute for Applied and Integrated Security AISEC on behalf of the VDMA, 74 percent of the companies questioned stated that they were affected by product piracy, and in the case of companies with more than 500 employees, this proportion even reached 90 percent – both are new record figures. “A trend reversal can also be seen in the perceived threat from counterfeiters. While this figure had recently dropped to 39 percent, 52 percent of those surveyed now spoke of an increase in the perceived threat level,” explains Zimmermann. The trade in counterfeit machines and components is flourishing particularly strongly in China. The People’s Republic is named as the most important sales country for counterfeit products (61 percent), followed by Germany with 19 percent. In third place for the first time is Russia with 12 percent.

Most of the companies surveyed point the finger at competitors (72 per cent) as the source of counterfeits, but business partners such as customers, suppliers or joint venture partners are also seen as the starting point for counterfeiting (41 percent). The most common types of counterfeits are individual parts (64 percent), followed by design plagiarism (60 percent). Even entire faked machines are entering the markets (40 percent).

The companies have little hope of being reimbursed for the damage caused by taking legal action in court. Only 26 percent of the companies surveyed initiate civil court proceedings at all – in 2018 it was still 39 percent. Around half of those surveyed completely refrain from taking action. “Small and medium-sized companies in particular seem to increasingly resign or shy away from the effort of taking legal action,” says VDMA expert Zimmermann.

The complete study “Product Piracy 2020” can be found here.

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Häfele Group

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Turnover in 2019 increased by 7.6 percent

Häfele recorded an increase in turnover to 1.5 billion euros last year. This represents an increase of 7.6 percent. In view of the tense global economic conditions, the company’s management views this result as a great success.

The parent company in Germany and its five production companies recorded growth of 3.3 percent last year, which was slightly below expectations. The 38 foreign sales companies were the main contributors to the good overall result – they grew by 8.8 percent in 2019. Growth in Asia and Eastern Europe was again particularly high. And the internationalisation continues: With the establishment of the Häfele Adriatic branch last July, Häfele has created a further pillar in the Mediterranean region: Häfele Adriatic is the 38th foreign sales company in the Group and serves the markets in Slovenia and Croatia.

In Africa, too, things are moving forward: Since February 2019, Häfele has been supporting the East African countries Tanzania, Kenya, Uganda, Rwanda and the Seychelles from its own office in Tanzania. With the second pillar on the African continent, Häfele is preparing for a stronger presence in this emerging market in East Africa. Overall, the group of companies generated 80 percent of its sales outside Germany.

The positive sales trend is also reflected in the number of employees: Last year, the number of employees worldwide rose by 300 to 8,100. Of these, 1,650 employees, trainees and students are employed in Germany (50 more than in 2018). This increase is primarily due to the acquisition of the Stuttgart-based LED lighting specialist Nimbus in February 2019. The fittings technology specialist has also become an important player in the growth market for smart control concepts.

The expansion of logistics services – one of Häfele’s key success drivers – was again a focus of attention in the past financial year. For example, the company commissioned a second dispatch centre in Lehrte near Hanover to supply customers in northern Germany and the neighbouring countries. With this second warehouse as a supplement to the large logistics hub in Nagold, the logistics of Häfele Germany now stands on two pillars – for greater customer proximity, shorter transport times and thus even better service: With the warehouse geared to fast order throughput, all customers in Germany and neighbouring countries can receive their ordered goods the very next day. In addition, the acceptance deadline for “next day” deliveries can be pushed back further.

Häfele will continue to build up its digital skills by focusing on training and has not expanded its range of services until 2018 to include new training positions for e-commerce business people and students for the dual university course of study in Business Administration Digital Business Management. In order to take account of the ongoing internationalisation, the Industrial Engineering and Management course of study with a focus on International Technical Sales and Purchasing was added last year. Häfele traditionally offers training positions for wholesale and foreign trade clerks and courses of study in cooperation with the Baden-Wuerttemberg Cooperative State University.

The corporate group is cautious about the current fiscal year. After a positive start in the first quarter of 2020, the company assumes that the sales level of 2019 cannot be reached in 2020 due to developments in Western and Eastern Europe as well as North America and Southeast Asia.

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Rev-A-Shelf

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Donates Masks For Fight Against COVID-19

When they heard the need for n95 masks for local first responders, Rev-A-Shelf reached out to their worldwide supplier network to see what they could obtain.

As of today, Rev-A-Shelf has donated 1,300 masks to the local Metro Louisville EMS, Fire and Police precincts. Rev-A-Shelf also reached out to their employees who had loved-ones working in high contact facilities and donated masks to those businesses, including smaller doctor’s offices and several local hospitals.

“I am very proud to be a part of a great organization that cares so much about our community and protecting those who are keeping us healthy and safe,” said Robert Greenwell, Rev-A-Shelf/Jones Plastic Human Resources Representative. “I want to thank my great team for working the extra hours to sort, organize, and distribute these needed supplies. We look forward to continuing our community support during these trying times.”

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Homag Group

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Complete takeover of Homag Golden Field

The Homag Group is acquiring the remaining 75 percent of the shares of its long-standing sales and service partner in China, thus significantly strengthening its focus in China. Through the agreement with Homag China Golden Field (HCGF), the Homag Group forms a strong organization.

Homag started its China business 40 years ago in close partnership with Homag China Golden Field (HCGF). Over the years, Homag has, according to its own statements, developed into the number one full-range supplier for Chinese customers who demand high-quality woodworking machines and solutions.

HCGF with its 450 employees is now forming a unified organisation together with the Homag Group in China. In this new set-up, a team of 750 employees will support the Chinese customers. The acquisition is expected to become effective in autumn 2020, subject to approval by the local regulatory authorities.

In today’s press release, Homag writes that the company is the only international supplier within China with a nationwide organization including engineering, production, sales and service. Homag can thus offer complete solutions with software packages and digital tools in order to meet the market’s increasing expectations in terms of quality and state-of-the-art technology.

Pekka Paasivaara, CEO of the Homag Group: “China as the world’s largest furniture manufacturer is an important strategic market for Homag. With this integrated organization and its highly qualified employees, Homag is well prepared for the future requirements of the Chinese market in terms of growth, increasing automation and digitalization”.

Dr. Markus Vöge, Executive Vice President Sales & Marketing Homag Group, adds: “The Homag Group has already proven its competence and strength as a key supplier in many large customer projects. We look forward to continuing to provide our Chinese customers with high-quality and future-proof solutions”.

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Schmidt Groupe

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Further growth in the last financial year

The Schmidt Groupe looks back on a successful last financial year and thus also looks positively into the future despite the dampening effect of the corona crisis: The French industry leader with roots in Saarland continued to grow in 2019 and was able to continue the constant growth of the previous years. For the past fiscal year, the furniture manufacturer again reported a number of records.

For example, Schmidt recorded a seven percent increase in production turnover to 603 million euros – the highest figure in the company’s 86 year history. In the recent past, there was a four percent increase in 2018, before that it was eight percent and in 2016 it was 14 percent. The curve for specialist trade sales, including the electrical installation appliances supplied by the Group, also continued to rise steadily. Here, an increase of seven percent was achieved compared to the previous year, which in the final account means proceeds of 1.74 billion euros. This is also the best performance in the history of the family-owned company, which is managed by Anne Leitzgen in the third generation.

“We are moving from a successful past into a secure future. The economic consequences of the Corona crisis will certainly have an impact on the company’s targets for the 2020 financial year. But we are also very confident that we will be able to regain what we lost due to the closure of the retail business as a result of the pandemic,” explains Stéphane Bihler, authorized signatory of Schmidt Küchen GmbH & Co. KG and International Sales Manager.

But back to the figures for 2019: as the European number one kitchen studio franchiser, the Group was also able to continue the positive trend of recent years in terms of the number of exclusive dealers and reach a maximum value in the company’s chronicle: The fleet of sales outlets climbed from 728 to 756, which carry the “Schmidt Küchen und Wohnwelten” brand as well as the “Cuisinella” label in France and Belgium. Whereby the distribution is now in 27 and no longer in 30 countries around the globe. “In Germany, there are still 44 partner companies, in which we are introducing Consumer Connect, which has already been successfully implemented in France, in phases this year. Here we are using sophisticated digital technology to offer customers a continuous relationship with the brand and a maximum of individuality through a unique shopping experience. The virtual reality tools we have developed also enable the customer to project himself in his project,” reveals Stéphane Bihler.

In the 2019 financial year, the Schmidt Groupe also further expanded its attractiveness as an employer. While the number of employees within the group remained almost the same at 1,750, there was an increase in Germany of around eight percent to 187 employees. An impressive development can be seen in the figures for the employees together with the colleagues from the partner companies.

They increased from 6,357 to 7,120 – that is 763 employees more than in the previous year and an increase of twelve percent. “With over 7,000 employees around the world, we are a great alliance of human energy. And each individual sees himself as an ambassador of a philosophy that is lived out: Responding to the wishes of the consumer, anticipating his needs and putting them into concrete terms to his satisfaction,” explains Stéphane Bihler. The Schmidt Groupe produces on an area of around 223,000 square meters, mainly in Alsace – three plants are located in Sélestat, one at the headquarters in Lièpvre and in addition there is the German parent company in the Saarland turquoise mill, which operates in a production network. There is also a logistics centre in Bergheim.

In 2019 alone, the Group invested 90 million euros in optimizing production.

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Surteco Group SE

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First quarter EBIT up 15 percent year-on-year

Surteco Group SE, holding company for leading national and international brands in surface technology, is gearing all its activities towards the successful resolution of the current corona crisis. This confidence is based on a broadly diversified product portfolio by industry and a solid financial and balance sheet position. In the 2019 financial year, the forecasts were met both for consolidated revenue of EUR 675.3 million and for earnings (EBIT) adjusted for one-off effects of EUR 19.4 million, at EUR 40.5 million. Reported EBIT amounted to EUR 21.1 million (2018: EUR 32.2 million), while consolidated net income amounted to EUR 9.4 million (2018: EUR 18.6 million). Against the background of the currently unquantifiable effects of the expected corona-induced global recession in 2020, the Management Board, in consultation with the Supervisory Board, will present a proposal for the appropriation of Surteco Group SE’s net profit at a later date.

“Surteco is well equipped, both balance sheet-wise and financially, to cope with the current corona crisis. Our market and technology leadership and our broad product portfolio will benefit us in the competitive environment,” says Wolfgang Moyses, CEO of Surteco Group SE, confidently.

Thanks to the improvement in debt, mainly due to the sale of the impregnation business in the USA and the repayment of the last tranche of a US private placement, total assets were reduced by 8 percent from EUR 844.5 million to EUR 780.3 million. While the equity ratio as of December 31, 2019 rose significantly from 41.8 percent to 45.4 percent, net financial debt was reduced substantially from EUR 197.5 million to EUR 179.9 million, resulting in a reduction in the gearing ratio from 56 to 51 percent. Operating performance and focused investment activities resulted in an improved free cash flow from EUR 11.2 million to EUR 47.9 million. The Group is thus well positioned in terms of its balance sheet and finances to deal with the potential effects of the Corona pandemic.

Despite the negative effects of the corona pandemic from mid-March onwards, Surteco was able to improve EBIT from EUR 11.6 million to EUR 13.4 million in the first quarter of 2020. This represents an increase of 15.5 percent. The main reasons for this were the positive effects of the previous year’s efficiency enhancement measures, good capacity utilisation of all production plants until mid-March and improvements in the materials ratio. EBIT in the Decoratives segment rose from EUR 9.4 million in the previous year to EUR 10.2 million, in the Technicals segment from EUR 1.0 million to EUR 1.9 million and in Profiles from EUR 2.8 million to EUR 3.4 million. The corona crisis and the divestment of the North American impregnation business had a noticeable impact on consolidated sales, which fell from € 181.9 million in the first quarter of 2019 to € 171.6 million.

The effects of the corona pandemic will be particularly noticeable in the 2nd quarter. It is currently not possible to estimate them for the year 2020 as a whole due to uncertainties regarding the duration and dimension of the pandemic. As a result of the far-reaching government measures introduced worldwide to contain the crisis, a global recession must be expected, and thus revenues will be considerably lower than the forecast of € 675 to € 700 million that was made without the effects of the crisis. Against this background, consolidated earnings (EBIT) are also expected to fall well below the original forecast of EUR 40 million to EUR 45 million.

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Dealing with the Corona crisis - "möbelfertigung" asks for

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Luigi De Vito, Director of Woodworking Machinery Division SCM Group

“The socio-economic impact of this pandemic on a global scale is significant and it is likely to have a knock-on effect similar to that of the crisis in 2008 or even beyond. Nevertheless, SCM is facing this situation with confidence and the awareness that the company can build on some strengths, perhaps more than at the time: the financial solidity of the Group; the competitive positioning of our products, which meet all the requirements of the woodworking industry; the strong customer focus, innovation and customer service with digital services, with which we are a reliable partner with all-round solutions for companies in the industry, even during this period and via remote support; the professional expertise in each country in which we operate, in which we continue to invest with our locations and for which we are expanding the range of online courses; and last but not least, the attention and constant presence of our shareholders.

In terms of sales, the distribution of the export quota across several strategic markets, which currently stands at over 90%, is proving to be another positive element, as some countries and sectors are already recovering.

SCM has responded quickly to the current health emergency with responsibility and foresight. The Group immediately set up its own steering committee. This committee is monitoring the continuous development of the pandemic and is to implement strategies to cope with it. All this serves a dual purpose: to ensure that all security measures in accordance with ministerial guidelines are complied with at the sites and production centers, and at the same time to continue and further develop all remote support and customer service offerings for customers, the sales network and the branches worldwide.

SCM transforms the need to maintain relationships into a digital strategy that allows us to maintain remote relationships between us with no limits on space and time. There are no longer limitations, but opportunities. Our team continues to work in the form of “smart working” to provide remote support to customers and distributors. We have intensified our collaboration with companies at all levels, including tradesmen, and offer meetings, conference calls, practical demonstrations and online courses on our technologies. With the “Maestro connect” platform, we offer immediate access to a wide range of services, so that companies in the woodworking sector can be supported and assisted by the SCM team, even in “virtual” mode, and all customer service and maintenance activities can be optimised. With the “Smartech” augmented reality support service, which integrates video, camera, microphone and speaker functions with wireless connectivity, our experts can diagnose and solve problems in real time using portable computers and special control software. This enables two-way communication with interactive data sharing without the need for the operator to use hands. In addition, through our “e-Campus” platform, we have further expanded our extensive program of online courses, video tutorials and webinars with qualified experts on the latest trends and topics of interest to the woodworking industry. And dealers and sales staff are taking up this offer with great enthusiasm.

As far as the supply chain is concerned, the current situation that the world is facing shows that the SCM supply chain is one of the great strengths. This strength is illustrated by the extremely high vertical range of manufacture and, above all, the local production of many components such as the machine stands, castings, electrospindles, switch cabinets in companies belonging to the SCM Group. These structures enable us to actively serve our customers even in times like these when we are confronted with the new situation with China and the rest of the world. This will also be our strength when all activities are resumed and the market picks up again.

We should see this crisis situation as an accelerator for change. We are facing a challenge that we have never experienced before. And that is why our ability to react appropriately and decide on the measures for the future will be crucial. We should take this time to rethink the way we work, to optimize our production environments to make them safer, healthier and more comfortable, and to transform and improve our processes to make them more sustainable and efficient. Many companies in our industry are now investing even more in research and development, technological innovation and “human capital”: the factors that will make the biggest difference when we get back on track. Many client companies have stopped production, but not their creativity. They are using this time to explore and implement new production strategies, new business opportunities, new ways of working smart and communicating with customers and suppliers that they might not have considered before.

The SCM company continues to invest heavily in technology, know-how, skills and innovation to support customers in these projects with the “Smart&Human Factory”. Behind the “Smart&Human Factory” lies the vision of a digital factory with state-of-the-art automation systems, accessible to all, based on a human approach and, above all, good customer relations with all-round support from a single source”.

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