Balluff changes worldwide corporate structure
In 2019, the Balluff Group recorded a decline of 3.9 percent with a total revenue of EUR 469 million. The first quarter of the current financial year closed with a decline in revenue of over seven percent. The management cites as reasons for this development not only the effects of the Corona crisis but also the economic downturn already noticeable last year in industries important to Balluff such as the automotive industry or mechanical and plant engineering due to the far-reaching structural change. At the same time, competitive pressure increased due to falling prices as a result of global overcapacities. The Group therefore expects a longer recovery to the sales levels of earlier years.
"We are dealing with a combination of the effects of COVID-19, a longer-term economic downturn and profound structural change. We cannot counteract this with temporary measures such as short-time work or collective agreements on job security alone. We must therefore react differently to these fundamental changes," says Managing Director Katrin Stegmaier-Hermle, explaining the reasons for this approach. "Of course, we will make the restructuring as socially balanced as possible. But unfortunately, we see no other way to secure the competitiveness of the Group for the future.
In the long term, the company believes it is well positioned despite the current challenges. The trend towards even more connected automation components and the Industrial Internet of Things (IIoT) continues to offer Balluff great opportunities for future growth. High-quality sensors are becoming reliable data sources for a smart industrial production. "Our existing portfolio offers a perfect basis for linking hardware with software to form smartware in the future, thus making even more useful data available for machines and systems," says Managing Director Florian Hermle, describing the company's future focus.
About the company Balluff
Founded in 1921 in Neuhausen a.d.F., Balluff employs 3600 people worldwide and represents innovative technology, quality and cross-industry experience in industrial automation. As the leading sensor and automation specialist, the family-owned company in its fourth generation offers a comprehensive portfolio of high-quality sensor, identification, network and software solutions.
In 2019, the Balluff Group reported revenue of around EUR 469 million. In addition to the company headquarters in Neuhausen a.d.F., Balluff has sales, production and development sites around the world and has 38 wholly owned subsidiaries and other representatives in 68 countries. This guarantees that customers can count on rapid worldwide availability of products and high-quality advice and service directly on site.