International. German manufacturer of electric air conditioner motors and fans, Ziehl-Abegg, reported 11.9% growth in 2021 sales. In addition, the number of its employees, globally, reached 4,700, 400 more than the previous period.
This figure is surprising for two reasons, the first is that it represents a considerable increase in a complex time at the economic level, the second is that traditionally Ziehl-Abegg does not usually provide information on profits.
The company's CEO, Peter Fenkl, described 2021 as a year when they had problems with supply chains globally in view, took a cautious approach and managed to "do quite well in terms of sales." Specifically, the 2021 sales figure reached 716 million euros, 77 million more than what was reported for the year of 2020.
However, Fenkl indicated that the profit situation is complex, since supply chain problems had an impact on delivery times and also on prices. "Some suppliers had already raised prices so rapidly towards the end of 2020 and then repeatedly in 2021 that we were unable to transfer them to the market in a 1:1 ratio."
Future prospects
While the 11.9% growth in sales creates a good basis for further growth this year, the situation still requires a good strategy, as the plans for Ziehl-Abegg are expansion, with growth at the production site in Hohenlohe. However, this has proved complex because there is a severe shortage of the additional workers needed there, due to the ageing of Germany's population. As a proposal to this situation, Fenkl indicated that companies should openly target Generation Z, post-millennials and not persist in the old ways of thinking "but take seriously the wants and needs of young people."
Another point to consider is that ventilation systems were the engine of registered sales, as they contributed 637 million euros of the general sum. However, the CEO, who has been with the company for more than 20 years, is under no illusions about the challenges ahead. He assures that "currently, work shifts are repeatedly canceled due to the lack of components." In conclusion, although last year Ziehl-Abegg reached a record figure, the executive management continues to take a cautious perspective to reach its goals, in the midst of the current panorama.
