The reality at the world market leader in the sale and manufacture of assembly and fastening material has exceeded its bold forecast: According to preliminary figures, Würth grew by 18.5 percent to 17.1 billion euros in sales in 2021. The company from Künzelsau, founded after the war, has grown by almost a fifth in the middle of the pandemic.
In the ongoing global chip crisis that resulted from the pandemic, the demand for Würth’s electronic products such as circuit boards and electronic and electro-mechanical components increased enormously. The Würth-Elektronik-eiSos group, which among other things builds printed circuit boards, increased its sales by 37 percent to over 1.1 billion euros, and the electrical wholesaling by 29 percent to over 2.8 billion euros.
The company now employs 33,000 sales representatives worldwide, Patriarch Würth told the dpa in 2020 that they were “90 percent responsible for the success of the entire company”. In addition, the company has doubled the number of its own sales branches in the last ten years to almost 2,500. Last year it also sold a fifth of its goods via the Internet.
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The spokesman for the Würth Group Management, Robert Friedmann, sees himself confirmed in his strategy of relying on all three sales channels with the field service, his own shops and online trading.
The growth is also evident in the workforce: Würth now has over 83,000 employees, 4,000 more than a year ago. At five percent, employment growth is significantly smaller than business growth, with a corresponding leverage on profitability.
Würth will increase its profit by over 50 percent to 1.2 billion euros in 2021
The operating result shot up by over 50 percent from 775 million euros to 1.2 billion euros. Würth boss Friedmann justifies the jump in profit with productivity increases. That fits in with the ambitious long-term goals of the owner Reinhold Würth: “Our productivity has to double in the next 20 years if we want to be part of the party in 30 years.” The logistics must function with fully automatic order picking. His goal is a modular system for the products. “Everything has to fit together, like with Lego.”
In the past year, Würth seems to have come a good deal closer to realizing these goals, at least in pure numbers. Friedmann emphasizes: “We are in the middle of the fourth wave of the pandemic, the development of the supply chains challenges us all. It is also important to convey calm and security in a crisis. In a family company like ours, Reinhold Würth and Bettina Würth play a decisive role in this. “
The company is now owned by a family foundation. However, as Chairman of the Board of Trustees, Reinhold Würth still has the last word in the company.
Both are no longer operational today, but still have a great influence in the company: Reinhold Würth built the company up and is now Chairman of the Board of Trustees. His daughter Bettina heads the Advisory Board of the Würth Group.
(Photo: Würth)
The owner is investing in the future: The Künzelsauer are currently building a new research and development center for 70 million euros, which should be ready in autumn 2022. Würth expects this to accelerate its innovative strength, for example with heavy-duty anchors for bridge renovation and additional independence. The growing in-house manufacturing operations should also ensure long-term success. “So we are not dependent on Chinese steel imports. Today 80 percent of our goods have their origin in Europe, ”says Friedmann.
Würth is feeling the current import problems primarily indirectly. The company supplies car manufacturers with screws and other fastening material directly on the assembly line. But they need fewer Würth products if fewer cars are built due to the lack of chips.
Procurement will remain difficult in 2022 as well
“The situation on the procurement market will remain tense in 2022”, expects Friedmann. “Despite these imponderables, we are assuming that we will achieve a new record turnover in the coming financial year and achieve adequate earnings growth.” Friedmann sees Würth with its multi-channel strategy, extensive digitalization and the large number of its own production facilities positioned independently.
The rating agency Standard & Poor’s takes a similar view: Würth has had an A rating with a stable outlook for over eleven years, and the entire environment of the family business is rated as “strong”. Liquidity is now likely to be well above the one billion euros mentioned in the summer.
More: How the entrepreneur Reinhold Würth and his daughter Bettina regulate the corporate management