Despite the corona pandemic and war in Ukraine, the Vorarlberg fittings manufacturer group Julius Blum GmbH – Vorarlberg’s largest employer – once again significantly increased its sales in the 2021/22 financial year (as of June 30, 2022) – namely by 266 million euros or 11 .2% to EUR 2.643 billion (2020/21: EUR 2.377 billion). Traditionally, the family business does not provide any information on the earnings situation.
Another successful Vorarlberg company: Getzner
At the balance sheet press conference on Thursday, Philipp Blum described the past financial year as “very turbulent but successful”. The “homing trend” fueled by the corona pandemic – one’s own home is becoming the center of social life – is continuing, and the strong global demand is unbroken.
On the other hand, according to Philipp Blum and Co-CEO Martin Blum, there are challenges such as changing raw material availability and prices, bottlenecks in freight containers, skyrocketing freight rates or driver shortage.
“We also had to adjust our prices,” explains Philipp Blum. Due to the pandemic, up to 450 employees were temporarily absent, and the Russian war of aggression has determined the geopolitical situation since February. You are in regular contact with the employees in the Ukraine, they are doing well despite everything. Deliveries to Russia, where Blum employs 60 people, have been temporarily suspended.
44% of sales in the last financial year were still made in the EU, 13% in the USA. The positive development can be felt in all markets worldwide. In Western Europe, Philipp Blum specifically named the countries Italy, Germany and Great Britain, in Eastern Europe growth was generated despite the turmoil of war. In China, the company was tied to a standstill for weeks due to the shutdown in Shanghai, but the Asian sales market is basically doing well.
A new factory was opened in Shanghai this spring, which is Blum’s first production facility in Asia. There are eight factories in Vorarlberg and parts are also manufactured in the USA, Brazil and Poland. Overall, Blum is active in more than 120 countries and has 33 subsidiaries and representative offices.
According to Martin Blum, the Blum Group invested €339 million in the past financial year (previous year: €259 million), 66% of which in Vorarlberg. The number of employees in the group rose to 9,422 in the 2021/22 financial year (previous year: 8,778). The company employs 6,981 people in Vorarlberg (previous year: 6,551).
“We get the feeling every day that workers are currently difficult to find,” said Martin Blum. There is no easy solution.
As for the immediate future, Philipp and Martin Blum are both cautious. In the past few months, we have seen how closely intertwined the regions of the world are and how volatile world events are. High inflation and constant price increases in everyday life are worrying to watch.
“People are currently thinking carefully about what they are spending their money on. The fragile situation of the international supply chains and transport logistics as well as the strongly fluctuating raw material prices remain a challenge,” says Philipp Blum. But we are satisfied with the order situation. (apa/red)