INSIGHT
KVT upbeat about prospects
The KVT Solutioneering Group tells us that, through the application of its business model, it enjoyed strong business growth and outperformed the market throughout 2011. The Dietikon, Switzerland, based group saw successes in China, Brazil and most European markets. The results have provided the confidence for strong growth plans in 2012.
KVT participated in the first Brazilian Fastener Fair. Since 2008 KVT has also been well positioned in Connecticut to service a US market that continues to show sustained economic recovery. With a strong domestic market share in Switzerland, KVT also has strategically positioned locations in Germany and Austria, and importantly in key central and eastern European markets including the Czech Republic, Poland, Slovakia, Slovenia, Hungary and Romania. Looking back on 2011 the KVT management team can clearly
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discern the after effects of the 2009-10 economic downturn in shorter and less stable economic cycles, making precise forecasting more difficult and placing greater emphasis on the knowledge, inventory control and logistical capabilities to respond rapidly to shifts in demand and opportunities. For everyone the banking crisis has made working capital control a far more significant focus, which feeds back to the supply chain as greater cost pressure and more volatile order patterns. Currency fluctuation has also been a clear consequence, and with a strong home currency the group structure of KVT has become increasingly important in offsetting these effects.
uring 2011 KVT was particularly pleased with a successful ramp up of business from its Chinese subsidiary based in Beijing. It also saw positive development in Brazil, operating from São Paulo, where
advertising in favour of online and new media channels, as well as Apps for mobile technologies. For the KVT management 2011 represented a reinforcement
of the emphasis it places on “solutioneering”, increasing the importance on responding to new applications and fields with innovative products and service propositions. The industry, it believes, will be pushed further into new and growing fields including for lightweight applications. As well as the development of new and improved mechanical fastening technologies, alternatives such as structural adhesives are of increasing importance. 2011 saw the impact of two significant natural disasters
in Japan and Thailand. While the short-term impact on KVT’s business was marginal, primarily in the backwash of reduced demand from the automotive sector for its expander product, the group sees a greater consciousness from OEMs of the importance of a secure, and locally supportive, supply chain.
The prospects and challenges for 2012 Economic uncertainty affects the whole industry, the KVT
management team believes, creating difficulties in achieving precise forecasts and creating more short term order patterns and volatility of demand. The result is a challenging and difficult environment for most companies, in which many customers may struggle and there is a higher risk of losses through insolvency. Nevertheless, KVT is clear that the conditions represent an
opportunity for strong and stable companies to gain market share, once again by focusing on innovations and solutioneering. Potentially, the KVT management team sees a stronger position for Far Eastern companies, and while EU market entry is likely to be tough there is a distinct possibility of access through acquisition. Looking at individual market sectors the rail sector
demonstrates stable growth, with the European industry benefitting particularly from orders from the East and Far East. The growing lightweight trend poses challenges and presents opportunities for the fastener supply chain to deliver innovations and product life cycle cost advantages. The automotive sector is more advanced in this trend and as
a result the significance of structural adhesive and composite fastener technologies is already more pronounced. Construction, KVT believes will remain relative strong,
Fuel costs meant a continued “lightweight” trend – a slow but
definite shift from traditional fasteners to fastening technologies that facilitate the use of alternative and advanced materials for lightweight construction of vehicles. While powered strongly by the automotive industry, the trend has become increasingly visible in rail engineering as well. KVT also saw significant developments in communication with
the market, with a shift in emphasis away from traditional shows to composite fairs. The Internet trend is also ongoing, reducing says KVT the significance of fair participation and traditional
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despite economic conditions, with definite growth in the Middle East and many Asian markets. The industry remains stable in Europe, despite short-term challenges, but again is presenting opportunities for product development and innovation, for example in façade direct glazing and direct bonding of panels. While challenges face the European fastener industry from
new competitors entering the market and inevitable changes as a result of the economic situation, real opportunities present themselves, for new fastening technologies in the transport market sectors and especially, emphasises KVT, by delivering effective solutioneering.
www.kvt-koenig.com Fastener + Fixing Magazine • Issue 74 March 2012
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