Platform for scaling up

Martin Knobloch is able to summarise his third year as CEO of Hultafors Group. Just as with the first two years, it was a year characterised by challenges in the outside world.

“First the impact of the pandemic, then the disruptions in the global supply chains and now rising interest rates and an economic downturn. However, we are still delivering, especially when it comes to profitability,” says Martin Knobloch.

The reason for this is a strong focus throughout the organisation on the effective management of rising costs, as well as offering customers the right products at the right price. Sales also increased, which is positive bearing in mind the macroeconomic conditions. This means that sales have almost doubled since 2020, a period that also includes four acquisitions that have developed well.

“Two years ago, we introduced a new organisational structure, which constitutes the foundation for a scalable operation that can continue to grow rapidly, both organically and through acquisitions. We have continued the work of optimising operations by streamlining our processes and investing in a modern, powerful IT landscape that will further strengthen our growth journey.”

HULTAFORS GROUP CURRENTLY

consists of 16 robust brands with products offered by distributors in 70 countries. The operations are conducted in three independent divisions that have full control over the agenda for their businesses, supported by common systems and a slimmed down central organisation.

In 2023, PPE (Personal Protection Equipment) Europe was the strongest, increasing both its sales and its profitability. The division’s premium products within workwear, safety footwear and head protection are continuing to bring in more and more customers. A close dialogue with users has laid the foundations for a continuous development of functions that are directly meeting demands.

“We continue to be number one on the market, for example with Snickers Workwear’s work trousers with sewn-in knee pads for perfect fit and comfort, as well as Fristads Green, the world’s first clothing collection with an Environmental Product Declaration (EPD).”

Being at the forefront in terms of sustainability is becoming an increasingly important factor for companies that want to continue developing successfully, whatever the sector. The market for protective equipment and hand tools is no exception. Hultafors Group has long-term sustainability commitments, and during the year it has started work on establishing climate goals in accordance with Science Based Targets. The company is also working to tie the sustainability issue more closely to its products and operations through improved control and coordination.

“We are living up to our customers’ expectations, but we can also see that more and more of our suppliers and partners are stepping up their sustainability ambitions. This is enabling us to further advance our positions.”

A decisive factor for continued progress in relation to sustainability is the existence of both transparency and continuous improvements along the entire value chain. All the brands work directly with their suppliers to promote sustainable production and sustainable products. The company’s largest brands, Snickers Workwear and Fristads, are at the forefront thanks to their close cooperation with their major textile suppliers, and are contributing to other brands in the organisation developing in a positive direction.

THE MOST NATURAL TRANSFER OF KNOWLEDGE

occurs between Hultafors Group’s two tool divisions, Hardware Europe and Hardware North America, where in 2023 this has included initiatives aimed at combating weaker demand on the two markets. There is also an intersecting launch of products on each other’s markets, designed to meet or generate new demands on the part of users. Sustainability is key to success here too.

“With the Swedish company Wibe Ladders’ products made from greener aluminium, LED work lighting from Scangrips in Denmark, as well as Hultafors’ sustainable tools where all plastic is being phased out of the packaging, we have taken significant steps in our European tools division, and this is driving developments in North America.”

North America is an important growth market for Hultafors Group. In 2023, the focus was on streamlining the structure, consolidating stock management and launching a new strategy. The most recent acquisition, the US company Martinez at the end of 2022, has been successfully integrated into the division.

“With this in place, we will be starting to look at new acquisitions. Our longterm approach as owners is attractive for many entrepreneurs with strong brands that want to grow and develop.”

AT THE SAME TIME

, the investments are continuing to create long-term, sustainable organic growth, with extensive investments in innovation, sales and marketing. In addition to a heavy focus on lower environmental impact, the users’ need for safety, ergonomics and quality is helping to drive demand for Hultafors Group’s substantial offering within the various product categories, even during an economic downturn.

“As a result, we are now ready for the next phase in Hultafors Group’s journey of success. Our brands will continue to develop and gain market share, while at the same time we will be adding new brands through acquisitions. I am proud of what this fantastic organisation is achieving.”

/Martin Knobloch, CEO Hultafors Group