Joy for ewe boss

Inflation shock digested: more appetite for kitchens

In 2023, ewe delivered 12,700 kitchens. In a normal year, this figure is around 15,000, says Managing Director Andreas Hirsch.(Bild: Krone KREATIV/ewe Küchen, Markus Wenzel)

The construction of new kitchens has come to a standstill, and last year consumers were also reluctant to replace their old kitchen with a new model - all of which did not make things easy for ewe either. But now that inflation has been curbed, retailers are seeing more footfall again. This also makes the Wels-based company optimistic.

"When corona came along, many stopped production at first. Shortly afterwards, there was an insane boom in demand that was almost impossible to cope with. Everyone was working overtime producing kitchens. And then came the inflation and Ukraine crisis."

Andreas Hirsch uses the word "ups and downs" when the ewe Managing Director summarizes his description of the last four years, which have also been extremely challenging for the kitchen manufacturer from Wels.

Production capacities have been cut: The plants in Wels and Freistadt are shut down two Fridays a month.(Bild: Markus Wenzel)

Production is shut down two Fridays a month
The sharp drop in demand in recent months has forced the company to take measures that affect all 320 employees: Overtime is being reduced and production is at a standstill on two Fridays a month, with one of the days being an unpaid vacation day. The plan is to reassess the situation in the summer to see whether a return to normal operations is possible.

Automation is an integral part of the company's production.(Bild: Markus Wenzel)

Will the order books be much fuller by then? "Our sales partners report that there has been a noticeable increase in frequency and interest since the turn of the year. We believe that the mood is now improving again," says Hirsch, noting an increase in orders.

12,700 kitchens

kitchens were delivered by ewe in 2023, generating a turnover of 59 million euros. Production takes place in Wels and Freistadt, the only showroom is in Pasching.

"Major purchases were decidedly postponed"
 The desire to buy kitchens is returning, with customers looking to replace their old model with a new one. This segment was left out last year: "Major purchases were decidedly postponed. We have felt this massively," says the ewe Managing Director.

The crisis in terms of new construction is not yet having an impact: "The effect of the reduced construction activity will be felt in the furnishing and kitchen industry with a delay." Postscript: "We have to prepare ourselves for the fact that less is being built in Austria."