Economy

Blum holds its own despite a difficult market environment

Blum puts its employees first. There were no redundancies in the last financial year - and that is how it should stay.(Bild: Blum GmbH)

The Vorarlberg-based fittings manufacturer closed the 2022/23 financial year with a turnover of around 2.3 billion euros. After a year with a few troughs, the management is cautiously optimistic about the medium-term future. 

Even the most adverse circumstances do not seem to be able to knock the Höchst-based family business off the road to success. Although turnover fell slightly by 1.2 percent to 2.3 billion euros in the 2023/24 financial year that has just ended, this result is worthy of all praise given the current difficult conditions. Philipp Blum, Managing Director of the Blum Group, reports on a turbulent financial year: "The first few months were challenging for us and the entire industry. However, there were positive signs in the second half of the year and we are seeing improvements, even though we are still in a difficult market environment." The high costs for raw materials, energy and personnel are a particular cause for concern. Blum is also feeling the effects of inflation, with end consumers investing more cautiously and considering new purchases carefully.

We are positive that we are providing the right impetus with our new products.

Philipp Blum (Geschäftsführer Firma Blum)

The different developments on the individual markets are striking: While the situation in Northern and Central Europe, for example, remains tense and China is only recovering slowly, the signs in Eastern Europe, the Middle East and Africa are clearly pointing to growth. "We are positive that we are providing the right impetus with the launch of our new products," says Philipp Blum, who expects sales to rise again in the medium term: "We are confident that the economy will pick up towards the end of the year and demand for our fittings will increase again."

Employees are the focus of efforts
That is why the company is also investing heavily: In the past financial year, this amounted to EUR 287 million, of which EUR 182 million was invested in the main site in Vorarlberg: the expansion of Plant 6 in Gaißau was completed, and the expansion of the plants in Bregenz and Höchst is progressing. "However, our most important investments are in our employees," emphasizes the second Managing Director Martin Blum.

Our most important investments are in our employees.

Martin Blum (Geschäftsführer Firma Blum)

And his cousin Philipp adds: "It was clear to us that our colleagues come first, even in difficult economic situations. That's why our employees could also rely on job security last year." As clear as the commitment to Austria as a location is, the two managing directors would still like to see some improvements - especially with regard to the escalating bureaucracy and the high wage and energy costs.