AUSTRIA -Blum, a global leader in the manufacturer of furniture fittings, has posted 1,906.92 million euros in turnover for the 2019/2020 financial year ended 30 June 2020. This is a slight increase of 14.9 million euros or +0.8% over the previous year.
Although the business year got off to a good start, the coronavirus wreaked havoc on international markets from April and also led to substantial decreases in turnover for Blum. However, the fittings manufacturer was able to provide reliable services to its customers in more than 120 countries throughout the crisis.
Blum has continued to grow and develop its international operations and now has 32 subsidiaries and representative offices worldwide. Blum achieves 97% of its turnover from exports. 44% is generated in the EU area and 15% in the USA.
In Western Europe, markets like Italy, France, England and Spain were in lockdown for several weeks. This led to a downturn in turnover for Blum in the region. As far as Eastern Europe is concerned, the company was able to achieve growth despite major economic restrictions. According to Managing Director Philipp Blum: “The European Union continues to be important to the stability of our company. The fact that the borders were kept open for freight traffic at all times allowed us to deliver products to our customers all over the world throughout the crisis.”
In North America, results remained broadly at the same level as the previous year, however, South America showed a marked decrease over the previous year. In the Asia Pacific region, the fittings manufacturer was again able to record an increase in turnover in the last business year thanks to ongoing positive developments in China.
Investments of the Blum Group totaled 327 million euros in the 2019/2020 business year. The extension to Plant 4 in Bregenz, Vorarlberg is going according to plan. The project, which consists of a new production bay with 49,000 sq. meters (527,400 sq. ft.) of floor space and a high bay warehouse, should be completed by the summer of 2021. In line with Blum’s environmental policy, the development scheme will be a multi-story construction to minimize the use of land and soil. Furthermore, the fittings manufacturer purchased the premises of Wolford in the immediate vicinity of Plant 4. There is a long-term agreement to lease the buildings to Wolford, however Blum will also be able to use unused areas in the near future. “Our investments in the region testify to our commitment to maintaining our main production site in Vorarlberg, Austria,” says Managing Director Martin Blum.
Important investments are also being made on an international scale. Construction work has started in China on a new production plant including an automated high bay warehouse that should be completed by the end of 2022. In the USA the expansion of the warehouse and production area will be completed by the end of the year, and Blum’s subsidiary in Canada will move into new premises, consisting of a warehouse, office and showroom, in late fall 2020.
The outlook for the coming months is characterized by ongoing uncertainty. The consequences of the health crisis and its impact on the global economy will be felt for some time to come. Blum believes that it is important for the European Union to find a joint way forward to meet the upcoming challenges. According to Philipp Blum: “This community is of utmost importance to an international company like ours.” The long-established company will continue to focus on developing markets, building close relations with customers and driving ongoing innovation in the field of products and services. Its strategy has always been to safeguard the business in the long term for the benefit of all its employees. “The past few months have been very challenging for us as a company. We have gained many new insights which we would like to use in the future. Thanks go to our team for their commitment, dedication and cohesion,” underlines Philipp Blum.
