The hardware and industrial supply sector repeats the good figure of the previous year, reaching 443 million euros in turnover in 2022

The companies in the ESKUIN Hardware and Industrial Supplies Cluster, made up of manufacturers of hand tools and locksmiths, reached a turnover of 443 million euros at the end of 2022, practically identical to that of 2021, the year in which they beat their turnover record.

While sales in the domestic market grew by 2.85%, reaching €208 million, exports fell by 2.7%, standing at €235 million compared to the €241 million recorded in 2021.

“2021 was a record turnover year for the sector, exceeding €400 million for the first time. In a scenario of such uncertainty as the one we have experienced in 2022, and despite the fact that inflation has reduced margins, I consider it good news that we have consolidated this figure” comments Miguel González Izaguirre, president of ESKUIN.

With regard to the slight drop in exports, Miguel González Izaguirre points to “the difficulties experienced by Germany in the last few months of the year and the stock reduction strategy carried out by large European buyers in the face of the uncertainty experienced” as the main causes of this decline.

In the analysis by client sectors in the domestic market, the 8.4% rise in sales to the construction sector stands out, driven above all by home refurbishment and renovation. On the other hand, sales to the industrial sector fell slightly by 2.05%. The third customer sector, agriculture, grew slightly, by 1.61%.

As for the distribution of sales abroad, which account for 53% of turnover, the European Union, the main export destination, represents 74% of the total. It is followed by the American continent with 10%, the Middle East and Eastern Europe, with 5% each, and lastly, and with less weight, Africa, 4% and Oceania, with 2%. The main destination countries for the sector’s exports in 2022 were France, the USA, Portugal and Germany.

In the words of ESKUIN’s president: “The fact that we are local manufacturers has given us a competitive advantage over other business models based on importing products. We have detected that major brands have returned to trusting in local manufacturers due to the guarantee we offer in terms of flexibility, product quality and meeting delivery deadlines”.

Employment remains stable in the sector with a figure close to 1,900 people employed, replicating the figure of recent years.

FORECAST 2023

Nearly three months into the year, the outlook is reasonably good, and if the recent financial turbulence clears up positively, sales are expected to be maintained or may even increase slightly. The companies’ efforts will be focused on recovering the stretch of profitability that may have been affected above all by the increase in raw material and energy costs.

STRATEGIC CHALLENGES: PEOPLE, DIGITALISATION AND SUSTAINABILITY

People, digitalisation and sustainability are the main strategic challenges facing ESKUIN member companies and, in this sense, the association is developing strategic projects that will enable them to tackle them with guarantees of success.

“We are talking about cross-cutting challenges, which, in short, affect all industrial companies. We have serious difficulties in attracting and retaining talent in our sector, a sector that offers the possibility of developing a very interesting professional career and good working conditions. On the other hand, we consider it essential to work on the positioning of our brands through the different tools offered by digital marketing to increase our sales. In terms of sustainability, ESKUIN companies are aligned with the need to decarbonise the economy, and are adapting their manufacturing processes to be environmentally friendly and are committed, for example, to introducing eco-friendly packaging that replaces plastic with more sustainable materials,” explains Miguel.

“Being part of AFM Cluster, an environment in which it is possible to work together and collaborate with more than 700 industrial companies, accelerates the whole process of achieving the objectives of the sector in general and of each company in particular”, stresses Miguel González Izaguirre.