The LAPP Group, a global leader in cable and connection technology, managed to maintain its position despite the weak global economy in the past fiscal year. Despite experiencing declines in its European home markets, the company offset this with significant gains in Asia, resulting in only a slight decrease of 5.3 percent. Overall, the LAPP Group achieved a revenue of 1.82 billion euros. The company’s focus continues to be on its investment program, which aims to drive digitalization, expand production capacities, and enhance logistics.
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LAPP Group achieves continuous growth despite challenging market conditions
Der Vorstand der LAPP Gruppe (Foto: LAPP)
Despite a challenging market environment, the LAPP Group achieved consistent growth, with significant increases in the Asian markets, particularly in India and South Korea. The company also experienced positive developments in China. However, Europe, especially Germany, saw declines, mainly due to weaknesses in the machinery and plant construction sector. Nonetheless, the LAPP Group remains optimistic and aims to counteract the economic downturn in Central Europe.
LAPP Group: International Expansion and Diversification in 80+ Countries
The LAPP Group has been focusing on internationalization and diversification for many years. With its presence in over 80 countries, the company delivers connectivity solutions to almost every industry. Solutions in the areas of battery storage, data centers, robotics, and renewable energy are particularly in high demand. Additionally, there is a strong demand for connectivity solutions in intralogistics, mobility, and the food industry. The LAPP Group also emphasizes innovation, showcasing their first cables with a bio-based sheath and connectors made from sustainable materials.
LAPP Group continues investment program with major expansion projects
“Es war ein herausforderndes Geschäftsjahr.” (Foto: LAPP)
The LAPP Group remains committed to its investment program, with the current focus on expanding the logistics and service center in Ludwigsburg. This expansion represents the largest single investment in the company’s history. In addition, the group is also significantly increasing its production capacities in the USA and India. With a total investment of nearly 66 million euros in the past financial year, the LAPP Group emphasizes the importance of staying close to customers and investing in the future, even in challenging economic times.
LAPP Group expects single-digit sales growth in Asia and USA
The LAPP Group expects single-digit revenue growth for the current fiscal year, primarily in Asia and the USA. However, Europe, especially Germany, remains a cause for concern due to the impending deindustrialization and decreasing demand for connectivity solutions. The LAPP Group is hopeful that the post-election period in Germany will bring new impetus to the country’s economy. It is crucial for the government to signal that family-owned businesses are welcome, as this is vital for maintaining Germany’s competitiveness and attractiveness to companies like the LAPP Group.
The LAPP Group, with approximately 1,400 employees in the Stuttgart region, continues to focus on its international growth strategy.
