Balance 2023: An Eventful year with an Anniversary, Global challenges and Investments in the future.
Häfele aligns regional structure to challenging market environment.
Nagold – 21st February 2024
CEO Gregor Riekena's start to the anniversary year couldn't have been more challenging. One month after taking over the management of the company from his predecessor Sibylle Thierer, Häfele was struck by a serious cyber-attack worldwide. With determination and a combined effort, the company and its 8,000 employees all over the world managed to restore all of the business processes that are crucial to customer satisfaction within a few weeks. But that's not all: the property and furnishing industry was also affected by the inflation and interest rate trend, and therefore also the furniture and architectural hardware sector in all regions worldwide. On 31st December 2023, the Häfele Group, with branches in 38 countries, recorded revenue of 1.71 billion Euros, which is a decrease of 8.2% compared to the previous year. The markets in Germany, Western Europe and the USA were under particular pressure. The company reported a proportion of foreign revenue of 82% for 2023. Despite everything, the CEO is confident about 2024. "We have launched the right initiatives to ensure that we can complete 2024, which is still a difficult year, with an increase in revenue." Häfele is one of the world's leading specialists for intelligent hardware and fitting systems, lighting and electronic access control systems, and achieved a considerable amount of sales growth in the previous years of 2021 and 2022.
Entrepreneurial optimism despite crises
The cyber-attack at the beginning of the year could have dampened the company's entrepreneurial optimism. However, the family-run company did not miss the opportunity to celebrate its 100-year anniversary in style. The celebrations in 2023 were characterised by a lively start to the company's next century: a look back at the inspiring success story and the successful handover of the reins from Sibylle Thierer to Gregor Riekena after 20 years at the helm of the company.
As part of the handover, Häfele unveiled its new purpose of "Maximising the value of space. Together." to the industry at the world's leading trade fair, the interzum in Cologne. This conveys the strategic orientation of the company, which has a very extensive customer base. Gregor Riekena: "We have received a great deal of encouragement from our partners. Basically, we are targeting our entrepreneurial drive at making the living and working spaces of our era in a way that will be more functional, atmospheric, efficient and generally more valuable in the future. We want to achieve this together with our customers and suppliers, because in a complex world, it's all about consolidating strengths and overcoming challenges together."
The Service+ portfolio, which was introduced in 2022, was expanded last year in order to intensify cooperation. In the "smart room solutions" area, Häfele now provides its customers with a unique all-round carefree package for the networking and control of furniture and room light, making it very easy for the woodworking trade to plan and install good light for kitchens, living rooms and microliving in a holistic way.
The further development of the company's services is not only being driven forward in Germany. For example, this year Häfele Australia is opening a Service+ "factory", in which customised solutions such as assembly and cutting services, the construction of exhibits for customer exhibitions and many valueadded services are combined under one roof. "Examples such as these show that the Häfele companies and regions benefit from centrally developed innovations on the one hand, but at the same time inspire each other and therefore take the Group forward as a whole," says CEO Gregor Riekena.
Stronger ability to act at global level
Häfele is a global player with 38 subsidiaries and numerous other representatives all over the world. A total of about 8,000 employees work for the Häfele Group. In 2016, Häfele introduced the strategy of organising the company into sales regions. CEO Gregor Riekena used the turbulent year of 2023 to set up the regional structure in such a way that growth can be generated in a market environment that remains challenging in 2024. In this context, the domestic market Germany was also organized as a region. Since January 2024, the new regional director for the Häfele region Germany, Rico Marquardt, as well as the other six regional directors, have reported directly to CEO Gregor Riekena.
In order to support the growth path and manage the high complexity of all business processes at the same time, the structure of the Häfele Group as a whole has undergone further development, streamlining and reorganisation. The Executive Board now consists of three members rather than the previous five. Michael Distl is responsible for Finance, Human Resources and IT. Boris Katic is responsible for the Häfele production plants, Purchasing, Logistics and Quality Management. Gregor Riekena, the Chairman of the Executive Board, is also responsible for Marketing and Sales.
Sibylle Thierer has headed the Board of Directors since 2020. This committee, the majority of which consists of family members, defines the strategic cornerstones of the family business together with the Executive Board.
Investing in future viability and sustainability
As a family business, Häfele is planning for the long term. A future project which has been in preparation for a long time is taking shape at the Nagold site: the Häfele Dynamics Centre. It is designed for flexible use and, in addition to its main purpose as an innovative production and logistics centre, it will also provide a platform for exchange with start-ups and research institutions. "We are investing in Häfele's future viability and making a valuable contribution to the region at the same time," says Sibylle Thierer, Chairperson of the Board of Directors.
With the new building, the company is demonstrating how sustainability is consistently achieved in the areas of ecology, economy and social responsibility. Thanks to an ice energy storage system and other renewable energy sources, the building complex will be self-sufficient with regard to energy. The sustainability aspect also includes multi-functional utilisation of the building. For example, an event complex which can also be used for events organised by external companies, be divided into units of different sizes and provides public gastronomy facilities.
In total, Häfele is planning to invest an amount close to three-digit millions in this and other projects in 2024, which is around 30% higher than the total investment volume in the previous year.
Open-mindedness as a strength
Häfele's forward-looking approach is not only evident in its investments, but also in its attitude. The operational management, the Board of Directors and the shareholders are committed to cross-border cooperation and internationalisation – particularly during challenging times. Häfele CEO Gregor Riekena: "The heart of our logistics beats here in Nagold, in central Europe. It is supplied by goods which flow in from all over the world, whereas on the other hand, the products which leave here make liveable, sustainable furnishing and construction projects possible worldwide. A free flow of goods and international cooperation are the basis for our successful business and for secure, futureproof jobs." A glance at the flow of goods at Häfele confirms this: 40 per cent of products come from Asia, 40 per cent from Europe and 20 per cent from the rest of the world. Sibylle Thierer, Chairperson of the Board of Directors and representative of the third generation of the shareholder family, emphasises: "Open-mindedness to the world is in Häfele's DNA, and will continue to be a guarantee for continued development in the future."
Häfele Lighting – Launch of the new division at Light & Building
Häfele will be presenting further developments in technology and innovation at two major trade fairs in 2024. Years ago, Häfele set itself the goal of becoming a pioneer in the field of comprehensive networking solutions in furniture and interiors, and developed lighting into a core competence. 2023 was characterised by further developments such as the new Häfele Connect App 2.0, which has a new look and feel and makes the control and networking of light in all areas of a room, including furniture and interior fittings, even more intuitive. In order to provide openness and compatibility with other systems, Häfele has established and intensified partnerships with the market leaders of smart home systems. Technology has therefore now become an integral part of Häfele's corporate identity.
This special Häfele expertise, which is bundled in the Häfele Lighting division, will be showcased by the company's appearance at Light + Building 2024, the world's leading trade fair for light and building technology. With its Loox, Nimbus and Connect ranges, Häfele Lighting is the first and to date the only brand to combine the application areas of "Light in furniture" and "Light in rooms" into an integrated, connected overall experience.
Inspired by the demands of craftsmanship.
Häfele's core target group, the carpentry trade, also benefits from this increase in expertise and performance. Customers from the joinery and carpentry trades experience the company as a reliable and supportive partner in the current dynamic times, in which joiners/cabinet makers are also being confronted with issues such as digitalisation, a shortage of skilled workers and economic uncertainty. With the solutions that are available, particularly the uncomplicated integration of lighting into furniture and all kinds of interior fittings, Häfele's customers can generate added value for their own customers. In this way, revenue can be increased, and the entire process optimised using Häfele's services. This wide range of services will be presented for the first time at the upcoming Holz-Handwerk (carpentry trades fair) in Nuremberg in March 2024.
Partnership-based cooperation carries us through turbulent times.
For the Häfele Group, it is clear that the challenges will still be there in 2024. "We are convinced that our newly defined purpose "Maximising the value of space. Together." will be a growth engine for years to come. Our solutions and skills are fit for the future, and our expertise is in demand from customers and partners all over the world. The most important thing is that we are able to call on our performance potential as a team in crisis situations," emphasises Häfele CEO Gregor Riekena.
Pictures:
Technology is becoming more and more of an integral part of Häfele's corporate identity. With the Häfele Lighting division, the company is setting trends in the area of comprehensive networking solutions for furniture and rooms. Häfele's expanded range of services was impressively showcased at the interzum, the world's leading trade fair, in 2023.
Still active: Sibylle Thierer. After 20 years at the helm of the company, Sibylle Thierer passed the baton to Gregor Riekena in 2023, and still continues to be involved in strategic decisions as the Chairperson of the Board of Directors. At the anniversary celebrations, the representative of the third generation of the shareholder family emphasized the importance of cohesion in a family business. On the screen behind Sibylle Thierer: Walther Thierer (left) and his companion Georg Wurster.
"We are convinced that our newly defined purpose 'Maximising the value of space. Together.' will be a growth engine for years to come," says Gregor Riekena, CEO of Häfele since January 2023. In the anniversary year, the purpose was presented to the workforce, signaling an optimistic start to the company's next century.
Hospitality par excellence: Häfele's specialties include innovative concepts for creative interior design, including partition wall systems, light and acoustics, and have been put into practice in the newly designed canteen at the company headquarters in Nagold. A spacious location with a welcoming atmosphere and a feel-good factor that is enjoyed by both the Häfele employees and its customers from all over the world.
The investment in its headquarters in the northern Black Forest represents an important milestone in the family-owned company's innovation and service strategy. Having more room for new services and product ranges as well as ultra-modern processes allows Häfele to supply customers all over the world with furniture fittings and architectural hardware, electronic access control systems and lighting solutions even more quickly and reliably. The Häfele Dynamics Centre is currently under construction. It is designed for flexible use, and in addition to its core use as a production and logistics centre it will provide a platform for exchange with start-ups and research institutions.
Photos: Häfele
About Häfele
Maximising the value of space. Together.
Häfele is committed to developing liveable, sustainable room concepts for the living and working
environments of tomorrow. Together with its partners, Häfele creates resource-preserving, multi-functional
solutions with maximum convenience.
Founded in 1923, the globally operating specialist for intelligent hardware and fitting systems, electronic
access control systems, lighting and networking provides its customers from over 150 countries with unique
360° expertise. With a comprehensive product range, numerous services and a considerable amount of
innovative spirit, the family-run company is a reliable partner to joiners/cabinet makers, the furniture
industry, dealers and architecture, from brainstorming and planning to the implementation of their projects.
More than 8,000 employees plus 38 subsidiaries and numerous other agencies around the world make up
the team of the global player, with its headquarters in Nagold in the Black Forest. The Group has been
managed by Gregor Riekena since January 2023. As the Chairperson of the Board of Directors, Sibylle
Thierer represents the interests of the shareholder families. In the 2023 financial year, the Häfele Group
achieved sales of 1.71 billion Euros with an export share of 82%.
Further information at www.haefele.de
