Insight

At the beginning of 2021 VVG Befestigungstechnik became HONSEL Distribution GmbH and joined the HONSEL Group – helping document the affiliation to the HONSEL Group with a uniform brand. Here we speak to General Manager Alexander Siefert about the benefits of this partnership and what it means for the company and its customers going forward.

When was the decision made for VVG Befestigungstechnik to become HONSEL Distribution and for it to join the HONSEL Group?

“The decision to become HONSEL Distribution was made two years ago and was based on both internal and external viewpoints. We already had a very close relationship with HONSEL and by becoming part of the Group we can now create an even closer partnership and jointly develop our strengths and possibilities, as well as share resources and daily business.

It was therefore the logical step to demonstrate this cooperation and strengthen both businesses under a uniform brand – which is globally recognised and has been in the market for 90 years. By joining the HONSEL Group customers can be clear on what to expect from us in the future.”

What are the benefits for VVG as a business in joining HONSEL Group and what are the advantages for your customers?

“From a business perspective there are a variety of synergies that both sides benefit from, such as further developing know-how, personal experience, and technology insight, as well as a standardised IT system.

From a customers’ point of view, they can get everything they need from one single source, which is a great advantage. Customers can be confident they will receive proven products thanks to our optimised processes. These are possible thanks to the experienced development and flexibility of our manufacturing, as well as our fast, service orientation.

Our motto is ‘HONSEL. The Art of Fastening’ and that is the perfect description for what HONSEL Group can deliver through its high-quality fastening solutions. This is underlined by our commitment to investing in innovation, which has seen us become a benchmark for new exciting products – such as the new Rivdom eVNG 2, which is one of the most efficient battery based blind rivet nut tools in the world.”

How important is your ability to innovate as a business?

“Innovation is one of the most critical driving forces at HONSEL, whether in the development of connecting elements – such as blind rivets, blind rivet nuts or studs – or whether in automotive solutions – such as power train fasteners, process monitoring systems or smart riveting tools. For instance, the RivSmart, a battery powered setting tool for blind rivets, won the Route to Fastener Innovation Award at Fastener Fair Stuttgart in 2017, which shows how successful we have been when it comes to innovation.

We are in an enviable position where we have lots of innovative ideas when it comes to the products we supply. However, as a company we make sure we focus on each and every one of them and only introduce them to the market when they are fully ready.

One area we are currently concentrating on is the smart networking of tools and development of individual fastening concepts, which are becoming more of a factor in a variety of industries – from construction to logistics. Accordingly, we have invested in personnel and technology in this area, which gives us the freedom to think ‘outside the box’.

At HONSEL we believe innovation will lead to a deeper collaboration between business partners and will help the Group to continue as one of the leading innovators in Germany and Europe.”

A big impact on the whole market over the last 12 months has been the Covid-19 pandemic as it spread globally. What challenges did this present to you as a company and how did you handle the situation?

“The Covid-19 pandemic caused numerous challenges, especially at the beginning in March/April 2020 where we were faced with a lot of uncertainties concerning the demands of our customers and the options available to our suppliers. Immediately we intensified the contact to our business partners and over the last 12 months we have managed the situation without any major restrictions.

We have been able to do this thanks to the close partnerships with our suppliers, often based on a long-term and trusted collaboration. Our warehouses are generally well planned and stocked, which means we were also able to check and adjust our supply chains very quickly – ensuring there were almost no delays in deliveries.

We believe a long-term impact of the pandemic will be that relationships between different business partners will become even more vital. It is only by knowing each other and trusting each other that we can face such challenges successfully.

We also believe digitisation will ramp up on every level, not only for workplace solutions, but as already mentioned regarding the requirements on smart and intelligent tools, together with suitable fasteners.”

You mention digitisation, how have you approached this area as a business? Do you think the pandemic will accelerate the move towards digitisation with the fastener industry?

“Digitisation includes so many areas and everyday business that we have set-up a task force especially for this area. Together with external specialists we are searching for solutions for the entire group.

This is an example of where VVG joining HONSEL Group is a big advantage, as resources and costs can be shared. However, digitisation in-house is only one topic, working with customers, partners and suppliers is another.

When it comes to this, we are working on a variety of solutions, including for the specialist trade, as well as for the coordination of JIT (Just In Time) deliveries in the automotive industry. We see this area as vital for the future, which is why even during the last 12 months we have continued to invest in our R&D activities. We believe the pandemic will definitely have an impact on the move towards digitisation and as a business we are focusing our thoughts on the post-pandemic market  –
where we predict increasing demands for new solutions all over the world. We want to make sure we are well prepared to face this opportunity together with our partners and digitisation will be heavily involved.”

Raw material costs and sea freight challenges are currently having a significant impact on the fastener market. Has this impacted HONSEL and if so, how?

“These surrounding conditions have impacted us, but we have been able to face up to the challenges. We operate a very flexible and multiple supply chain, so any bottlenecks that occur can be identified quickly and we can look at alternative options and delivery routes.

As a worldwide company, with various production locations, we have been able to manage problems such as sea freight. Our
forward-looking disposition and a close focus on defined product groups, helps prevent problems in advance. For instance, thanks to our production capacities in Germany and China we are able to switch planned purchased parts into self produced parts. We also have worldwide existing sourcing capabilities, with very efficient suppliers and processes. We follow a strategy of qualifying new potential partners in every region of the world, which means we are able to quickly react to situations.”

Do challenges such as the pandemic, sea freight availability, and raw material fluctuations, also create opportunities for you as a business?

“As Winston Churchill once said: ‘Never waste a crisis!’. We are deeply convinced that all the challenges we are currently facing will lead to a demand for deeper relationships between business partners. The need for further exchanges of information will increase, as will well connected supply chains – all of which will create new processing partnerships.

In our opinion the relationships and partnerships in business are the most important factor for the future. It is people that make business it is not prices or products; these are just things that must fit to the demands of customers. It is only people, and the relationships and collaboration of companies, that will lead to more business in the future.”

How do you think the market will develop over the next 12 months and what are HONSEL Group’s plans for the future?

“2021 will still take place under the shadow of the Covid-19 pandemic, so the main focus still needs to be on the smooth delivery to our customers with the known quality and punctuality associated with HONSEL. However, we are also planning for after the pandemic, with new products, higher quality standards and further optimised logistics.

We are confident in a recovery around the world and that economic output will increase. The level and speed of this recovery will depend on how Covid-19 is controlled all over the world. At HONSEL, we will continue to focus on collaboration, integration and digitisation, as we believe these will be big trends in the future. We have answers for every section and we are very confident and deeply convinced every one of our business partners will benefit from this.”