Insight

Welcome to the 2024 Janus Perspective, a unique feature that includes a wide cross section of global fastener business leaders. Named after the Roman God 'Janus' – who had the ability to look to the future and to the past, and was often depicted with having two faces – this feature brings together thought leaders from every facet of the industry, from around the world, to give us their retrospective on 2023, as well as prospects and challenges for 2024.

Yves Derycke, CEO

The business is more complex than I thought. It’s so much more than moving a box from A to B. We receive inquiries from different customers in different industries. It’s not always a simple ‘one size fits all’ solution. Each industry has its own dynamics, and we map them out. That complexity appeals to me; I enjoy learning something new each day.

In recent years, we’ve seen that companies need to be agile, especially in an unstable world situation, as is the case now. In such times, a company must be able to adapt quickly and not sit back. Successful companies are customer oriented, they understand the needs and pain points of customers and provide solutions. In the challenges we face, we must collaborate sustainably, even with competitors. That’s how you make a greater impact. Next year, we plan to release our first ESG report. We are also exploring how the products in our range can be more environmentally friendly.

Rising costs for energy and labour

Until two or three years ago, the biggest concern for companies was product availability. Even if it’s a small part of a machine, when two bolts are unavailable, a machine worth tens of thousands cannot be sold. When restrictions on products from Russia came into effect in 2023, we immediately conducted our due diligence. At such times, it’s reassuring to know that, due to our long history, we have excellent relationships with key suppliers who helped us present all the necessary evidence. 

We also ensured an adequate stock. In general, product availability is now less of a significant concern. However, we must provide the manufacturing industry with a response to the increased energy and labour costs. If we don’t, more companies will move production elsewhere. Our customers can continue challenging us to make logistics as efficient as possible. Offering a 5% discount is a drop in the bucket. Our strength lies in reducing the total cost of ownership in production and maintenance. We don’t sell products with a discount but we propose our customers a service to improve their cost of production significantly. Before you streamline the logistics process, you must know how it will impact the total cost of ownership. While a solution like Weight Scale works perfectly for one company, an RFID solution may be better for another. That is why we offer MyFabory Insights, which helps customers navigate a maze of data, showing where more inventory is needed and where perhaps less is required.

Exponential growth in multiple markets

We need to reduce manual intervention in the logistics process. Automation is important to efficiently organise logistics processes to continue production. This is a challenge for manufacturers in Europe, in order to handle the increased labour costs in the European market. We also shouldn’t want to bring everything in from the Far East; otherwise, we become too dependent. Adaptability remains crucial in 2024 as well. Of course, you will face ups and downs, but structurally, our market is more than healthy, especially compared to other industries. Our market will not change dramatically like the photo or music industry. In several market segments we serve, we expect exponential growth. For instance, the European Commission is strongly supporting renewable energy. The same applies to agriculture, where labour costs are also high and more machines will need to be used to stay competitive in the global market.

I expect a lot from eCommerce, smart manufacturing, sustainability, and internationalisation, for the coming year. We also need to better understand how Artificial Intelligence might impact our business. Customers increasingly ask us if what we do in one country can also be done for them in another. We will proactively address this by mapping out the possibilities across different geographies. Sometimes, we need to think beyond a single country, you see opportunities more quickly when you think as a European group.

The foundation of our organisation

I mention people and culture last, but it’s the most important focus. We can say whatever we want about our ‘Masters in Fasteners’ strategy, but if our employees don’t feel it, don’t live it on a daily basis, it won’t work. The right culture is like the cement keeping it all together. People must always be motivated to do the right thing. The foundation will collapse if the cement and bricks don’t fit together well, no matter how good the bricks are.