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.

Giuseppe Fontana, CEO

At the beginning of 2023 we hoped the year would not be too penalising and in fact the market was not negative in the first part of the year. However, the scenario changed in the last part of the year, where there was a slight decline due to the loss of confidence in the market. After all, we are living in a fairly confusing period, in which, after Covid-19, we have seen two major conflicts brake out – both of which continue to have important geopolitical repercussions.

When looking at the market, the value of interest rates influences the performance of the economy in all sectors – with high inflation having an impact on consumption. At a national level, in Italy it was expected that the National Recovery and Resilience Plan (PNRR) would generate an important driving force, but to date the effects have not been seen. I can anticipate that for 2024 we expect a less than positive start, substantially at the levels of 2023. However, if inflation is contained, we can hope for a recovery by the end of the year.

What are the main market trends?

Our market today is influenced by the environmental problem, which is strongly connected to the issue of energy. In this sense we have moved towards the abandonment of internal combustion engines in favour of electric ones, even if it appears increasingly clear that this will not be the only solution, as there remains considerable infrastructural and energy supply difficulties, as well as various problems related to battery disposal. In general, there remains a certain difficulty, on the market’s part, in choosing one path over another.

What we have noted, however, is the social change taking place – especially in Europe. The car is becoming less important, especially among the younger generations, and there is less ambition to own a car. In the big cities, for example, car sharing and rental models are becoming more and more popular, which is having an important repercussion on sales quantities. We have therefore asked ourselves how much the market can change in the coming years. On the other hand, other countries and areas of the world are growing, so having a global perspective allows us to implement long-term strategies that take all scenarios into account. This is why we can say that there is no decline at a global level.

Fontana Gruppo’s objectives for 2024

After all these periods of variability and confusion, with the difficulties of choosing the right path, as well as correctly evaluating reactions to different shocks, today we must return to the basis of our business – managing costs, companies, returning to the market, as well as continuing to invest in increasing production and turnover. We must continue to look positively to the future, despite a certain lack of confidence.

In this sense, one of this year’s objectives is the consolidation within the group of a recent acquisition through our Fast Trade business – the ownership of Intermétal, a company specialised in the distribution of screws and small metal parts for the general industry, which was founded in 1984 in Nancy, France. This acquisition is part of the Fontana philosophy to invest in entrepreneurial businesses that are already established within the sector. That is how, over the last seventy years, Fontana Gruppo has expanded to now include 16 production plants, offices and branches in 32 locations across Europe, the Americas and India – with more than 4,000 people and a turnover of over €900 million.

Another key cornerstone of Fontana Gruppo is its investment within research and development, with the company basing its activity on the belief that every screw and bolt is a product with a high technological content and always subject to improvement. We do this through three research centres around the world, which over the years have developed over 145 high-quality patents for every type of application. It is precisely from this basis that, driven by the desire to revolutionise the fasteners sector, Fontana has developed KRABO®, a new start-up resulting from the engineering of FONTANA R.D – A Fontana Gruppo company capable of creating intelligent fastening systems. KRABO® fasteners use wireless technology as a driver, which allows access from anywhere in the world to a dedicated platform from which it is possible to monitor the tension status of the bolt. There are countless possible applications, from construction to railway networks, from wind power to earthmoving machinery up to the automotive industry.