Key Business Outlooks for 2024 (2/10): Lex van Houten, AMF Bakery Systems
The year 2023 has brought more international turmoil, supply chain disruption and historic inflation all over the globe, putting a lot of pressure on the baking industry. Concerns about the availability of raw materials, the cost of energy, transport capacity, regulations, labor shortage and purchasing power had companies and professionals worried and looking for solutions.
That is what we see in these interviews with top managers from the most important industry players: the industry fought back and invested in research and development to provide sustainable solutions that address these challenges.
For 2024, representatives of some of the most important equipment and ingredients manufacturing companies talk in unison about sustainability, automation, energy-saving technology, traceability and working for the customers, to make sure their access to good bakery products is unhindered by the setbacks of the world. None of the viewpoints shared with us is lacking in hope, an essential attribute for a long-term winning business.
Conventional food production systems have enjoyed uninterrupted growth over the last few decades. While this trend is expected to continue in the short term, resource constraints may dampen expansion in the long term. Furthermore, the sector is increasingly ripe for disruption.
It is up to the bakers, transporters and retailers to find the right way to stay profitable and capitalize on the market opportunities that await them in 2024.
Lex van Houten, Regional Marketing Manager, AMF Bakery Systems
Considering the market volatility, the bottleneck of resources, the energy crisis, the increasing prices and workforce scarcity, what does this past year look like for your company when you draw the line?
Running a business requires being flexible and being able to look ahead, and that is what we learn and develop as an organisation. Supporting our customers no matter what and looking ahead to be prepared and innovate. We know that labor is/becomes scarce in coming years, so we automate many steps in bakery production for our customers, we make machines smarter and use AI to be in control of the process. These new developments result in trust and partnerships with the market and customers, to rise together as we say, and create these future-proof, profitable bakeries with them.
What are your expectations for next year, keeping in mind the legacy of 2023, but also the current challenges?
We strive for sustainable growth as a company, following our mission, vision, and company values. Better food, better lives is very important part of our mission, and we want to do our part in making the world a bit better. Being part of the chain of preparing food for people on this planet, we make our machines more sustainable, work on our global footprint as a company and contribute to our teammates well-being and the communities around us.
These values go hand in hand with creating the best and future proof bakery equipment and production lines, for example with our electric and hydrogen baking ovens, lowering CO2 emissions and moving away from gas consumption.
How do you estimate the market will evolve and what is your priority list for 2024?
We expect the market to continue to grow according to the potential we saw in 2023. After a couple of less predictive years in the market, we see the rise of new projects, investments and future plans for bakeries and food producers. Investments are picking up, replacements and upgrades take place, and our Customer Care department is at full speed in making our customers future proof with their investments.
Various markets in the bakery segment show CAGR of +4 or 5% growth in coming years, like soft bread and buns, pizza and flatbread and artisan bread. This matches our portfolio and strategy very well, to be leading player in automation systems for these kind of products.
Where did the growth opportunities come from and what is the most important lesson you have learned in recent times?
We see opportunities growing in emerging markets, where more investments are done in automation and completely new plants to feed the growing population in their countries. And we see that our long-valued customer relations pay off, resulting in growing results in our existing markets.
Lessons learned are still that personal relations remain key in this industry, the trade show IBA 2023 in Munich confirmed that again, where we met all our valued customers and create new relationships for the future.
Read the rest of the story in the January / February edition of European Baker & Biscuit.