Marko Leber, Global Product Manager, Food, IPCO
Considering the market volatility, supply chain disruptions, energy costs, and workforce scarcity, what does this past year look like for your company when you draw the line?
Like all companies we faced problems in the form of supply chain instability as well as significant increases in the cost of energy and raw materials but we managed to control the situation. Overall, 2022 actually ended as a good business year.
What are your expectations for next year, keeping in mind the legacy of 2022, but also the current challenges?
Our position in the bakery supply chain – supplying steel belts to OEMs and end users – means that the impact of market change is often delayed. While this helped us maintain good results in 2022, it may be that some markets will prove more challenging this year. This is particularly likely in Europe where the effects of the war between Ukraine and Russia are being felt most deeply, but we are prepared for this situation.
How do you estimate the market will evolve and what is your priority list for 2023?
Our expectations are that, overall, 2023 will be relatively stable from a business point of view. Our global presence means that fluctuations in different parts of the world tend to balance themselves out. Our priorities for the next 12 months are to streamline supply chains so we can improve our customer response times, and further increase our efforts in R&D.
Where did the growth opportunities come from and what is the most important lesson you have learned in recent times?
General market growth comes from changing lifestyles and increased disposable income, which in turn leads to demand for higher quality products. Steel belts have a higher initial investment cost than other technologies but enable the production of premium baked goods such as American-style all butter cookies. So the stronger the local economy, the greater the opportunity there is for us to sell belt upgrades.
Another major area for us as a business is engineering and service support. As raw material and energy costs rise, so does the need to ensure that ovens are working at maximum capacity. Anything less has a direct impact on the bottom line.
What do you consider to be the most valuable asset you have in 2023 as a company?
We are known around the world for the quality of our belts and the wraparound service and engineering expertise that comes with them and all of this is down to the skills of our people. We provide technical excellence through a global network of local service teams and this is something no other belt manufacturer is able to offer.
People will always be our most valuable asset but it’s also worth highlighting the major investment we are putting into an all-new belt production facility in Forsbacka, Sweden. It will be a few years before this is fully operational but it will certainly be a key asset over the coming decades.
As part of your growth strategy, how do you prioritize your investments versus your R&D efforts?
In terms of investment I’ve already mentioned our new production facility and we’re constantly investing in the skills of our engineering teams. Looking at R&D, 2022 saw the introduction of our innovative laser cleaning service, something we’ve been working on for some years.
Tracking technology is another area we’re constantly working on. All these things enable us to serve our customers better and in the end that’s really the only way to achieve long term growth.
What was unexpected in 2022 and how did it impact your business?
The war in Europe and related increase in the price of gas and other products. The impact on the business is that companies are hesitating to invest.
Which are the most important drivers of change for your business in 2023? How do you plan to prepare for them?
Sustainability will be key to change. This means everything from how we manage our own manufacturing and distribution operations to the efficiencies our products can bring to customer’s businesses. Looking beyond bake oven belts to our broader portfolio, we are already manufacturing systems that are used for the production of advanced composite materials that can replace traditional metal components.
What would you like to see happening in 2023 for your stakeholders and business environment (in terms of policy, regulations, and market) in order for your business to thrive more?
End of the war in Europe, more stable/lower pricing of products & services and improvement in the supply chain. This will create a positive atmosphere within markets and create the optimism and courage necessary to drive investment in business.