Taking into account the impact of lockdowns due to the COVID-19 pandemic and resulting decline in growth in the previous financial year, BOBST’s performance has gone from strength to strength in 2021, with a huge increase in order entries, with the net growth since 2019 of over 40%.
The company showed good performances in North and South American markets besides European countries such as France, Italy, Germany, Spain, Portugal, Poland, and Greece. Though the company observed a slow-down in China, the overall results were still encouraging. South East Asia also remains a good potential market, though the region is complex and fragmented.
The company’s skilled engineers have braved travel restrictions by providing valuable services which have become more critical and strategic for people and supply chains. BOBST has managed to shape a new service landscape with engineers assisting customers remotely, both for installations and troubleshooting. The company also realized the importance of machine connectivity and helping customers learn and adapt to the latest technological solutions.
2021 has also created situations which have greatly impacted the entire packaging industry. Layoffs led to shortage of skilled labour in some regions, which added to the unprecedented increase in cost of raw materials such as paper, boards, and flexible substrates.
The price increase of source materials clearly impact BOBST’s very own pricing conditions. Raw materials used for machine frames and components increased unexpectedly. Since January 2020, the price of hot rolled steel plate increased by 119%, cold rolled steel plate by 126%, aluminum alloy by 75%, copper by 65%, structural sections and beams by 91%; raw material usage for mechanical components increased by 40% since September 2020, materials used for commercial parts by 9%, besides a steep rise in global freight charges.
Despite all this, the Swiss company launched new products in 2021, shaping a new reality where digitalization, automation, connectivity, and sustainability formed the cornerstone of packaging production.
