The restrictions imposed in response to the global pandemic have had a very different impact on the various branches of the economy. While tourism came to an almost complete standstill due to border closures and event cancellations across the board, the construction industry had a stabilizing effect on the economy. The mechanical engineering sector, on the other hand, has been hit hard. The automobile industry, which was already under pressure due to efforts to address climate change, also suffered a sharp downturn in sales as a result of the drop in demand and weeks of production shutdowns. This mixed picture is also reflected in the Würth Group’s sales development in 2020: While the Construction Division (+ 12.2 percent) and Electrical Wholesale Germany (+ 10.8 percent) performed very well, reporting double-digit sales growth, sales in the areas that are direct suppliers to the automobile and mechanical engineering industries declined.

The huge challenge that this crisis has created is that of overcoming it together in the spirit of solidarity, even though we might be affected by its impact to varying degrees depending on the sector we work in or the infection rates in the place where we live. The “Next Generation EU” recovery fund bears testimony to the political will to stick together regardless of national borders. Worth EUR 750 billion, it is the largest rescue package launched by the European community in its history. It is crucial that we keep working resolutely on the important sociopolitical issues of our time, such as improving our digital infrastructure so that everyone—companies, schools, public authorities—has the opportunity to shift their processes online. We need large-scale education campaigns focused on digitalization so that the up-and-coming generation can finally break out of the analog world. The restructuring of our working world offers immense potential. Our environment has shown us how much it is prepared to forgive, and where it draws the line. These are all issues worth tackling—issues that will shape our future.

As far as the development of the Würth Group is concerned, we are satisfied overall: The Group achieved sales of EUR 14.4 billion in 2020, up by 1.0 percent. At EUR 775 million, the operating result was up slightly year-on-year. We did not make any structural job cuts in spite of the pandemic. The number of employees rose slightly by 453 to 79,139.

Two factors played a key role in this satisfactory development: The trades, which we supply with fastening and assembly materials as part of our core business, have been working almost without interruption since the onset of the crisis due to their systemic importance. At the same time, with our multi-channel strategy, we had the right solutions in place to enable tradespeople to purchase materials as part of a straightforward, contactless process: Our digitalization strategy, consisting of our online shop, e-procurement, and the Würth App, blends seamlessly with stationary procurement structures in our pick-up shops, which we equipped with a COVID-19-compliant safety and hygiene concept right away. E-business sales grew faster than sales in other areas, rising by 5.8 percent to EUR 2.8 billion in 2020 and increasing this segment’s share of total Group sales to 19.3 percent.

One key aspect of customer relations that we cannot afford to underestimate, even during this pandemic, is and remains the trust placed in us by our approximately 4 million customers worldwide—a stable partnership that is only possible thanks to our more than 33,000 sales representatives. Even in these times of crisis, they are in constant contact with our customers via telephone and e-mail. The additional risk diversification achieved by our international positioning, diversification across various business fields and, not least, our financial stability, with an equity ratio of 43.8 percent, have kept the Group on an even keel overall.

We will do everything in our power to counteract the unpredictability of this virus and, as always, will rise to the challenge by adopting a “Würth-like!” strategy, keeping our sense of focus, treading carefully, maintaining a comprehensive view of the situation, and remaining fully confident in our own capabilities. The Central Managing Board of the Würth Group would like to thank everyone who gave us the time and space we needed to manage the crisis: our customers, employees, the Councils of Confidence and Works Councils, the members of the Customer Advisory Board, the Supervisory Board of the Würth Group’s Family Trusts, the Advisory Board, and the Würth family, in particular Prof. Dr. h. c. mult. Reinhold Würth and Bettina Würth.

For the Central Managing Board

Robert Friedmann
Chairman of the Central Managing Board of the Würth Group