Festo performance bullish despite bear market

Citation

(2002), "Festo performance bullish despite bear market", Assembly Automation, Vol. 22 No. 1. https://doi.org/10.1108/aa.2002.03322aab.008

Festo performance bullish despite bear market

Festo performance bullish despite bear market

Keywords: Pneumatics, FESTO

To celebrate its 75th Anniversary, Europe's leading Pneumatic Automation business, Festo, has bucked the industry trend in the global market. The worldwide innovation leader in automation with pneumatics enjoyed a record year – both in terms of sales revenue and investment – returning: 200 million Euros in turnover, over 6.6 per cent of which was reinvested in R&D operations for new product developments.

Studies show shrinkage of 5 per cent for the global pneumatics market over the past couple of years, resulting in lean times for many automation businesses. In contrast, Festo (a private family-owned company) has succeeded in growing its business and gaining market share. The UK arm, Festo Ltd, grew more than 10 per cent in revenue, while the company's share of the European Market reached 32 per cent - estimated to be more than double that of the nearest competitor. In addition, Festo Ltd was able to invest over 4.5 per cent of its turnover m IT infrastructure to further improve service through an integrated business structure.

Aside from the numeric statistics, a key indicator of the company's performance is the successful completion of a new Technology Centre in Berkheim, Stuttgart, itself requiring DM 85 million of funding (Plate 3). The official opening of the new building on 28th September marked the end of one of the largest building projects Festo has ever undertaken and coincided with the company's 75th anniversary.

Plate 3 Festo opened its new Technology Centre in Berkheim, Stuttgart at the end of September

Designed and built to reflect the state-of- the-art in technology, ecology and communication - and to further extend Festo service capabilities the new Technical Centre houses brand new R&D facilities to keep the company ahead of market requirements. It also includes large permanent exhibition resources to keep Festo customers up to speed with the company's leading-edge automation developments. The opening of the Technical Centre comes just months after unveiling the latest expansion of the new pan-European Customer Service Logistics Centre (CSC). The CSC reflects the trend towards centralised distribution. Stock held here is now available for despatch before 3.00pm for next day delivery anywhere in Great Britain.

Nicola Meadway Festo Ltd, Automation House, Harvest Crescent, AnceIls Business Park, Fleet, Hampshire GUl-3 8XP. Tel: 01-252 775000; Fax: 01-252 775001; E-mail: nicola-meadway@festo.com