Harting Technology Group once again achieved sales of just over €1 billion. Following a record €1.059 billion in the 2021/22 financial year, the Esperkamp based company generated a turnover of €1.036 billion in the 2020/2023 financial year (down 2.2% on the previous year, but generally manageable). “This confirms what we predicted last year – that the market would move sideways after the boom of previous years,” said Philip Harting, chief executive of Harting Technology Group.

Sales across markets around the world were uneven, “reflecting increasing volatility and different geopolitical conditions,” Harting continued. In the Americas, which benefited from economic incentives such as the Inflation Reduction Act, sales increased by €12 million (+ 9%) to €159 million. In Asia, sales decreased by €24 million (9%) due to a temporary slowdown in China. The German market remained stable with sales of €277 million (+ 2%). On the other hand, sales in the Europe, Middle East and Africa region (excluding Germany) fell by €18 million (5%) to €355 million. As of September 30, 2023, the total number of employees decreased by 241 from 6,446 to 6,205, primarily due to the sale of HARTING Systems (reduced by 160 employees) and the closure of its Russian subsidiary (reduced by 61 employees).

“With the commitment to invest €76 million, which is significantly higher than depreciation, we are strengthening our capacity and market development, as well as the adjustment of our organizational structure and processes. These include capacity additions in Romania (Agnita), a new electric vehicle production line in Mexico and a brand new factory recently inaugurated in Vietnam. In addition, we have invested heavily in the further digitization and automation of production processes, such as our Esperkamp and Laden factories. Our purpose is clear: given the challenging economic environment, high energy costs and excessive regulation, we are more determined than ever to position ourselves, “said Philip Harting. The aim is to consistently further automate and digitalise, reduce the cost of gas supply and ensure long-term access to raw materials at competitive costs. This is the only way for companies to lay the foundations for further growth – a path that is increasingly unfolding outside of Germany.

Philip Harting also pointed out that small and medium-sized electric companies in Germany still have an excellent opportunity to promote climate transition and sustainable development through innovative solutions, and he also cited some of the innovative ways Harting has done it. Harting Technology Group is developing and providing connectivity for an all-electric society to achieve an electrified and decarbonized world. “Sustainability, environmental protection and social responsibility are part of our DNA.”

The war in Ukraine and the subsequent energy crisis, in particular, strengthened the company’s determination to supply energy and heat independently, especially on a climate-neutral basis. “After more than a decade of relying 100% on green electricity, we are now also 100% independent of the gas network – Harting has acquired an additional biogas plant in Esperkamp that will directly supply the company’s production, thereby reducing our carbon footprint by 1,200 tonnes.” Philip Harting reports on two multimillion-dollar investments.

The group also aims to reduce global CO2 emissions by 60% by 2027 and achieve climate neutrality by 2030. In this context, Harting will invest another approximately €75 million in the 2023/24 financial year to develop new connectivity solutions in the direction of decarbonisation, digitalisation and automation, to optimise structures and processes, and to further globalise through development and production in specific regions of specific markets.

While the company is working to secure its future, Harting expects economic trends to remain grim this fiscal year, with sales slowing as orders fall by 10%. “We are also prepared for a high percentage decline in sales.”

HARTING

Harting is working hard to offset this negative impact through flexible production management and selective shortened working hours. We are constantly exploring further measures in the light of existing developments. Despite the current challenging situation and the possibility of slower growth beyond 2024, Philip Harting is optimistic about the long-term future: “Part of our corporate vision is: we want to be a global company. Given the steady growth over the past three years, I am confident that Harting will become a global company. We are pursuing this path courageously, consistently and with hope.”