Thanks to attractive products and services, organic growth achieved
The Construction division defended its market position as a specialist for mechanical fastening solutions in the building envelope amid an intact market environment, thanks to its attractive range of products and services. Its growth momentum slowed, however, compared to the prior-year period. Demand in Turkey dropped as a result of the country’s difficult economic situation.
Market position in the US clearly strengthened
SFS’s market position in the US construction market was significantly expanded through the acquisition of TFC. Thanks to TFC’s excellent network of sales outlets, 23 in all, this transaction broadens SFS’ access to customers in the US. This opened up a second sales channel alongside the existing sales channel, which is mostly focused on OEMs and wholesalers. With the additional sales channel, SFS is now closer to the customer and thus pursuing the same sales model that has already yielded successful results in European markets.
Broader access to end customers gives SFS a stronger positioning in the marketplace and enables it to address innovations more quickly than before. The merger between TFC and SFS also creates attractive procurement opportunities that can now be jointly exploited.
The integration of TFC into SFS went very smoothly, which confirms that their corporate cultures are highly compatible and guided by identical values. TFC’s operating results have been consolidated since April 2019.
Positive development benefited from stable market environment
The division expects its market environment to remain stable in 2020, allowing it to generate slightly positive sales growth.