Focusing on internal process efficiency pays off for Grundfos Pumps
Grundfos Pumps describes 2010 as best year ever after posting record revenue due to changes in internal process efficiency, global sustainability; profit will allow for even greater investment in 2011
The international debt crisis and increasing oil prices – as well as growing need for energy efficiency – are the reasons for Grundfos’ focus on internal process efficiency and global sustainability. This resulted in the group, owned by a private foundation, with headquarters in Denmark , and staff in 55 countries, being able to present an annual report for 2010 which Group President, Carsten Bjerg, describes as the best ever for Grundfos.
The 2010 sales reached $3.7 billion with profit before tax reaching $455 million, compared to $3.2 billion and $169.7 million respectively in 2009. With this result the company in 2010 returned to a level of activity equal to those prior to the global financial crisis.
“This is a good result. Even better than we hoped. It will be used for investments in new growth. For instance, we shall soon be launching new energy efficient solutions that will no doubt attract attention, and we shall continue the globalization of our activities in growth markets,, said Bjerg. “The fact that, in a difficult and challenging time, we managed to expand the technological and commercial lead in the market and, at the same time, managed to limit costs, is a strong example of management and staff’s strong performance and cooperation”, said the Group President. “Today, we estimate of every tenth newly installed pump worldwide wears the Grundfos name. At the turn of the year the Group even managed to abolish all debts with an interest-bearing net deposit of $325 million compared to net debts of $18 million at the start of the year”, Bjerg summarized. Due to Grundfos’ special ownership, the profit gained will be reinvested directly in the business, with special focus on investments in technology and product development.
Grundfos investments in technology and product development will reach $184 million in the coming year. In addition investments in production equipment will be doubled, for instance with new production facilities in Russia, Serbia and India. “The North American region will also bee the beneficiary of some the enhanced investment activity” said Jes Munk-Hansen, Regional Managing Director for North America, commenting from their North American headquarters in Olathe, KS. “All Grundfos employees shared in the success as the company announced at Christmas time every employee would be awarded an extra weeks pay” Hansen added.
Grundfos’ economic growth will be used for continuous development and growth. However, the stands firm that the growth must be sustainable and so the company maintains an ambitious goal of never emitting more carbon than in 2008.
- Edited by Gust Gianos, Plant Engineering, www.plantengineering.com
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Annual Salary Survey
In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.
Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.