Hiab in 2021 - strong demand delivering record order book and good profitability, increased investments in growth
Hiab’s business performance was good in 2021. The order intake exceeded the previous record level by 31 percent, leading to the order book almost doubling from the previous year.
In 2021, Hiab sales increased by 14 percent and its comparable operating profit was 166 million euros, a 29 percent increase from 2020.
“I think the performance was on quite a good level and in line with our strategic plan.We made great progress towards our strategic ambition and executing against the strategic plan, all of which was made possible through the great Hiab colleagues that we have, and especially our customers, suppliers, and partners who supported us through what was quite a challenging year,” says Hiab’s President Scott Phillips.
Hiab’s services division continued to execute on its strategy to deliver profitable growth through delivering the industry’s best customer experience. Hiab’s service sales increased by 10 percent to 351 million euros, constituting 28 percent of total Hiab sales. Hiab’s Net Promoter Scores (NPS) are up by 20 percent compared to 2019 and Hiab’s dealer NPS increased by 37% year-over-year.
“We enter 2022 with more than 20,000 connected units, returning insights that are enabling us to engage in ways we haven't been able to do before with customers. This allows us to help our customers improve their safety, sustainability and productivity outcomes,” continues Scott Phillips.
Hiab’s Truck Mounted Forklift, Light and Medium Loader Cranes, Heavy and Super Heavy Loader Crane, and Demountable, Forestry, and Recycling Crane Divisions each experienced record levels of order intake. The Demountables and Heavy Crane Divisions were able to manage the supply chain challenges by also delivering record levels of sales. In the fourth quarter, Hiab introduced the Hiab business system, which is a key component to the Hiab way. The Hiab business system will provide a key building block for enabling future value creation.
“All in all, I would say the contribution came from all parts of the Hiab portfolio, which was nice to see.”
Growth in a competitive environment
One of Hiab’s demand drivers is the construction activity which increased in Hiab’s strongest markets - in Europe and in the US. In general, Hiab’s demand remained quite strong supported by the implementation of its strategy, favourable macroeconomic trends and continued tailwinds from the megatrends that support the industrial segments Hiab serves. All the while, Hiab’s market environment remained exceptionally competitive and challenging.
“In response to that, we were proactive in terms of creating growth both organically and inorganically. On the inorganic side, we were successful when executing on three acquisitions, two of which expanded our channels, which will help expand our services business, and then one of which was Galfab, a demountables manufacturer in the US,” says Scott Phillips.
Hiab continued to invest in creating organic growth by introducing 18 new equipment and service solutions. As a consequence of some of the product launches, Hiab won awards in Europe both for sustainability as well as for innovation.
“Our new product introductions have been focused and targeted on key segments and applications where we could design fit-for-purpose solutions that will enable differentiated safety, sustainability and productivity outcomes for our customers.”
“So, really proud of the way that we proactively managed the market environment and set ourselves up to create incremental future growth as well.”
New Hiab solutions enhance customer cooperation and increase sustainability
Hiab’s customers have appreciated its ability to keep them in business, as most all, if not all of its customers are essential industries.
“By reviewing customer data, we hear and experience with them, how much more effective their equipment and their operator combinations have been in terms of achieving or maintaining safety standards on quite a good level. We've at the same time been able to see where we've helped our customers have a more sustainable footprint, through reduced fuel consumption, through faster cycle times, through helping our customers to lift heavier loads per lift, and reducing noise,” tells Scott Phillips.
“We have been quite successful in helping our customers reduce their total cost of ownership, enabling them to switch from mobile lifting equipment to our type of lifting equipment that enables them to lift the same sized loads but in a much smaller workspace, enabling faster setups, and operating more efficiently in an urban environment.”
“We have either introduced or will soon introduce a complete line up of alternatively powered equipment that will enable either significant reduction or elimination of emissions, which we're quite proud of. At the same time we have entered into a cooperative agreement with a major steel supplier (SSAB) to help develop and fast track fossil free steel, which is one of the biggest sources of carbon in our entire footprint.”
“So I'm really excited about that. Our customers recognise our efforts to help them reduce their carbon footprint and appreciate the value in partnering with a supplier committed to leading the way to achieve science-based targets for CO2 reduction.”