LAPP Group has not been spared from the weak global economy. However, it only recorded a slight decline in the past fiscal year 2024. The reason: the family-owned company was able to cushion declines in sales in its European home markets with large gains in Asia. Despite the difficult market environment, LAPP is sticking to its investment program. The global market leader for integrated solutions and branded products in the field of cable and connection technology generated sales of 1.82 billion euros in fiscal year 2024 (October 1 – September 30; fiscal year 2023: 1.92 billion euros). The family-owned company thus remained slightly below the previous year's level, with a decline of 5.3 percent. The number of LAPP employees worldwide rose slightly to around 5,700 as of September 30, 2024. “We need air to breathe” “It was a challenging fiscal year. Nevertheless, we are looking courageously to the future and are sticking to our global investment program. Continuous digitalization, increased production capacities, expansion of our logistics: That's what will ensure future growth”, emphasizes Matthias Lapp, CEO of LAPP Group, and adds: “What we urgently need from politics now: reliable framework conditions, an end to over-regulation and more trust in domestic companies. We know how to compete and to succeed in the global economy. But for that we need more air to breathe.” LAPP in India LAPP in India exists since 1996 and is headquartered in Jigani, Bengaluru. In 2012, the company set up its second manufacturing unit at Pilukedi, Bhopal. Besides the offices in Delhi, Mumbai, Kolkata, Chennai, Pune and Bangalore, over 430 employees work in India for the global LAPP Group. Sumit Mitra, Managing Director of Lapp India, summarizes: “LAPP's strength results from our close customer relations and our tailor-made connectivity solutions. More than 60 percent of the products that we sell in India have been designed for the Indian market as per the Indian specifications. And thanks to our own compounding plant in Bhopal, we can fulfill highly such individualized customer requirements. By investing in new capabilities in terms of instrumentation, control, data and power cable, and by expanding our capacities and nurturing talent, we aim to meet the evolving needs of one of the world’s fastest-growing economies!” Growth only in Asia In detail, LAPP's regions developed very differently in fiscal year 2024: The EMEA region (Europe, Middle East, Africa), which continues to generate the largest share of LAPP Group’s sales, recorded a decline in sales of around 9 percent. In Germany, the decline was particularly high due to the weakness in the mechanical and plant engineering sector. The Americas region (North, Central and South America) remained only slightly below the previous year's level, with a sales reduction of approximately 3 percent. “In the US in particular, we sensed a certain reluctance to invest among many customers before the presidential election. Right now, orders are picking up again. Due to the threat of tariffs, many companies are deciding to invest more locally in the US. And for new production machines, our connection solutions are needed to supply the systems with power and data”, says Matthias Lapp. The Asia-Pacific region has grown strongly. The increase in sales of over 10 percent was mainly due to business success in India and South Korea. But China also developed positively despite a difficult market environment. “India and Southeast Asia are the big winners in the current geopolitical environment. The figures here are also positive for the current fiscal year. This makes me very optimistic that we will be able to counteract the ongoing economic downturn in Central Europe again this year”, says Matthias Lapp. Business with battery storage, data centers and robotics is growing For many years, LAPP Group has been committed to consistent internationalization: The family-owned company manufactures at 26 international locations and is active in over 80 countries. This has enabled the company, based in Stuttgart (Germany), to compensate for regional declines in sales. In addition, LAPP relies on diversification and supplies connection solutions to almost all industries. There is strong demand in areas such as battery storage, data centers, robotics and renewable energies, as well as in the fields of intralogistics, mobility and food. LAPP is also setting standards in innovation, having presented the first cable with a bio-based sheathing and connectors made from sustainable materials. Investments in digitization, logistics and production LAPP is adhering to its investment program: For example, the company is currently expanding its logistics and service center in Ludwigsburg, Germany, which is the largest single investment in the company's history. In the US, production capacities for the manufacture of ÖLFLEX® power and control cables are being massively expanded. And in India, too, large-scale capacity expansions are currently underway. Worldwide, the LAPP Group invested a total of almost 66 million euros in the past fiscal year. In economically challenging times, it is particularly important to be close to the customer and to push ahead with investments to achieve this. If you want to grow, you have to invest. Our answer to the decoupling of markets is “local for local” - in other words, developing and producing locally to supply local markets. This is how we make ourselves more independent of geopolitical and economic developments and can optimally serve our customers in the respective country”, says Matthias Lapp. Threat of deindustrialisation: hope for new momentum For the current fiscal year, LAPP is expecting a single-digit increase in sales again. In particular, successes in Asia and the US should contribute to this. “Our problem child remains Europe, especially Germany. Due to the threat of deindustrialization, demand for our connection solutions is also dwindling. We very much hope that the upcoming federal elections in Germany will give us entrepreneurs new momentum to strengthen the business location”, underlines Matthias Lapp, adding: “Germany is our home. It is an attractive country with many talents and great inventive spirit. And we are happy to take responsibility for our employees and their families here. But the government also has to show family businesses that they are truly wanted and welcome in Germany. A stable government that makes quick and pragmatic decisions would be an important first step in this direction. This is the only way we can remain competitive in Germany and Europe.”