Slight decline in sales, strong investments

The family-owned company was able to cushion declining sales in its European home markets with major 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 achieved sales of 1.82 billion euros in the 2024 financial year (October 1 - September 30) (2023 financial year: 1.92 billion euros). The family-owned company thus remained slightly below the previous year's level with a decrease of 5.3%. The number of employees at Lapp worldwide rose slightly to around 5,700 as of September 30, 2024.

"Need air to breathe"

"It was a challenging financial year. Nevertheless, we are looking boldly to the future and are sticking to our global investment program. Continuous digitalization, more production capacities, expansion of our logistics: this ensures future growth," emphasizes Matthias Lapp, CEO of the Lapp Group, and adds: "What we urgently need from politicians now: reliable framework conditions, an end to overregulation and more trust in domestic companies. We know how to compete and how to hold our own in the global economy. But to do this, we need more room to breathe."

Growth only in Asia

In detail, Lapp's regions developed very differently in the 2024 financial year: The EMEA region (Europe, Middle East, Africa), which continues to generate the largest share of sales in the Lapp Group, recorded a decline in sales of around 9%. The decline was particularly high in Germany 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 reduction in sales of around 3 %. "In the USA in particular, we felt a certain reluctance to invest among many customers before the presidential election. Orders are currently picking up again. Due to the threat of tariffs, many companies are deciding to invest more locally in the USA. And new production machines need our connection solutions 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% was primarily due to business successes in India and South Korea. However, China also developed positively despite a difficult market environment. "India and South East Asia are the big winners in the current geopolitical environment. The figures here are also positive in the current financial year. This gives me great hope that we will be able to counteract the ongoing economic slump in Central Europe again this year," says Matthias Lapp.

Business with battery storage, data centers and robotics is growing

The Lapp Group has been focusing on consistent internationalization for many years: the family-owned company manufactures at 26 international locations and is active in a total of over 80 countries. In this way, the Stuttgart-based company has been able to compensate for regional declines in sales. Lapp also focuses 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 intralogistics, mobility and food sectors. Lapp also set standards in innovation and presented the first cables with bio-based sheathing and connectors made from sustainable materials.

Investments in digitalization, logistics and production

Lapp is maintaining its investment program: for example, the company is currently expanding its logistics and service center in Ludwigsburg, making it the largest single investment in the company's history. In the USA, production capacity for the manufacture of Ölflex connection and control cables is being massively expanded. Major capacity expansions are also currently underway in India. The Lapp GroupLapp Group invested a total of almost 66 million euros worldwide in the past financial year. "Especially in economically challenging times, it is important to be close to the customer and to drive forward investments for this purpose. If you want to grow, you have to invest. Our response to the decoupling of markets is "local for local" - in other words, developing and producing locally in order to supply local markets. This makes us less dependent on geopolitical and economic developments and enables us to optimally serve our customers in the respective country," says Matthias Lapp.

Danger of deindustrialization: hope for new impetus

For the current financial year, Lapp is again expecting single-digit sales growth. Successes in Asia and the USA in particular 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 we entrepreneurs will receive new impetus to strengthen Germany as a business location after the general election," pleads Matthias Lapp, adding: "Germany is our home. It is an attractive country with lots of talent and inventiveness. And we are happy to take responsibility for our employees and their families here. But politicians must also convey to family entrepreneurs that they are really wanted and welcome in Germany. A stable government that brings about quick and pragmatic decisions would be an important first signal. This is the only way we can remain competitive in Germany and Europe."