ERIKS in 2019
ERIKS is an international industrial service provider. As multi-product specialist it offers a wide range of high-quality mechanical engineering components and associated technical and logistics services. ERIKS has branches in Western Europe, the US and South East Asia, serving customers in their original equipment manufacturing (OEM) and maintenance, repair & overhaul operations (MRO). ERIKS' major strength is technical know-how. The company has a deep knowledge in the areas of Sealing and Polymer & Engineered Plastics, Flow Control, Industrial and Hydraulic Hoses & Gaskets, Power Transmission, Conveying systems and Tools, Maintenance and Safety.
The most important markets in which ERIKS operates, as well as the industries it serves, faced significant challenges in 2019. Concerns around Brexit and the US-China trade war negatively impacted worldwide industrial production. In the eurozone countries, industrial output declined significantly. Germany, the eurozone’s largest manufacturing producer, saw its production decline with particularly severe drops in the car and machine manufacturing industries, both important customer segments of ERIKS. In the UK, manufacturing output dropped as well, as uncertainty surrounding Britain’s trading relationship with the EU and the outcome of the general election hit domestic and foreign orders. Steep falls in output were seen particularly in car production, which has suffered amid the switch to electric cars from diesel cars, which dominate the UK’s output. In the US, despite a generally upbeat economy with low unemployment, total industrial production grew only modestly. A decline was visible in manufacturing, as a result of trade tariffs and a strong US dollar.
In spite of a challenging market, ERIKS’ specialism in multiple industrial product categories and engineering capabilities convinced many new customers to choose ERIKS, and led existing customers to expand their business.
To better serve its customers, organisational changes were made in most of the countries in which ERIKS operates. In addition, initiatives were launched to realise continuous improvement in certain strategic focus areas, such as operational excellence, aimed to benefit clients.
Digitisation continued as online sales channels and smart asset management services were further developed. New digital services, such as a Hose Management System were launched in multiple countries.
ERIKS took significant steps in creating the foundations for future innovation. The innovation strategy was updated to adapt to changing markets, focusing on digital communications, applying new technology, co-innovating products with customers and suppliers and finding new business models. The internal "Edison" innovation platform was launched and new trainings were developed. Further investments were made in innovative services for customers such as the Joint Improvement Programme, a pressure cooker programme to identify productivity improvements for customers.
In the Netherlands, a new Clean Manufacturing Facility was opened. This complex of a thousand square meters greatly increases the capacity for clean manufacturing and packaging, offering customers in the food, pharma and semi-conductor industries further optimisation in their supply chain, thus lowering their Total Cost of Ownership.