Mr Lapp, we are now in the final quarter of the current fiscal year. What is the current economic situation at the LAPP Group?
Our business is performing well. Our two regions, Asia-Pacific (APAC) and the Americas, remain our key growth drivers, but things are also looking up again in EMEA (Europe, Middle East, Africa) following a challenging period. The cost-saving measures we have implemented there and here are proving effective. I am therefore confident that we will achieve our targets for this fiscal year. It will be crucial to carry this positive trend into the next fiscal year, 2027.
What is your focus?
We will steadfastly continue on our current course. Firstly: international diversification. In recent years, we have succeeded in significantly improving the balance between Europe, America and Asia. We intend to continue along this path.
Secondly: profitable growth. We do not want to generate turnover at any cost, but rather to grow profitably and further strengthen our competitive position. In recent years, we have invested heavily in sites, machinery, products and people. Now we must reap the rewards of our investments.
Thirdly: We are focusing on our strategic growth areas, such as our cable assembly solutions, the Industrial Communication division and our LAPP brand for industrial connections, EPIC®. We will continue to invest specifically in these areas.
APAC continues to perform very successfully. What is the region’s recipe for success?
Our success in Asia is based on three factors. Firstly, we have had a presence in many markets for decades and have a deep understanding of the respective countries. China, India, Japan and Korea differ greatly from one another. We understand these differences and can therefore respond specifically to our customers’ needs.
Secondly, we benefit from the strong economic momentum in many Asian markets. This growth offers significant opportunities, which we consistently capitalise on.
Furthermore, we have built up a strong team in the region with a clear ‘can-do’ mentality. This customer focus and our ability to deliver are a key part of our success.
Let’s turn our attention to the Americas region: what prospects do you see, particularly for Latin America?
Latin America continues to offer considerable growth potential. With the acquisition of Eurocabos in Brazil, we have significantly strengthened our position and virtually doubled our turnover in this important market. At the same time, we have gained new customers, additional market access and valuable expertise.
Building on this foundation, we also aim to tap into other markets in Latin America and strengthen our overall market position. It is important to take a differentiated view of the Americas region. North America and Latin America have different market requirements, customer structures and business models. That is why, from an organisational perspective, we are placing greater emphasis on regional focus and tailor-made strategies.
LAPP continues to grow. Will LAPP remain a ‘family business’?
This family-oriented character remains a central part of our identity. It is reflected in our long-term thinking, in our stability and in the responsibility we take for the future of the company. This includes, in particular, making difficult decisions and communicating them transparently. LAPP is and will remain a family-run business.
At the same time, the organisation is growing, and with it the need for professional structures and processes. The two go hand in hand: a strong family foundation and an organisation that operates efficiently and in a customer-focused manner worldwide.
Let’s turn our attention to market perception: in the spring, a global survey was conducted to measure our customers’ satisfaction. On a scale of 10, LAPP achieved a score of 8.0. What does that mean to you?
That is a very good result, one we can be proud of. I am particularly pleased that customers highlight our reliability and product quality. These qualities have been among LAPP’s greatest strengths for many years.
Of course, there is still room for improvement, for example in certain areas of delivery performance. Furthermore, customers often want lower prices. That is understandable.
Our focus is on delivering the greatest possible benefit to our customers. Quality, service and problem-solving expertise are the factors through which we aim to set ourselves apart from the competition.
In any case, the survey is a good starting point for continuously improving our work. I still see potential when it comes to innovation. We have laid important foundations in recent years, but at the same time, innovation cycles in our markets often take several years. There is frequently a long period between development, market launch and successful implementation at the customer’s premises. That is why the effects of many current initiatives will only become apparent in the coming years. I am convinced that, in the long term, these investments will also be reflected in how our customers perceive us.
Finally: What has the past year taught you?
How important it is to remain agile and to continually adapt to new situations. The political situation is what it is. The political and economic conditions are constantly changing. The world is what it is. We do not always have control over this. What matters is how we deal with it.
I firmly believe that it helps not to lament challenges, but to tackle them positively. Problems are part and parcel of business and life. Our task is to find solutions, learn from change and move forward together. That is why I focus on the things we can influence.