These financial results from Beckhoff Automation reflect what I’ve long suspected—the market for automation and manufacturing has been weak not only in Germany but also globally. The company has announced 2024 fiscal year revenues of €1.17 billion, a sharp decline of 33% compared to the 2023 annual result of €1.75 billion.
The company’s explanation:
However, this decline in revenue had been expected due to the huge boom trend observed over previous years. Cumulative growth of over 80% was achieved in just three years, from 2021 to 2023. This exaggerated trend was followed by a significant market correction in 2024. The economic bubble that had developed burst, as predicted.
“This is my sixth crisis in 45 years of business and almost all of them have followed a very similar pattern,” explains Hans Beckhoff, owner and managing director. “You can be sure that there will be a recovery, but you have to tackle the crisis head-on and see it as an opportunity for further innovation and optimization!”
The company believes that this downward trend has already bottomed out. The Verl-based, family-run technology company will continue to focus on continuous innovation and high-tech engineering in order to lay the foundation for future growth.
The company plans to continue investments in research and development.
Numerous new product launches are planned in all areas of software and PC-based control technology. “We are intent on further expanding our position as a global automation technology company. We remain dedicated to our mission of evolving our portfolio with strong developments every year and introducing revolutionary new technology every five to seven years,” explains Hans Beckhoff. To this end, the company consistently invests €80 million a year in research and development.
Future outlook.
The uncertain global political situation also presents the company with challenges for the coming year. However, incoming orders are currently showing signs of recovery despite these conditions. “Our customers’ warehouses are slowly emptying, and we expect them to have used up their excess stocks by the first quarter of 2025, at the latest,” predicts Hans Beckhoff.
