Customers, agility and employees
Customer’s first choice
Our decentralized business approach ensures that we remain closely connected to both our customer base and distributor network. We have structured processes in place to gather feedback and input from our customers and many of our products and solutions are developed based on direct customer feedback.
IMTS 2024 is a major trade show for the manufacturing industry and this year it attracted nearly 80,000 attendees from over 110 countries. Several Sandvik brands were featured at the show and the participation generated strong interest.
We ensure that we can be a partner in our customers’ digital journey, regardless of their development stage, and offer relevant solutions and expertise to support them. Digital solutions are becoming increasingly important, as many customers have difficulties finding skilled personnel, and components are becoming more complex to produce. In 2024, the US National Institute for Aviation Research (NIAR) joined the Lighthouse program, a program designed to support small and medium-sized component manufacturers.
Agile through cycle
We continuously implement measures to improve revenue resilience and support the margins. During the year, we worked on product management, price structures and how we go to market within our software business. We increased our share of software sales and also improved the recurring revenue stream through higher attraction rates and more subscription-based revenue. We redirected capabilities towards previously mentioned growth areas, adapting as necessary to evolving business scenarios.
We enhanced productivity within our operations by process and consolidation measures, actively managed procurement processes, and increased control over our supply chain. Staffing models were adjusted and we decided on where to employ our own expertise and where to outsource or work with partners. We also optimized the overhead structure and reduced administrative costs in several areas.
As part of the Group-wide program of restructuring measures launched in 2024, Sandvik Manufacturing and Machining Solutions is expected to deliver annualized savings of SEK 0.7 billion by the end of 2025. A run-rate of 82 percent was achieved already in 2024. Coupled with the 2022 program, which delivered a run-rate of 91 percent, it supported margin resilience in a challenging market environment.
Despite significant volume declines, we managed to achieve a margin of 20.0 percent (21.5).
Employer of choice
Our recruitment efforts aim to attract the necessary skills for future needs, including machining knowledge, cloud-based solutions, AI and automation. Sandvik engages in targeted initiatives to enhance diversity, equity and inclusion in our workforce. We strive to increase the proportion of female employees at all levels and we launched, for example, a female talent encouragement program in 2024.
To monitor employee engagement, we conduct monthly and quarterly surveys. Employee health and well-being are also assessed through these surveys, and we maintain local health and well-being programs at all major sites.
We invest in employee learning and development through extensive training programs, and make sure that acquired companies are included in these programs. To foster cross-learning, we have instituted mentorship programs across our businesses, and host collective intelligence workshops with the intention of sharing expert knowledge and encouraging customer-driven innovation.
