- Production around the world at a high level despite supply bottlenecks
- STIHL Brand World to open in Waiblingen in 2023
- STIHL presents product innovations and underpins technology leadership
The STIHL Group continued on its growth course from the past financial year and generated revenue of 3.51 billion euros in the period between January and August 2021. This represents growth of 11.7 percent compared to the same period last year. The exchange rate adjusted increase in revenue amounts to 15.4 percent. As at 31 August 2021, the STIHL Group employed 19,523 people, 7.3 percent more than at the end of 2020. "Sales and revenue in all product groups were significantly up on the previous year – and higher than forecast. The high level of commitment, the flexibility of our workforce and forward-looking planning in production, sales and logistics have made this possible – even though shortages of raw materials, a lack of production capacity at suppliers and at STIHL as well as limited transport capacity have led to significant disruptions in the supply chains. Without these bottlenecks, we would have been able to produce and sell even more products," said the Chairman of STIHL's Executive Board Dr Bertram Kandziora at the company press conference, which took place as part of the International STIHL Media Day on 15 September. Dr Kandziora is optimistic about the rest of the financial year: "There is still strong demand for STIHL products. We are producing around the world at a high level to be able to supply our customers."
International sales growth in both petrol and cordless segment
Compared to the same period in the previous year, STIHL recorded growth in sales across all continents. "Whether professionals in forestry, horticulture and landscaping, municipalities and road maintenance services or private users who are increasingly working on their own garden and home during the pandemic: STIHL products make people's work with and in nature easier. The high demand for our power tools that has been ongoing since the middle of last year confirms that we are meeting the needs of our customers with our product portfolio," said the Chairman of STIHL's Executive Board. Popular products include the STIHL iMOW robotic mower, the cordless STIHL GTA 26 garden pruner, petrol-powered chainsaws and petrol-powered clearing saws for hobby users and the new cordless products for professionals launched in the first half of 2021. These include the STIHL HLA 135 cordless long-reach hedge trimmer and the STIHL FSA 135 cordless brushcutter. Dr Kandziora: "We are observing a strong trend toward cordless power tools this year, too. It's positive to see that we also recorded sales growth in the double-digit percentage range for products with petrol and electric drives. This development shows that STIHL is still strong in the petrol segment, but is also becoming an increasingly strong player in the cordless market."
Global production at full speed
However, the ongoing high demand for STIHL products also presents major challenges – the company is still struggling with disrupted supply chains around the world and significant supply bottlenecks for raw materials and components. This, for example, affects steel, types of plastic granules and electronic components. "Unfortunately, it is due to these external factors that we have been unable to fully meet the demand for STIHL power tools in some places. Global production is currently running at full speed to make up for the shortfalls and to better provide for our customers," says Dr Kandziora. "All employees are playing a big part in helping us tackle these huge challenges – doing extra shifts and showing tremendous flexibility and personal commitment. At present, we are generating record results in production, logistics and sales. It is only thanks to the enormous commitment of our workforce that our successful business development is possible," said the Chairman of STIHL's Executive Board, praising the employees of the family-owned company.
Revenue in the German market exceeds previous year's level despite supply difficulties
In the period to August 2021, STIHL's revenue in the German market again significantly exceeded the strong level of the previous year. The continuing strong demand for home and garden products triggered by the cocooning effect is the main reason behind this positive sales trend. However, Germany, too, is experiencing difficulties in the supply situation due to high product demand, bottlenecks in the provision of raw materials and components as well as tight freight capacity, which means that dealers, partners and customers are sometimes forced to wait for product orders.
On 9 July 2021, the new finished goods warehouse was opened at the STIHL distribution centre in Dieburg and officially began its operations. The investment volume amounts to around 26 million euros. This new facility increases the company's logistics efficiency and thus paves the way for future growth in the German market.
STIHL headquarters grows and expands capacities for future technologies
The headquarters in Germany, ANDREAS STIHL AG & Co. KG, recorded revenue of 1.03 billion euros between January and August 2021, up 15.9 percent on the same period in the previous year. "These are remarkable growth rates given that we, the STIHL Group, are also experiencing considerable difficulties obtaining sufficient amounts of components, primary and other materials for our production at the headquarters' plants due to supply bottlenecks," said Dr Kandziora. The ongoing high demand for e-bikes is also ensuring positive business development. "At our STIHL Magnesium Die-Casting plant in Weinsheim, we also produce e-bike drivetrain housing components and supply them to companies in the bicycle industry. The trend towards e-bikes is still climbing steeply, meaning we anticipate an increase in order volume over the next few years," said the Chairman of STIHL's Executive Board.
As a result of the encouraging growth, the number of employees at the headquarters has also risen since the end of December 2020 by 8 percent to 5,684 as at the reporting date of 31 August 2021. The total workforce is composed of 4,009 staff in Waiblingen, 416 in Fellbach, 257 in Ludwigsburg, 924 in Weinsheim and 78 in Wiechs am Randen. There are still around 100 vacancies to be filled at the headquarters, mostly in research and development. Dr Bertram Kandziora: "The continuing trend in favour of cordless products and digital technologies, connected and smart products and e-commerce is also gaining in importance for us. STIHL is in the middle of a transformation and we are positioning ourselves for the future. An important part of this process is expanding our capacities for future technologies in Waiblingen." The company is mainly looking for specialists in the areas of cordless products, electronics, digitalisation, software development, robotics, the internet of things (IoT) and e-commerce.
STIHL Brand World to open in Waiblingen in early 2023
STIHL is currently modernising and expanding its headquarter in Waiblingen. The flagship project of the future building complex is the STIHL Brand World, which is being built there. Scheduled to open in early 2023, it aims to showcase the history of the company and its products on a total of three levels, while offering visitors a knowledge platform on woods and forests. Norbert Pick, STIHL Executive Board Member, Marketing and Sales, presented the new facility at the International Media Day during a virtual tour and said: "All areas of our new STIHL Brand World will allow our customers, fans and people interested in us to experience the STIHL brand in a manner that is equally informative and entertaining. I am convinced that this will boost loyalty to the STIHL brand."
STIHL presents global firsts in petrol-powered and cordless products
At the International Media Day, STIHL presented innovations and new products designed to help professionals and private customers alike to work more easily with and in nature. The company introduced ten new products in the cordless segment alone.
- "With the STIHL MSA 300, we are presenting the most powerful cordless chainsaw currently available in the market. It enables us to achieve a completely new dimension for sawing in noise-sensitive areas and underline our strong innovative strength – in the cordless segment, too," said the Chairman of STIHL's Executive Board. The range of applications of the professional saw in horticulture and landscaping, in municipalities and in forestry extends from selective pruning, cutting to length and felling of medium-sized trees to building with wood. For this innovation, we have developed the STIHL AP 500 S battery pack. Thanks to innovative technology, it not only boasts a high energy content at low weight, but also a significantly longer service life compared to conventional lithium-ion batteries.
- The STIHL BGA 300 for professional applications is the first backpack cordless blower in the STIHL range. It is characterised by its enormous blowing power and very high air speed. As a result of the STIHL Silencer System (patent pending), it is the quietest power tool of its class in the market, at a maximum of 93 decibels, and can also be operated without restriction in noise-sensitive areas.
Further cordless highlights for professionals include:
- the STIHL MSA 220 T tree maintenance saw, which leads the STIHL cordless tree maintenance saw range as the most powerful model
- the bottTainer mobile transport and charging box, the industry's first cordless charging system for use on the go, which allows for up to 28 batteries to be charged using the STIHL AL 301-4 multi-charger, which is also new
The following cordless consumer products will be on the market for private users:
- the STIHL HTA 50 cordless pole pruner, which can also be used to reach branches at lofty heights from the ground during tree maintenance
- the STIHL SHA 56 vacuum shredder for the comfortable removal and shredding of leaves and cuttings
- the hand-held and very lightweight STIHL BGA 60 cordless blower, making light work of damp leaves and lawn cuttings thanks to its strong blowing power
- the STIHL SEA 20 hand vacuum with an extensive range of standard features together with excellent value for money, perfect for tackling dirt and dust around the home, car or workshop
STIHL is also underscoring its position as technology leader in the petrol chainsaw segment. The STIHL Hexa cutting system marks the launch of a world first for the company, consisting of the 3/8" rapid Hexa saw chain for professionals and the Hexa file, and allows for quick and precise chain sharpening. The cutting performance of the new chain is up to 10 percent higher than a 3/8" Rapid Super. In addition, the range was expanded to include the STIHL MS 162 entry-level petrol chainsaw for private users, which boasts simple operation, easy handling and attractive value for money.
STIHL also presents new digital solutions:
- The smart STIHL ADVANCE ProCOM ear protection marks a milestone in personal protective equipment. With it, users can connect to up to 16 headsets for conferences, even in noisy environments. The range between two devices can reach up to 600 metres. The smart product can be combined with the STIHL wood list app.
- New to fleet management is the Smart Connector 2 A, which can be used to record the battery life and speed of a tool and transmit this information to a mobile device via bluetooth.
The STIHL brand shop is also expanding its range. The STIHL toy saw – one of STIHL's best-selling chainsaws – will appear in a new edition in 2022. With the look and feel of the innovative STIHL MS 500i petrol chainsaw, it playfully reproduces all the functions of the "grown-up one", from the movable, replaceable chain and LED operating display to the new bar design. The brand shop also presents its clothing from the STIHL COLLECTION 2022, in homage to nature and life.
STIHL TIMBERSPORTS® World Championship in Munich
The Individual World Championship on 2 October 2021 will mark the end of the STIHL TIMBERSPORTS® season. The best logging athletes in the world will come together in Munich to fight for the most important title in the extreme sports series using axes and chainsaws. Alongside the four champions from the overseas nations of Australia, New Zealand, Canada and the USA, the eight best national champions from Europe are also expected to take part. "Unfortunately, due to the pandemic, we will again have to go ahead without spectators or the spectacular team competition. We hope that this situation will be different in October 2022 at the World Championship in Gothenburg, Sweden," said Dr Kandziora.