2020 is so far characterized by concern and uncertainty because of the coronavirus pandemic. Lesjöfors is no exception; the group has experienced a deep drop in demand. However, a quick adjustment to the situation has provided good conditions for recovery.
In January, Ola Tengroth took on his new position as CEO of the Lesjöfors Group. It is not an understatement to say that it was a flying start; it was a gigantic challenge to deal with the turbulence that arose when the coronavirus swept across the world. The highest priority was to ensure that routines were in place to minimize the risk of infection spread among staff. The measures has been successful with only a handful of infected employees worldwide, all of whom are fully recovered.
“All of our companies and units have been fully focused on quickly adapting their operations to the situation and national regulations in each country. In some countries, governments stipulated total lockdowns for certain time periods, but our operations quickly started again when restrictions were eased. We are positive to the local stimulus packages most countries have offered to quickly get the industry a much needed boost”, says Ola Tengroth.
All markets are affected
The effects of the downturn have not spared any market, but the decline has been wide and affected all fronts and geographic areas.
“However, different markets are in different phases and the automotive aftermarket that was initially slowed down is now back at last year’s demand levels which we are very happy about. In other markets, we also see clear signs of recovery”, says Ola Tengroth.
Clear signs of recovery
There is still some uncertainty about how a possible further spread of the virus could affect the industry in the future, but currently the Lesjöfors Group sees signs of a V-shaped cyclical curve, which would mean a rapid recovery.
“We will not outperform 2019, but we predict a fully acceptable result for 2020, given the challenges of the year. I am extremely impressed with how our management teams in our diverse companies have dealt with the crisis”, says Ola Tengroth.