Annual Report Toolmaking strongest contributor in 2021 — BBG cautiously optimistic for 2022

Germany — As expected, the tool, machine and plant manufacturer BBG posted a loss in fiscal 2021 due to the pandemic. This is the second deficit in the company's 23-year history. A

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Adjusted for internal allocations, BBG Group sales in 2021 amounted to 13 million euros, thus being lower than planned. This is due to delivery problems with intermediate products, in particular electronic components. As a result, it was not possible to complete machinery and equipment, to finalize orders, and to issue invoices.

“We would have been able to generate additional revenues in the amount of several million euros if the supply chains had worked,” estimates Hans Brandner, managing partner of BBG. He hopes for an improvement of the situation in the coming months, saying that the outlook for North America in particular is currently very encouraging.

“We are cautiously optimistic for 2022. The reliability of external supplies will determine the sales growth we achieve in the current year, and whether or not we make a profit. Because our order books are looking very good again.” Orders for 14 million euros are on the books. They are split almost equally between the two business areas of mechanical engineering and toolmaking.

In 2021, toolmaking contributed about twice as much to sales as mechanical engineering. Regional development also varied. BBG’s group of companies includes the German parent company based at Mindelheim, which caters to the European market, BBG Asia with a focus on and branches in China, and BBG North America for the Nafta countries.

The share of revenues generated in Germany remained virtually unchanged at 15 percent. The rest of Europe accounted for 13 percent, compared to 16 percent in the previous year. The Asian share of sales, mainly from China, increased from 31 percent to 40 percent. Sales to customers from the Nafta countries USA, Canada and Mexico amounted to 32 percent, compared to 38 percent in 2020.

The number of employees changed very little in 2021. Of the 170 employees worldwide, 100 continued to work at Mindelheim, 60 at BBG Asia and ten at BBG North America.

New opportunities, ideas and success stories in the pandemic year 2021

Despite pandemic-related restrictions and short-time working, BBG was there for customers at all times last year and was able to win over new customers, even without meeting them in person. Among other things, the parent company at Mindelheim handled the ordering, development and pre-acceptance of production equipment for a globally active automotive supplier from Canada entirely on-line.

Among other things, BBG Asia focused on building up the new packaging machinery business. The subsidiary has developed various equipment lines for the pharmaceutical and food industries in 2021, for which they could already identify prospective customers. The group is confident that they will soon be able to sell the first machines.

The subsidiary BBG North America was consistently successful, reporting continuously high utilization of its production capacities despite pandemic-related restrictions. In the growing Mexican market, the company opened a service office in the state of Santiago de Querétaro in 2021. Thanks to their local office, BBG is able to respond more quickly to requests for service calls, commissioning, repairs and maintenance.

System partner and full-range supplier

In addition to international expansion, BBG completed the transformation from a tool, machine and plant manufacturer to an international system partner for polyurethane processing, including glass encapsulation, and the production of composites molded parts. The Group is thus positioning itself as a full-range supplier that provides its customers with all the components for fully automated, continuously documented and traceable production.

With innovative product developments for the use of solar energy for mobility and buildings, BBG is making a contribution to the ecological turnaround. For example, the company develops and manufactures customized photovoltaic modules and design windows for solar-powered ships and vehicles as well as for integration into houses.

In November, the company was named one of Germany's best toolmakers out of 265 candidates for its innovative strength as well as the efficiency of the company's internal processes and employee satisfaction. For the third time, BBG achieved a top ranking in the renowned “Excellence in Production” competition.

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