Roto Remains Resilient During Economic Instability

“In the two years since the outbreak of the coronavirus pandemic, it has become clear that the Roto Group is capable of handling unknown and major challenges with confidence.” This conclusion was drawn by Dr. Eckhard Keill, sole Chairman of Roto Frank Holding AG, at the 17th International Trade Press Day. Dr. Eckhard Keill stated that over the last three years, the Group turnover has increased by almost 30% cumulatively. This impressive development was possible thanks to several newly acquired customers. Roto’s divisions provided reliable delivery and product quality, even in extremely volatile procurement and sales markets.

“In each of our divisions, our people have efficiently and successfully tackled the ever-increasing challenges that have arisen since 2020”, Dr. Keill added. “I would therefore characterize the Roto Group today as a resilient company, and our divisions more than ever as trustworthy partners for their customers.” He states that the approximately 5,000 employees have demonstrated an exceptional level of flexibility and dedication. As a result, Roto managed to achieve a record turnover of 807 million euros by the end of 2021. However, the optimism has faded due to the lack of stabilization in the procurement market. The additional outbreak of war has also created additional risks and difficulties for the construction industry.

In his assessment, the “hardest part” of the journey towards normalization is still to come for the European economies, particularly Germany. “A large portion of the turnover of Roto comes from Germany. We are therefore especially worried about political missteps that harm this country and its people,” Dr. Keill adds. Any company with a solid economic situation could weather one or two years of poor results, therefore his concerns do not relate strongly to the Roto Group and its results in 2023. “The more important question is whether Germany’s status as an industrial center will be eroded, resulting in lasting harm to prosperity and spending power within this nation.”

Dr. Keill’s assessment is that the construction sector will continue to benefit from citizen’s energy efficiency concerns for their homes. Although a decline in the new housing market is forecasted, he states that this does not necessarily mean that demand for building elements will fall dramatically. Instead, he believes that manufacturers of windows and doors will enjoy a lasting spike in demand. This will only end once the demand for energy efficiency and additional living space has been met. “We are therefore talking about the distant, very distant future.”

Roto therefore remains optimistic. The anticipated drop in demand reportedly began “on schedule” in July. The fact remains, however, that global reconstruction needs to take place as quickly as possible. “The construction industry will experience strong demand for additional, modern living space in the coming years as well.” In any case, Roto remains well-stocked, ensuring flexibility for our customers. Divisions of the Roto Group will continue to use strategic acquisitions as a means of generating additional growth. “The integration of companies such as the Deventer Group, or Fermax, have strengthened the Roto Group and its market position. We will therefore continue to search internationally for companies that would be a good fit for us.”

However, the current challenges are extremely complex and would be better tackled by a trusting collaboration between the economic and political spheres. In particular, he believes that it is important to “train” the ability to react flexibly but deliberately to changing circumstances. Dr. Keill concluded his speech by stating: “Preparing people and organizations – society as a whole – to face great challenges with intelligence and optimism is more important than ever.”