The Roto Group recently held its 12th International Trade Press Day in Germany to highlight the 2017 market, which the company says saw increased performance, competitiveness and sustainability along with growth heading into 2018.

Roto’s global CEO, Dr. Eckhard Keill, said that the international construction industry is in slightly better shape in 2017. The upswing in the United States, which has been ongoing for several years, is continuing, with an increase expected to be in the mid-single-digit range. In Canada, the recovery of the construction industry was much better than predicted after two weak years.

Keill confirmed continued differentiated development for Latin America. For instance, a renewed positive trend in Argentina is in contrast with a construction industry that is slowing once again in Brazil and Mexico. The head of Roto explained that after drastic losses, the economy in Russia is slowly recovering again. However, continued uncertainty can be felt, meaning that stabilization in residential construction remains fragile. In contrast, China’s construction sector is proving to be the mainstay of general economic growth there.

In Europe, the slight upwards trend is likely to pick up speed. For instance, the Euroconstruct research network is expecting an average construction growth of 3 percent for its 19 member countries. In addition, it predicts a total turnover of around € 630 million ($743 million), which is 1 percent to 2 percent above the previous year’s level.

CFO Michael Stangier also reported extensive capital investments. As part of a multi-year program, just under € 30 million ($35 million) was invested mainly in three focal points.

Roto’s  targeted acquisition strategy serves to consistently increase performance, competitiveness and sustainability, according to the company.

However, the pressure on revenue in the window and door technology division is of crucial importance. That’s because there has been a dramatic increase in the price of raw materials with a lack of availability at the same time. The cost of zinc has almost doubled since the beginning of 2016, while the increases for aluminum and steel were approximately 40 percent each.

“If things in the markets remain as they are, we can work well,” Keill said, looking ahead to 2018.

Exceeding the market average was also one of Roto’s objectives . The company says its priority is to create a long-term turnaround of the revenue trend due to the essential price increases.

Leave a Reply

Your email address will not be published. Required fields are marked *