Fortaco’s story continued to develop during the first half of 2018. Market remained overheated and growth gave both positive results and some issues, which needed attention. Our primary focus area was the growth, how to manage it combined with stabilization. I would like to express my thanks to Fortaco’s customers, suppliers, partners and all the great team members at Fortaco who are working together.
What are we expecting in the second half of 2018? I would say, many known and some unknown issues. The known issues are the well-defined customer demand, our ‘Make Tomorrow Better’ -actions and our own people capabilities. There are also some unknown issues, like the world trade barriers impacting on Fortaco’s business, and the high turnover of welders in some countries. Are we going to experience steel price stabilization, and is the offshore market returning like mining 12 months ago. I would like to say that the known and unknown issues are part of daily business and by staying focused we can all benefit together.
New Fortaco Technology unit
I have proudly experienced Fortaco’s mission in talks with our current and new customers – create value add for our customers by reshaping the way things are produced – and what it can offer on short- and long-term. I can see electrification to be one of many power sources instead of diesel power, and the new technology by autonomously driven vehicles addressing the need for change. Fortaco’s response is the new Fortaco Technology unit, we are experiencing an increased need by our customers to change and adapt into the new situation. This is just a positive change and an integrated part of the change of macro economics, which is targeting on more environmentally friendly future.
I am also proud to experience continuous work executed by Fortaco’s people to ‘Make Tomorrow Better Than Today’. It is important to reach ‘zero’ injuries and ‘zero’ quality defects, as well as deliver products as promised. Fortaco is in an early stage of the process. We benchmark the Toyota way of working and we know that Toyota is also in the early stage to make tomorrow better than today.
Value adding strategy
Fortaco has developed a new value adding strategy during the first half of the year to increase customer value. Our current strategy is based on the cost plus calculation, but the future model is based on value creation. The Fortaco team will start to discuss the future model together with our customers. We have spent time to further understand what our customers want from a strategic partner like Fortaco. Based on the talks and workshops we are ready to discuss our customers’ needs and the flexibility of components, module assemblies and complete vehicle assemblies.
It is time to celebrate Fortaco’s 5th holiday period, we are still young company and we intend to be young in our mindset. Let me wish our customers, suppliers and partners – and most importantly – Fortaco people a great summer and holiday with your nearest. The second half of 2018 is about to start, let us have fun together and shape the future.
With best regards,
Lars Hellberg
President & CEO
