Trends & risks
Megatrends that affect Bulten
ENVIRONMENTAL
THREATS AND LACK OF
RESOURCES
More and more parties in the value chain – customers, suppliers, investors and others – are demanding solutions that ultimately reduce greenhouse gas emissions and reduce the use of Earth’s resources.
The growing focus on a more sustainable value chain is also creating new opportunities. Since steel is the primary input material in the production of fasteners, Bulten strives to use recycled steel as much as possible. Other examples of how Bulten can reduce carbon emissions include reducing energy consumption in the manufacturing process, sourcing the majority of electricity from renewable sources, and working to minimize waste and water consumption.
Innovation efforts are also benefiting from increased sustainability requirements. For example, through the development of new and lighter materials for manufacturing fasteners, as well as more sustainable production processes.
DIGITALIZATION AND
TECHNOLOGICAL
TRANSFORMATION
The digital transformation has impacted most industries and businesses. Digitized processes and analysis of digital data are growing increasingly important in manufacturing, work processes, material flows, and customization.
Digitalization also entails more opportunities for Bulten to operate a more efficient development and manufacturing process thanks to automation and artificial intelligence (AI). 3D printing is another area where Bulten is working to tailor tools and components.
Services linked to digitalization and new technology are other opportunities. One example is sensors for measuring and monitoring clamp loads in screw joints. These can be used to monitor critical fastener applications mounted in wind turbines, bridges, and water pipes, for instance.
GEOPOLITICAL
UNCERTAINTY AND GLOBAL
POWER SHIFTS
As the world becomes more uncertain and geopolitically unstable, trading rules, customer demands, and the competitive situation are all changing, both between and within markets.
Bulten’s strategy is to manufacture close to its customers, which has made things easier in an increasingly uncertain geopolitical climate. For instance, it has made the business less vulnerable to punitive duties imposed by the EU on fasteners imported from China.
Another trend is that many global manufacturers are moving their Asian production from China to nearby countries such as India and Vietnam. In keeping with this, Bulten recently began establishing a micro screw production unit in India. This enables the company to benefit from the growing number of manufacturing companies locating there.
DEMOGRAPHIC
DEVELOPMENTS
One demographic trend is an aging population, while the birth rate is falling. In the long term, this could lead to a shortage of skilled labor.
Positioning itself as an attractive employer for people embarking on a career is a growing concern for Bulten, along with a focus on areas like health and safety, as well as skills and engagement in order to retain existing employees.
Human resources needs can also be solved by automating certain processes and tasks. This allows employees to use their skills for more advanced tasks.
Risk factors
Exposure to risk is a natural part of running a business and this is reflected in Bulten’s approach to risk management.
The aim of risk management is to identify risk and prevent risk arising, while also limiting any damage that arises from these risks.
Bulten categorizes its risks as financial risks, sustainability risks, business cyclical and external risks, and operational risks.
Below is an overall description of how the Group management assesses and manages the main risks in the operation from a time frame of 1–3 years. The risk assessment covers all parts of the company’s operations and countries and regions where Bulten and its subsidiaries operate.
Explanation of graphics in tables
Probability
Impact
 |
Total system loss, unacceptable outcome |
 |
Major damage / impact |
 |
Serious damage or impact |
 |
Some but manageable damage or impact |
 |
Minor / little damage or impact |
Financial risks
| Risk | Probability | Impact |
| Currency |  |
|
| Liquidity |  |
|
| Interest rate |  |
|
| Credit |  |
|
| Capital | |
|
Business cycle and external risks
| Risk | Probability | Impact |
| Market and competition | |
|
| Legal and political | |
|
| Trends and driving forces | |
|
| Force majeure | |
|
| Customer dependency | |
|
Sustainability risks
| Risk | Probability | Impact |
| Use of fossil energy sources in production processes |  |
|
| Greenhouse gas emissions | |
|
| Failure to attract and retain employees | |
|
| Shortcomings in equality, diversity and anti-discrimination | |
|
| Shortcomings in health and safety | |
|
| Violation of human rights | |
|
| Corruption | |
|
| Climate change adaption | |
|
Operational risks
| Risk | Probability | Impact |
| Global supply chain | |
|
| Product liability, warranty and recall | |
|
| Suspension of operations and property damage | |
|
| Environmental regulatory/compliance | |
|
| IT-related | |
|
| Failure in entering into new processes, markets and/or facilities | |
|