The coronavirus turned the world upside down in 2020. Companies had to completely reorganise their work processes from one moment to the next. And markilux was no exception.
The awning manufacturer transformed its production, introduced mobile, digital working for its employees and mobilised end consumers via a „social distancing campaign”. According to markilux, it was a tour de force, but at the end of the year it brought in an increase in turnover of 25 million euros year on year.
The 2020 financial year got off to an optimistic start – at least in the first ten weeks of the year. But, from mid-March onwards, the coronavirus spread throughout the world, dominating the actions of companies including the awning specialist from Emsdetten. Nevertheless, the company was able to report a further increase in turnover to around 122 million euros at the end of the year.
Corona managed well so far
Purchasing and scheduling initially faced the enormous challenge of securing the flow of goods when supply chains were interrupted. Within a week, we also had to switch all of production to separate three-shift operation in spring 2020 with the employees physically separated – says Michael Gerling, Director of R&D and Production, describing the impact of the pandemic on the awning factory.
Having to radically adapt work processes in the ongoing seasonal business was incredibly time-consuming. However, the workforce showed itself to be very flexible and cooperation with the workers’ representatives was also based on partnership.
Cooperation within the company worked excellently, which is why we were able to cope so well in a 2020 marked, as it was, by crisis – says Mr Gerling.
He also explains that it was helpful that many processes in production and logistics are now digitalised and automated.
„Social distancing” as an important anchor
Nevertheless, it was challenging for the company to respond appropriately to such an unpredictable situation.
Due to the hard lockdown abroad, there was a sharp drop in orders at the beginning of the year. Even in Germany, end consumers were initially cautious when it came to buying awnings – says Klaus Wuchner, Managing Director for Sales and Marketing.
However, it soon became clear that „social distancing” together with mobile communication technology would be a workable and effective combination when it came to installing awnings.
Our network of specialist partners is and was therefore one of the success factors during the crisis – Mr Wuchner explains.
During the main months of the crisis communication mainly took place by video conference and video presentation or by telephone. From May onwards, the sales figures rose rapidly, quickly overtaking the sales of the previous year.
Major challenges for HR management
We had to take on more than 300 external workers to absorb the highly fluctuating needs in production and the enormous increase in orders. That was a major logistical feat – says Heike Reinermann, Head of HR at markilux.
This is because mobile working and holidays at home made many people realise more than ever before how important effective sun protection is.
Christiane Berning, Head of the Marketing and Business Development Department, says: during lockdown, digital and phone contact to end consumers was at an all-time high. Our showroom personnel forwarded the contacts to our specialist dealers during this time. That was important for us. It was only from the summer months that we were able to move back to providing advice at a distance in the showrooms.
Advertising more digital than ever before
Last year, the effects of the pandemic particularly affected the company’s foreign business, which was, however, able to recover over the summer. But, due to the long lockdown in the hospitality industry, the awning specialist recorded the sharpest declines in the large-area shading segment. Sales figures stabilised, though, as the outdoor business has never been as important in the hospitality sector as it is at present.
Christiane Berning believes that the order situation was able to recover so quickly partly due to a timely social distancing campaign: Our customer relationships, marketing and advertising campaigns have become even more digital in the process.
Important accompanying tools for this are the new product configurator and the awning cover finder on the markilux website as well as the augmented reality app. They enable end consumers to configure their dream awning quickly and intuitively online. This makes it easier for specialist dealers to process orders, something which has proven very helpful in the current situation.
More interest in home and garden
Looking back on 2020 the two managing directors, Klaus Wuchner and Michael Gerling, agree that the company was able to cope well with the pandemic thanks to great commitment on the part of the employees and good cooperation with customers and suppliers.
The duo would like to try to capitalise on the positive trend in home and garden investments in 2021: This year, we will again offer the final customer attractive new products and product modifications to satisfy the interest in being able to live alongside beautifully designed solar protection products at home. We will be presenting our innovations at the ‘R+T digital’ fair – says Klaus Wuchner.
In addition, according to Michael Gerling, the company wants to promote the expansion of digital and automated processes even more. The investments of the past years have proven to be correct, which makes markilux confident about 2021, even though the economic situation is still difficult to gauge and the corona virus will continue to accompany the business.
