Stanley, NC | July 2021
Blum ends financial year
Blum, Inc. reports a successful ending to the financial year, and the Blum Group continues to grow internationally.
The American arm of Blum, manufacturer of functional hardware for cabinets, Blum, Inc. reports a revenue increase to more than $336 million dollars for the fiscal year, which ended June 30, 2021. The unforeseeable surge in demand for remodeling caused by the COVID-19 pandemic has led to an above-average increase in turnover. “Increased demand for our products caused by a shift of consumer spending, drove our results,” said Shannon Lafferty, General Manager of Blum, Inc.
Blum, Inc. invested nearly $8 million dollars back into its facility this fiscal year with machine upgrades and new personnel, and significant future investments are planned to further increase capacity, supporting the company’s commitment to serve customer needs. “We value our long-term relationships with our partners, and though we are increasing capacity, it will take some time,” Lafferty said.
Impact of a Strong Demand
This high market demand in the home remodeling industry has led to shortages in raw materials such as steel as well as price increases. “Shortages in raw materials has disrupted supply chains around the world making it difficult for manufacturers to provide an uninterrupted flow of products to their customers,” said Brian Joyce, Blum Inc. VP of Sales. “We will continue to optimize our production capacities, work overtime and hire additional labor in an effort to minimize the impact on our customers,” Brian continued.
Employees are a Key Success Factor
To help balance the surge in demand, Blum, Inc. has been analyzing and adjusting schedules to maximize machine outputs. Blum, Inc.’s employees have been working overtime and on weekends to ensure reliable and timely supply of products to customers, while the company tries to balance giving them the time they require to rest and recharge. “We still have a lot of work ahead of us to stabilize supply chains and increase output,” Lafferty said. “We have an incredibly talented team, and I am confident that, through teamwork, we can meet our customers’ needs and continue to grow."
At year-end, Blum Inc. had 438 employees, with 8,778 people worldwide. The Blum Group continues to place importance on its Apprenticeship program, and eight new trainees will join Blum, Inc.’s team in September.
The Blum Group
The Blum Group reported a worldwide revenue increase of 24.7% to $2.8 billion during the 2020-2021 fiscal year. Blum achieved 44% of its revenue in the EU area and 13% in the USA, the company’s single largest market. With 33 subsidiaries and representative office worldwide, the Blum Group delivers its products to more than 120 countries.
In the past financial year, investments worldwide totaled $305.5 million with the expansion of buildings, machinery and facilities. “Thanks to long-term planning, we were able to respond as well as possible to the unexpectedly strong growth in demand,” said Martin Blum, Managing Director of the Blum Group.
The Managing Directors of the Blum Group believe the international supply of raw materials will remain severely impacted for some time. Blum, Inc. expects the home improvement trend to last. “We’ve benefitted from the experiences that we as a company have gained over the last one-and-a-half years,” said Philipp Blum, Managing Director of the Blum Group. For the company as a whole, it’s very important to remain a trusted partner to its customers worldwide.