Mapal surprises: 25 million euros in investment despite job cuts!

Mapal surprises: 25 million euros in investment despite job cuts!

Mapal, the well-known manufacturer of precision tools based in Aalen, achieved sales of 551 million euros in 2024. This represents a decrease of 6.3 percent compared to the previous year. The current market situation shows that the demand for tools is continuing to fall, particularly in Germany, which is now directly leading to job cuts. 230 jobs will be cut at the main location in Aalen, as well as at the subsidiary Mapal WWS in Pforzheim.

The precision tools industry is under pressure. According to recent reports, production in Germany has fallen by a total of 20 percent in the last six years, while worldwide there has been a decline of 8 percent. Geopolitical tensions, such as the Ukraine war and conflicts in the Middle East as well as uncertain customs policies, are putting additional strain on the industry and causing uncertainty in the markets. The automotive industry in particular, which accounts for a significant part of Mapal's sales, shows little ability to recover, which, according to experts, could lead to stagnating or even further decline in sales development.

Outlook for 2025

Mapal does not expect any significant increase in sales for the upcoming anniversary year 2025. It is forecast that sales could be flat or fall by up to 5 percent. Despite these economic uncertainties, the company plans to invest around 25 million euros, of which 4 million euros are planned for the modernization of buildings and machines at the Aalen location.

The challenges are not new for Mapal. There was already a decline in orders in 2019, which was exacerbated in 2020 by the corona pandemic. The closures of the site in China and the global production shutdown in particular contributed to the drastic reduction in sales to 460 million euros in 2020. The aviation industry sector, another important market for Mapal, was also severely affected during the crisis, resulting in sales declines of up to 90 percent.

Hope through innovation

Despite these setbacks, Mapal's management remains optimistic. New products and digital solutions have been developed during the pandemic, leaving the company better positioned. In addition, an increase in sales of 10 to 15 percent is forecast for 2021, based on an invigorating market situation and new business opportunities. Mapal has also strongly aligned itself with the automotive industry, which has been struggling with declining car sales since 2018. The company offers solutions for various drive concepts that are already used by manufacturers in the field of e-mobility.

In this context, [Schwäbische Post] reports that Mapal has founded a new competence center in Nantes, France, in 2024, the first outside Germany. This could play a crucial role in future market expansion.

Overall, it remains to be seen how the current challenges will develop. The coming months will show whether Mapal has set the right course to emerge from this phase stronger or whether further setbacks are imminent.

For more information, also read [Kuhn Fachmedien].