The LAPP Group has not been immune to the weak global economy, though it recorded only a slight decline in the 2024 financial year. The reason: the family-owned company was able to offset declining sales in its core European markets with significant gains in Asia. Despite challenging market conditions, LAPP remains committed to its investment programme.
The global market leader in integrated solutions and branded products for cable and connection technology generated revenue of €1.82 billion in the 2024 financial year (1 October–30 September; 2023 financial year: €1.92 billion). This represents a decline of 5.3 per cent compared to the previous year. Meanwhile, LAPP's global workforce grew slightly to approximately 5,700 employees as of 30 September 2024.
"We Need Room to Breathe"
"It was a challenging financial year. Nevertheless, we are looking to the future with confidence and are continuing our global investment programme. Advancing digitalisation, expanding production capacity, and strengthening our logistics network will be key drivers of future growth," emphasised Matthias Lapp, CEO of LAPP Group. He added, "What we urgently need from policymakers now are reliable regulatory frameworks, an end to excessive regulation, and greater trust in domestic companies. We know how to compete and succeed in the global economy, but we need more room to breathe."
Sumit Mitra, Managing Director of LAPP India, summarised, "LAPP's strength lies in our close customer relationships and tailor-made connectivity solutions. Over 60 per cent of the products we sell in India are designed specifically for the Indian market, adhering to local specifications. Thanks to our compounding plant in Bhopal, we can meet highly customised customer requirements. By investing in new capabilities for instrumentation, control, data, and power cables, as well as expanding our capacity and nurturing talent, we aim to address the evolving needs of one of the world's fastest-growing economies."
Growth Limited to Asia
LAPP's regional performance varied significantly in the 2024 financial year. The EMEA region (Europe, Middle East, Africa), which remains the group's largest market, experienced a sales decline of around 9 per cent. In Germany, the downturn was particularly pronounced due to weaknesses in the mechanical and plant engineering sectors. The Americas (North, Central, and South America) saw a more modest decline of approximately 3 per cent.
"In the US, many customers were hesitant to invest ahead of the presidential election. However, we are now seeing orders picking up again. The threat of tariffs is prompting companies to invest more locally in the US, which in turn increases demand for our connection solutions to power and supply data to new production systems," explained Matthias Lapp.
In contrast, the Asia-Pacific region recorded strong growth, with sales increasing by over 10 per cent, driven primarily by success in India and South Korea. Despite a difficult market environment, China also performed positively. "India and Southeast Asia are the biggest winners in the current geopolitical landscape. The figures for the current financial year remain promising, giving me confidence that we can once again counteract the ongoing economic downturn in Central Europe," said Matthias Lapp.
Expanding in Battery Storage, Data Centres, and Robotics
LAPP has long pursued a strategy of internationalisation, manufacturing at 26 global locations and operating in over 80 countries. This broad presence has enabled the company to mitigate regional sales fluctuations. Additionally, LAPP serves a diverse range of industries, with strong demand in battery storage, data centres, robotics, and renewable energy. There is also sustained growth in intralogistics, mobility, and food sectors.
Innovation remains a priority, with LAPP recently unveiling the first cable featuring bio-based sheathing and connectors made from sustainable materials.
Investing in Digitalisation, Logistics, and Production
LAPP is steadfast in its investment strategy. The company is currently expanding its logistics and service centre in Ludwigsburg, Germany—the largest single investment in its history. In the US, production capacity for ÖLFLEX® power and control cables is being significantly increased. Meanwhile, large-scale capacity expansions are also underway in India.
Globally, the LAPP Group invested nearly €66 million in the past financial year. "In economically challenging times, it is more important than ever to stay close to our customers and push ahead with strategic investments. If you want to grow, you must invest. Our response to market decoupling is ‘local for local'—developing and manufacturing products locally to serve domestic markets. This approach enhances our resilience against geopolitical and economic fluctuations while optimising service for customers in each region," said Matthias Lapp.
Concerns Over Deindustrialisation: Hopes for Renewed Momentum
For the current financial year, LAPP anticipates a single-digit increase in sales, with growth driven primarily by successes in Asia and the US.
"Europe—particularly Germany—remains a concern. The risk of deindustrialisation is impacting demand for our connection solutions. We hope the upcoming federal elections in Germany will inject fresh momentum into strengthening the business climate," said Matthias Lapp.
He concluded, "Germany is our home, a country with immense talent and a strong spirit of innovation. We take our responsibility for our employees and their families seriously. However, the government must also demonstrate that family-owned businesses are truly valued and supported. A stable administration capable of making swift, pragmatic decisions would be a crucial first step. This is the only way to maintain Germany's and Europe's global competitiveness."
LAPP employs approximately 1,400 people in the Stuttgart region.
