A few days ago, Bosch announced its financial results for the Southeast Asian region for the fiscal year ended 2017. Consolidated sales, strong investments, and research into developing Bosch’s expertise in various fields all contributed to its steady growth in the region. Bosch expects this momentum to continue as the company looks towards expanding in the manufacturing sector.
2017 was a successful year for Bosch in Southeast Asia as we made great strides towards our goal of being a leading supplier in the domains of urban mobility and the Internet of Things,” said Martin Hayes, President of Bosch in Southeast Asia. “Southeast Asia is an important growth market for Bosch. The region’s strong push towards digitization is something we look forward to supporting through our connected products, solutions and services”.
Accelerating Smart Connectivity Efforts In The Region
At present, Bosch has already introduced several products and solutions in the region that show its expertise in the broad field of the Internet of Things (IoT). Bosch sees strong interest particularly in commercial building projects. Bosch Software Innovations, the company’s software solutions subsidiary with a development centre in Singapore recently launched the Bosch IoT Suite Portal and Developer Console. These platforms are the backbone in helping developers make buildings connected, easy to maintain and energy efficient. Data such as indoor air quality parameters, elevator or light monitoring can be easily gathered with Bosch sensors.
Connectivity also makes relevant system data quick and easy to access. For example, the company’s Thermotechnology division introduced the “MEC Remote” – a new IoT feature that enhances boiler accessibility, allowing users to monitor boiler’s performance at any place, any time and across different devices.
“We recognized the potential of connectivity early and have been actively shaping the connected world in Southeast Asia. Our aim in making improvements in people’s everyday lives through our expertise in hardware as well as in software now bears its fruit,” said Hayes. “Connectivity makes life safer, more convenient as well as making buildings and industries more efficient and resource conserving. We are seeing more and more new business models developing outside of traditional sectors, for example in connected manufacturing, agriculture and buildings”.
Building Up A Robust Workforce To Sustain Momentum
Talent intake and development were a key priority for the business in 2017. Bosch saw a remarkable increase of 27 percent in manpower for the region to around 9,500 associates of which close to 900 are based in Singapore. Bosch’s associate development efforts were also recognised locally, with the company being ranked as one of the Best Companies to Work for in Asia by HR Asia, for the second year running. With new business developments and robust demand for connected solutions anticipated for the coming years, Bosch gives attracting, retaining and upskilling its workforce across the entire region a top priority – uniting technology expertise in both hardware and software.
Positive Development Across All Bosch Business Sectors
Overall, the business sectors of Bosch developed well and in line with the market situation across the region. The Bosch Mobility Solutions business sector ended the financial year strong with double-digit growth in Southeast Asia, driven by the expansion of production and engineering capacity especially in Malaysia, Vietnam and Thailand as well as the Automotive Aftermarket division´s expansion into the marine and offshore segment. Bosch will continue to work towards harnessing technologies for safer commutes, with the launch of Southeast Asia’s first emergency eCall service this year. In partnership with Aviva, this service will help distressed drivers seek help immediately when needed, in unforeseen circumstances such as car breakdowns or accidents.
For the Energy and Building Technology business sector, 2017 was a remarkable year as the Thermotechnology division secured key projects in the petrochemical, pharmaceutical and food industry. Meanwhile, the Building Technology division equipped key infrastructures and commercial venues across the region with video systems, access control and intrusion alarm as the main drivers of growth.
The Industrial Technology business sector experienced double-digit growth driven through positive developments in packaging technologies for food manufacturing and confectionery industries. Apart from placing a strong focus on increasing market penetration, project development, consultancy and support, the Drive and Control Technology division also is ramping up support in the areas of factory automation and advanced manufacturing or Industry 4.0 in Southeast Asia.
The Consumer Goods business sector made good progress in 2017. Particularly, in its strive to focus on growing business opportunities and offerings across its entire product portfolio while continuing to evolve with the digitization of the user ecosystem.
Strategy And Business Outlook For 2018
Bosch is aiming for further growth in 2018, despite the difficult economic climate. After achieving record results in 2017, the Bosch Group expects its sales revenue to grow by 2 to 3 percent in 2018.
In the first three months, the sales revenue generated by the company matched the high level of the same period of the previous year. It even increased by around 5 percent when adjusted for exchange-rate effects.
“Our company is unequaled when it comes to combining comprehensive connectivity expertise with broad industry and product know-how. This is the Bosch Group’s unique selling proposition”, said the Bosch CEO Dr. Volkmar Denner, speaking at the annual press conference in Renningen. Denner sees improving the quality of life and contributing to eco- and climate-friendliness at the top of Bosch’s agenda: “Our ‘Invented for life’ ethos is our motivation for developing the best possible technologies for environmental protection. We want to help keep people mobile, while improving air quality”.
To make practically zero-emissions traffic reality, the company is making heavy investments. These investments are both in making electromobility a market success and in enhancing the combustion engine as with the recent breakthrough in diesel technology.