Bucher Emhart Glass’ , a leading provider of glass forming and inspection machinery, reported a slowdown in demand during 2024, a stark contrast to the elevated levels of the previous year.
This downturn, detailed in their recent financial statement, highlights the evolving dynamics within the global glass container manufacturing industry.
Order intake saw a significant decline of 31%, attributed primarily to market uncertainties among key customers which led to project postponements. This directly impacted sales, resulting in a 12% drop. Net sales for the year reached CHF 462 million ($512.7 million), a decrease from CHF 524 million ($581.5 million) in 2023.
Several contributing factors fueled this slowdown. The report highlighted that full inventories of glass containers prompted some manufacturers to temporarily halt production lines. This, in turn, negatively affected the demand for new machinery and, to a lesser extent, spare parts. 
Geographically, the impact was uneven. Europe and North America were particularly affected due to the combined pressures of higher energy prices and increasing production costs for glass containers. Conversely, smaller emerging markets demonstrated continued growth, with India posting notable gains.
Despite the challenges, Bucher Emhart Glass maintained a respectable operating profit margin of 16.8%. This was achieved through proactive adaptation measures, including adjusting production planning and reducing capacities at its production sites.
Looking ahead, the company remains optimistic about the long-term prospects for glass container manufacturing. They point to the ongoing trend towards automation as a key driver, motivated by the need for increased efficiency, waste reduction, improved working conditions, and a response to rising wage costs.
Bucher Emhart Glass anticipates a recovery in demand towards the end of 2025, driven by the expected depletion of existing glass container inventories. However, they also caution that sales are likely to be lower than the previous year’s high, and consequently, the operating profit margin is projected to be considerably lower in 2025.
While the current climate presents challenges, Bucher Emhart Glass appears to be taking strategic steps to navigate the market downturn and position itself for future growth. The company’s focus on adapting to evolving industry demands and leveraging the trend towards automation will be critical in its ability to capitalize on the anticipated recovery.
Source: Bucher Emhart Glass’ with additional information added by GlassBalkan
