His remarks highlight a blend of current operational strength and strategic forward-looking initiatives, painting a picture of a business navigating a complex global landscape with notable success.

Mr. Jackow’s statement underscores the inherent resilience of Air Liquide’s business model, coupled with the agility of its teams in responding to an uncertain economic environment. This is evidenced by the reported progression in sales and the successful pursuit of actions aimed at increasing margin. This focus on both top-line growth and operational efficiency is a critical factor in maintaining momentum in today’s dynamic market.

Delving into the specifics, the first quarter saw total sales reach EUR 7.0 billion, a positive trajectory with a comparable basis increase of +1.7 percent. As reported, the growth stands at a more significant +5.7 percent, reflecting the influence of favorable currency fluctuations and the pass-through of energy price changes to customers – a testament to Air Liquide’s pricing power and ability to adapt to market dynamics. The Gas & Services segment, comprising a substantial 97 percent of Group sales, mirrored this positive trend with a +1.8 percent comparable basis increase. Within this core business, the performance of the Electronics and Healthcare sectors was particularly noteworthy, exhibiting robust growth of +3.6 percent and +5.3 percent respectively. The strong performance in Electronics is directly linked to the accelerating development of artificial intelligence, showcasing Air Liquide’s position as a key enabler of this transformative technology. Healthcare’s growth, distinct from broader industrial economic trends, further emphasizes the stability and independent growth drivers within this vital sector.

Beyond sales performance, Air Liquide is actively engaged in strengthening its operational efficiency. The first quarter saw a significant increase in Group efficiencies, reaching a record EUR 131 million, a substantial +17 percent improvement. This focus on performance optimization, alongside the active management of the business portfolio and the strategic adjustment of Industrial Merchant prices, is directly supporting the company’s ambitious target of increasing its operating margin by +460 basis points (excluding the energy impact) over the five-year period from 2022 to 2026. These actions underscore a commitment to sustainable profitability and long-term value creation.

Looking ahead, a significant indicator of future growth is the record-level investment backlog, now standing at EUR 4.5 billion. This substantial backlog, characterized by a balanced and diversified project mix, represents a clear pipeline of future opportunities. The inclusion of projects across all geographies in Large Industries and Electronics, with the latter representing a full third of this backlog, further highlights Air Liquide’s strategic focus on high-growth, high-value sectors. This forward-looking investment strategy positions the company well to capitalize on emerging trends and expand its market presence.

Air Liquide’s first quarter of 2025 demonstrates a company that is not only navigating the present economic landscape effectively but is also actively investing in its future. The combination of resilient performance, operational efficiency gains, and a robust investment backlog provides a strong foundation for continued success. As Mr. Jackow states, Air Liquide remains confident in its ability to further enhance its operating margin and deliver recurring net profit growth, even in the face of ongoing global uncertainties.
The full report, available via the provided link, offers further in-depth analysis of these promising results.

Source: Air Liquide Group with additional information added by GlassBalkan

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The January 2025 ABI registered a score of 45.6, indicating a further contraction in billings for the start of the year. While this decline is marginally less severe than the drop experienced in December 2024, it nonetheless paints a picture of sustained pressure on architectural firms.

According to AIA chief economist Kermit Baker, the enduring challenges of inflation, high interest rates, and labor market anxieties are key factors hindering the progression of construction projects. These economic uncertainties are making owners and developers hesitant to commit, leading to a slowdown in activity across the sector.

The impact of these challenges is already being felt by architecture firms. In response to these softening market conditions, firms are adjusting their operations, resulting in a net loss of 1,400 positions nationally in 2024. This follows a decline of 4,100 jobs since the post-pandemic peak in June 2023, highlighting a significant shift in the industry’s employment landscape.

While inquiries for new projects are showing a slight upward trend (Project Inquiries Index: 51.4), the value of newly signed design contracts continues to fall, marking its eleventh consecutive month of decline (Design Contracts Index: 46.2). This disparity suggests that while potential projects are being explored, clients remain cautious about moving forward with actual commitments amidst ongoing economic uncertainty.

The January ABI report reveals a widespread softness in billings across all regions and specializations. Firms specializing in the commercial/industrial sector reported the most significant decline, indicating a particular sensitivity to the prevailing economic climate in this segment. Regionally, the Northeast continues to experience the weakest business conditions (41.1), a trend that has persisted in recent months.

Key Takeaways from the January 2025 ABI:

Regional Averages: West (48.8); South (46.0); Midwest (45.6); Northeast (41.1)
Sector Index Breakdown: Institutional (47.4); Multifamily Residential (45.0); Mixed Practice (44.3); Commercial/Industrial (43.1)
Project Inquiries Index: 51.4
Design Contracts Index: 46.2

The persistent negative ABI readings suggest that the architecture industry will likely continue to face challenges in the near term. Firms will need to carefully navigate these economic headwinds by focusing on strategic business development, efficient operations, and a keen understanding of evolving client needs. The ability to adapt and innovate will be crucial for success in this dynamic market environment.

Source: USGlass with additional information added by GlassBalkan

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Closing out the year with a transformative move, the Builders Merchant Building Index (BMBI) has undergone a substantial relaunch, expanding its reach to cover a remarkable 92% of GB national sales. Launched in 2015 as a brand of the Builders Merchants Federation (BMF), BMBI has evolved into a crucial market barometer, utilizing data from GfK’s innovative Builders Merchants Panel. This panel captures sales data from generalist builders’ merchants across Great Britain, providing insights into the activities of builders and tradespeople directly engaged in the upkeep, maintenance, and enhancement of the nation’s 27.7 million homes.

The recent integration of Huws Gray, JT Dove, and CMO Stores into the panel marks a pivotal moment, elevating BMBI to the forefront of market monitoring. With sales data now tracking 92% of builders’ merchant branches, BMBI stands as the most accurate and comprehensive tool for understanding market dynamics.

The monthly BMBI report, widely utilized by merchants, their larger customers, suppliers, and the construction sector, has garnered attention beyond the industry. Economists, advisors, national media, financial institutions, and government departments regularly turn to the BMBI report for insights into trends and driving forces in the complex and fragmented construction industry.

Notably, readership is expanding globally, with regular visits to the BMBI website from entities such as the US Senate, US State Department, individual senators, and the Bill & Melinda Gates Foundation. Emile van der Ryst, Key Account Manager – Trade & DIY at GfK, expresses the significance of the BMBI: “Since its inception in 2014, GfK’s Builders Merchants leaderpanel has become a key market barometer through its usage in the BMBI. It’s become a reference point for industry leaders, financial institutions, and government organizations.”

The latest relaunch, effective with the October 2023 dataset, introduces key contributors like Huws Gray for the first time, alongside market players CMO Stores and JT Dove. This strategic move enhances the relevance and importance of BMBI in providing a comprehensive view of the market, especially in challenging economic conditions.

Mike Rigby, Managing Director of MRA Research, the entity producing the BMBI report, emphasizes the significance of tracking over 90% of builders’ merchants’ sales: “Practically speaking, the numbers are the market itself, not an estimate or approximation of it. That’s a crucial distinction. It’s not like a survey or poll which takes a small slice of the market.”

BMF Chief Executive John Newcomb reinforces the importance of the October BMBI report, stating, “BMBI is as accurate a measure of the market as it’s possible to get. That’s one reason we call GfK’s Builders Merchants leaderpanel, ‘gold standard’ data.”

In conclusion, the October BMBI report signifies a significant stride in establishing reliable statistics across the construction sector, positioning BMBI as an indispensable tool for market analysis and decision-making.

Source: GlassBalkan

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