Reflections on 2022 and the year ahead
Bonnie Hodson, chief financial officer (CFO) at UAP, reflects on the trends that have shaped 2022 and what lies ahead.
In a year that has been dominated by economic and political upheaval, there have been inevitable challenges for all businesses.
For manufacturers, supply chain disruption has also continued as have fluctuating material costs, creating further bumps in the road. But against this backdrop, there are also positive trends which are driving growth in our sector and creating new opportunities.
Smarter strategies
We operate in a fast-paced market, where customers’ needs and expectations are constantly changing. This is accelerating new product development with a focus on door hardware that improves security, durability, ease of use and installation.
One of the biggest drivers of new innovation has been the shift towards smart technology. The pandemic, which caused people of all ages to more actively use online devices, has meant that smart technology is no longer ‘a nice to have’.
This trend has seen more electronic door locks come to market in 2022, including Ionic, which is the first in a series of smart products to be launched under UAP’s Fullex-ai brand. Although the product launched at the end of 2022, it follows five years of extensive research, planning and testing.
The result is an ultra-secure electronic lock, enabling access via a smartphone app, a fob, push button on the inside, or a thumb turn. Security is enhanced through face recognition and the fobs can’t be cloned.
UAP has continued to carry out market and customer research over the past 12 months, which will result in several new product launches in 2023.
Evolving processes
Keeping pace with customer demands also requires manufacturers’ processes to evolve and that includes investment in new equipment. Automation is a crucial element in this strategy to improve capacity, manufacturing speeds and quality.
At UAP, we have been working on plans to integrate more automated technology into our operations to deliver a better customer experience both in terms of delivery times and stock availability.
At the same time, we have to be mindful of our impact on the environment. That is why UAP has launched a new initiative named S.E.E. which aims to go above and beyond standard environmental policies and accreditations such as ISO:14001.
A range of initiatives have been rolled out, including a competition to encourage our customers to upcycle crates or pallets, and a project to introduce manufacturing equipment that produces less waste and energy. We are also working with suppliers in China to audit products and factories to stop the use of virgin plastic packaging.
Building resilience
The hurdles of the past year have underlined the importance of resilience. Managing ongoing uncertainty is incredibly difficult, so all businesses must be in a strong position to respond quickly and effectively to change.
At UAP, we have strengthened our operations through an acquisition strategy. Since 2019, we have acquired two businesses, and set up two companies overseas. In 2023, we will be back on the acquisition trail to provide our customers with a broader range of high-quality products.
To support our expansion plans, we have also restructured our finances this year and repaid our investors, providing us with more working capital to achieve our targets.
Of course, it is impossible to grow and strengthen a business without people and this has also led to new initiatives designed to support and develop staff.
Our growth share scheme means that every UAP employee now owns a share of the business and benefits from its future success. These shares are earned and can’t be purchased, with 20% of the UAP share fund now owned by our employees.
In 2022, we also embedded the UAP Training Academy, which is now integral to the way we operate as a company.
Unlocking potential
Over the past year, one of the key lessons learned is that economic and political challenges should not be seen as a barrier to growth. As we look ahead to 2023, these challenges are unlikely to change, so we can’t stand still. Ongoing research, development and investment will ensure that our products, manufacturing processes and people can keep up with the pace of change and are fit for the future.
