Growth Strategy 2023
Sika’s growth strategy with clearly defined targets ensures long-term, sustainable success. Sustainability targets are fully aligned with the corporate strategy.
With its newly defined sustainability targets for the reduction of energy and water consumption, as well as waste, Sika will be minimizing its need for resources and the environmental impacts of the production process. Sika’s overriding goal is to reduce CO2 emissions per ton sold by 12% by 2023.
One strategic pillar of Strategy 2023 is to increase market penetration. Growth drivers include targeted sales of a comprehensive product portfolio with complete systems, increased presence in the distribution channels, key project management, and the continued expansion in emerging markets.
By 2023 the company aims to generate 25% of sales with products that have been launched on the market in the last five years. Innovation at Sika is always determined by the needs of customers. These needs feed into both fundamental and applied research. Furthermore, the company has committed itself to ensuring that every new product must offer a higher performance as well as additional sustainability benefits. Already today, Sika offers its clients a broad spectrum of environmentally friendly product technologies.
To a significant extent, the improvement in margins will be achieved through operational efficiency. Projects in the areas of operations, logistics, procurement, and product formulation should result in an annual improvement in operating expenses equivalent to 0.5% of sales.
Acquisitions are an important element of Sika’s growth strategy, enabling the company to enhance its core business with complementary technologies, improved market access, or expanded distribution channels. The focused approach allows Sika to establish the acquired businesses as platforms for additional growth.
Sika’s strong corporate culture lays the foundation for its success. Customer First, Courage for Innovation, Sustainability & Integrity, Empowerment & Respect, and Manage for Results – these are the values that drive business activity and are put into action by employees every single day, all around the globe.
Strong global position
World market leader in construction chemicals
Enabler of sustainable construction and mobility
Maximum proximity to the customer
Leading adhesive producer for construction and manufacturing industries
First mover in emerging markets (37% of sales)
Significant potential for structural growth
Leading global brand
Entrepreneurial company culture
Solid financial position (A- rating)
Sika enables sustainable construction and mobility
The construction sector is facing a serious challenge - climate change. Studies show that the construction and building sector accounts for close to 40% of global CO2 emissions. The automotive industry is facing an equally big challenge, as road traffic is responsible for one fifth of the world's greenhouse gases.
At the same time this is a tremendous opportunity, as the potential for progress is immense. Sika is an enabler of this vital transformation.
Sika offers solutions to improve products and processes in many areas, from admixtures for low-emission concrete to facade systems for energy-efficient buildings and adhesives for environmentally-friendly vehicles. Thanks to its drive for innovation, Sika is set to make a crucial contribution to overcoming the challenges of the future.
Focus on 8 target markets
Sika has solutions for all markets
Sika is ideally positioned to profit from all phases of the construction life-cycle.
Emerging Markets: mainly new build, focus on infrastructure construction which requires international building standards.
Developing Markets: market education and increase of building standards drive demand for more sophisticated solutions.
Mature Markets: mainly refurbishment, Sika offers the whole range of technologies needed for repair and refurbishment.
Sika's market potential
Fragmented global industry offers significant growth potential.
- Sika as the largest construction chemicals company worldwide with a global market share below 10%
- Plenty of room to grow
Megatrends driving social and ecological transformation
By 2050, some 75% of the world’s population will live in urban centers. In Africa and Asia in particular, a substantial structural shift in the migration of people from rural to urban areas is expected. In the developed industrialized nations, there is a shift toward suburban centers. In major cities and their peripheral zones, demand is rising for living space and infrastructure installations. This drives Sika’s growth.
Climate Change and Scarcity of Resources
The challenges confronting the environment continue to have the utmost priority. Resource-efficient solutions that are low in CO2 emissions are required. Sika is supporting this development by consistently aligning its organization with sustainability.
Relative to the industrialized nations, the economic influence of the emerging markets is steadily rising. The populations and economic output of Asian and a number of African countries are growing fast. Sika is responding to this development by further strengthening its position in the emerging markets through both internal and external growth.
Digitalization and automation have taken on a whole new level of importance in the wake of the COVID-19 crisis. This trend is clearly to be seen in the area of modular building. Workflows need to be more efficient – also to comply with more rigorous safety standards. This development is increasing Sika’s determination to rise to the corresponding challenges and rapidly expand its position as innovation leader.
Due to the increasing aging of the population, skilled labor remains in short supply. Fewer personnel are deployed on building sites and in manufacturing businesses. Sika is responding to this trend by accelerating construction and manufacturing processes with new solutions that are easy to apply.