Dear employees, customers, associates, friends and family,
I would like to look back on the past year and look ahead to the coming one. For Powerspex, 2024 will be a year with a full order book and a year in which the management is preparing for a change.
Walking out at Powerspex, I see the parking lot full. That means little has actually changed. It looks back to the years before corona when everyone worked on the job. That full parking lot is a good sign: we are in full swing. A little bit of a shame, too, because we could use a little more of the peace and quiet at home. I am confident that employees don't take advantage of that, but yes, they keep coming to the business. They obviously like to be here.
There is more recognizable by the way, which is that the business is growing and we are busy.
Moment of professionalization
When we reacquired Powerspex from Siemens in 2013, the idea was to work hard for a few years, get all the people involved and then start professionalizing. We are really at that point now. This is the moment. All positions have been filled, we are certified, the workshop team is in full swing, there are more and more customers for the software group, specializing in PCS7 is bearing fruit, we have started a new CRM package, we are working on social media, PsxCad is developing all the time, the simulation group is running six major projects, Veenendaal is full of work and has grown strongly, the Atex group is generating great opportunities, and the workshop is enthusiastically working on efficiency improvements. In all areas we have improved and standardization is being applied or is being worked on.
By 2022, there was already revenue growth. Was that incidental due to a large order, we wondered? No, it really looks like 2023 is showing that we are structurally running higher sales.
Besides the day-to-day business, the projects, sales and our customers, I like numbers. How much margin, how much profit, how does it pay off with the customer? Nobody thinks that of me, but I really am a numbers guy. So I'm thrilled to see that 2023 stands out from other years with higher profits, bigger projects and a lot more purchasing that leads to higher discounts.
Sales tripled
The big difference from a few years ago is that structural turnover has almost tripled. That's huge, but we pulled through well without putting our people over the clink. One reason for this is that the share of purchasing has become much larger. In other years, 25 to 30 percent of sales was procurement and now it's over 50 percent. We are making extra profit because of that while the workforce does not have to increase enormously. This also means that our customers have more confidence in us and are happy to leave more to us; unburdening us.
Veenendaal a seven-setter
Veenendaal has experienced tremendous growth mainly due to Plug Power (Frames) orders. Here we see that turnover has increased almost sevenfold. While headcount has increased by a factor of 2 to 3, we also see here that revenue per person is increasing tremendously.
Management change coming up
In the coming year we are working toward a change of directors. Gerrie de Vries has indicated that he will probably step down from the board on January 1, 2025, and I think I will join him. That doesn't mean we stop working. No, we will continue to do our work, but no longer in the management. As of now, my son Reinier is joining us, with the intention that he will eventually become a board member. Jouke and Gerko are doing well and I think Reinier fits in well with that; that's going to be a good combination.
The outside world declares me crazy. 'You worked hard for it, didn't you? Sell the company and split the money,' they say. But I actually want the business to continue. As long as my pension is taken care of, then we can just continue like this and build on a knowledge center. I did say to my children: I'm fine with leaving our share in the family, but then I want you to sign off on taking almost no money out of it. So almost everything is reinvested in the company. All three children like that plan and that makes me proud.
Entering phase 3
When I once started Powerspex with Evert, Frans and Peter, we had a certain goal in mind, and we have now arrived at the point we dreamed of then: the moment when customers know how to find us instead of having to call around themselves. That requests from large companies come to us anyway, that point has been reached. All that is needed now is relationship management, being honest and open and doing projects well, following new techniques and changes and taking the opportunity when it suits us.
Powerspex has now reached phase 3. The first 15 years were hard struggles and investments for low pay. The next 15 years were also tough but less so thanks to the large group of employees with whom we were able to build on our technical pillars, and now we have entered the next phase where we have name recognition. Customers are even recommending us to others. We are making a name for ourselves as a party that can handle full automation. For example, we are in the race for an 8-year contract. This is how you become a party that the customer really needs.
From here we can really build something for the next 30 years. We are now the knowledge center we wanted to be and we have achieved that together. That picture was already forming in 2022 and became quite clear in 2023.
Looking ahead to 2024
For 2024, we can already say that the order book is filled. We already know now that we can succeed in getting back to 25 to 30 million. We have nice projects in sight that we know: we've done it before and we can do it.
We have hired new and young people and I am very curious to see how they will develop. I also want to address the 'oldies': if you think you are going to retire in one or two years, try to make extra time for the young ones. You are actually obliged to do so because you have so much knowledge and you have to pass it on to the next generation.
By the way, we said goodbye to Bennie Nitert last year. I used to walk up to Bennie all the time; I used to at Stork and I still do until recently. But now he is retired and that is a strange sensation.
Keep communicating
The growth that Powerspex initiated 2, 3 years ago thanks to large projects, we will continue in the coming year. I ask everyone to communicate openly with us and each other. Put yourself in someone else's shoes. People of all educational levels work here, and that can sometimes be complex. It is a challenge to keep the atmosphere good and fun. There is only one way to do that: communicate with each other. Walk into the workshop, keep chatting, keep communicating with each other.
New Year's wish
For the new year, I wish everyone openness and health. And I wish that clients place many orders with us. Let us all continue as we are already doing. After all, the Netherlands will have to do it together. Let us therefore be partners. We all have a responsibility for the next generation.
My goal is to achieve that the next generations will not have to face smog. I have been to India and I have seen what bad air quality is. A haze before the sun, a fog over the city. My wish is that we work together for a healthy future. After all, we work in energy for a reason.
Wishing you a healthy 2024,
Jan Wilmink
On behalf of Powerspex bv