Open day at Hareid
Transcription
Open day at Hareid
inside We wish all Internal newsletter of the ekornes group. No. 3 – June 2011 our readers a wonderful summer holiday! Open day at Hareid Page 4-5 Japan earthquake Pages 6-7 Kids’ first Graduation Day Page 8 ØYVIND TØRLEN CEO TIMES ARE TOUGH OUT THERE Those of us who are lucky enough to live in Norway can easily overlook important information about the world outside this northern outpost. As employees of Ekornes, we depend to a large extent on how the world at large is doing – not least when it comes to economic developments in our key markets. In Norway you could easily get the impression that the financial crisis and its aftermath are a thing of the past. The domestic economy is growing again, and unemployment is extremely low. With interest rates remaining low, most people are fairly well off, and can allow themselves a relatively high level of consumption without putting their household finances at risk. May it continue to stay that way. The world outside Norway’s borders looks quite different, a fact that cannot help but have a direct impact on our order receipts. The UK, a major market for Ekornes, is struggling with a huge national debt. During the financial crisis itself the then government shut its eyes to how it would deal with the debt issue in the future and concentrated on stimulating the economy out of recession. Now, with the acute phase of the financial crisis over, the pendulum has swung far out in the opposite direction as the government struggles to regain control of the economy. A raft of measures have been implemented, including substantial increases in VAT, income and other taxes, which are forcing households to tighten their belts. Consumers are therefore less able and less willing to go out and buy new furniture. Spain is struggling with exceptionally high levels of unemployment – 21 per cent in the latest reported figures. Unemployment among young people stands at a staggering 44 per cent. It is almost too high to grasp, and naturally puts a major damper on people’s willingness to shop, even for comfortable, high quality furniture from Ekornes. Spain’s national debt is also extremely high, which weakens people’s faith in the future and makes them less willing to spend. A country that bases much of its national income on tourism is highly vulnerable when the countries from which the tourists hail go into recession, and potential visitors decide to save money by staying at home. No one can be unaware of Greece’s debt problems. Greece is not an important market for Ekornes, but concerns that the country will not be able to service its debts have a direct impact on Germany, for example, which is one of Greece’s major lenders and guarantors. German consumers are generally good at facing up to potential risk. It is obvious that the situation in Greece, Spain, Italy, Ireland and several other of the weakest countries may affect German consumers’ willingness to go out and spend. 2 I could carry on describing the situation in market after market, but on the whole the picture would be pretty much the same. Times are tough, not only for the furniture industry but for almost every sector that makes a living selling to consumers. It is not my intention here to write a thesis on macroeconomics. The point I want to make is that we who work at Ekornes depend to a huge extent on economic developments in the world at large, and it is crucial that we all understand that fact. Just now the only correct description of the situation is that the uncertainties facing us are extraordinarily large. Can we put this knowledge to any use? Well, we cannot influence international economic developments, but we can work hard to strengthen our own competitiveness. That means, for example, looking even more thoroughly than before at areas in our own organisation that could be improved, being even more focused on keeping unnecessary costs (e.g. wastage) as low as possible, and – not least – ensuring that every product leaving our factories does so at the right time and with the right level of quality. For our sales companies it means being even more focused on our marketing effort, on staff training, store follow-up and all the other elements that are critical to our concept. Putting all our energy into a concentrated effort to boost competitiveness at all levels in Ekornes is the most constructive way we can deal with the challenges facing us in the market today. We have been through challenging times before in Ekornes, and we have always come through them with our heads high. If we align our efforts and put our collective shoulders to the wheel, we will do so this time, too. In closing, I would like to wish you all a very good summer! Øyvind Creating sales superstars Jens Petter Sætre from Ekornes explains and demonstrates how a Stressless® recliner is built up. At Ekornes quality is what matters – from the factory all the way out to the customer. To ensure that customers are met with a knowledgeable response when they are out shopping, Ekornes invites distributors to Sunnmøre, on the Norwegian west coast, the birthplace of Stressless®. In deep concentration, 46 distributors watch carefully as a Stressless® recliner is twisted, turned and tested at the Ekornes Bua showroom in Ålesund. “Come on everyone, have a try!” Ekornes’s Jens Petter Sætre instructs the participants with practised movements. Over the course of two days, distributors from all over Norway have learned every aspect of Ekornes’s furniture. And Jens Petter is certain of one thing – to become a good salesperson, you have to do your homework. Two-day trip “We see the benefits of increased knowledge not only in our sales figures, but also because it makes customers feel that buying from us is a positive experience. That in itself is motivating for those of us who meet customers face to face.” Anne Tove Skjølberg works for the Møbelringen furniture chain in Kristiansand. She agrees that the course is well worth it. “Not only do we get to know the products we are selling, but it is also a great opportunity to get to know other distributors in Norway and swap stories with them,” she smiles, before getting to grips with the neck support on the demo recliner. Anne Tove Skjølberg from Møbelringen in Kristiansand and Ove Saxeide from Living in Stavanger – snapshot taken at Brunholmen, Ålesund, in May. Through the spring of 2011 two courses for Norwegian distributors have been held, with 77 participants all told. In addition, 49 participants from Sweden made use of the opportunity to attend (divided between two courses). Through their two-day stay in Sunnmøre, distributors gain a thorough knowledge of the furniture collections that are on sale in stores today. There is also time for a boat trip to the picture-perfect Geiranger Fjord, and a visit to Ekornes’s factory in Sykkylven. The schedule is tight, but very educational, say the participants themselves. Knowledge boosts sales Ove Saxeide works for the Living furniture chain in Stavanger. He is very pleased with the course. “The people from Ekornes do a fantastic job with the training here,” he says. He has been in the furniture retail sector for many years, and is extremely conscious that knowledge is a necessity in his line of work. 3 A film about Ekornes was shown in the most comfortable ‘cinema’ ever. Open day at Hareid On Saturday 26 March, the factory at Hareid opened its doors to everyone who wanted to come in and have a look around. The number of visitors exceeded all expectations! Hareid’s local business forum, Hareid Næringsforum, and Hareid Hotell joined forces to stage the open day, which was part of a wider marketing campaign for local businesses in the Hareid district. Ekornes’s Hareid plant was the first of several companies that will be highlighted in this way over the course of the year. The plant remained fully operational as the visitors, who had come from all over the region, arrived on site. Management had their hands full guiding the many sightseers around the premises. According to operations manager Ronny Nipen, more than 300 people of all ages visited the plant during the day. “Visitor numbers far exceeded our expectations. Hareid Hotell provided a delicious tapas buffet. 4 Although the people who were acting as guides were kept extremely busy, it was really nice to see how interested the local community is in furniture production in the area. I think many of our staff were very proud to show off our fine workplace,” he said. ‘cinema’ ever, with seats exclusively from Ekornes – naturally. During the day there was a prize draw, with Einar Arne Solheim winning an ottoman and Ingebjørg Grimstad a double ottoman, while Kristbjørn Smoge won no less than a working day at Ekornes. After eating their fill, the visitors had the chance to watch Ekornes furniture being created before their very eyes by the company’s highly skilled production staff. Many of them were being visited by family members, who were seeing the inside of their parents or grandparents’ workplace for the very first time. For a number of retirees the open day was a welcome opportunity to revisit their former workplace. In the first-floor showroom, visitors could both examine and try out a selection of recliners and sofas. Every half-hour, a film about Ekornes was shown on a big screen in what must have been the most comfortable In addition, Hareid Hotell provided a tasty tapas buffet. Fortunately, there was enough food to go round, even though far more visitors arrived than originally expected. Visitors of all ages enjoyed trying out the various Ekornes recliners and sofas on display. Hareid premises bought After leasing the premises for 15 years, Ekornes has now bought the factory buildings at Hareid from Utgård Holding AS. The Hareid plant was acquired in 1996, after Ekornes ASA took over the operation from the now defunct Utgård Mestermøbler AS. Ekornes ASA acquired the production equipment and took over as employer for the company’s workforce. Today, the plant’s 96 employees produce a variety of sofa models. Young furniture makers Pupils from Year 7 at Bigset School have tried their hand as furniture makers. They built their own sofa from scratch at the Hareid plant. To give pupils an idea of what happens at the various workplaces in the local area, the school has joined forces with local businesses. As a result, classes have the chance to spend a day working at a variety of companies. Year 5 spend a day at Hareid Group, year 6 at Jets, and year 7 get to spend a day at Ekornes. Wednesday, 27 April saw 17 excited pupils arriving at the factory in Hareid. But before they could start producing something, they learned why maths is important if you are going to make furniture. Excellent teamwork on the part of the children resulted in a fantastic three-seater Manhattan sofa. After the maths lesson they were ready to start manufacturing. Each pupil had the chance to sew, upholster, glue and assemble what became a three-seater Manhattan sofa. The junior furniture makers seemed to enjoy the work, and the result looked really good, too. According to tradition, the product that the children make during their work experience day is donated to a worthy cause. This year, the Bigset Preschool was the lucky recipient of a brand new sofa. Watch closely, it’s your turn next. Ann-Mari Smoge is the senior trade union representative at the plant, and thinks it is positive that Ekornes now owns the 13,000 m2 factory. “We like working here,” she said. “The plant is both spacious and orderly, especially since everything is on the one level. For me and my colleagues, knowing that our employer also owns the property gives an added sense of security.” Bigset Preschool was the lucky recipient of the brand new sofa made by Bigset School’s Year 7 pupils. 5 A volunteer from the Japanese Red Cross contemplates the devastation in Otsuchi in the Iwate prefecture one week after the earthquake struck, and where vast areas were washed away by the tsunami. Photo: Japanese Red Cross Ekornes employees raise money for the Japanese Red Cross In Norway employees’ trades union representatives have organised a collection for the Japanese Red Cross. The action is being supported by Ekornes as well. Employees in Germany and Japan are also contributing. It was up to each individual employee in Norway to decide whether they wanted to participate and how much they wanted to donate. The amount was deducted from their salaries, and Ekornes then doubled that figure. will be, but probably somewhere between NOK 150,000 and NOK 160,000,” says Hajime Osawa, the head of Ekornes’s operations in Japan. “Thank you all so much!” he adds. The total collected in Norway was NOK 117,400 (JPY 1 893 550). The sum has been transferred to Ekornes KK in Japan, which is forwarding the money to the Red Cross. There was a further collection at Ekornes in Germany, and the company’s Japanese employees have also made donations. Hitomi Kinno, who works in Customer Service, gives us an insight into how much the donation to the Japanese Red Cross means right now. “My home town has completely disappeared as a result of the tsunami. The people living in the affected areas are still not sure what they are going to do, even two months after the disaster struck,” she says. “We are extremely touched and grateful for the contributions from our colleagues in Europe. I don’t know exactly what the total amount 6 Earthquake in Japan The earthquake that struck Japan on 11 March had a magnitude of 9.0 on the Richter scale. It was around quarter to three in the afternoon in Tokyo, and Ekornes KK’s 32 employees had just over three hours left of their normal working day. It was a frightening experience for our colleagues, and was to be followed by much uncertainty and anguish. By Janita Sperre Ulvestad Ekornes has a staff of 12 at its Tokyo office. In addition, the company has two people working at our showroom in Tokyo and 18 sales representatives thoughout the country. Although Tokyo was not as hard hit as the north-eastern part of the country, employees at the office clearly felt the force of the earthquake. They quickly moved away from windows and cupboards, and many of them crouched under their desks for cover, as is normal procedure in case of earthquake. The internet was the only source of information, and as the afternoon and evening wore on it became clear that the earthquake and the subsequent tsunami had done far more damage than had first been thought. Great uncertainty Michiko Aoki Berg, who worked for a number of years at the office in Norway, was able to reassure her many friends at Ekornes that everything had gone well for our office staff. “It was a dreadful experience,” she wrote. “Tokyo was shaking hard, too. Everyone in the office was so scared, and many of us thought our last day had come. Give my best to everyone at the office, and thank you for your message to us all!” We eventually managed to get Marketing Manager Kenji Oyama on the phone as he was making his way home – on foot. He had to walk for five hours in the middle of the night to reach his home. All public transport had stopped, and the phone lines were overloaded, making it difficult for our staff to get in touch with their families and find out what had happened to them. The sales representative responsible for North Japan works and lives in the hardest hit area. Fortunately, it was not long before he rang Ekornes and confirmed that he was safe and well. Employees who were relying on the train to get home had to spend the night in the office, since there were no hotel rooms to be had in the area. They recount that there was a surreal atmosphere in the streets throughout Tokyo that evening and night, with crowds of workers who had no other choice but to walk home. Consequences of the quake Neither the office building nor the showrooms were damaged by the earthquake. Around 345 shops in Japan sell furniture by Ekornes, and our sales manager reports that several of our distributors suffered severe damage. A business delegation from Norway, headed by the Prime Minister, was due to arrive shortly in Japan, and campaigns marking the Stressless® brand’s 40th anniversary and visits by customers to Norway had been scheduled for the first half of the year. All these events were cancelled in the days following the earthquake. Solidarity One employee at the office comes originally from the hardest affected area. Her family is safe, but their house was washed away. In the aftermath of the disaster the employees in Japan have collected donations to help support her and her family, and feel that the solidarity between them gives them strength in this difficult situation. The staff of Ekornes KK in Japan. 7 Graduates anxiously awaiting their turn. The children each received a graduation medal from May Britt (left). First Graduation Day Thanks to the Christmas present from Ekornes employees Since 2009, money that would previously have been spent on Christmas presents for Ekornes’s employees has been donated to charity. One of the projects that has received financial support is the Lola Day Care Center in the Philippines. The first group of children at the nursery are now ready to start school, and how better to celebrate the event than with a proper graduation ceremony? The Lola Day Care Center is a preschool, whose aim is to give children from poor homes a sorely needed boost before they start school. This also means covering materials costs for the first school year, around NOK 50. That may not seem like much to us, but it is for The centre’s first graduating class were as proud as could be. 8 the families concerned. The day care centre was completed in 2010 with the help provided by Ekornes employees. May Britt Tynes, or ‘Lola May Britt’ as she is known locally, is the driving force behind the project. She explains that the money donated by the employees at Ekornes has meant a lot to the day care centre. Both May Britt and the other nursery staff are extremely proud of the first group of children to graduate from the centre. You can read more about the Lola Day Care Center at www.prosjektfilippinene.no or on their Facebook page. The children had rehearsed songs in both their mother tongue and English, made speeches and performed traditional folk dances. We’re learning Norwegian! Norwegian industry is becoming ever more multicultural, and Ekornes is no exception. At the Hareid plant, six employees of different nationalities have just completed their first Norwegian language course. The aim is to make it easier to live and work in Norway. “Norwegian is not an easy language, but we are learning more all the time,” says Simona (25) with a smile. She is originally from Lithuania, and has just taken the exam at the end of her first Norwegian language course, along with five other Ekornes employees. Before coming to Norway, Simona studied international business. Her plan was to take a short break in her studies – three months, or so – to earn a little money. So she set course for Norway along with her boyfriend Giedrius. “Just after we left Lithuania the country was hit by the financial crisis. Trying to find a job we could live off there was hopeless. And the situation is still pretty serious,” she explains. After working for a while in the office of a fish factory in Moltustranda on the Norwegian west coast, the couple both ended up at Ekornes. It is now two years since they left their homeland, and both have been working at Ekornes for a year. Difficult language Both Simona and the other course participants agree that Norwegian is a difficult language to learn. Although Simona has studied both English and Spanish for several years, she thinks they cannot compare. However, now that she has completed her first Norwegian language course, she is more optimistic about her future as a speaker of Norwegian. “Now I know the basics, and that makes it much easier to take the initiative to have conversations in Norwegian. The best way to learn a language is to practice it. And that’s something I have plenty of opportunity to do in my job here,” she says. Simona thinks living and working in Hareid will be easier now her language skills have improved. Simona pays tribute to her colleagues at Hareid, who, she says, have made a point of including her in things. “I have never felt like a ‘foreigner’, but have always been treated the same as everyone else.” In addition to enjoying the working environment, she also has high praise for the region’s spectacular landscape and – not least – the fresh air and the good, clean taste of the water in Norway, even though it is colder here than at home. Grants available Along with the other course participants, Simona was introduced to the idea of taking Norwegian language classes through Ekornes. The course is held at the Ressurssenteret in Hareid and lasts for three months. Participants pay for the course themselves, but if they have an attendance record of at least 70 per cent and pass the final exam, they can apply for a grant from the trade union (Norsk Treindustriarbeiderforbund). This autumn Simona plans to learn more Norwegian at a follow-up course, and recommends anyone who needs it to do the same. Ernestas, Karolina, Giedrius, Simona, Izabela and Jolanta have all just completed their first Norwegian language course. 9 The completion of Ekornes’s new coatings plant at Ikornnes was celebrated with coffee and cakes on 13 May, the day after the facility went into normal production. New coatings plant officially opened The new plant covers 1,650 m2 and contains technology worth NOK 30 million. The six robots at work at the plant stain and seal the wooden components for the company’s Stressless® range. The very first robot that went into operation at Ekornes was also in the coatings department. That was in the late 1970s. The three robots currently operating in the old coatings department were installed in 1997. The new plant has been built to withstand the tidal wave that could be caused if the Åkernesrenna gives way, precipitating thousands of tonnes of mountainside into the fjord below. A 90 cm thick concrete floor has been laid to prevent the building floating away if and when the tidal wave eventually comes. Production at the plant meets EU environmental standards, since the coatings now in use no longer contain solvents. On 12 May the first Stressless® base was produced at the new coatings plant at Ikornnes. Harry Ståle Eikemo, Harald Bakken and Andreas Isaksen with the first product to roll off the line. 10 Production manager Kjetil Ekornes enjoying a celebratory piece of cake. Sketch showing the interior of the new plant. On 13 May the plant was officially opened by Ola Arne Ramstad, head of the Stressless® Division. In his address, Ola Arne paid tribute to the contribution made by employees, both in operating the old plant and in connection with the start-up of the new facility. A happy crew. Everyone had been looking forward to the day when the brand new coatings plant would go into operation. Good for the environment The new coatings plant at Ikornnes marks an environmental milestone for Ekornes. Water-based coatings have less of an impact on the environment, and the new facilities provide more pleasant working conditions. The contrast between the old and new coatings facilities at Ikornnes is huge. The new plant is considerably bigger and lighter, the air is fresher and it is less noisy. There is no doubt that working conditions are much better in the newly opened department. Investing to improve the working environment is part of the Group’s Objectives and Values. Ekornes sees this as an important and sustainable investment, which provides a solid return in the form of healthier and more satisfied employees, reduced sickness absence, increased efficiency and profitability, as well as making Ekornes an attractive place to work. The external environment, too, is benefiting from the investments that have been made. When the facility is fully operational Ekornes will be able to phase out the solvent-based stains and sealants that are currently still in use. This is an important step closer to a greener Ekornes. Facts about the new department: • The new building has 1,650 m2 of floor space. • A total of NOK 48 million has been invested in the plant, including NOK 30 million in technology. • The plant can coat 3,400 bases per day at maximum capacity. • Ekornes uses offcuts and wood chips from its own production to heat the drying zone for stains and sealants. • Coatings waste is collected up and dried on rotating brushes, before being broken off, ground up and disposed of down a chute. Most of the technical installations are located on the floor above the production hall, keeping them hidden from both the employees and the surrounding area. • The coatings are applied by robots in closed cells. This ensures that noise and dust does not spread through the premises. • Polishing the coated bases is carried out in a separate cubicle, with a continuous supply of fresh air and ventilation in the floor to remove the dust. Ekornes Contract sees great potential in the cruise market, and has recruited a dedicated sales manager for this area. Ekornes goes cruising Morten Westberg (40) is Ekornes Contract’s newly appointed Sales Manager Cruise. Morten Westberg joins Ekornes from Scandinavian Business Seating, where he was responsible for the US and Middle East markets. Scandinavian Business Seating is the company behind brands like HÅG. Morten has extensive experience of both product development and sales to contract markets. modular solutions, as well as robust suppliers who can deliver to short deadlines. The international maritime authorities also have a variety of requirements that must be met. Since Ekornes has supplied a number of other kinds of vessels, including ferries and offshore vessels, we meet those requirements.” Started in Miami On board comfort In March, Ekornes Contract participated in the ‘Cruise Shipping Miami’ exhibition for the second year running. The exhibition is the US cruise industry’s most important annual get-together. Morten Westberg also attended the exhibition in his first week as International Sales Manager Cruise, a newly created position in Ekornes Contract. Ordinarily Morten will be located in Oslo, along with the rest of the team at Ekornes-owned Stay AS. But he expects to be on the road for large parts of the year. The cruise market comprises ship owners and designers all over the world, and it is important for the new sales manager to be on hand. Asked why cruise ships should equip themselves with furniture and mattresses from Ekornes, Morten says: “In this market it is important to have flexible, More than 20 huge new cruise ships will be outfitted in the next few years. Ekornes could be involved in furnishing suites, cabins, public lounge areas and crew quarters. According to John Terje Drege, marketing manager at Ekornes Contract, this would enable cruise operators to offer both guests and crews superior comfort and functionality. Moving forward, it will be important to make it as simple as possible for ship designers and owners to choose Ekornes. The sector works to maintain growth by offering a constant supply of new experiences, and interest in designer furniture is considerable. “The collection we showed at the exhibition in Miami prompted a lot of interest,” says Morten Westberg. The crew of the Color Fantasy are certainly sitting comfortably. Ekornes aims to supply furniture products to other large passenger vessels. 11 Ekornes ASA NO-6222 Ikornnes Ekornes Möbelvertriebs GmbH says goodbye to Niels Møller Niels Møller, who for the past three and a half years has been responsible for Central Europe, has decided to leave the company for personal reasons. “We would like to thank Niels for his hard work and contribution to the company during this period, and wish him well in the future,” said marketing director Runar Haugen. Central Europe is Ekornes’s largest market segment, with sales revenues in excess of NOK 800 million. The region covers Austria, Germany, Luxembourg, the Netherlands and Switzerland. The process of finding Niels’s successor is now underway. Until then Runar Haugen will take over in an acting capacity. “We have many highly competent employees and department heads in the company in Hamburg. So I am confident that day-to-day operation of the company and management of the markets in Central Europe during this period will continue to run smoothly,” he said. Runar will be assisted by sales manager Thomas van Aalten and marketing manager Tormod Sortehaug, who will handle day-to-day issues until the situation is resolved. Niels Møller (back left) and Runar Haugen. Tormod Sortehaug (front left) and Thomas van Aalten. The first to reel in a fish was Mr Kim Tae Hun (from the distributor ACE Bed). What a catch! A group of distributors from South Korea were among the many visitors to Ekornes and Sunnmøre this summer. Their visit is sure to have been memorable in many ways. But perhaps the afternoon they spent aboard a local fishing boat in the fjord outside Ålesund will be what they remember best. They have sent us these pictures. The local restaurant C&C took the visitors’ catch and prepared a special dinner for the group later that evening. New employees J.E. Ekornes AS, Ikornnes Heidi Emdal Løseth J.E. Ekornes AS, div. Grodås Marek Piotr Piec – Poland J.E. Ekornes AS, div. Hareid Olga Maspanova – Estonia inside Ekornes ASA Roar Nordtømme Leif Sindre Emblem Brynjar Muren Ekornes Fetsund AS André Lindø The distributor who caught the biggest fish was Mr Heo Kyung Soo. NO. 3 – June 2011. Published by: Ekornes ASA, 6222 Ikornnes. Tel: +47 70 25 52 00. Fax: +47 70 25 53 60. Editor-in-chief: Jarle Tusvik. Email: jarle.tusvik@ekornes.no. Editing and layout: I&M Kommunikasjon AS. Printed by: Hatlehols AS 110893-06