Trends and driving forces
A changing world
Sandvik has defined key external factors and drivers that impact our company. Together with customers and other stakeholders, we will seize the opportunities they create in order to generate profitable growth, manage risks and minimize our environmental impact.
The Paris Climate Agreement’s goal to limit global warming to 1.5° C places demands on companies and society for change and new thinking. One consequence is the rapid electrification of society and the need for fossil-free energy sources. Sandvik has set a clear goal of reducing its carbon dioxide impact across the entire value chain. Our largest impact is through our products and solutions. Sandvik, for example, is a world leader in electric mining equipment and we develop components for energy-efficient compressors and hydrogen cars.
More efficient manufacturing methods are another way of reducing climate impact. Sandvik invests in additive manufacturing, or 3D printing, a technology that requires fewer manufacturing steps and reduces impact on the environment by producing lighter products with less raw material. Multi-axle technology, enabling the machining of a material from several different angles, improves efficiency and enables completely new types of products. Optimizing manufacturing processes reduces carbon emissions and costs and increases productivity.
Economic and political developments
Macro factors such as globalization, urbanization, political governance, and cyclical conditions impact Sandvik. Changes in circumstances for trade, such as customs duties or new legal requirements also impact the industry. Our global and local presence and our decentralized way of working allow us to be flexible and adapt to changes in circumstances. All of our business areas have business and action plans in place to manage changes in market conditions.
An increased focus on health, safety and well-being, for example through our medical precision wire and safe mining solutions, create business opportunities.
Digitalization and automation
The manufacturing industry is experiencing one of the greatest transformations ever, a transition often referred to as Industry 4.0, and it involves a shift to digitalization and automation. Access to big data, sophisticated analytical tools, robotics and artificial intelligence are creating new business opportunities and improved business intelligence. New ways for people to interact with machines and the ability to transfer digital instructions into physical products enable real-time decisions in the machining process. Such developments contribute to reduced costs, increased productivity and improved management of fluctuations in demand. It also put emphasis on the importance of our coworkers’ expertise.
Sandvik offers digitalized solutions and services to optimize its customers’ operations pertaining to costs, productivity and environmental impact.
Historically, design, machining and analysis have been three clearly defined phases in metal cutting. New technology, digitalization and metrology are leading to the integration of the three stages to form a seamless automated end-to-end value chain.
Data collection, for example in mining equipment, enables advanced analysis to optimize processes and predict maintenance needs. Other Sandvik solutions include automated mines.
A growing global population and economy will require a transition to more sustainable energy and technologies as well as an increase in recycling.
Sandvik is aiming to increase circularity by using more secondary material in production. We purchase customers’ used cemented-carbide inserts, drill bits and rock tools and recover them into tungsten carbide powders and new tools. Using so called digital twins makes it possible to test the product before you manufacture which reduces energy consumption and waste.