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.
Digitalization and automation
The manufacturing and mining industries are experiencing 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 or equipment 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 puts 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 the manufacturing of components. New technology, digitalization and metrology are leading to the integration of the three stages to form a seamless automated end-to-end value chain.
In the mining industry, digitalization and automation are used across the value chain, from mine planning through the mining and crushing operations to the extraction of minerals. Data collection, for example in mining equipment, enables advanced analysis to optimize processes and predict maintenance needs. We also provide automated solutions for mining vehicles.
Economic and political developments
Macro factors such as globalization, urbanization, political governance and cyclicality impact Sandvik. The war in the Ukraine has had a major impact on the world economy by raising energy prices and inflation. Increased regionalization and protectionism affects trade regulations, such as customs duties or new legal requirements. Our global and local presence and our decentralized way of working allow us to be flexible and adapt to changing conditions. All of our business areas have action plans in place to manage changes in market conditions.
A number of emerging technologies will affect our industries. The rapidly expanding demand for battery-electric vehicles offers fantastic business opportunities for Sandvik but also headwind in some parts of its business, for example in the automotive sector.
Sandvik has a deep knowledge of additive manufacturing, or 3D printing, a technology that requires fewer manufacturing steps and by producing lighter products with fewer raw materials reduces the environmental impact. Multi-axis technology, enabling the machining of a material from several different angles, improves efficiency and enables completely new types of products.
Artificial intelligence and machine learning will be used for increasingly complex tasks and the implementation of 5G will contribute to more intelligent equipment.
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 is a world leader in electric mining equipment and supplies tools and tooling systems for the energy industry, including clean and renewable energy.
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 and we continuously strive to increase productivity and minimize the environmental impact. We develop eco-efficient crushing and screening solutions that reduce energy usage and we recycle crushing chambers.
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.