Milestones

The year 2024 featured several key milestones, for our society, the global economy, and for Schindler.

For a start, 2024 has been described as the largest election year in history. More than 70 countries went to the polls, representing almost half of the world population. The percentage was even higher in Europe, where several elections were held in a continent that is still awakening to the harsh reality of a continued economic decline.

“In 2024 we marked our 150th anniversary, a rare achievement that only a few companies have the privilege to enjoy.”

To put facts in perspective, as recently as in 2008 the European economy was $1.5 trillion larger than the US. By 2022, only 14 years later, the American economy had clearly overtaken Europe, becoming nearly one-third bigger.

As a telling example, if France – EU’s second largest economy – joined the US today, it would be the poorest state in the union in terms of GDP per capita.

How could this happen? The simple answer is efficiency.

“Companies ignore efficiency at their own peril, though the reality is that efficiency is the only lever which is truly in their control.”

Statistics show how a productivity gap between the two economies opened up since the global financial crisis, and has continued to widen ever since.

While Europe stagnated, the US gained the upper hand by continuing to invest in innovation and technology. In turn, this led to efficiency gains, year after year.

More specifically, investments in the US shifted progressively from traditional industries to software, and onwards to Artificial Intelligence while, over the same period, the European focus remained fixated on legacy sectors.

Why is efficiency so critical?

For too long, companies relied on pricing as a means to make up for inefficiencies. Today, with the combined effect of inflation, shrinking markets, and competitive pressure – not to mention increasing global uncertainty – this is no longer a tenable approach.

Companies ignore efficiency at their own peril, though the reality is that efficiency is the only lever which is truly in their control.

Aware of this reality, in 2024 we set the company on course to gain competitiveness through a process of continuous efficiency gains, while up keeping the highest standards of safety and quality that the Schindler brand stands for.

In doing so, we marked another important milestone in the year when we celebrated our 150th anniversary, a rare achievement that only few companies have the privilege to enjoy.

To conclude, the past year also constituted a milestone on a personal level, with the celebration of my 30th anniversary with the company. As I now sign off, after three extraordinary decades, I would like to express my upmost gratitude to our customers, to our investors, to our employees, and to our Board of Directors for the privilege of their trust and support throughout this life-shaping journey.

Silvio Napoli

Chairman of the Board of Directors and CEO