For end users, well-made tools can become much loved items, with operators often forming attachments to brands. Long-term relationships are also important at the B2B level, so says Serenco, forming the basis for sustainable growth. Serenco Nederlands Managing Director Remco Geirnaert speaks with Jonathon Harker and the continued enormous potential of the tools market...
Serenco Nederlands BV is a traditional, family-owned business that firmly believes in a ‘partner for life’
concept. “The way we operate with suppliers and customers is based on long-term relationships,” Managing Director Remco Geirnaert tells Torque Magazine. “You have to invest in partnerships and I believe you need reliable two-way relationships to achieve sustainable growth.”
That ethos also brings together tools and end users, Geirnaert explains: “Tools are very emotional products and end users can build a relationship with a good product that is built to last.”
Serenco started out in 1986 by seeking out innovative tools and bringing together ingenious products has become a formula for success. The company grew with brands like Metrinch, a tool system with the patented Metrinch Wall Drive profile that drives only on the flats and not on the corners. Able to operate on both metric and inch series fasteners, Metrinch’s success with Serenco initiated the development of special tools for automotive and for general industry.
That automotive sector has proved a key market for Serenco, and it’s also one undergoing significant change, says Geirnaert. “We see automotive converging to a wider mobility remit thanks to the growing influence of e-bikes and electric cars. Some have compared this new generation of mobility as electric motors and batteries on wheels,” he adds, emphasising the scale of change in the sector.
While Serenco says it is seeing the automotive market slowly take up more cordless tools, it sees even more potential advantages in using battery-power tools in the general industry sectors, thanks to added ease of operation and portability.
“Serenco has a great reputation for tools for servicing,” says the Serenco boss, drawing our attention to the cordless torque multiplier (PH-1500-24V). It’s lightweight and silent in use compared to an air impact wrench. It boasts four torque settings for tightening (450 Nm, 650Nm, 800 Nm and 1,500
Nm) and this easy to operate power tool has no load speed. It’s very competitively priced too, says Serenco, at approx. €1,299. It’s just one example of the innovative tools which are available under the Serenco umbrella.
Supply challenges
2021 has been a strong year for the firm, but the increased costs the industry has been experiencing have been difficult. Geirnaert notes the high level of activity in the US market as having an effect on the global supply chain: “Some companies have seen their orders from the US double. Now the USA has recently passed the $1 trillion infrastructure bill, so that will have a big effect on the order books too.”
The industry is contending with shortages, including semi-conductors, which Geirnaert confirms are affecting the tool business: “Yes. Like every industry, this is already hurting. In many cases, it’s not a case of being unable to get materials, it’s more the increased costs. If you add the different layers of costs together then it’s quite a significant price increase for customers.”
Factories are extending lead times, he adds: “Honestly I think that it is getting worse, not better. I don’t see any signs of improvements, because all the problems are continuing to get worse. Ordering so far in advance is a challenge and adds complexity to the market. So, what do we do? Order two years in advance? Bike shops are working on 2023 orders at the moment. At some point it will slow down. No industry keeps growing indefinitely, so there will be a readjustment. But which industry will be first and where?
“So, on the one hand, business has picked up a lot, but it’s a challenging environment.”
“People underestimate the tool market”
Current market challenges aside, Serenco is highly optimistic and enthusiastic about the potential for growth. Currently the firm has customers in 48 countries: “Growth will largely come in geographical terms. We are very well established in many territories like the UK, and we are building in Southern Europe and Eastern Europe.”
The potential is enormous, he adds: “People underestimate the tool market. It’s a huge sector. Its construction, general industry, automotive, DIY, the electrification of mobility... tools are everywhere.”
Tools also tap into current sustainability trends, he adds: “Tools enable people to repair instead of replace – cars, dish-washers... selling tools for people to fix the products that they already own, to enable them to enjoy repair and mechanical jobs. That’s my take on it!”
To find out more about the Serenco ranges and ambitions for the market, contact the firm at
www.serenco.nl
This article originally appeared in the November-December 2021 issue of Torque Magazine. Read the magazine in its entirety online or subscribe today.