26 Oct Interview with Christoph Loos, Chairman of the Board of Directors, HILTI
Can you give us an overview of Hilti’s operations and scope in 2024?
Hilti is the largest family-owned company in Liechtenstein, which is unique given our scale. Our direct-to-customer model lets us gain first-hand insight from global job sites and develop tailored solutions for our customers’ challenges. Our approach also allows us to integrate valuable service elements with our hardware products. In an industry grappling with a skilled labor shortage and increasing regulatory demands, Hilti provides expertise and on-site support, making us a trusted partner in productivity, safety and sustainability. We have two core business areas: electric tools and fastening and protection solutions for mounting pipes, cables and ventilation. We are also building a third business area in construction software that can be combined with our tools. Hilti’s direct customer relationships give us unmatched insight into construction challenges worldwide and enable us to help contractors meet regulatory and quality standards, even with fewer skilled workers on site.
We employ more than 34,000 workers worldwide. Europe remains a significant market for the company, comprising around 50% of our operations. The Americas contribute around 30% of our business, with the remaining operations spread across Asia and other regions. The USA is a key region for our group; we partner with major contractors nationwide. Our more than 4,400 team members in North America are trusted partners who aim to understand local contractors’ specific needs. We are more than a tool seller; we are a solution provider.
What specific innovations has Hilti recently created to increase client productivity?
While our tools, fastening and protection solutions and on-site services make job site applications more productive, safer and sustainable, we have recognized over time that our customers’ needs go beyond these tasks. Most mid-sized construction firms lack the resources to optimize business management, project operations and communication effectively, which impacts their productivity and finances. To this end, we have expanded our offerings to include software and data management tools. Our productivity tools now help contractors manage assets, streamline project workflows, improve site-to-office communication and coordinate resources.
Our established third business pillar in construction software was developed in-house and through strategic acquisitions to enhance our customers’ overall operational success. We currently offer four key software solutions: ON!Track, an asset management tool; Fieldwire, a project management software from our US acquisition; 4PS, a construction enterprise resource planning system from our Netherlands acquisition; and CrewCenter, developed in-house to help manage workforces across sites. These tools bring advanced technology to large job sites and integrate 3D design models created in the planning phase with on-site operations. This data-driven approach coordinates daily work, scheduling, quality control and reporting to transform construction productivity from the early design phase through a project’s lifecycle. Hilti’s role is to guide our customers in implementing these technologies to overcome industry challenges.
How is Hilti’s strong focus on sustainability helping the construction industry cut carbon emissions and protect the environment?
Hilti has always prioritized responsibility, particularly toward the environment. We achieved carbon neutrality in our operations in 2023 and have joined the Science Based Targets initiative to achieve net-zero carbon emissions by 2050. This ambitious goal aligns with our values and differentiates us as a partner who understands the giant pressures put on construction as the world’s top carbon-dioxide-emitting industry. Sustainability is now our third core promise to clients alongside productivity and safety. We guide our customers toward greener practices and technologies to drive safety, efficiency and sustainability. Unlike standard power tool companies, Hilti is a productivity partner focused on long-term customer relationships and sustainable solutions. We examine every step of our product development process from choosing sustainable materials to designing tools for circularity to create greener and recyclable tools. Through our tool leasing program, Fleet Management, we ensure peace of mind for our customers while retaining ownership of tools. We ensure their availability on job sites, handle maintenance and repairs and collect tools for recycling. This circular model minimizes landfill waste and supports our commitment to sustainability. Customers benefit from streamlined tool management, while we repurpose or recycle tools at the end of their lifecycle.
How is Hilti advancing its commitments under its Lead 2030 growth strategy?
We are transforming Hilti to align with our Lead 2030 strategy, which involves evolving from a hardware company to a comprehensive partner for productivity, safety and sustainability. This transformation requires upskilling our team of 34,000 people, adjusting profiles and investing in new technologies. Ensuring a pipeline of talent and leadership succession is vital. We hire for careers, not jobs. We foster development and create future leaders for key roles around the world. This commitment to developing people will ensure our company remains strong in the future.
Our US team is amplifying a motto that resonates deeply with me, “The construction industry is vital to our daily lives.” From the roads we travel to the schools our children attend and the hospitals we rely on, all infrastructure is made possible by construction. Unfortunately, this industry is often undervalued and perceived as the largest polluter. It is often considered unattractive compared to new segments such as technology. At Hilti, we celebrate construction and take pride in serving this sector; our close relationships with our customers help us understand their daily challenges. We are committed to improving construction incrementally every day. This is not just a catchy slogan; it reflects our genuine dedication. Our entire business model — built on differentiation and direct customer relationships — supports our purpose of making construction better.
What philanthropic initiatives does Hilti support to drive the social development of local communities?
We focus our social efforts on two main pillars. The first is the Hilti Foundation which was established in 1996. It is funded through a significant part of the group’s annual net profit, which is matched by the Hilti family. The foundation has an annual budget exceeding $30 million and supports around 80 projects worldwide. It focuses mainly on music for social change, affordable housing, economic empowerment and disaster relief. These initiatives emphasize our “help for self-help” approach to empower communities, which includes training individuals in trades and imparting life skills to children through music programs. Our second pillar is our corporate volunteer program, Engaged Beyond Business. Team members are encouraged to spend up to two working days a year in social service — whether it be renovating a kindergarten, cleaning a beach or supporting the elderly. This program enhances community impact while strengthening employee pride and connection to the company.
How are major construction companies such as Hilti responding to challenges in the global market in 2024?
The construction industry is growing due to the increasing global population and rising demand for housing, infrastructure, healthcare and education facilities. This growth is also driven by a major shift toward technology and data-driven processes, which enhance productivity, safety and sustainability in a traditionally low-tech sector. These transformations, alongside population growth, create a strong foundation for continued industry expansion in the years ahead. That said, a key focus for global companies today is to build resilience amid a more complex and divided world. For around 30 years businesses have expanded globally without worrying about major conflicts and trade issues. Recent geopolitical tensions have changed that landscape. Companies now require contingency plans and resilient supply chains to prepare for potential disruptions. This shift requires long-term planning and investments, which are my main priorities as chairman.