Sobering Prospects for the Bosch Home Comfort Group

The Federal Government and its Heating Act have created uncertainty among German customers, leading to a noticeable decline in orders for heat pumps at Bosch Home Comfort. Jan Brockmann, the CEO of the company, emphasizes that the subsidy policy in place at the beginning of the year caused confusion, which negatively affected order volumes. Brockmann predicts the sales slump will continue until mid-year. Despite these challenges, Brockmann remains cautiously optimistic. He expects that customers will increasingly realize the attractiveness and functionality of the new subsidy system, which could lead to a revived demand in the second half of the year. However, Brockmann views the economic conditions, particularly in the construction sector, with concern. He does not foresee a significant recovery in renovations and new construction either this year or next. What happens thereafter will largely depend on political initiatives. Nevertheless, he has noticed some ease in the shortage of installers: reduced workload in the construction industry has freed up capacity for heating installations, supported by increased numbers of trainees and productivity gains through training programs. Despite current complications, Bosch Home Comfort, formerly known as Bosch Thermotechnology, reported an eleven percent increase in sales last year, boosting revenues to five billion euros. Heat pumps (+84%) and hybrid heating systems (+46%) in particular saw strong growth. The number of employees at the company increased marginally. However, exact sales figures or results were not disclosed. The year 2022 was still characterized by a heat pump boom, triggered by the uncertainty regarding fossil fuels following Russia's invasion of Ukraine. For 2023, however, Brockmann tempers expectations. Without a successful start to the year, records are unlikely. He currently rules out job cuts in Bosch's other areas for Germany.