Based on SKF’s challenges and mission, the company focuses on five strategic priorities that provide the basis for the focus areas across the business:
1. Creating and capturing customer value
SKF will focus on helping customers with their own business and becoming more competitive. SKF will identify and help customers provide value through new solutions and innovations.
SKF offers two strategically different value propositions. The first focuses on helping customers to maximize the performance of their rotating equipment. This means that SKF combines its relevant technologies to achieve
the equipment’s best performance. The second proposition is providing products that fulfil customer requirements for a specific application, based on real operating conditions, for example speed, load, expected life and environment
where they are applied.
2. Application-driven innovation
To develop new technologies and solutions that are driven by customers’ application needs and provide them with a direct competitive advantage. To as great an extent as possible, these should be easily adapted by the
customers, without requiring design changes.
3. World-class manufacturing
SKF is placing manufacturing at the top of its agenda, developing the latest manufacturing technologies and ensuring a global manufacturing footprint.
4. Cost competitiveness
Through a new, leaner, organization and smarter ways of working, SKF is ensuring that it has the right cost base. A clear focus and priorities, simplicity and standardization are key enablers for a leaner organization. Also in manufacturing SKF needs to reduce product costs to ensure competitiveness. SKF will do that by becoming a world-class manufacturing company, having efficient purchasing and introducing fit-for-application products.
5. Maximizing cash flow over time
Strengthening the balance sheet and improving the ability to generate consistent levels of cash flow over time is a key focus. This will allow SKF to continue to reinvest in the core business and future growth, as well as
delivering returns to shareholders.
SKF's climate strategy
The climate strategy, built on SKF BeyondZero, tackles the greenhouse gas (GHG) impact in the full life cycle and the full value chain of SKF’s products and solutions.
The strategy is focusing on four areas where SKF has the possibility to drive significant improvements:
- SKF’s own operations
- Raw material and components
- Transport and distribution
- Products and solutions