The BSH group remains one of the few enduring home appliance manufacturers in Spain and stands as a major employer in Aragon, where two of its five Spanish factories operate. This German company, owned by Robert Bosch, oversees brands such as Bosch, Siemens, Gaggenau, Neff, and the Aragonese Balay. Fernando Gil Bayona, born in Zaragoza in 1967, serves as the managing director of the Spanish subsidiary and is related to one of the brand’s founders through family ties.
Where is the company?
In a time of changes. The company is energized by ongoing innovations for new products slated for release in three to four years. In the near term, it is navigating a somewhat complex economic climate, which is familiar to the industry. After the pandemic, sales rebounded. Given the maturity of the market, when sales peak, demand can slow, and the company finds itself in a softer period as a result.
How does inflation affect the company?
Inflation touches the business in several ways. First, production costs rise because raw materials and energy costs follow broader price trends. That makes products more expensive to produce. At the same time, households face reduced disposable income as wages trail inflation. This comes after a period of strong sales. The biggest competition now is time itself—people prioritize free time over additional spending on housing upgrades. Saturday dinners and leisure activities often take a back seat to other priorities, especially after the disruptions of the pandemic.
How does the company respond to this environment?
The strategy focuses on communicating the importance of energy costs, which have heightened consumer sensitivity. Substantial investments have been made to deliver appliances with high efficiency, reducing energy use in cooling, washing, and cooking. Appliance energy use accounts for about half of household electricity consumption; it is essential that products are intelligently designed to minimize consumption. Energy efficiency has been a long-standing priority for two decades, and with any luck, the industry is approaching a period of sustained efficiency gains rather than renewed disruption.
There are dark clouds in the industry—how is this year progressing?
There is a modest decline in the national market, not as severe as in some other countries. This year, the economic value is down roughly 5 percent, and the projection for next year ranges from flat to a five percent decline. The emphasis shifts to maintaining operations rather than expanding during a downturn. Exporting plays a key role, with about half of production destined for foreign markets. While some European neighbors see sharper corrections, countries like Germany have experienced declines, yet the sector remains mature and countercyclical. Daily necessity devices maintain stable demand, tempering both optimism and pessimism.
The company faced a supply crisis, especially with microchips. Has the situation improved?
It was a supply chain shock that delivered a hard lesson. Overstretched supply chains, a few distant suppliers, and reliance on single-supplier arrangements can halt production when surprises hit. If a sole manufacturer in Shanghai or Taiwan supplies a chip that must pass through narrow sea lanes or hazardous routes, disruption becomes a real risk. Such fragility could reshape globalization as we know it, as labor-cost advantages fade. In twenty to thirty years, manufacturing proximity may carry more weight. A major concern today is the geopolitical tension surrounding Taiwan, which directly impacts the global chip supply.
Have notes been taken to prevent a reinfarction of supplies?
The establishment of a robust local chip industry would require a public-private investment of many billions and a multi-year timeline. The measures put in place aim to reduce complexity by working with platforms that offer broader product ranges. The automotive industry has long embraced standardizing a chip across multiple models, and something similar is being pursued to improve resilience and flexibility.
Is there still a risk that the white goods industry will relocate to Spain?
Short term, the risk is low. Offshore production has reemerged in some cases, with lower labor costs offset by higher logistics and risk expenses. Medium term, Spain appears stable for manufacturing as long as demand volumes justify keeping factories in place in places like Poland, Turkey, Spain, or India. Companies are living entities, and there might come a time when a specific plant is no longer needed if demand shifts away from the products it makes.
The big storm on July 6 that flooded the La Cartuja factory—what is the current status?
That event was completely unpredictable and statistically rare. From July 6 to September 18, production was restored after the factory was carefully dismantled, cleaned, and reassembled with components either reused or replaced. The investment required was substantial, and insurance coverage supported the recovery. The priority now is normal operations, with the ability to run three shifts if market demand requires it. This month, the company plans to resume production of a highly efficient, energy-conscious model—a ten-kilogram capacity washing machine with a 1,600-cycle rating for Spain and export markets in mind.
What does Spain represent for the BSH group?
Spain is a major industrial hub and a center for IT and technology development. Although small in population, it ranks as the fifth or sixth key market for the group, accounting for about 800 million euros of business activity. The industrial arm has boosted BSH Spain’s turnover to around 1.715 billion euros, up about 10 percent with the addition of manufacturing capacity.
What will the devices of the future look like?
Smart, digitized, and connected. Future devices will synchronize with each other, with users, and with the processes that give them context, such as electrical networks. A washing machine might automatically determine the best time to run, or a refrigerator could place an order for groceries based on supermarket data. Digitalization will empower devices to become more autonomous and responsive to everyday needs.
Balay turned 75 in 2022. How is the brand performing?
Balay is thriving and enjoying strong consumer recognition. It embodies the innovations across the group, forming a critical pillar for Spain’s economy by adding volume to factories and driving channel momentum. Balay is aggressive in satisfying consumer expectations, often delivering the exact products demanded by the market. In recent decades, its prominence has surpassed other brands that once led the market, cementing Balay as the leading household name in Spain.
The government has started a new legislative period amid tensions. How does that affect a major company?
Stability matters for investment. When legal security is uncertain, investment becomes risky. A volatile political climate makes governance challenging and can hinder long-term planning. The company observes that a stable environment is essential for sustained growth and prudent decision-making.