This year has been an eventful one for Jame-Shaft, and I would like to take this opportunity to share some updates on our business and outlook for the future.
The outlook for the manufacturing industry has become increasingly positive in recent months. While uncertainties in the global economy remain, there are encouraging signs of growing activity. Forecasts from many of our customers, the level of quotation requests, and our ongoing customer discussions have all taken on a more optimistic tone.
Steel prices have remained remarkably stable, which continues to be unusual in the steel industry. Tool steel prices, however, have increased significantly, and this is inevitably reflected in the cost of the carbide tooling used in production. Let’s hope the upward price pressure does not spill over into quenched and tempered steels and case-hardening steels, although many in the industry have been expecting it for well over a year. The prolonged weakness in European automotive demand has likely helped contain these price increases. Energy markets have also settled down compared to the rollercoaster ride of recent years. Of course, the coming winter’s weather conditions may still influence energy prices, but forecasting the weather is best left to the meteorologists.
While steel prices have remained remarkably stable, the same cannot be said for all the raw materials we rely on. Prices for oil-based lubricants and process chemicals have risen by as much as 23%, and the cost of ammonia used in heat treatment has multiplied over the past few years. The reasons behind these increases are, unfortunately, well known and largely tied to the geopolitical situation.
At Jame-Shaft, we are very pleased with the financial year that ended in June. We achieved the highest turnover in the company’s history, reflecting both our customers’ trust and our long-term commitment to continuously improving our operations. I would like to sincerely thank our customers, employees, and partners for their contribution to this achievement.
Our most significant development project during the last financial year was the implementation of a new ERP system. The project required significant effort throughout the organization and presented us with a few challenges along the way. We are now pleased to report that the system is beginning to perform in line with the expectations and objectives set for it. We would also like to once again apologize for the delivery delays experienced during the spring and early summer.
We have continued to invest systematically in the competitiveness of our production. Our multi-tasking turning center arrived as planned in early August, and installation is currently underway. This new machine will strengthen our machining capabilities and provide additional capacity for future growth. And the journey does not stop there. Earlier this year, we approved an investment program exceeding EUR 3 million for 2027. We look forward to sharing more details about these plans later this year.
We warmly welcome you to meet the Team Jame at the Tampere Subcontracting Fair. Once again, we will have our own stand and would be delighted to discuss your current and future needs as well as exchange the latest news and ideas. This year we are also expanding our exhibition presence into Sweden, one of our growing market areas, by participating with our own stand for the first time at Elmia Subcontractor in Jönköping this November. We hope to meet many of you there as well.
In addition to these events, you are always warmly welcome to visit our factory in Salo.
We wish you a successful rest of the year and a pleasant autumn.
Best regards,
Mika Tuunainen
Managing Director
Jameshaft Oy