The CEO Magazine: How long have you been CEO and what changes have you seen during that time?
Uroš: I have been CEO at Akrapovič for four years now. In that time I have seen big changes and significant growth in terms of revenue, employees, complexity, and partnerships with motorcycle and car producers, as well as racing teams. The company has grown from being mid-size to a much larger organisation that now employs close to 900 employees. At the end of 2012, Akrapovič employed 488 people and sales at that time reached a record €48 million with €1.2 million profit. We ended 2015 with more than €80 million in turnover and a consolidated profit of €7.5 million.
We have placed greater focus on employees, with activities to retain, and even increase, employee engagement and satisfaction. Also, more is being invested in human resource development and new technologies.
How important is innovation and R&D at Akrapovič? How has the product evolved over the years?
Innovation and R&D are always the most important topics at Akrapovič because our products are highly innovative and also technologically complex. Maintaining this level is only possible with continuous investment and by supporting innovation in all employees.
Over the years our products have become increasingly complex, mainly due to greater requirements and demands from customers. There is also a constant requirement, especially from racing teams, to get the best possible performance — not only on the pure power side, but also with improvements with drivability and the power-to-weight ratio.
With street applications, the growing complexity is mainly the result of increasing regulatory requirements for noise and emissions. An exhaust system is far from being just a tube to extract gases from the engine. Exhaust systems are complex products that use active components and are also connected to the vehicle’s electronics.
What does Akrapovič do that makes it stand out in the marketplace?
We constantly develop our products to the best possible limits, transforming technology and materials from racetracks — where no compromises are made — to the street. You can buy an Akrapovič exhaust system that is made from the same materials as the exhaust on a championship-winning MotoGP bike. Akrapovič is always pushing the limits; others can only follow, not lead.
How do you work with your key suppliers to ensure operational excellence?
We have a very close relationship with our key suppliers, especially with the suppliers of our special titanium alloys. They propose new-generation alloys that they develop on the metallurgical side, and we help them with development, testing, and evaluation of these alloys for our industrial applications.
Where do you see the business in five years’ time? What areas do you think need improvement?
In the next 5 years, resources will be invested to further improve production and reduce lead times. Improvements will be made in R&D, new know-how will be gained, new technologies mastered, and new services added. We want to shorten the time to market for our products overall. I expect that innovative exhaust solutions will be our core business in the next five years. However, looking at the product portfolio, the coming years will bring even greater diversification into other segments, where our in-house composites department and titanium foundry will play an important part. From vehicle accessories to aviation, we can offer our expert services for ultra-light solutions in many segments.
Is there anything else that you would like to add?
Never stop moving forward and never forget where you come from: the reason why everything started, the driving force. This is something that big companies often forget and instead focus on creating a system that allows a flawless and standardised type of operation. Nowadays you can obtain all possible data, analysis and optimisations, but what is the most important thing going forward to a bright future? The answer is people. People with proper know-how who are capable of making the right decisions and at the same time keeping their passion alive.