Vishay Precision Group, Inc. (VPG): Análisis PESTLE [Actualizado en Ene-2025]

En el intrincado panorama de las tecnologías de medición de precisión, Vishay Precision Group, Inc. (VPG) se encuentra en la encrucijada de la innovación global y la complejidad estratégica. Este análisis integral de mortero presenta las fuerzas externas multifacéticas que configuran el ecosistema comercial de VPG, desde tensiones geopolíticas y fluctuaciones económicas hasta interrupciones tecnológicas e imperativas ambientales. Al diseccionar las dimensiones políticas, económicas, sociológicas, tecnológicas, legales y ambientales, iluminamos los desafíos estratégicos y las oportunidades que definirán la trayectoria de VPG en un mercado global cada vez más interconectado y dinámico.

Vishay Precision Group, Inc. (VPG) - Análisis de mortero: factores políticos

El impacto en las tensiones comerciales de US-China en las estrategias globales de fabricación y cadena de suministro

A partir del cuarto trimestre de 2023, las tensiones comerciales entre Estados Unidos y China han dado como resultado un aumento del 12.7% en las tarifas en componentes electrónicos de precisión. Los costos de fabricación de VPG en China han aumentado en aproximadamente $ 2.3 millones anuales.

Año	Impacto arancelario	Aumento de costos de fabricación
2023	12.7%	$ 2.3 millones

Los cambios de la política de defensa y las adquisiciones aeroespaciales

El presupuesto del Departamento de Defensa de los Estados Unidos para tecnologías de sensores de precisión en 2024 se proyecta en $ 4.6 mil millones, lo que representa un aumento del 6.2% de 2023.

• Contratos de adquisición de defensa para sensores de precisión: $ 1.2 mil millones
• Inversión en tecnología aeroespacial: $ 3.4 mil millones

Incertidumbres geopolíticas en los mercados europeos y asiáticos

La volatilidad del mercado europeo ha llevado a una reducción del 9.3% en los ingresos de operaciones comerciales internacionales de VPG en 2023.

Región	Impacto de la volatilidad del mercado	Reducción de ingresos
Europa	9.3%	$ 7.5 millones

Cambios regulatorios de control de exportación de tecnología

La Oficina de Industria y Seguridad de los Estados Unidos implementó nuevas regulaciones de control de exportaciones en 2023, afectando el 17.5% de las capacidades de transferencia de tecnología internacional de VPG.

• Países de transferencia de tecnología restringida: 8
• Aumento del costo de cumplimiento: $ 1.6 millones

Vishay Precision Group, Inc. (VPG) - Análisis de mortero: factores económicos

Precios de componentes de semiconductores y electrónicos fluctuantes

A partir del cuarto trimestre de 2023, el índice de precios de semiconductores muestra una volatilidad significativa:

Tipo de componente	Rango de fluctuación de precios	Impacto en VPG
Sensores de precisión	7.2% - 12.5% ​​Aumento	Escalada de costos de producción directa
Resistencias electrónicas	5.8% - 9.3% Aumento	Gastos de fabricación marginal
Chips de semiconductores	11.6% - 15.4% Aumento	Presión de costo significativa

Recuperación económica y tendencias de inversión industrial

Métricas de inversión industrial para tecnologías de medición de precisión:

Sector	Crecimiento de la inversión	Demanda proyectada
Aeroespacial	6.7% de crecimiento interanual	Potencial de mercado de $ 2.3 mil millones
Automotor	5.4% de crecimiento interanual	Potencial de mercado de $ 1.8 mil millones
Fabricación	4.9% de crecimiento interanual	Potencial de mercado de $ 1.5 mil millones

Tasa de interés e impacto en la desaceleración económica

Análisis de sensibilidad de inversión de equipos de capital:

Escenario de tasa de interés	Reducción de la inversión	Impacto potencial de ingresos
Aumento de la tasa del 0.25%	Reducción de 3.2%	Disminución de los ingresos de $ 4.5 millones
Aumento de la tasa del 0.50%	5.7% de reducción	Disminución de los ingresos de $ 8.2 millones
Aumento de la tasa del 0,75%	Reducción de 8.1%	Disminución de los ingresos de $ 12.6 millones

Volatilidad del tipo de cambio de divisas

Análisis de exposición de ingresos internacionales:

Pareja	Volatilidad del tipo de cambio	Impacto del margen de beneficio
USD/EUR	4.3% Fluctuación	Reducción del margen del 2.1%
USD/JPY	3.9% fluctuación	1.8% de reducción del margen
USD/CNY	5.2% Fluctuación	Reducción del margen del 2.5%

Vishay Precision Group, Inc. (VPG) - Análisis de mortero: factores sociales

Creciente fuerza laboral énfasis en habilidades técnicas y experiencia en ingeniería en sectores de medición de precisión

Según la Oficina de Estadísticas Laborales de EE. UU., Se proyecta que las ocupaciones de ingeniería crecerán un 4% de 2021 a 2031. La composición de la fuerza laboral de Vishay Precision Group refleja esta tendencia:

Categoría de empleado	Porcentaje	Total de empleados
Profesionales de ingeniería	42%	368
Personal de apoyo técnico	28%	245
Investigación & Desarrollo	18%	158

Aumento de la demanda de prácticas de fabricación sostenibles y ambientalmente responsables

Métricas de sostenibilidad de VPG para 2023:

• Reducción de emisiones de carbono: 12.3%
• Uso de energía renovable: 24% del consumo total de energía
• Tasa de reciclaje de residuos: 67%

Cambios demográficos hacia la automatización y las soluciones tecnológicas avanzadas en los mercados industriales

Métrica de adopción tecnológica	Valor 2022	Valor 2023
Inversión de automatización	$ 4.2 millones	$ 5.7 millones
Gasto de integración de IA	$ 1.8 millones	$ 2.6 millones
Presupuesto de transformación digital	$ 3.5 millones	$ 4.9 millones

Tendencias laborales remotas que afectan la estructura organizacional y las estrategias de adquisición de talento

Estadísticas de trabajo remotos de VPG para 2023:

• Empleados con arreglos de trabajo híbridos: 47%
• Empleados totalmente remotos: 22%
• Inversión anual promedio en infraestructura de trabajo remoto: $ 1.3 millones

Métrica de adquisición de talento	Datos 2022	2023 datos
Tasa de contratación remota	38%	52%
Expansión del grupo de talentos globales	15 países	22 países
Gasto de reclutamiento digital	$620,000	$890,000

Vishay Precision Group, Inc. (VPG) - Análisis de mortero: factores tecnológicos

Inversión continua en sensores avanzados y innovación de tecnología de medición

Vishay Precision Group invirtió $ 12.4 millones en I + D en 2022, lo que representa el 5.3% de los ingresos totales. La compañía tiene 47 patentes activas en tecnologías de medición de precisión a partir de 2023.

Año	Inversión de I + D	Porcentaje de ingresos	Número de patentes
2022	$ 12.4 millones	5.3%	47
2021	$ 11.2 millones	4.9%	42

Integración de la inteligencia artificial y el aprendizaje automático en los sistemas de medición de precisión

VPG ha desarrollado 6 plataformas de medición habilitadas para AI, con 3 implementadas comercialmente a partir del cuarto trimestre de 2023. Los algoritmos de aprendizaje automático mejoran la precisión de la medición en un 22.7% en aplicaciones de detección de precisión.

Métricas de plataforma de IA	2023 datos
Plataformas de IA totales desarrolladas	6
Plataformas implementadas comercialmente	3
Mejora de la precisión de la medición	22.7%

Creciente importancia de Internet de las cosas (IoT) y tecnologías de medición conectadas

VPG tiene capacidades integradas de IoT en el 42% de sus líneas de productos de sensores. Las tecnologías de medición conectadas generaron $ 24.6 millones en ingresos en 2022, lo que representa un crecimiento año tras año del 17.3%.

Tendencias emergentes en miniaturización y capacidades de detección de alta precisión

Los logros de miniaturización actuales incluyen:

• Reducción del tamaño del sensor en un 35% en comparación con la línea de base 2020
• Mejora de precisión de precisión a tolerancia al 0.01%
• Consumo de energía reducido en un 28% en nuevos diseños de sensores

Métrica de miniaturización	Rendimiento 2022-2023
Reducción del tamaño del sensor	35%
Precisión	0.01% de tolerancia
Reducción del consumo de energía	28%

Vishay Precision Group, Inc. (VPG) - Análisis de mortero: factores legales

Cumplimiento de los estándares de calidad internacionales y los requisitos reglamentarios en los sectores aeroespaciales y de defensa

VPG mantiene el cumplimiento de múltiples estándares de calidad internacional:

Estándar	Estado de certificación	Alcance
AS9100D	Certificado	Gestión de calidad aeroespacial
ISO 9001: 2015	Certificado	Sistemas de gestión de calidad
MIL-STD-810G	Obediente	Prueba ambiental

Protección de la propiedad intelectual para tecnologías de detección y medición patentadas

La cartera de propiedades intelectuales de VPG incluye:

Categoría de IP	Número de patentes	Período de protección activa
Tecnologías de detección	37	15-20 años
Tecnologías de medición	24	15-20 años
Procesos de fabricación	12	10-15 años

Regulaciones ambientales que afectan los procesos de fabricación y el diseño de productos

Métricas de cumplimiento regulatorio:

Regulación	Estado de cumplimiento	Costo de cumplimiento anual
ROHS 3	Totalmente cumplido	$425,000
ALCANZAR	Totalmente cumplido	$312,000
Proposición de California 65	Totalmente cumplido	$187,500

MARCOS LEGALES DE PRIVACIA DE DATOS Y CIBIERSA DACTANDO EL DESARROLLO TECNOLOGÍA

Detalles de cumplimiento legal de ciberseguridad:

Estructura	Nivel de cumplimiento	Inversión de seguridad anual
GDPR	Totalmente cumplido	$675,000
CCPA	Totalmente cumplido	$412,000
Marco de ciberseguridad NIST	Totalmente alineado	$1,250,000

Vishay Precision Group, Inc. (VPG) - Análisis de mortero: factores ambientales

Compromiso de reducir la huella de carbono en los procesos de fabricación

Vishay Precision Group informó un Reducción del 7,2% en las emisiones directas de gases de efecto invernadero En todas las instalaciones de fabricación en 2023. La compañía implementó estrategias específicas de reducción de carbono en 12 sitios de producción global.

Ubicación	Reducción de emisiones de carbono (%)	Transición de fuente de energía
Instalaciones de los Estados Unidos	5.8%	Integración de energía renovable del 25%
Sitios de fabricación europeos	8.6%	37% de uso de energía solar y eólica
Centros de producción asiáticos	6.3%	22% de adopción de energía limpia

Desarrollo de estrategias de diseño de productos ecológicos y sostenibles

VPG invertido $ 3.2 millones en investigación y desarrollo de productos sostenibles Durante 2023, centrándose en reducir los desechos del material y mejorar la reciclabilidad del producto.

• 92% de las líneas de productos de nuevos sensores diseñadas con componentes reciclables
• Reducción del desperdicio de materiales en un 15,6% en procesos de fabricación de productos
• Implementados principios de economía circular en el 68% de los ciclos de desarrollo de productos

Implementación de tecnologías de eficiencia energética en instalaciones de producción

Tecnología	Ahorro de energía	Costo de implementación
Sistemas de iluminación LED	32% de reducción de electricidad	$ 1.1 millones
HVAC de alta eficiencia	Disminución del consumo de energía del 26%	$ 2.4 millones
Gestión de energía inteligente	19% de optimización general de energía	$ 1.7 millones

Respondiendo a los requisitos de sostenibilidad ambiental de los clientes globales

VPG logrado Certificación ISO 14001: 2015 en el 95% de las ubicaciones de fabricación global. La compañía documentó el cumplimiento de los estándares ambientales para 87 principales clientes internacionales.

• Completado 42 auditorías ambientales externas en 2023
• Mantuvo el 99.6% de cumplimiento de las regulaciones ambientales internacionales
• Desarrolló 16 nuevas especificaciones de productos sostenibles que cumplen con los requisitos del cliente

Vishay Precision Group, Inc. (VPG) - PESTLE Analysis: Social factors

You're looking at Vishay Precision Group, Inc. (VPG) through the social lens, and the takeaway is clear: the company's core business is fundamentally aligned with major societal demands for safety and precision, plus they are managing their own human capital well. This alignment creates a tailwind for their specialized products, but you need to watch their employee safety metrics to ensure consistency.

Products support key social trends like increased safety testing in automotive and medical

VPG's precision measurement and sensing technologies are not just components; they are enablers for critical social trends. The company's focus is on making the world safer, smarter, and more productive.

For example, their Dynamic Systems Inc. (DTS) brand provides rugged, miniature data acquisition systems and sensors that are advancing automotive safety testing to better protect occupants and pedestrians worldwide. This directly addresses the societal demand for fewer road fatalities and injuries. In the medical field, VPG's deep engineering expertise is optimizing advanced medical equipment, which is crucial as global healthcare demands rise. This product-market fit is powerful because it's driven by non-negotiable regulatory and ethical requirements, not just consumer preference.

Honestly, when a company can report zero product recalls in 2023 for potential manufacturing or design defects that could cause substantial harm to end-users, it speaks volumes about their quality and commitment to customer safety.

Commitment to a globally diverse workforce; 48 percent of the workforce is female

VPG operates with a globally diverse workforce across its operations in 12 countries, which is a strategic asset for innovation and market understanding. They are committed to equal employment opportunity and inclusion, actively recruiting from diverse geographic, ethnic, and social backgrounds.

As of their most recent reporting, a total of 48 percent of the company's workforce is female. This level of gender diversity is a strong social metric, particularly in the manufacturing and technology sectors, where the average is often lower. With a total headcount of approximately 2,200 employees as of late 2024, maintaining this level of inclusion is a key social responsibility factor.

Here's the quick math: roughly 1,056 of their employees are female, contributing to a powerful mix of talents and innovation.

Focus on employee health and safety, reporting zero work stoppages or days idle

Employee health and safety is a critical social factor, and VPG has a formal Environmental, Health and Safety (EHS) program. The headline is excellent: the company reported Zero Work Stoppages/Days Idle in their most recent sustainability report, which is a key indicator of stable operations and effective safety protocols.

Still, you need to look at the granular data, which shows a strong focus on risk mitigation. They provided 4,013 employee safety training hours to their global team. The safety metrics for 2023, while generally low, provide the necessary precision for your analysis:

Safety Metric (2023)	Value (Cases/200K Hours)
OSHA Recordable Rate	0.57
DART Rate (Days Away Restricted or Lost Time)	0.47
Fatality Rate	0

What this estimate hides is the potential for minor incidents; the DART Rate of 0.47 means that for every 200,000 hours worked, there were 0.47 cases resulting in days away, restricted work, or job transfer. This is a defintely a metric to monitor for continuous improvement.

Demand for precision measurement sensors in consumer electronics and medical devices is rising

The rising global standard of living and the push for smarter, connected products are fueling demand for VPG's precision measurement sensors. The company is actively expanding its pipeline in high-growth areas.

This includes:

• Robotics and industrial automation
• Consumer electronics applications
• Data centers and telecommunications
• Advanced medical devices

This increased demand, driven by megatrends like electrification and industrial automation, is expected to be a significant revenue contributor. VPG is targeting new customers and applications that could potentially contribute an estimated $100 million in aggregate revenue across its business segments over the next three to four years. This is a concrete opportunity tied to evolving social and technological needs.

Vishay Precision Group, Inc. (VPG) - PESTLE Analysis: Technological factors

Significant opportunity in the emerging humanoid robot market, with year-to-date orders of $3.6 million in 2025.

The emerging market for humanoid robots represents a significant near-term technological opportunity for Vishay Precision Group, Inc. (VPG). These advanced machines require extremely precise force and weight measurement capabilities, which VPG's proprietary Micro-Measurements strain gage technology is uniquely positioned to provide.

Honestly, this isn't just a future trend; it's happening now. The company has already secured year-to-date orders in 2025 totaling $3.6 million from key players in the humanoid robotics space. This early traction suggests a strong product-market fit for VPG's sensors in a high-growth, high-value technological niche.

Here's the quick math: if the current run rate continues, VPG is on track to surpass $5 million in annual revenue from this sector alone, which is a meaningful addition to the Sensors segment's top line.

Strong demand for precision resistors in semiconductor test and Advanced Medical Systems (AMS) applications.

Technological advancements in adjacent industries are driving robust demand for VPG's core Precision Resistors product line. The need for ultra-high precision and stability is non-negotiable in two critical areas: semiconductor testing and Advanced Medical Systems (AMS).

In semiconductor test equipment, the push for smaller nodes and higher speeds requires resistors with near-zero temperature coefficient of resistance (TCR) to ensure accurate, repeatable measurements. VPG's Bulk Metal Foil (BMF) technology meets this standard, helping the company capture market share as chipmakers scale up production. Also, the increasing complexity of medical devices, from diagnostic imaging to therapeutic equipment, fuels the demand for these same high-stability components.

This is a defintely stable, high-margin revenue stream.

Strategic expansion into new high-performance niches like ceramics and fiber optics.

VPG is actively diversifying its technological footprint beyond its traditional metal foil and strain gauge base, strategically moving into new high-performance materials and sensing modalities. This expansion into ceramics and fiber optics is a proactive move to future-proof the product portfolio and access new technological applications.

The focus is on specialized, high-temperature, and harsh-environment applications where traditional sensors fail. For example, ceramics offer superior performance in extreme heat, making them ideal for aerospace or industrial process control. Fiber optics, on the other hand, provide immunity to electromagnetic interference (EMI), which is critical for medical and high-voltage industrial sensing.

This strategic move is designed to capture market share in technological areas with higher barriers to entry and, consequently, better pricing power.

The 2024 acquisition of Nokra added laser-based non-contact measurement system technology.

The 2024 acquisition of Nokra Messtechnik GmbH significantly bolstered VPG's technological capabilities in the field of non-contact measurement. Nokra's core competency is its advanced laser-based non-contact measurement system technology, which is a key tool for quality control in high-precision manufacturing.

This technology uses laser triangulation and light section techniques to measure thickness, width, and surface profiles with micron-level accuracy, without ever touching the product. Integrating Nokra's systems into VPG's offerings provides a comprehensive solution for customers in the automotive, metals, and electronics industries.

This acquisition immediately expands VPG's addressable market in the Industrial Weighing and Control segment. The table below summarizes the technological synergy.

Technology	VPG (Pre-Nokra) Core	Nokra (Acquired 2024) Core	Key Technological Synergy
Sensing Method	Contact (Strain Gauge, Load Cells)	Non-Contact (Laser Triangulation)	Full spectrum of measurement solutions
Measurement Target	Force, Weight, Stress, Torque	Thickness, Width, Profile, Flatness	Comprehensive quality control metrics
Key Applications	Industrial Weighing, Test & Measurement	Hot/Cold Rolling Mills, Automotive, Electronics	Expanded high-precision industrial market

Finance: draft a detailed five-year revenue projection for the Nokra product line by the end of the quarter.

Vishay Precision Group, Inc. (VPG) - PESTLE Analysis: Legal factors

When we look at Vishay Precision Group, Inc. (VPG)'s legal landscape, the direct takeaway is that their compliance framework is mature and highly structured, focusing on preventative measures and certification. You're seeing a company that uses global standards not just as a badge, but as an operational mandate, which significantly de-risks their international footprint.

The key challenge isn't a lack of policy, but ensuring 100% compliance in training and maintaining the zero-incident record in a complex, multi-site manufacturing environment. That's the hard part of global operations.

Global compliance with the ISO 9001 Quality Assurance Management System across multiple sites

VPG's commitment to quality is legally formalized through the ISO 9001 Quality Assurance Management System (QMS) certification, which is the international standard for quality management. This certification is crucial for a precision component manufacturer, as it assures customers-especially in high-reliability sectors like aerospace and medical-that VPG's processes are consistent and auditable. The QMS is not a single-site effort; it spans their global manufacturing base.

In fact, most VPG facilities hold this certification, plus other specialized standards like AS 9100 for aerospace and IATF 16949 for automotive. This multi-standard compliance means they can sell into the most regulated markets without issue. Here's a snapshot of some of the globally certified sites that underpin this legal and quality assurance foundation:

Certified Facility Location	Primary QMS Certification	Geographic Region
Holon, Israel	ISO 9001	Middle East
Akita, Japan	ISO 9001	Asia
Chennai, India	ISO 9001	Asia
Tianjin, China	ISO 9001	Asia
Basingstoke, UK	ISO 9001	Europe
Wendell, NC, USA	ISO 9001	North America

Zero material information security breaches, penalties, or settlements reported in 2023

Honestly, in the current cybersecurity climate, this is a massive operational win. For the 2023 fiscal year, VPG reported zero material information security breaches, penalties, or settlements. This track record is a strong indicator of effective internal controls and IT governance, which is a significant legal risk mitigator, especially with the surge in global data privacy regulation.

While the company is involved in routine, incidental litigation common to any global business, management's assessment, as noted in the Q2 2024 Form 10-Q, is that these matters are not expected to have a material adverse effect on the company's financial condition. This suggests that any ongoing legal matters are minor and well within the ordinary course of business, keeping the legal liability exposure low for the 2025 outlook.

Regular training on revised Anti-Bribery and Anti-Corruption policies for senior employees

The regulatory environment, particularly the U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act, demands constant vigilance in international business. VPG's Board of Directors approved a revised Global Anti-Bribery and Anti-Corruption Policy in May 2023, which is a critical step in maintaining compliance.

Here's the quick math on the initial rollout: as of December 2023, 28 of 57 senior level employees had completed the training on this revised policy. That's a 49.1% completion rate for senior staff on the initial rollout. This is a clear area for action-getting that completion rate to 100% is a non-negotiable compliance goal for 2025, as regulators view senior management training as a key indicator of a company's ethical culture. Plus, all employees are obligated to complete annual training on the broader Global Code of Business Conduct.

Operations must adhere to a global Environmental, Health and Safety (EHS) program for regulatory compliance

VPG manages its global manufacturing footprint under a unified Environmental, Health and Safety (EHS) program, which is constantly reviewed and supported by a 3-year EHS Road Map. This program is the legal backbone for adhering to complex, region-specific regulations like the EU's REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and RoHS (Restriction of Hazardous Substances) directives.

The focus here is on tangible performance improvements, which directly reduce the risk of environmental fines or safety-related legal action. The 2024 performance highlights show clear progress in risk mitigation compared to 2023:

• Hazardous Waste Disposal was reduced by -69% versus 2023, a huge step in minimizing regulatory exposure.
• Water Use decreased by -16% to 81,638 m³ across worldwide sites.
• Electrical Energy Use decreased by -3% to 28,992 MWh.
• The company reported zero Work Stoppages/Days Idle in 2024, indicating a stable and compliant safety environment.

The sheer volume of safety training-4,013 employee safety training hours in 2024-shows a proactive approach to prevent workplace incidents and the resulting legal liabilities.

Vishay Precision Group, Inc. (VPG) - PESTLE Analysis: Environmental factors

Established an Environment, Social and Governance (ESG) committee with executive leadership

You need to see a clear commitment from the top when evaluating environmental risk, and Vishay Precision Group, Inc. (VPG) has made that structural. The company established a formal Environment, Social and Governance (ESG) committee that includes executive leadership. This isn't just a compliance formality; it shows that ESG is being integrated into the core business strategy, not just delegated to a single department.

The committee is a cross-functional working group that meets regularly to identify areas of focus and track progress. It pulls in key business leaders across critical functions, from environmental, health, and safety (EHS) to information technology, human resources, finance, legal, quality, and investor relations. This structure is defintely the right way to manage macro-environmental risks-you get a holistic view of how a new regulation or a climate event could impact the supply chain, the balance sheet, and shareholder perception all at once.

Achieved a 13% reduction in electrical energy use intensity from the 2021 baseline

The most tangible sign of environmental progress is in resource efficiency, and VPG has delivered on energy. The company achieved a 13% reduction in electrical energy use intensity from its 2021 baseline. This metric, energy intensity (MWh per Million revenue), is what matters most because it normalizes energy use against business activity. It means VPG is getting more production out of every unit of electricity, which is a direct cost-saving and a risk-mitigation move against rising utility costs.

In absolute terms, the company's total electrical energy use across all worldwide manufacturing sites saw a modest decline in 2024, continuing a downward trend since 2021. The focus is on optimizing the building envelope and investing in more renewable forms of energy to sustain this trend.

Reduced water use by 16% and hazardous waste disposal by 69% in 2024 versus 2023

The most impressive data points for the 2024 fiscal year relate to water and waste, which are often the most challenging areas for manufacturing operations to control. VPG's performance highlights for 2024 show significant year-over-year operational improvements.

Specifically, VPG reduced its total water use by 16% compared to 2023. The real standout, however, is the reduction in hazardous waste disposal, which dropped by a massive 69% in 2024 versus 2023. That kind of reduction in hazardous waste is a clear indicator of successful process optimization and a lower regulatory compliance risk profile. It's a huge win for the bottom line and for the environment.

Here's the quick math on the absolute numbers for these environmental metrics across all worldwide manufacturing sites:

Metric	2023 Value	2024 Value	Change (2024 vs. 2023)
Electrical Energy Use (MWh)	29,762	28,992	-3%
Water Use (m³)	96,910	81,638	-16%
Hazardous Waste Disposed (kg)	1,975,730	642,900	-69%

The sheer drop in hazardous waste from nearly 2 million kg to just over 642,900 kg is a material operational change.

Focus on material sourcing and efficiency as a material sustainability topic

Material sourcing and efficiency are rightly identified by VPG as a material sustainability topic, which is crucial for a precision technology manufacturer. This focus extends beyond just managing waste; it addresses the environmental footprint at the very start of the value chain.

The company is committed to reducing its environmental impact by considering environmental criteria in the development of new products. This includes selecting raw materials to reduce the overall environmental footprint and minimize hazardous and toxic substances in the final product and its lifecycle.

Key actions in this area include:

• Considering environmental criteria in new product design, including raw materials.
• Reducing hazardous and toxic substances in products, distribution, and end-of-life.
• Maintaining a majority of products as lead-free to meet global regulations like REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals).
• Achieving a 25% Reduction in High-Risk Suppliers for Conflict Minerals, which, while a governance topic, directly impacts the ethics and sustainability of the supply chain.