Vishay Precision Group, Inc. (VPG): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le paysage complexe des technologies de mesure de précision, Vishay Precision Group, Inc. (VPG) se dresse au carrefour de l'innovation mondiale et de la complexité stratégique. Cette analyse complète du pilon dévoile les forces externes à multiples facettes qui façonnent l'écosystème commercial de VPG, des tensions géopolitiques et des fluctuations économiques aux perturbations technologiques et aux impératifs environnementaux. En disséquant les dimensions politiques, économiques, sociologiques, technologiques, juridiques et environnementales, nous illuminons les défis et opportunités stratégiques qui définiront la trajectoire de VPG dans un marché mondial de plus en plus interconnecté et dynamique.

Vishay Precision Group, Inc. (VPG) - Analyse du pilon: facteurs politiques

Les tensions commerciales américaines-chinoises ont un impact sur les stratégies mondiales de fabrication et de chaîne d'approvisionnement

Au quatrième trimestre 2023, les tensions commerciales américaines-chinoises ont entraîné une augmentation de 12,7% des tarifs sur les composants électroniques de précision. Les coûts de fabrication de VPG en Chine ont augmenté d'environ 2,3 millions de dollars par an.

Année	Impact tarifaire	Augmentation des coûts de fabrication
2023	12.7%	2,3 millions de dollars

Défense et changements de politique d'approvisionnement en aérospatiale

Le budget du ministère américain de la Défense pour les technologies de capteurs de précision en 2024 est prévu à 4,6 milliards de dollars, ce qui représente une augmentation de 6,2% par rapport à 2023.

• Contrats d'approvisionnement de la défense pour les capteurs de précision: 1,2 milliard de dollars
• Investissement en technologie aérospatiale: 3,4 milliards de dollars

Incertitudes géopolitiques sur les marchés européens et asiatiques

La volatilité du marché européen a entraîné une réduction de 9,3% des revenus internationaux des opérations commerciales de VPG en 2023.

Région	Impact de la volatilité du marché	Réduction des revenus
Europe	9.3%	7,5 millions de dollars

Contrôle des exportations de technologie Modifications réglementaires

Le Bureau américain de l'industrie et de la sécurité a mis en œuvre de nouveaux règlements de contrôle des exportations en 2023, affectant 17,5% des capacités de transfert de technologie internationales de VPG.

• Pays de transfert de technologie restreintes: 8
• Augmentation des coûts de conformité: 1,6 million de dollars

Vishay Precision Group, Inc. (VPG) - Analyse du pilon: facteurs économiques

Fluctuant les prix mondiaux des composants semi-conducteurs et électroniques

Au Q4 2023, l'indice de tarification des semi-conducteurs montre une volatilité significative:

Type de composant	Fourchette de fluctuation des prix	Impact sur VPG
Capteurs de précision	Augmentation de 7,2% - 12,5%	Escalade des coûts de production directe
Résistances électroniques	Augmentation de 5,8% - 9,3%	Dépenses de fabrication marginale
Chips semi-conducteurs	11,6% - 15,4% augmentation	Pression de coût significative

Récupération économique et tendances des investissements industriels

Métriques d'investissement industrielles pour les technologies de mesure de précision:

Secteur	Croissance des investissements	Demande projetée
Aérospatial	6,7% de croissance en glissement annuel	Potentiel de marché de 2,3 milliards de dollars
Automobile	5,4% de croissance en glissement annuel	Potentiel de marché de 1,8 milliard de dollars
Fabrication	4,9% de croissance en glissement annuel	Potentiel de marché de 1,5 milliard de dollars

Taux d'intérêt et impact sur le ralentissement économique

Analyse de la sensibilité aux investissements en équipement:

Scénario de taux d'intérêt	Réduction des investissements	Impact potentiel des revenus
Augmentation du taux de 0,25%	Réduction de 3,2%	4,5 millions de dollars en baisse des revenus
Augmentation de taux de 0,50%	Réduction de 5,7%	8,2 millions de dollars en baisse des revenus
Augmentation du taux de 0,75%	Réduction de 8,1%	En baisse des revenus de 12,6 millions de dollars

Volatilité des taux de change

Analyse internationale de l'exposition aux revenus:

Paire de devises	Volatilité du taux de change	Impact sur la marge bénéficiaire
USD / EUR	4,3% de fluctuation	Réduction de 2,1% de marge
USD / JPY	3,9% de fluctuation	1,8% de réduction de la marge
USD / CNY	5,2% de fluctuation	Réduction de 2,5% de marge

Vishay Precision Group, Inc. (VPG) - Analyse du pilon: facteurs sociaux

L'accent mis en charge de la main-d'œuvre sur les compétences techniques et l'expertise en génie dans les secteurs de la mesure de précision

Selon le Bureau américain des statistiques du travail, les professions d'ingénierie devraient augmenter de 4% de 2021 à 2031. La composition de la main-d'œuvre du Vishay Precision Group reflète cette tendance:

Catégorie des employés	Pourcentage	Total des employés
Professionnels de l'ingénierie	42%	368
Personnel de soutien technique	28%	245
Recherche & Développement	18%	158

Demande croissante de pratiques de fabrication durables et respectueuses de l'environnement

Les mesures de durabilité de VPG pour 2023:

• Réduction des émissions de carbone: 12,3%
• Utilisation d'énergie renouvelable: 24% de la consommation totale d'énergie
• Taux de recyclage des déchets: 67%

Changements démographiques vers l'automatisation et les solutions technologiques avancées sur les marchés industriels

Métrique d'adoption technologique	Valeur 2022	Valeur 2023
Investissement d'automatisation	4,2 millions de dollars	5,7 millions de dollars
Dépenses d'intégration d'IA	1,8 million de dollars	2,6 millions de dollars
Budget de transformation numérique	3,5 millions de dollars	4,9 millions de dollars

Tendances de travail à distance ayant un impact sur la structure organisationnelle et les stratégies d'acquisition de talents

Statistiques de travail distantes de VPG pour 2023:

• Employés ayant des dispositions de travail hybrides: 47%
• Employés entièrement éloignés: 22%
• Investissement annuel moyen dans les infrastructures de travail à distance: 1,3 million de dollars

Métrique d'acquisition de talents	2022 données	2023 données
Taux d'embauche à distance	38%	52%
Extension mondiale de piscine de talents	15 pays	22 pays
Dépenses de recrutement numérique	$620,000	$890,000

Vishay Precision Group, Inc. (VPG) - Analyse du pilon: facteurs technologiques

Investissement continu dans l'innovation avancée des capteurs et de la mesure

Vishay Precision Group a investi 12,4 millions de dollars en R&D en 2022, ce qui représente 5,3% des revenus totaux. La société détient 47 brevets actifs dans les technologies de mesure de précision à partir de 2023.

Année	Investissement en R&D	Pourcentage de revenus	Nombre de brevets
2022	12,4 millions de dollars	5.3%	47
2021	11,2 millions de dollars	4.9%	42

Intégration de l'intelligence artificielle et de l'apprentissage automatique dans les systèmes de mesure de précision

VPG a développé 6 plates-formes de mesure compatibles AI, avec 3 commercialement déployés au T2 2023. Les algorithmes d'apprentissage automatique améliorent la précision de mesure de 22,7% dans les applications de détection de précision.

Métriques de la plate-forme AI	2023 données
Total des plateformes d'IA développées	6
Plates-formes déployées commercialement	3
Amélioration de la précision de la mesure	22.7%

Importance croissante de l'Internet des objets (IoT) et des technologies de mesure connectées

VPG a intégré des capacités IoT dans 42% de ses gammes de produits de capteur. Les technologies de mesure connectées ont généré des revenus de 24,6 millions de dollars en 2022, ce qui représente une croissance de 17,3% en glissement annuel.

Tendances émergentes de la miniaturisation et des capacités de détection de haute précision

Les réalisations actuelles de miniaturisation comprennent:

• Réduction de la taille du capteur de 35% par rapport à 2020
• Amélioration de la précision de précision à une tolérance à 0,01%
• La consommation d'énergie réduite de 28% dans les nouveaux conceptions de capteurs

Métrique de miniaturisation	Performance 2022-2023
Réduction de la taille du capteur	35%
Précision de précision	Tolérance à 0,01%
Réduction de la consommation d'énergie	28%

Vishay Precision Group, Inc. (VPG) - Analyse du pilon: facteurs juridiques

Conformité aux normes de qualité internationales et aux exigences réglementaires dans les secteurs de l'aérospatiale et de la défense

VPG maintient la conformité à plusieurs normes de qualité internationales:

Standard	Statut de certification	Portée
AS9100D	Agréé	Gestion de la qualité aérospatiale
ISO 9001: 2015	Agréé	Systèmes de gestion de la qualité
Mil-std-810g	Conforme	Tests environnementaux

Protection de la propriété intellectuelle pour les technologies de détection et de mesure propriétaires

Le portefeuille de propriété intellectuelle de VPG comprend:

Catégorie IP	Nombre de brevets	Période de protection active
Technologies de détection	37	15-20 ans
Technologies de mesure	24	15-20 ans
Processus de fabrication	12	10-15 ans

Règlements environnementaux affectant les processus de fabrication et la conception des produits

Métriques de la conformité réglementaire:

Règlement	Statut de conformité	Coût annuel de conformité
Rohs 3	Pleinement conforme	$425,000
ATTEINDRE	Pleinement conforme	$312,000
California Proposition 65	Pleinement conforme	$187,500

Cadres juridiques de confidentialité et de cybersécurité des données impactant le développement technologique

Détails de la conformité juridique de la cybersécurité:

Cadre	Niveau de conformité	Investissement de sécurité annuel
RGPD	Pleinement conforme	$675,000
CCPA	Pleinement conforme	$412,000
Cadre de cybersécurité NIST	Entièrement aligné	$1,250,000

Vishay Precision Group, Inc. (VPG) - Analyse du pilon: facteurs environnementaux

Engagement à réduire l'empreinte carbone dans les processus de fabrication

Vishay Precision Group a rapporté un Réduction de 7,2% des émissions directes de gaz à effet de serre Dans tous les installations de fabrication en 2023. La société a mis en œuvre des stratégies de réduction du carbone ciblées sur 12 sites de production mondiaux.

Emplacement	Réduction des émissions de carbone (%)	Transition de la source d'énergie
United States Installations	5.8%	25% d'intégration d'énergie renouvelable
Sites de fabrication européens	8.6%	37% d'utilisation de l'énergie solaire et éolienne
Centres de production asiatiques	6.3%	22% d'adoption d'énergie propre

Développer des stratégies de conception de produits écologiques et durables

VPG a investi 3,2 millions de dollars en recherche et développement de produits durables En 2023, en vous concentrant sur la réduction des déchets des matériaux et l'amélioration de la recyclabilité des produits.

• 92% des nouvelles gammes de produits de capteur conçues avec des composants recyclables
• Réduction des déchets de matériaux de 15,6% dans les processus de fabrication de produits
• Implémenté les principes de l'économie circulaire dans 68% des cycles de développement de produits

Mise en œuvre des technologies économes en énergie dans les installations de production

Technologie	Économies d'énergie	Coût de la mise en œuvre
Systèmes d'éclairage LED	32% de réduction de l'électricité	1,1 million de dollars
CVC à haute efficacité	26% de consommation d'énergie diminuant	2,4 millions de dollars
Gestion de l'alimentation intelligente	19% d'optimisation d'énergie globale	1,7 million de dollars

Répondre aux exigences de durabilité environnementale des clients mondiaux

VPG a réalisé Certification ISO 14001: 2015 sur 95% des emplacements de fabrication mondiale. La société a documenté le respect des normes environnementales pour 87 clients internationaux majeurs.

• Terminé 42 audits environnementaux externes en 2023
• Maintenu à 99,6% de conformité aux réglementations environnementales internationales
• Développé 16 nouvelles spécifications de produits durables répondant aux exigences des clients

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.