The demand for equipment rental and rental-related services developed positively during the year in Cramo’s main markets. Our sales and profit development remained strong, especially in Finland and Sweden, and there was a clear, positive turnaround in results for Central Europe.
In equipment rental, changes in demand usually lag behind those in construction. The demand for equipment rental services is affected by construction volume, industrial investments and a market's rental penetration rate.
Meeting the demand for rental-related services
Higher requirements for quality, safety and resource efficiency, more stringent laws and pressure to cut costs increase the need for different types of rental-related services. Along with other solutions and services, Cramo offers two different service concepts to support customers with large-scale projects to meet these expectations: pro-active project monitoring and site logistics. The goal of both concepts is to ensure the efficient use of time and various resources throughout a project.
With the pro-active project monitoring service, Cramo plans its own delivery schedule well in advance based on the customer’s timeline for the whole project. With its construction site logistics concept, Cramo takes responsibility for managing the entire logistics of a site.
Both services enable customers to avoid unnecessary waiting and moving of materials or equipment, thus saving time, money and the environment.
In 2016 Cramo further strengthened its site logistics services in Finland by acquiring the business of the logistics and telescopic handler company Kurottaja- ja Kuljetuspalvelu Parviainen Oy.
Another trend, especially in the Nordic countries, is the growing demand for planning services related, for example, to site conditions management.
enhanced safety and resource efficiency
Large construction and industrial customers have increasing requirements regarding responsibility throughout the supply chain. Cramo is well positioned to meet these requirements, so responsibility is an integral part of our strategy and way of working.
We offer solutions with pioneering environmental and safety features that meet today’s demands for energy efficiency and other needs, which help our customers to achieve their sustainability targets. We also share our competences, best practices and insights with our customers and partners to ensure the safe, sustainable use of our equipment and the development of new, environmentally sound solutions.
The range of safety and protection products offered by Cramo has been expanded in recent years to meet the growing demand. Cramo has also enhanced the range of safety training programmes for customers in all Cramo countries.
Rental is inherently an environmentally sustainable industry, since sharing equipment reduces the need for natural resources and increases opportunities to optimise transport. At the same time, it gives our customers easy access to an up-to-date, modern equipment fleet that is best suited for each job.
E-commerce solution launched
At the end of the year, Cramo launched its Cramo eCRent e-commerce solution for equipment rental customers in the Finnish, Swedish and German markets. The solution is part of Cramo’s more comprehensive digital platform and was piloted earlier in the year to ensure that it meets the expectations and needs of the different customer groups.
SALES OF EQUIPMENT RENTAL BY CUSTOMER GROUP, % 2016 (2015)
SALES AND EBIT OF EQUIPMENT RENTAL,
comparable return on capital employed, % (2013–2016)
ALWAYS PUTTING OUR CUSTOMERS FIRST
We address the specific needs and expectations of our customers by delivering on our customer promise – For a great day at work – and through our three proofs of promise.
FOR A GREAT DAY AT WORK
WE ARE ALWAYS HELPFUL
Every Cramo country has its own ombudsman. The ombudsman is a neutral authority who is willing and able to resolve any causes of dissatisfaction. Their job is to make our customers happy and help us to improve.
WE ARE ALWAYS ON TIME
We understand your needs and timetables so well that every delay is too much. One minute late or one hose short, we’ll take responsibility – just to keep our service standards at least as high as your expectations.
OUR EQUIPMENT NEVER FAILS
High-quality equipment is the very core of our business. When equipment needs to be fixed or replaced, we’ll do it faster than you could imagine.
THE CRAMO eCRent E-COMMERCE SOLUTION IS CLEAR AND EASY TO USE. ORDERING EQUIPMENT TRANSPORTS TO THE SITE AND THEN BACK TO CRAMO IS ALSO VERY CONVENIENT.JANNE RIMPIOJA, HEAD FOREMAN, VARTE OY
Fast, efficient and safe
The New Children’s Hospital under construction in Meilahti, Helsinki, will treat seriously ill children from all over Finland. Cramo is responsible for the project’s worksite logistics services.
The hospital will have a gross area of 45,000 m² and 11 operating theatres; SRV is in charge of construction.
Cramo’s logistics services ensure efficient use of time and resources throughout the construction process. This means, for example, that construction workers always have the right building materials in the right place at the right time. In addition, safety and efficiency in handling incoming loads of materials to the worksite improve when the same personnel are used to unload and transfer all the loads.
Cramo is also responsible for tasks related to orderliness at the construction site and is involved in making sure that materials get recycled. The contractors are responsible for sorting recyclable materials on every floor, and Cramo then sees to it that they get these materials to the right recycling containers.
“This large-scale project is particularly challenging given the tight schedule and the location in our capital city – a large construction site in a compact space. It was clear from the beginning that a company specialising in logistics was needed to ensure the efficiency and operability of the overall project. The material flows are massive and need to be in the right place at the right time – handled by the right professionals,” says Site Manager Matti Julin from SRV Rakennus Oy.
Many activities – like issuing work orders and allocating resources for them, reporting and confirming work, and billing – can be done through Cramo’s electronic system, which also improves efficiency.
“Dozens of contractors work at the construction site and a number of transport companies are handling the material transports. Good collaboration with them and with SRV is crucial for a smooth flow of worksite logistics,” emphasises Logistics Manager Tommi Kivimäki from Cramo.
Full-scale equipment rental service for pulp mill expansion
The expansion of Östrand pulp mill is one of the largest industrial investments ever in Sweden. Cramo’s equipment rental services are used widely at the project site.
SCA, a leading global hygiene and forest products company, is investing in a large-scale expansion of its Östrand pulp mill in Timrå, Sweden. The expansion is known as the Helios project – after the sun god in Greek mythology. The new plant, which will open in October 2018, is one of the largest industrial investments ever in Sweden. The pulp mill is to be the most profitable in Europe. It will lead in product quality and environmental performance and, above all, be the best in the industry when it comes to safety and the working environment.
Cramo is part of this large-scale project and contributing to the pulp mill's successful expansion phase. Cramo is the supplier of all temporary changing and washing facilities, canteens and offices for the approximately 1,500 project members and contractors in the Helios project. Cramo also has a project depot on the site and delivers, for example, machinery and lifts for the construction site.
“Now, close to the mid-point of the project, Cramo has delivered all required modules in a satisfactory way. Cramo has delivered the modules as scheduled and has also been very responsive to all of SCA’s functional requirements for the modules needed,” says Fredrik Mellesmo from SCA, Site Coordinator for the Helios project.