Looking at megatrends as value-creating opportunities
The world around us is changing at a rapid pace. Consumption patterns are shifting from ownership to access, largely as a result of growing concern about the environment and climate change. Digitalisation is having an impact on the operating and revenue-generating models of all industries.
Megatrends influencing the operating environment of the equipment and modular space rental business include demographic changes, rapid urbanisation, resource scarcity, the aspiration of sustainable development and digitalisation. Sustainability in product and service offerings is key, and companies are quickly moving from an operations-focused perspective to a customer-centric one.
The rental industry plays a major role in this development by offering easy access to shared resources in a sustainable way. Cramo’s business model is based on the responsible sharing of sustainable solutions and other resources. This, together with our strong focus on customers and a forward-looking mindset, enables us to capture emerging business opportunities in a changing world.
Access preferred over ownership
Most of our customers will soon represent the millennial generation, those born between 1980 and 2000. By 2025, they are likely to account for 75% of the global workforce. Millennials tend to prioritise access over ownership and are used to instant online access to information and offerings, price comparison engines, online reviews and platforms for matching needs and solutions. Many organisations have yet to establish a clear picture of what benefits IoT (the Internet of Things), big data and even drone technologies will bring.
Millennials, with their distinct characteristics and preferences, will also have a strong impact on recruiting and retaining employees in any industry.
Additional drivers for rental growth are higher prices for equipment and a higher level of its sophistication due to factors such as a more stringent regulatory environment. It simply pays off to optimise the use of expensive equipment. Renting instead of buying strengthens the sharing economy, which may actually offer solutions to some of the biggest global challenges of our time.
(Frost & Sullivan)
(Frost & Sullivan)
Digital solutions are expected everywhere
Digital rental and rental-related services respond to trending customer needs such as quick development times without a trade-off on quality or increased expenses. The need for total solutions is growing as more pressure is placed on economic performance and operational efﬁciency, especially in large construction and industrial projects.
Digitalisation also enables the development of new value-added services that complete the rental offer. For companies, digital solutions offer new opportunities for fleet management, maintenance and billing, for example.
Strategic partnerships with our suppliers and customers alongside close co-operation with other organisations, such as research institutes, are one way for Cramo to explore and exploit the opportunities of digitalisation.
For Cramo, another important growth driver is varying needs related to local demographic changes, which create demand for high-quality, cost-effective temporary space solutions – such as schools and daycares. In addition, the positive general economic trend is driving the demand for modular space thanks to the rapidly increasing need for office space.
Cramo is well placed to reap the benefits of these global and industry-specific trends. Our ambition to develop our business and drive the sharing economy is well established. We have a strong team to innovate and develop game-changing offerings to exceed customer expectations, shaping the future of our industry and beyond.