Businesses

Central Europe

We continue to wrap the integration of logistics and on-site services as well as management and planning services into our offering for Central Europe. As a continuum to the KBS acquisition in 2018 in Germany, we served our first mid-sized customers with offerings ranging from the installation of construction site fencing to project finalisation.

In Central Europe, we are focused on integrating KBS services into our equipment rental offering. It enables us to be a true productivity partner for our customers in all phases of their projects. Cramo NXT is a solid strategy and a perfect match for what we can and need to do in our region.

Hartwig Finger
Executive Vice President, Central Europe, Cramo

Business environment

Central Europe accounts for some 21% of the Group’s revenue and is starting to capture the great potential for organic growth.

In 2019, construction market growth has been slowing in Germany, but demand for services – from the planning phase to project finalisation – is still strong. The market and demand are clearly divided according to customer size. Cramo has a good market position to serve mid-sized customers, where there is growing demand for subcontractors with a comprehensive offering – from rental equipment products to on-site services. Customer demand services and digital compliance are especially triggered by the younger generations looking for easy and smooth ways to manage construction site logistics. As a result of the integration of the site logistics services acquired through KBS and our development of digital eCommerce platforms and applications, we are able to truly grow.

The market in Austria and Hungary remains good. The market for complete solutions is beginning to mature in Austria, while customer demand in Hungary is still more focused on specialised offers.

In the Czech Republic and Slovakia, construction market growth is stabilising. Customers generally split contracts and acquire rental equipment and services from specialised companies. In 2019, the market became more competitive in certain areas where Cramo operates, such as access equipment.

There are many reasons why Cramo is such an important partner for HSF System. Besides being helpful and reliable, they serve us flexibly with on-time and accurate deliveries, and they have a broad range of products. Cramo simply helps us meet our daily targets. We are glad our close cooperation has lasted for years, and we hope it will continue in the same way for many years to come.

Jan Hasik
CEO and owner, HSF System, Czech Republic

Advantages

Robust basis for expanded offering

Our customer value has been created through strong commitment to each construction project and the high quality of delivered items and services. These form an excellent basis when building on our new offering ranging from equipment rental products to planning and logistics services.

Our comprehensive offering of products and services is our springboard for generating organic growth in Central European markets.

Hartwig Finger
Executive Vice President, Central Europe, Cramo

Leader in quality and commitment

In Central Europe, the market is fragmented. Our customers value the quality of our rental equipment repair and maintenance services. They trust that when they rent from us, they will get their equipment on time and in fully functional condition. Our market position forms a robust basis for being the leader in quality and commitment as well as for increasing our offering with site-related services.

Stronghold in access equipment

In the Czech Republic, we have a clear market stronghold in the rental of access equipment. Our focus on creating customer value through good customer service and interaction is paying off and forms an advantage as competition on the market is increasing.

Highlights of 2019

New service offering brought new customers and an improved market position

We gained two new industrial customers in the automotive industry as well as several new customers in mid-sized construction projects in Germany to whom we deliver equipment and services throughout the building process. In our offering to these new customers, we have combined Cramo’s equipment rental and the acquired KBS Infra’s construction site logistics and site planning services.

We receive full service around the construction site and prompt answers on enquiries; and, no matter where the project takes place, we can rely on fair delivery and rental prices.

Patrick Weiss
Implenia Instandhaltung und Tiefbau, Germany

We have chosen Cramo as a rental partner as they are well-organised and can serve us throughout Germany. We always receive fast and professional service – even on short notice, they handle our enquiries with ease. Key criteria for us are high quality and good personal relations that make co-operation easy.

Mr Hüftle
Wolff & Müller, Germany

Our joined offering – ranging from the installation of construction site fencing to project finalisation – and knowhow of Cramo and KBS give us better prerequisites to serve customers directly on their construction site. We have received a very positive welcome and are regarded as a reliable partner for all parties involved in construction. Looking towards the future, we see a huge potential to together improve our market position further, and in doing so, attract new customers and partners.

Stefan Diegisser
Managing Director, KBS Infra GmbH

Successful trade show

In April we participated in BAUMA 2019, the world’s largest construction machinery trade fair. Our participation paid off, and customers welcomed our value-added offering that combines equipment rental products with planning and logistics services for construction projects.

2020 focus on top-tier performance and packaging of services

Cramo is already seen as a reliable and committed partner in all Central European rental equipment markets. In 2019 we continued to shape our offering and focused our sales on addressing client concerns. In many regions and customer segments, the market has matured to receive consistently packaged and structured offers that include both products and services. Especially in Germany, there is a growing demand for these from mid-sized customers. Going forward, we will focus on utilising our new capabilities to offer planning and logistics services in addition to rental services in order to grow organically in all markets.

 2019 Sales MEUR

129.4
2018: 114.4

2019 Comparable EBITA MEUR 

5.5
2018: 9.5

2019 Comparable Operative ROCE

3.2%

Sales by customer group, MEUR