Businesses

Finland and Eastern Europe

Customer behaviour and expectations form the basis for our offering in each country – Finland, Estonia, Lithuania and Poland. We follow the markets, interact with our customers and, when we see favourable signs, proactively introduce new services to support our customers’ success. This is how we have been growing the vast service range Cramo has to offer in Finland for over 65 years.

Cramo NXT draws on our strengths and turns them into targets and actions we can easily refer to. It is a strategy that is easy to understand for all our people and therefore we can really act according to it. The new strategy gives us the tools to offer value to our customers while at the same time is allows us to act and have an impact on our own results.

Tatu Hauhio
Executive Vice President, Finland and Eastern Europe, Cramo

Business environment

Finland and Eastern Europe account for some 24% of the Group’s revenue. The area consists of quite different markets.

In 2019, the competitive environment in Finland remained similar to the previous year. Momentum was good during the first half of the year, but residential construction declined, and some bigger construction sites were finalised during the second half. For 2020, there is still a good amount of public and industrial construction as well as renovation under way, although customers are anticipating a market downturn. Changes in buying behaviour, like requesting bids on smaller parts of a total offering, are beacons of a downturn and an attempt to reduce prices. We see this also as an opportunity to show that total solution contracts can clearly benefit customers who have fewer of their own people and want subcontractors with full-scope capabilities.

In Estonia, increased competition consists of more versatile actors entering the market, whereas the markets in Lithuania and Poland are still dominated by small, specialised companies. In these markets, the customers generally do not expect any services from their subcontractors. Through reassurance and verification of the benefits of combining equipment rental with services, Cramo is working on winning bigger market shares in Eastern Europe.

In Estonia and Lithuania, the service market is slowly building, and we have commenced to the offering of equipment through digital platforms.

We have been working with Cramo for several years now and we are satisfied with their quality service, work speed, reliable equipment, flexibility and wide range of products for all our needs. Cramo is now our strategic rental equipment partner. Working with one main partner optimises our time and cost efficiency.

Alvydas Černys
Technical director, Conresta, Lithuania

In Poland, the fundamentals are in place for market growth; the number of apartments compared to people is low. The Polish market is expected to return to normal growth after a slight slowdown.

Advantages

Comprehensive service portfolio

In Finland, we have a very broad service portfolio that allows us to easily respond to customer expectations and help them be more productive. By offering services such as site logistics, environmental and safety services, and right-on-time maintenance equipment, we enable them to focus on their key business. Through our new expert services offering, we have certified engineers to support customers in the measurement of drying concrete or heat maps, for example.

User friendly eCommerce digital platform

Our digital solutions have an easy-to-access web portal and are in a class of their own in terms of functions and performance. Our customers benefit by using the digital platform and applications for fleet management, document and safety instruction downloads, as well as rental returns and cost calculations.

Trying to reach people over the phone can be slow going. Now I don’t have to figure out where to call first to ask for specific equipment, I just go to the Cramo eCommerce platform and rent what I need – all at once and without unnecessary delays!

Mikko Saarinen
Site Manager and Site Engineer, Peab, Finland

Insight into total equipment costs

We help customers make time- and cost-efficient decisions by giving them insight into the total equipment costs. In addition to acquisition costs and resale prices, the total cost of equipment includes setup, repair and maintenance costs. We offer customers not only cost-effectiveness, but also responsibility: not only do we rent equipment, but we also make sure it works so that the customers can concentrate on meeting their productivity targets.

Good reputation

Our reputation as a quality company is an advantage, especially in Lithuania and Poland. In Poland, our quality offering combined with rental equipment inspection documentation differentiates us from the competition.

I would like to thank Cramo Sp. o.o. for its cooperation and professionalism in the implementation of the investment “Non-invasive Medicine Centre - Stage 2”. Thanks to the quality of your work and high standards of service, we were able to carry out our work on time. We hope to cooperate on future projects.

Deputy Site Manager, ERBUD S.A., Branch office Toruń, Poland

Depot network

Especially in the Estonia and Lithuania markets, our depot network and expansive equipment portfolio give us a competitive advantage. And our new, optimised hub and depot network in Finland bring a renewed competitive advantage.

As a main contractor, we always have to plan well in advance to ensure construction projects progress according to the planned schedule. When renting equipment and machinery from Cramo, we do not have to plan too far ahead – we always get what we need, exactly when we need it.

Heiko Raschinski
Project Manager, YIT Eesti AS, Estonia

Highlights of 2019

Successful roll-out of logistics optimisation

In 2019, the organisation and logistics setup in Finland was reorganised around an automatic tool circulation process and central product coordination. Logistics planning and tool transfer control was centralised to one unit, allowing stock level optimisation based on market demand and outlooks. The big hubs provide tools and the small depots close to the customer provide large equipment, thereby improving fleet return and time utilisation.

Joint development of digital services

Cramo Finland has been set on learning to better understand customer expectations while offering customers user-support for digital services. The number of orders received through our eCommerce platform is growing. We engage with our customers to find the services they value, such as equipment documentation and easy returns, and put more and more effort on showing them how these can benefit their business and help with fleet management.

We began threading some exciting new paths in 2019 when we launched our new Dry Chain 10 [Kuivaketju 10] offering to our customers in Finland. Throughout the year, our certified engineers have helped customers to plan and execute a dry construction environment. Simultaneously, new expert services that use digital and AI (artificial intelligence) solutions are being developed. We are working to give our customers better visibility over their site, work progress, machine usage and safety features.

Tatu Hauhio
Executive Vice President, Finland and Eastern Europe, Cramo

Maintenance break cycle tool part of portfolio

Our maintenance break cycle management tool developed in 2018 became a part of our customer service offering in Finland in 2019. The tool ensures that customers can obtain all the equipment they need right when they have their service maintenance break. It also allows us to serve more customers because we can optimise the utilisation of equipment needed for maintenance between the different maintenance breaks.

eCommerce to Eastern Europe

In 2019, we introduced our digital eCommerce platform to our customers in Estonia and the first customers have started using it. In Lithuania, where the digital platform was introduced in late 2018, we see good opportunities to increase the variety of digital services offered, as customers are already utilising the digital platform to complete orders.

2020 focus on productivity partnership

In many markets, our customers are focused on improving their own efficiency and development – and they expect efficiency from their suppliers as well. Customers want to optimise the time construction workers spend on an actual job, and we help them find ways to achieve that through logistics and work planning. We develop and pilot innovations to help customers get visibility over their site and the use of our equipment.

2019 Sales MEUR

144.0
2018: 147.0

2019 Comparable EBITA MEUR 

19.4
2018: 23.6

2019 Comparable Operative ROCE

10.7%

Sales by customer group, MEUR