Target: #1-2 position in each local market of relevance
With our vision to be a productivity partner for our customers, Cramo continues as a frontrunner of the rental industry. For us, top-tier performance has three main building blocks.
Top-tier financial performance
Firstly, financial performance will be boosted by systematically lifting performance across countries and networks, by rolling out a global pricing framework and by driving scale. A focus will be on Germany and Finland, where we are improving depot sales efficiency and adjusting the network as well as building on new teams and new capabilities across functions. This methodology has already been successfully applied in Norway.
#1-2 position across relevant markets
Secondly, we will reach for the number one or two position in our relevant markets by growing organically and by seizing M&A opportunities. The market for rental equipment is still very fragmented in Europe and offers big opportunities for growth. At the moment, the top 10 rental companies serve less than 30% of the market.
Top-tier fleet efficiency
Fleet efficiency is a primary key performance indicator in the rental business, and our fleet strategy is centred around driving fleet return and time utilisation. Through efficient fleet management, we aim to increase profitability for us and for our customers.
Additionally, we aim to increase the amount of centrally negotiated equipment supplier contracts to 95%. With today’s 75% we are already at a very high level, considering we serve all kinds of local preferences. By helping our customers anticipate their needs throughout the construction site lifetime, we can increase the systematisation on our side.
Regarding systematic improvement of fleet return and time utilisation, we have systematic ways to collect data from a large part of our fleet to optimise usage and performance. We monitor the impact that machine repairs and maintenance have on lifetime and resale value, resulting in the refurbishment of some machines to upgrade their capability levels.
Top-tier fleet efficiency is also driven through depot optimisation and digital initiatives. Our hub structure is being adjusted to better meet market demands. We plan in advance how we operate in each of our areas, which depots and hubs have what machines, which customers we serve from where, and which services are offered to meet local demand. Systematic fleet management and digitalisation of order streams enable us to optimise our offering in large hubs as well as in small walk-in depots.