Urbanisation and sustainability drive market growth
As a global player with sales to over 120 countries, market conditions for the Group vary by geographical region and customer sectors. The Group’s vertical access solutions and services are tailored to meet these different end-market requirements.
The Group has specialised in vertical access solutions for professional use, with rack-and-pinion and traction-based technologies for elevator systems and platforms. The Group’s façade access portfolio also includes certain hydraulic technology.
The Group is well-positioned to take advantage of important, global macro-economic trends in both mature as well as emerging markets which form the basis for market growth: demographics, productivity and sustainability.
Customers
The customer base is diverse and fragmented with a few, large regional and many local players for all business units except Wind whose customer base is more consolidated. Customers operate over a diverse range of industrial, commercial and construction sectors and their needs vary depending on application and geographical areas.
End Markets
End markets include the construction sector, which needs efficient and movable designs; the building and structure maintenance sector, which requires tailored solutions; the oil & gas sector which asks for explosion proof solutions; the energy sector, including wind, where space-efficient designs are required; ports and shipyards which need superior reliability and global support capabilities; and the cement industry which requires elevators capable of withstanding harsh environments.
Market and Competitors
The market for Alimak Group’s applications is divided into temporary and permanent installations.
TEMPORARY INSTALLATIONS
The underlying driver of demand for the temporary installations, sold through Division Construction under the Alimak product brand, is global and regional construction activity, primarily on commercial and high-rise residential buildings.
The Alimak brand is truly global in a relatively fragmented market and competition varies by region. The brand enjoys a leading position in most developed markets and is amongst the leading players in many of the emerging markets. However, while the Chinese market is large, Alimak has chosen a selective sales strategy, given the inherent credit risks.
Alimak holds a strong position in the construction hoist segment, whereas more growth opportunities exist in the platform segment. In certain markets, customers have historically been more inclined to rent equipment than to buy it, and small construction firms are generally more inclined to rent equipment than large companies. Alimak is a leading player in the handful of rental markets it serves. Competitors are mainly other manufacturers of construction hoists and platforms, as well as a number of small specialist and some generalist rental businesses.
PERMANENT INSTALLATIONS
Demand for permanently installed elevators, sold through Division Industrial, follows the general levels of investment in the industries of end-users. The market for industrial rack-and-pinion elevators is consolidated, with Alimak as a leading player. The traction market is more fragmented with industrial applications supplied both by large commercial manufacturers as well as smaller local companies.
Demand for building maintenance units (BMUs) is driven by the continued rise in complex facades and growth in mega tall buildings where the Group’s two BMU brands, CoxGomyl and Manntech, are market leaders in the high- to mid-complexity range. The BMU market is a competitive and complex market which is in a speciality niche within the construction industry.
The trend towards clean, affordable and reliable power remains one of the key drivers behind the growth in renewable energy such as wind. Demand for the Group’s products aimed at this industry, sold under the Avanti brand with a market-leading position, correlates with global investments in wind energy. While there is an expectation of a lower number of towers installed as a result of larger turbines, the lift market will expand due to the increase in lift penetration in the US and Chinese markets. The customers are mainly wind turbine OEMs which have undergone consolidation in the past years. Only a few competitors have a complete product portfolio similar to Avanti’s.
SERVICES
Service demand is affected mainly by the size of the installed base of Alimak Group’s equipment. The business is generally more resilient to fluctuations in the markets than sales of new products.
With many players participating in the market, the Group’s service offering competes by providing customers with innovation and support that is unparalleled in the industry, through local presence combined with global capabilities.