Demand drivers
The world is facing an increasingly acute challenge to provide materials and goods that are essential for people while preserving scarce resources and limiting emissions.
Demand for Konecranes’ products and services is driven by market conditions in manufacturing industries including general manufacturing, metal production, power generation, automotive, pulp and paper, raw materials and chemicals. We are also a major player in the container handling industry.
Customers generally invest in new equipment either to expand capacity or replace old equipment. Investment in new lifting equipment is cyclical and varies across different industries depending on the economic environment. Konecranes believes increasing demand for higher productivity, safety and ecological-efficiency presents growth opportunities.
Customer segments
Historically, Konecranes’ largest customer has accounted for less than 2 percent of its net sales and Konecranes’ top ten customers have on aggregate accounted for less than 10 percent of its net sales.
Approximately 80 percent of Konecranes’ customers are in the industrial production sector, including general manufacturing, metals, power generation, petrochemicals and pulp and paper. In general, the need of Konecranes’ customers for services and new equipment is linked to industrial production volume and capacity utilization.
The remaining approximately 20 percent of Konecranes’ customers are container ports and terminals. Their propensity to buy services and new equipment is generally related to world trade and container volumes.
Global footprint
Much of Konecranes’ growth has been organic, although we have a strong acquisition track record as well. Konecranes has acquired nearly 100 companies over the last 40 years since the beginning of its internationalization in the early 1970s. In the past ten years alone, Konecranes has expanded through acquisitions in APAC, the United States, and various European countries.
As Konecranes has expanded its operations, its business has become increasingly international in scope, with its products being manufactured at its own facilities in the Americas, EMEA and APAC, as well as through global subcontracted networks, and sold worldwide. As emerging markets mature, they offer significant business opportunities for maintenance services.
Konecranes has the experience and financial strength to become the world leader in material handling solutions creating value for everyone.
Competitive landscape
We have a strong market position in all our three segments.
- In Service, we are the market leader with our unique global service branch network and unmatched service offering. There is only limited global or regional competition in industrial crane maintenance.
- Our family of leading brands secures our position as the global market leader in industrial cranes.
- We rank #1–3 in the market in all product categories for ports and container terminals.
