Market
Instalco operates on the installation and service market in Sweden, Norway and Finland, with most of the operations being located in Sweden. Companies operating on this market primarily perform technical installation and service within the areas of electrical, heating and plumbing systems, as well as ventilation and cooling systems.
The construction and installation sectors are developing fast. Today, properties are more technically demanding than before. An increasing part of the total cost for construction and service apply to IT, technology, electricity, heating, plumbing and climate. This is favourable for Instalco.
The customers require both high expertise in each technical area and an efficient cooperation between the areas.
The small local companies in the business have niche expertise, but don’t offer end-to-end solutions. Instalco combines vast expertise in our technical areas and collaboration between the areas and our companies. This set-up provides the customer with solid end-to-end solutions.
The sector has relatively high barriers-to-entry, as the business requires technical qualifications. There are clear economies of scale in the business, among else through efficient management of projects, joint purchases and geographic coverage.
Instalco sees large opportunities in the sector ahead:
- Urbanisation creates major demands for new construction and reconstruction.
- Ageing property portfolio means increasing need of renovation and technical refurbishment as well as modernization.
- Extensive investments in infrastructure are expected to contribute positively to the general construction climate.
- Increased focus on lower energy consumption is favourable for technical installations consultants.
- Increased complexity in buildings and installation services requires end-to-end solutions.
The market requires:
- Complete responsibility for installation.
- High technical expertise.
- High availability and close cooperation.
Instalco wants to streamline and develop the technical installation business in the Nordics. Instalco brings together the best of the local companies’ proximity to customers with the larger company’s opportunities for rational purchases, coordination between technical areas and quality management.
Instalco works with mid-size projects in the approximate span of SEK 1-75 million. We clearly chose our customer segment in the market. In that way, we avoid the risks of very large projects while also not having too many small customers. Our market strategy provides us with lower risks and large opportunities to grow.
Well-positioned
Instalco operates in Sweden, Norway and Finland, where we mainly focus on metropolitan regions with higher growth rates than the general market. These markets are characterised by housing shortages and an ageing property portfolio with large investment needs, which is beneficial to our business. Increased energy use regulation and an increased complexity in buildings and installation services are also factors that have a positive impact on the installation market.
