Developing services for tomorrow’s needs
BUSINESS AREA INSIGHT: CONTRACTING SERVICES
In the changing market landscape, the business units within the Contracting Services vertical are focusing on creating sales and marketing machinery, refining their offerings and developing services for tomorrow's needs. Thomas Pilo, Investment Director, explains how Storskogen is working actively within the vertical to support the business units in leveraging market developments.
Niche specialists in a fragmented market
Storskogen’s Contracting Services vertical, within the Services business area, comprises business units that are service providers and contractors for the construction and civil engineering market. The vertical is active in a fragmented market with many small and medium-sized players and the business units are niche specialist rather than generalists. Examples are Inbego, a specialist in renovation of parking garages and industrial flooring, and Tunga Lyft, specialised in heavy lifting and installation.
The vertical is affected by several trends and drivers in the market, such as transformation of transport routes, reshoring of production from Asia to Europe, urbanisation and increasing demand for more sustainable, efficient and safe solutions in buildings, energy, water, road, rail and telecom. The electrification and change from fossil fuels to electricity is another driver that creates both challenges and business opportunities. Within the vertical, we work closely with the business units to ensure that they effectively take advantage of industry trends for the benefit of their business objectives, promoting adaptability and sustainable growth.
A successful business transformation
An example of a business unit that has successfully adapted to changing conditions is BR Solutions, with a core business of building and servicing gas stations. To remain relevant in a world where sustainability is an increasingly urgent issue, BR Solutions has both shifted their existing business and developed new services. They have successfully added a new customer segment in construction of new gas stations that are built for alternative fuel instead of oil, and established an environmental department with an expanded service offering.
Facilitated by strategic investments in multiple flushing, vacuuming, and excavation vehicles, the newly established department provides advanced services such as oil separator inspections, fuel removals, and intricate excavations, catering to the needs of customers in industry, refineries, depots and conventional construction sites.
In this transformation process, Storskogen has, among other things, supported BR Solutions with financial and business case analyses on the investments and pricing for services. BR Solutions has managed to win several tenders and has built non-fossil fuel stations for both old and new customers and is now well equipped for the future as the leading player in the field.
Within Contracting Services, we support the business units with change management, marketing and visibility, service packaging, sales and pricing strategies, business and construction law issues, and other issues that are relevant to the vertical. With the last two years’ challenging macro environment with lower demand and high inflation, we have supported the business units in enhancing project steering excellence to prevent margin leakage and improve cash flow, exemplified by initiatives like the Storskogen Project Leader Course.
We also arrange and facilitate networking events and bilateral connections among business units to enhance value through, for example, operational best practices. An instance of this is a series of vertical meetings concentrated on project management and cash flow, providing business units with the opportunity to gather insights from Storskogen’s experts and exchange best practices.
Looking ahead, we remain committed to supporting the long-term development and growth of the business units, aiming to harness the potential of emerging market dynamics and aligning the business units with the evolving landscape.
Contracting Services, Services
Thomas Pilo is responsible for the Contracting Services vertical within the Services business area. He has a background with leading positions within the construction, infra, real-estate and telecom industries. Before joining Storskogen, he was CEO at Havator, the Nordic leader in lifting, special transport and heavy haulage services.