Successfully navigating a market downturn

Sudden market downturn triggers operational challenges
Acquired by Storskogen in early 2022, INGENIØR’NE operates in the Services business area, delivering a range of services across the construction and engineering sector, focusing on corporate segments, industrial, social housing, healthcare, educational and cultural institution and residential.

In 2022, the business experienced a sharp decline as high inflation reduced market demand and government spending on construction and infrastructure came to a halt. This led to a slowdown in sales, delayed projects, decreased utilisation, and a drop in margins.

Strategic measures to drive recovery
To address the deteriorating situation, INGENIØR’NE's management team and Storskogen set up a coordinated set of recurring strategy meetings dedicated to analysing the situation, identifying critical problem areas, and planning targeted responses.

Key focus areas:

1. Sales. Sales needed to become more proactive. INGENIØR’NE also shifted focus towards customers in new segments, but still assessing pockets of opportunity in its traditional base in other areas.
   
   A reorganisation was carried out, assigning each customer segment its own leader with a focus on sales, and a number of employees were reassigned from project execution to sales, underscoring the idea that everyone plays a role in winning business. Each geographical and technical segment received its own market leader responsible for new business generation.
   
   Strategic partnerships with other actors in the market also became a priority. As major players took market shares by acquiring competitors and doing more services in-house, collaboration with other suppliers in the value chain proved mutually beneficial, enabling both parties to refer business to one another.
   
   
2. Project steering. A critical area for improvement was project steering, requiring stronger focus on margins. The company also worked to shift its culture to ensure that project economics became a priority, without compromising the quality of case execution. Assigning the right people to the right projects and increasing the frequency and rigour of follow-ups on margins and working capital became key priorities.
   
   
3. Optimisation and cost cutting. Cost control and higher utilisation were key. This included reducing reliance on sub-consultants and relocation of, for example, electrical engineers to tasks within energy optimisation, which improved the utilisation rate. Commercial terms and conditions were also toughened, improving project planning and protecting company interests. Overheads were cut and resources reallocated to drive efficiency across the organisation.

Through these decisive measures, INGENIØR’NE managed to reverse its downward trajectory. The company’s financial margin rebounded, and the negative trends were halted. Furthermore, this adjustment was also achieved through good collaboration between the management of INGENØR’NE and Storskogen, demonstrating that even in times of crisis, clear strategy and teamwork can secure stability and renewed growth.

Thomas Pilo
Investment Director, Services

Thomas Pilo works in 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.

Read more about INGENØR’NE: https://www.ingenior-ne.dk/

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