GLOBALISATION AND TECHNOLOGICAL DEVELOPMENT
Addtech operates in the international technology trading market, where companies buy, adapt and sell technical products and solutions. We have chosen to focus on special niches with high technology and knowledge content. The rapid development of technology makes it vital to constantly stay at the forefront of technological development. This is where we can make a difference for our customers and manufacturers.
The Northern European market
Addtech is based in Nordic industry, but operates internationally. The emphasis is on the Nordic region, but we have performed well in markets outside the Nordic countries and these have increased in significance. Besides having its own operations in 20 countries Addtech also exports to a further 20 or so countries. Many of Addtech’s products are incorporated into the end products of globally exporting customers. Addtech often continues to supply its parts to these customers when they relocate their manufacturing operations abroad.
Global macro trends such as increased globalisation, climate change and a growing middle class pose challenges for both Addtech and our customers, but they also entail good business opportunities. Demographic changes in terms of population growth and a growing middle class entail increased demand for capital and consumer goods, as well as an increased need for infrastructure investments. Climate change also increases requirements and the demand for sustainable technological solutions. Our focus on offering products, services and systems that streamline our customers’ operations often involves measures to improve energy efficiency while reducing environmental impact. We apply Addtech’s expertise in sustainable technology to help our customers meet external challenges and to reduce their environmental impact.
The long-term growth and profitability of the market depends on the size and diversity of the industrial and service sectors. Northern Europe's relatively high costs have spurred the development of knowledge-intensive, automated and specialised industrial and service sectors. This has also contributed to differentiation of the value chain, increased trade and greater reliance on external partners like Addtech for product development and component modifications as well as for maintenance and other aftermarket services.
The supplier market is becoming increasingly complex and customers have a growing need for partners who help them select the right supplier and technology. We provide a range of market-leading products, combined with our own technological and market knowledge alongside flexible customisation options. Hence, we are constantly an attractive partner for our customers.
GROWTH AND PROFITABILITY
In the short term, growth and profitability are closely tied to industrial economic conditions and the economic conditions prevailing in Addtech's markets. Addtech's focus on infrastructure and narrow market niches, as well as large number of subsidiaries, reduces sensitivity to economic volatility. However, growth and profitability are highly dependent on the state of competition among our customers and their possibilities of performing well in their markets. Addtech therefore evaluates each of its markets on an ongoing basis to ensure that there are conditions for reaching the Group's financial targets.