Strategic targets in service and maintenance
In the service business, Caverion’s aim is to move up in the value chain towards more comprehensive services, in which it manages the entire life cycle of the client’s property or industrial plant.
Our goal is to increase the share of service and maintenance in our business. By growing service and maintenance, we can contribute to the profitability of the entire Group, as its margins are typically better than in project business. In addition, demand for maintenance is less susceptible to economic cycles than project business, promoting the stability and continuity of our business.
More comprehensive services
We aim to provide more comprehensive services in which we take responsibility for the entire life cycle of our clients’ properties and assume overall responsibility for the design, implementation, service and maintenance as well as operation of their technical systems. We also seek growth in managed operations and the outsourcings of maintenance.
Increasing long-term service agreements
Our goal is to increase the share of long-term agreements, i.e. agreements the duration of which is more than a year. Currently, approximately one-fourth of our service and maintenance revenue comes from such agreements. We pay increasing attention to extending agreements with additional services and systems, among others.
Long-term agreements reduce cyclicality. They also open up opportunities for additional sales. The average duration of an agreement is two to three years, including an option for an extension of one to two years. In life cycle projects, the duration of the agreement may be up to twenty years.
Utilising the full potential of remote management
In our service development, we utilise the potential related to the digitalisation of services, the remote management of properties and the tightening energy efficiency legislation. We aim to increase our competence in property and industrial automation and remote management, and to develop these competences in a coherent manner in all of our operating countries.
Developing more efficient service process and common operating methods
We enhance the efficiency of our service business by adopting unified service processes, operating methods and mobile applications in all countries. Business development is carried out in a centralised manner, Group-wide, utilising the best practices of our operating countries.
Attractive service offering
- More comprehensive services that cover all technical disciplines throughout the entire life cycle of a property or an industrial process
- Increasing the share of long-term service agreements
- Growth from the current client base by extending existing agreements and by offering them additional services and solutions
- Utilising the full potential of remote management
Improving the efficiency of own operations
- Efficient common processes, operating models and tools
- Costs and budgets are monitored closely in each agreement
- Negative working capital through daily monitoring, follow-up, reporting and invoicing