Market and Customers

Nordic Modular is a leader in the area of production, sale and rental of modular buildings in the Nordic countries.

Nordic Modular - Relocatable buildings for professional customers

Submarkets

Depending on tenure status and application, the market is divided into various submarkets. Temporent, Flexator and Nordic Modular Leasing. Sweden is the primary market, but some operations are also conducted in Norway, Denmark and Finland.

Temporent rents out temporary modular units with a primary focus on offices, schools and preschools. The modular systems are sophisticated and offer the customer advantages over competing products on the market. The customers consist primarily of municipalities and major companies.

Flexator manufactures and sells everything from permanent, advanced buildings for professional purposes to site huts. The focus is on in-house designed relocatable buildings offering cost benefits to the customers. Areas of application include everything from site huts to high-quality offices, homes for the elderly, schools and preschools. The customers are principally municipalities, county councils and major companies. Flexator also manufactures the modules rented out by Temporent.

Nordic Modular Leasing offers Flexator’s Swedish customers long-term leasing of relocatable buildings on certain conditions. Buildings under lease contracts terminated by the customer are rented out again or sold second-hand to new customers. Customers consist mainly of municipalities. The rental of temporary residences in small flats is run via the subsidiary, Hagtornet Modul AB, and the associated company, Ungabostäder Haninge AB.

Driving Forces

About three quarters of Nordic Modular’s sales are attributable to the public sector, whose need for premises is governed, to a great extent, by demographic factors, such as an increasing proportion of elderly people among the population and changes in birth rate and migration. The variation is greater locally than on the national level. On the corporate side, demand is driven mostly by the general economic conditions.

Shorter planning horizons when assessing future needs for relocatable buildings is driving up the long-term demand for our range of rental buildings. Companies, in their increased need for capital rationalisation, have shown increasing interest in steering away from fixed expenses and toward variable expenses; likewise, savings in the public sector also lead to a preference for variable expenses.

Flexator’s product range entails several advantages over traditional building techniques. The ability to relocate preserves the value of the buildings and enables leasing. The cost benefits offered by our standardised modular buildings, called catalogue buildings, also make possible the realisation of many projects, which would otherwise not be feasible on commercial grounds.

Competitors

Temporent’s leading competitors are Expandia, Cramo Adapteo, Ramirent Temporary Space and Indusgruppen. Flexator often finds itself in competition with building contractors for traditional turnkey contracts for stationary buildings. Moelven Byggmodul is the leading competitor for relocatable buildings. Nordic Modular Leasing does not compete with equivalent offerings, but rather with standard lending and individual finance companies that offer individual financial leasing. To some extent, Finnish Parmaco can be considered to compete in Sweden with its long-term rental agreements regarding newly produced buildings.

Developments during 2016

2016 was yet another successful year for the Nordic Modular Group. The net sales rose and the Group once again attained its best result to date.

A very positive market development undoubtedly played into our hands rather nicely. Sweden’s strong demographic driving forces, combined with stable economic growth and increased residential building, laid the foundations for the excellent demand during the year.

The Group’s economic engine, the rental company Temporent, increased its rented fleet, utilisation rate and rental revenues. At the same time, extensive investments were made to increase the rental fleet.

In Flexator, the Anneberg factory focused on sales and manufacturing of catalogue buildings and the Gråbo factory could produce rental modules and site huts in long series with the minimum of change-overs. This had an effect on both increased sales and improved profitability.

The leasing operation’s turnover and profit dropped, but the order inflow increased. The improved order inflow is attributable to Flexator’s increased sales of catalogue buildings, for which our leasing offer is suitable.

Go to top