Temporent

Temporent rents out temporary modular set ups installed on the customer’s land and rented for as long as they are needed. Temporent develops its own modular systems, which are primarily used as premises for schools, preschools or offices. The customers consist mainly of municipalities, county councils and major companies.

Temporent

Offer

The interface in each modular system is standardised so that every module can be docked to every other module within that system. Sideways, the modules can be placed next to each other and connected. Vertically, the modules can be stacked on top of each other so as to form several storeys. By adding or removing individual modules or entire storeys, the premises' floor space can be varied as needed. The modular systems include integrated installation systems for electricity, heat, ventilation, cooling and telecommunications. Quick connectors in the module joints connect the installation with each other.

Temporent offers a number of such modular systems for various purposes with different specifications and characteristics.

Focus

  • Suitable premises primarily intended for schools and offices.
  • Customers with high requirements for standard, performance and service etc.
  • Modular systems with a long technical and economic life.
  • Increased penetration for the Temporent premises concept.
  • Geographical expansion within the Nordic countries.

Different Conditions in the Nordic Countries

Sweden

In Sweden, there are many multinational corporations in the forestry, automobile, manufacturing, pharmaceutical and telecommunications industries. Global competition is driving rapid developments among these companies. A large public sector provides schools and preschools of a high standard. Demography is characterised by considerable migration, fluctuating pupil numbers for schools and an aging population.

Sweden is the leading market for module rentals in the Nordic countries. Major competitors include Expandia, Cramo Adapteo, Ramirent Temporary Space and Indusgruppen. 

Denmark

Denmark has considerably fewer major companies than Sweden. There is a greater emphasis on trade and agriculture and less on industry than in Sweden. Electronics and pharmaceuticals are growing industries. Denmark is a small densely populated country with a continental culture in many areas, including construction and architecture. The length of European vehicles limits the conditions for long-distance road transport. The demographic driving forces are weaker than in the rest of the Nordic countries. Migration is limited and the number of pupils fluctuates less than in Sweden. On the whole, the market potential is lower than in the other Nordic countries.

Competition mainly comes from small site hut rental companies offering simple products, and module manufacturers that, to a limited extent, offer financial leasing solutions. The primary competitors are Cramo Adapteo, Bilsby and GSV/Bilsby, all of which can offer both site huts and modules. Expandia has also set up business in the country.

Norway

The oil industry dominates the business structure and has turned a rather poor country into the richest in Europe in just a couple of decades. Norway is a vast and sparsely populated coastal country with long transport routes. The conditions for long-distance road transport are limited by the long distances on poor roads in very hilly terrain with many tunnels and other obstacles. Moreover, vehicle lengths and widths are limited by restrictive regulations. Demand is driven by ambitious plans to expand childcare. There is palpable pressure from public opinion on the public sector for improved standards, including in schools and childcare. In other words, there is large market potential, but the difficult geography presents a practical obstacle to module rental.

The primary competitors are Cramo Adapteo, Expandia, Indusgruppen, Ramirent and Malthus.

Finland

The Finnish market very much resembles the Swedish market and it has an industrial structure with many multinational corporations in the heavy manufacturing industry. There are demographic driving forces with a move into large cities, but the migration is even so limited. In Finland, as in several of the other Nordic countries, there has been a neglect in maintaining the buildings for school and pre-schools, which means that evacuation premises will be needed in connection with rebuilding and new construction of schools and pre-schools. The main competitors on the market are Cramo Adapteo, Parmaco and a number of smaller local players with a simpler module fleet.

Developments during 2016

Already at the start of 2016, the market was booming and the demand remained high all year. The order inflow was high at the same time as the volume of concluded rental arrangements was low, but growing prior to 2017.

Even though Temporent’s investments increased to SEK 197 million (147) and the fleet was provided with 17 000 square metres net, the lack of both internal and external resources meant that the capacity to fully meet the strong demand was restricted. The sales of used products, which are made with the aim of focusing the fleet, increased during the year to the degree that the used products were sold out at the end of the year. The total fleet at the end of the year was 215,000 square metres with 86 percent utilisation.

The strong demand was primarily driven by the growing number of pupils in compulsory school. The demand was also large for accommodation and premises for Migrationsverket’s activities. However, we declined such business both because we lack suitable products for the purpose and because our approach to commercial risks does not satisfy Migrationsverket’s procurement routines.

13 percent of Temporent’s rental revenues are generated in the neighbouring countries Norway, Denmark and Finland. The economic conditions and demand in the markets was weaker than in Sweden, but the rental revenues increased in all countries even so.

In total, Temporent’s rental revenues increased by 10 percent to SEK 263 million (238) and EBITDA amounted to SEK 190 million (180).

Contact

Erik Gutenwik

Temporent
Managing Director
Tel: +46 8 590 990 59

Homepage

Go to top