The corona pandemic continued to have an impact on the operating environment. The effects of the pandemic gradually started to ease off during the second quarter, however the number infections started to increase again towards the end of the quarter.
As a result of the Ukraine crisis, the geopolitical tensions were reflected as weakened economic sentiment in the EU during the first half of 2022.
Inflation accelerated during the first half of the year and the cost inflation related to material prices, including fuel costs, continued to impact also the building technology market. There have also been supply shortages and delays in some areas. Caverion has proactively taken various measures to optimise the supply chain and to manage pricing.
In Services, the market demand and general investment activity remained positive.
Caverion has continued to see a general increasing interest for services supporting sustainability, such as energy management and advisory services, driven by regulation and the expected governmental and EU stimulus packages supporting investments in green growth. There has also been increasing interest towards long-term and large-scale service agreements.
In Projects, the market demand remained stable during the first half of 2022.
The market was impacted by increases in material prices, delays in decision-making and supply chain as well as uncertainty in the business environment.
Built environments are a major source of carbon emissions today. Buildings are responsible for 30% of Europe's CO2 emissions. By modernising and digitalising buildings we can reduce the CO2 emissions up to 20%. Also when industrial production facilities operate as planned, production disruptions, uncontrolled emissions and waste are eliminated. Our company is well positioned to help provide a sustainable, digital future for our customers.
The megatrends in our industry have developed in our favour in recent years and support our growth. We have seen a general increasing interest for services supporting sustainability, such as energy management and advisory services, driven by regulation and the expected governmental and EU stimulus packages supporting investments in green transition.