Operating environment
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Operating environment
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.
Services
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.
Projects
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.
Megatrends support our strategy
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.
Energy efficiency
- There is an increased interest for services supporting sustainability, such as energy management and advisory services. Both EU-driven regulations and national legislation are setting higher targets and actions for energy efficiency and carbon-neutrality. This is underpinned by the society’s end-users’ general request for an environmentally friendly built environment.
- We provide solutions that help customers generate energy and cost savings in buildings, infrastructure or industrial sites and processes.
Increasing technology and digitalisation
- As technology in buildings increases, also the need for new services and digital solutions is growing.
- There are various solutions that help to achieve optimal conditions and improved efficiency, such as remote services, digital platforms, smart technologies e.g. building automation and IoT & AI.
Urbanisation
- Urbanisation increases investments into improved building technology and performance.
- New buildings are designed for modern needs and flexible use. Existing, aging buildings are converted into new use and infrastructure is upgraded to respond to denser urban structures.
- Our services are essential to keep smart and sustainable built environments up-and-running. We also deliver building technology and infrastructure projects for new investments and modernisations.
Security and safety
- The role of security and safety technology in the built environment is gaining more and more importance.
- For properties and industry, security is a necessary investment. Integrated security systems that provide energy savings and cost-effective building operations can also create real business value.
