In our Konecranes basics series, we take a look into how the company works and what it's made of. This time we take a deep dive into Business Area Industrial Service and Equipment. It provides industry-leading services for all types and makes of industrial cranes and hoists, and sustainable lifting solutions covering a full range of industrial applications. Our objective is to improve the safety, productivity and sustainability of our customers’ operations.
Industrial Service and Equipment serves industrial customer segments such as general manufacturing, automotive, power, and paper and forest, among others. In 2022, Service and Industrial Equipment were merged into one Business Area to enhance customer focus and strengthen Konecranes’ position as the global lifting leader.
Most industries utilize a wide range of lifting equipment and services. Process industries such as paper and steel are heavy crane users, with cranes being an integral and critical part of the production process, and as such may include more specialized and heavy-duty application cranes. Power generators generally use cranes to maintain their assets and thus the cranes are infrequently used (but must be available when needed). Automotive is a wide user of lifting equipment, from light lifting cranes used in assembly and machining operations to specialized and sophisticated equipment used in die handling. General manufacturing is by definition a very diverse and broad user base; a large portion of the lifting equipment is used in product assembly and/or maintenance of production assets.
Strong service business
Our long and extensive industry knowledge, combined with an unmatched global field service network, provides a strong lever for our service business. Furthermore, our ability to service not only our own products, but many different makes, brings additional range to our offering. The service business is less dependent on economic cycles, has high barriers to entry and offers significant growth potential going forward.
A common theme for companies choosing Konecranes as a supplier is that we can offer full lifecycle care of industrial cranes for their factories across the globe – we maximize production uptime and minimize downtime for the duration of their ownership of the equipment. Our global customers can have the same solutions in multiple factories and lower their number of suppliers by choosing a global partner.
In a connected world, an effective digital offering is also crucial. We offer a comprehensive set of digital tools to bring crane information online – safely and securely. Remote monitoring is a key element of predictive maintenance and is used to collect equipment condition and usage data. Remote monitoring data is aggregated on the yourKONECRANES portal along with inspection and maintenance data, giving customers a comprehensive view of their equipment maintenance needs and performance.
Leading industrial material handling expertise
Konecranes has extensive experience in designing and building safe, efficient material handling devices. This deep knowledge is demonstrated in Konecranes’ Core of Lifting componentry. Core of Lifting components are optimized for performance and sustainability, digitized for ease-of-use and predictive maintenance, and have inbuilt connectivity to support Industry 4.0 integration, automation, and autonomous operation.
These components form the base intelligence and operational performance of all Konecranes equipment, and they are developed, sourced, and manufactured centrally to maximize volume benefits, quality and cost competitiveness.
We have repeatedly developed innovative, game-changing lifting products that stand the test of time and propel innovation across the industry. Some examples include the XL series launched in 1980 and the CXT, the then most compact hoist, launched in 2000. More recently, the S-series cranes launched in 2019 introduced a synthetic rope and other innovative features.
In the Industrial Equipment business segment, our go-to-market model is based on a dual channel approach: direct (Konecranes) and indirect (Demag, SWF, R&M, Verlinde, Donati). This widens our market coverage and provides economies of scale. The Konecranes branded products are sold directly to customers, whereas the other brands are sold to crane builders, industrial distributors and integrators.
Geographical reach
For Industrial Service and Equipment, the regional country organization model and local footprint it enables plays an important role. Sales frontlines are close to local customers. The same is true for manufacturing sites, as physical proximity is essential to allow cost-effective delivery of the cranes. We are located in around 50 countries and we serve all major industrial and manufacturing geographic markets, supporting our customers either through our Konecranes network of companies, our distribution channel brand companies or our official country partners.
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