Reflections on Bauma

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Reflections on Bauma

Bauma 2007 hit an all-time record with 500 000 visitors - an increase of almost 20 percent compared to 2004. Besides the enormous size of the event, it was striking how few actual novelties were introduced, at least in the area of precast.

Bauma 2007 hit an all-time record with 500 000 visitors - an increase of almost 20 percent compared to 2004. Besides the enormous size of the event, it was striking how few actual novelties were introduced, at least in the area of precast. The sector still consists of many small enterprises, whose capacity to deliver on a large scale is limited. The average size of construction projects has grown since the previous Bauma; customers are larger and their factory units bigger, providing them with better possibilities to develop operations and to succeed, compared to smaller units. On a general level it seemed that some companies exhibiting at Bauma did not focus too much on what kind of marketing communication they were passing on, if it was relevant and authentic or not. These enterprises presented facts regarding their size and market situation in a flexible way, which reflects their overall business manner. As for Elematic, this year's Bauma differed from previous fairs in that we signed a large number of contracts during the week; earlier the event has been more along the lines of getting to know one another and establishing contacts. The 24 million euro contract that we signed with the BPC Group, leading manufacturer of precast concrete in the Gulf region, is an extraordinary example of this new trend. BPC Group is simultaneously commencing construction of a brand new factory in Bahrain and another in Dubai, and is doubling its capacity in Qatar. The increase in the size of construction projects as well as customers means that suppliers have to be larger than before and must be true one-stop suppliers. Because we have grown and increased our product offering, bringing individual machines to Bauma does not provide any added value, nor is it practically feasible. Customers buying complete plants do not want to fiddle with small parts, and people making the actual decisions are interested in how to make a profit, not the smallest technical details. Long-time customers on the lookout for new single machines can discuss the matter without seeing the actual machinery. It is probably quite rare for anyone to make an impulse buy if they see a good-looking, brightly colored machine at a fair such as Bauma. So instead of continuing along the old track, we chose to implement a new concept of presenting our product range virtually, through our Internet-based Precast Fountain which contains all the necessary information. This way, we could welcome all our visitors personally and invite them to discuss matters face-to-face, pleasantly and efficiently. A consolidation of the precast sector inevitably lies ahead and Elematic wants to be involved in this healthy development. Right now, construction market demand is higher than ever. Elematic's order books are full for a year ahead and the situation is the same for our biggest competitors; consequently delivery times have also been extended to approximately one year. For this we apologize to our customers. We have taken a number of measures to alleviate the situation and have, among other things, doubled our production capacity. Today I would like to conclude by thanking all our visitors to Bauma. Let us grow and succeed together - all the elements needed for continued and increased prosperity are at hand. Leo Sandqvist CEO

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