Addtech operates in the international technology trading market, where players buy, adapt and sell technology-based products, subsystems and solutions. The Group focuses on carefully selected niches with a high technology and knowledge content. Addtech is a key partner for industrial and technology-intensive service companies in the private and public sectors in Northern Europe.
The North-European market
Addtech’s operational focus is on the Nordic countries, although markets outside the region have grown in importance in recent years. The operations beyond the Nordics are in the UK, Ger-many, Austria, Poland, Estonia, Latvia, Japan and China. In addi-tion to this, the Group exports to more than 20 other countries.
Market drivers
The long-term growth and profitability of the technology trading market depend on the size and diversity of the industrial and service sectors. Northern Europe’s relatively high payroll costs have spurred the development of knowledge-intensive, automated and specialised industrial and service sectors. This has resulted in differentiation of the value chain, increased trade and greater reliance on external partners for product development and component adjustment as well as for maintenance and other aftermarket services. Addtech cooperates with manufacturers who, via their in-house product development, supply market-leading, high-quality products with advanced technological content. Cooperation with our companies is to be the most profi table way for suppliers to sell their products in the geographic markets where we operate.
Customers need a partner who helps them select the right supplier and technology from an increasingly complex supplier market. When we can provide a range of market-leading products, combined with our own technological and market know-ledge alongside flexible customisation options, we will also be an attractive partner for our customers. Our range of products and services is aimed at both end users and OEM customers (Original Equipment Manufacturers, who integrate Addtech’s products into their own products).
Growth and profitability
In the short term, growth and profitability are closely tied to the state of the economy in industry and the economic conditions prevailing in the Addtech Group’s markets. Addtech’s focus on infrastructure, the service sector and narrow market niches reduces sensitivity to economic volatility. However, growth and profitability are still highly dependent on the state of competition among our customers – and our customers’ possibilities of performing well domestically and/or globally. It is therefore crucial when selecting customers that resources are invested in niche markets offering long-term sustainability. Addtech evaluates its various markets on an ongoing basis to ensure that they offer scope for reaching Group financial targets.