Strong summer for Engcon - growth in multiple markets

The effects of Covid-19 are not yet over, but last summer's sales figures showed positive indications for Engcon. An unexpected increase in sales in June and July means that Engcon now even has to work overtime to produce and deliver ordered products.

Engcon is one of many companies that were hit in multiple ways by the Covid-19 outbreak during the spring. For example, engcon had to end this year's largest trade show early. Sales volumes also declined significantly during the spring. Engcon is known for its good economic leadership and responded immediately through a package of measures that included terminations, savings, budget adjustments and targeted efforts to streamline work processes and work methods. This summer's sales figures looked much better against expectations, with a growing order book and ditto production.

"We consider it of utmost importance to run our business in the long term. In times of uncertainty, we do everything we can to minimize the effects in the event of the worst-case scenario," says Krister Blomgren, managing director of Engcon.

"However, it quickly became clear that many excavators around the world continued to work on railroad maintenance, highway construction, forestry and construction work despite the pandemic. Our products contribute to work that benefits society. Such priorities anywhere in the world thus had a beneficial impact on our business. This is an important factor for our good sales figures."

Taken together, Engcon Group lost about 14 percent in the January-July period compared to the previous year, while sales simultaneously increased 18 percent in non-Scandinavian markets.

"Here it must be taken into account that the other markets are running at full speed, while things are still a bit slower in the normally strong Nordic markets."

While Engcon is seeing a lot more caution in terms of larger investments, at the same time, many excavators are barely able to handle all the jobs right now. So those who can afford it would do well to make investments during this economic downturn. Then they will be well prepared when better times come.

"An investment in a rotary tilt attachment makes excavation work much more efficient. This provides better conditions to deliver more work during busy times. It does not matter whether it is a local business owner or a large global enterprise. It is always wise to purchase the right equipment."

Engcon itself is also undertaking the necessary prioritized activities to be as strong as possible after the crisis.

"As part of a decision made a year ago, for example, we have now taken into confidence a new vendor for an ERP system. Our strategy is to streamline the various processes as much as possible, and to make thoughtful investments to make our company even better. Last summer's sales were good and even though Covid-19 is still current, we are cautiously optimistic," said Krister Blomgren.

The markets with significantly growing sales this year are North America (America and Canada), Denmark, Great Britain and Australia.