Engineering market is generally divided into five different segments. Etteplan operates mainly in the machinery and equipment segment.
The business environment in machinery and equipment design has undergone an intense change in the course of the last couple of years due to changes in operating environment. The design sector is still fragmented in its structure and there are plenty of small, local companies in this field. The consolidation of the industry that commenced in the beginning of the 21st century slowed down in 2009. Customers, however, have continued to centralize their purchases, and the structure of the sector is changing slowly as a consequence.
The business environment of our customers has changed rapidly. Increasing competition and shifting of the focus in demand to Asia in many sectors have led to more decisions by our customers to renew their production structures and operating methods. New demand for technical design services is being generated in Asia as a consequence of these changes in the business environment.
Our customers are developing their operations by concentrating on their core business and unifying their methods of operation. For technical design and product information services, this leads to requirements to provide saving opportunities, flexibility, and services that are independent of time and place as well as operating procedures that meet strict data security requirements.
Trends support growth
Etteplan’s business is affected by global megatrends as well as industry-specific developments. Industrial internet, requirements concerning environmentally friendly products, shorter product life cycles, the ageing of the population and emerging markets are creating engineering design needs and new business opportunities for the Company.
The consolidation and outsourcing trends in the industry affect positively on Etteplan’s business. The organic growth of large operators is faster than that of the market and they are also making more acquisitions than other players. There is also consolidation among customer companies. Thanks to its service solutions Etteplan has been successful when the customers have reduced the number of suppliers and sought closer partnerships with the most important ones.
By outsourcing functions to a partner, the customer can focus on its core competencies. More and more companies rely on Etteplan’s expertise and ability to increase the cost-efficiency of engineering and technical documentation through the Company’s outsourcing service model.