Megatrends DRIVE GROWTH
Long-term macroeconomic and societal development trends impact and change the world around us. The following megatrends support our strategy and journey to become a global leader in sustainable cargo flow.
Global growth & economic development
Description: Population growth, urbanisation, rising economic wealth and productivity shape the global economic development. The world’s population today is about 7.9 billion and estimated to reach 9.7 billion by 2050. Simultaneously, the share of the world’s population living in cities is expected to grow from 55 percent to almost 70 percent. At the same time, global GDP per capita is predicted to grow by roughly five percent annually between 2020–2025.
Implications: Global and economic growth drives consumption, world trade and demand for cargo transportation. Urbanisation requires infrastructure and construction, with logistics to sustain cities. In densely populated cities, load handling solutions must be quiet, safe and low in emissions.
Examples: Kalmar One, MacGregor Cargo Boost solution, Hiab electric MOFFETT truck-mounted forklifts.
Description: Today, environmental, social and governance dimensions of sustainability increasingly guide consumer and investor behaviour. Governments, investors, companies and consumers now demand concrete actions to address climate change and protect ecosystems. Sustainability is increasingly also perceived as a good business opportunity.
Implications: Our customers face increasing pressure from stakeholders to address climate change in their operations and industries. Other aspects of ESG, for instance safety, are key challenges customers need to solve and mitigate. Sustainability presents great
opportunities for us to innovate new solutions that tackle the customers’ challenges.
An example: Kalmar’s fully electric portfolio, MacGregor’s offshore wind offering.
Description: Rapid development of digital solutions continues in all areas of the society. Today we see greater emergence of disruptive technologies, such as 5G and artificial intelligence, which enable data-based services and new business models.
Implications: Customers seek intelligent solutions that can support them in optimising their operations, improve productivity and safety and reduce inefficiencies and emissions. Our business areas are present across the cargo flow network, enabling us to draw valuable insights across the value chain. With these insights, we are able to shape the cargo handling industry by providing value adding software, automation and intelligent solutions.
Examples: Kalmar Insight, MacGregor OnWatch Scout, Hiab HiConnect platform
Climate-related risks and opportunities
Climate change is expected to have an increasing environmental and financial impact on businesses. We have identified the greatest climate-related risks and opportunities for us.
- Investment in the right technology
Sustainable technologies are evolving and maturing rapidly but for now there are no clear winners defined. Transforming the industry and mitigating climate change with low-carbon solutions is a great opportunity, but on the contrary, failing to invest in the right technology can result in increased indirect costs if the R&D investments are not realised.
- Offering intelligent solutions improving climate resilience
There will be a growing demand for climate change adaptation and resiliency solutions. Automation, robotisation, digitalisation and remote services remove the need to be physically present, increasing the climate change adaptation and resilience of customers’ operations.
- Extreme weather affecting operations
Intensity and frequency of extreme weather events is expected to increase. A major weather event in one region may impact our suppliers, causing delays to trickle down. Business continuity plans are essential to mitigate risks.
- Steel and lithium battery prices and availabilitys
Steel prices may increase due to more aggressive CO2 taxation or more expensive production of low emission alternatives. The demand for lithium batteries is expected to increase as a result of the electrification trend.
- Increase in offshore wind installations
Wind power generation is estimated to increase, providing great growth opportunities for MacGregor’s offshore business.