4 minute read
Region Sweden
oem's offering comprises standard products and systems and bespoke solutions, developed in collaboration between the customer, supplier and oem.
Product range development
Extension and improvement of the range is an ongoing process which generally takes place in three ways. • Development of the product range in collaboration with existing suppliers.
This is done by expanding the collaboration to more of the supplier's range and by working together on new product development. • The range is expanded and enhanced continuously by oem entering into partnerships with new suppliers of products that complement an existing range. • Acquired businesses provide access to new ranges or products that complement an existing range.
MARKET
PRODUCT AREAS
Electrical components
Machinery components & cables
Pressure & flow components
Motors, ball bearings & brakes
Appliance components
Installation components Sweden
Adaptation to meet the needs of each local market
oem's offering differs across the various geographic markets. This is a natural consequence of oem having been established in different markets for varying lengths of time and the fact that each market has its own requirements and characteristics. Each local operation has to align its offering to local market demand and according to which suppliers are available as partners
FinlandBaltic states China Norway Denmark PolandCzech Republic United KingdomSlovakia Hungary
The product area comprises products supplied by oem Motor, Internordic, Ernst Hj Rydahl Bromsbandfabrik, oem Automatic and oem Automatic Klitsø. Products include: Drive electronics, motors, gears, ball bearings, seals, brake and friction systems. Areas of application: The products are targeted at original equipment manufacturers for use in the machinery and equipment that they produce and they are used for food industry equipment, medical equipment and park and garden equipment. Brake and friction products also target the automotive industry. Examples of customers: Tetra Pak, Cytiva, Öhlins, Husqvarna, Toyota Material Handling Manufacturing, Nobina, Getinge Disinfection. The product area comprises products supplied by oem Electronics, Svenska Helag, ATC Tape Converting, Agolux and oem Automatic. Products include: Displays, keyboards and LED lighting. Areas of application: The products target original equipment manufacturers, high-volume manufacturers and contract manufacturers for use in the electronic equipment and devices that they produce. The products are used in devices in a variety of areas, from conference phones to medical analysis instruments. Examples of customers: Husqvarna, Nibe, Franke and Axis. The product area comprises products supplied by Elektro Elco, Agolux and Nexa Trading. Products include: Lighting and products for wireless control in the home. Areas of application: Indoor and outdoor lighting for the home with LED technology. Wireless control of lights, sunshades and doors in the home. Examples of customers: Electrical wholesalers that target professional installers, such as Solar and Elektroskandia. Building and DIY stores such as Bauhaus and Clas Ohlson.
New sales and earnings record
Region Sweden enjoyed strong demand throughout the year and achieved 18% organic sales growth, driven partly by increased price levels. The companies have been able to serve their customers and continue developing their business well despite the impacts of the pandemic. The region delivered a record earnings performance with a 32% increase.
62
% OF GROUP NET SALES
398
OPERATING PROFIT EBITA (SEK million)
481
NUMBER OF EMPLOYEES Offering
Sweden accounts for 62% of consolidated turnover and is the largest region in the Group. The region is made up of 11 companies each specialising in a particular area of expertise with in-depth knowledge of their products and applications. oem's complete range of industrial components and systems, more than 60,000 products in all, is available in the Swedish market. The product range is sold as individual components and, increasingly, as assembled solutions tailored to customer requirements for various applications for the manufacture of equipment and appliances. oem's ambition is to have close working relationships with customers and it is frequently involved in their development activities. The product and application expertise of its sales staff and product specialists helps optimise the customers' product and manufacturing processes. Good supply capacity, a high level of service and flexible logistics solutions are other areas where oem creates enhanced value for its customers.
Market
The market in 2021 was characterised by strong demand, rising prices, material shortages and supply chain problems, particularly from Asia.
It had started to rally towards the end of 2020 and continued to recover during the first quarter of 2021, after which it has stabilised at a high level.
oem is a market leader in several segments in the Swedish market and generally holds a strong position. It is a mature market with normal underlying growth of a couple of percent per year, and where the performance of Swedish export companies plays a huge role. Its customers are primarily equipment and appliance manufacturers, along with manufacturing companies in the automotive, forestry, telecommunications, IT and medical technology industries. In certain segments, customers also include wholesale companies, builders merchants and DIY stores.
Swedish industrial companies have manufacturing facilities in both Sweden and other countries around the world. Development and design units are usually located in Sweden and, thanks to close working relationships with its customers, oem normally follows the customer to wherever the end products are produced. Globalisation and digitalisation create greater transparency, which in turn leads to price competition particularly for standard products. oem is committed to ensuring that its pricing is competitive through close partnerships with manufacturers and efficient and effective internal processes. Delivering optimal solutions for the customer is an important aspect of value creation. Working collaboratively with the customer often produces unique solutions with regard to components, supplies and business arrangement. This means that oem creates long-standing customer relationships and continues to supply
