Dark clouds are hanging over the construction industry at the moment, causing the leasing company Platform.as to gear up for a challenging 2023 with a series of cost-cutting measures.
The construction industry is looking into a time of significant deceleration and decline in new projects and constructions. This is the conclusion of an analysis by DI Byggeri, among others.
At the same time, a new economic barometer from Statistics Denmark (Danmarks Statistik) shows that up to one in five construction companies fears liquidation. This is causing more construction companies to review their current business and not least their costs.
This can also be noticed at Platform.as, the industry’s largest lessor of mast climbing work platforms, which is launching a number of initiatives to equip the company for the future. We need to show due diligence despite a successful 2022.
“We are choosing to be at the forefront and adapt to the reality that the construction industry is facing. The whole industry is currently experiencing lower activity levels and projects being postponed. If we are to remain competitive, we need to make some cuts in order to be properly equipped to get out on the other side successfully,” says Casper Gorm Knudsen, CEO of Platform.as.
Difficult times calls for common sense
The company has therefore initiated a round of savings with a number of measures to prepare Platform.as for a challenging 2023. This means, among other things, that we unfortunately have to say goodbye to two administrative employees. In the marketing budget, we will be cutting the more luxurious items such as promotional gifts and our hot air balloon. However, the branding effort continues unabated on its upward curve, as the fact that we significantly strengthened our marketing department earlier this year remains unchanged.
In addition, Platform.as has invested heavily in digital transformation over the past few years, such as the development and implementation of a new ERP and leasing system, to ensure that the company today appears as one of the most modern and digital leasing companies in the industry.
“Our early focus on digitizing the business to every corner of our warehouses and storage facilities puts the company in such a strong position that Platform.as can refrain from launching new development projects for a while”, says Casper Gorm Knudsen.
At the same time, the Board of Directors will be reduced in size, and Chairman Steen Hvidt supports the measures.
“It’s prudent to look ahead and future-proof the company by cutting costs. The last board has over the last three years helped the management to run a healthy company with growth. All goals have been met, and although Platform.as stands strong, we believe it is necessary to think long-term,” says Steen Hvidt.
The employees also understand the changes.
“These are not big changes, but many small steps make a big difference in the long run. The employees understand the situation, and our professional board agreed with all the measures. We have a healthy business, skilled employees and a fleet of the latest hoist and mast climbers that are in increasing demand – so the measures should be seen as common sense in a difficult time,” says Casper Gorm Knudsen.
Lars-Christian Brask and Ann Christina Egsgaard Madsen have resigned from the board of directors at Platform.as.