Annual report 2008 - Munters

Moisture Control Services (MCS) division
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They require a comprehensive range of services that smaller
local damage restoration companies can seldom offer.
This has had the result that an increasing proportion of
business is based on national, and in some cases international,
framework agreements that have been negotiated centrally
and at fixed prices. The trend towards framework agreements
has progressed the furthest in the UK and has been introduced
in several markets in recent years. This trend favors
Munters, since MCS is one of the few damage restoration
companies working with a global organizational structure.
With a well-developed system for key account management,
Munters can take advantage of this trend. Munters estimates
that framework agreements over time will account for about
45 percent of sales within MCS, compared with 40 percent
during 2008. During the year, some ten new framework
agreements were signed in Europe, the US and Australia.
MCS has a large part of its operations in Europe, where
the Nordic market accounts for a significant portion of sales.
Today the division has considerable growth potential in the
US and above all the Asian market and is well-prepared to
increase its presence in these regions. Munters’ ambition is
to grow in the US with a broader service offering. Expansion
will take place primarily organically, but over time, selective
acquisitions are possible.
Mobile IT for rapid and efficient damage restoration
Assignments within MCS are numerous, while the value of
each assignment is usually relatively small. This creates opportunities
for economies of scale and rationalization. The MCS
division’s ambition is to greatly simplify and improve daily
communication both internally between damage technicians
and administrators, but also externally with customers in
insurance cases. In addition to reducing the time devoted to
administration of various projects for such tasks as filling in
forms, damage reports and action plans, more efficient work
methods can reduce the number of visits to damage sites and
create clearer documentation. As a result, a mobile IT system
called Field.Link was launched in large parts of the organization
during 2008. Experience from the UK market where
the system has been in use for four years shows substantial
potential for reducing costs while improving customer services,
primarily through clearer online information flows and more
rapid processing and service to key customers.
Another prioritized area within MCS is work with key
account management. This means consolidating contacts with
the leading insurance companies through systematic work
processes and clear information flows that make it easier for
both Munters and the customer to follow project progress.
Development during the year
Organic growth during 2008 continued to show a positive
trend, and MCS won additional market shares. The aftermath
of hurricane Ike resulted in the most extensive restoration
effort in the US since hurricane Katrina in 2005.
Flooding in Iowa in the summer of 2008
After several days of heavy rain in June 2008, the situation
was critical in the eastern and southeastern parts of
the state of Iowa in the US. The many rivers that branch
here and cover large parts of the state threatened to
overflow. Just 15 years earlier, a large flood had caused
tremendous damage, and when the flood dams on the
Cedar River gave way on June 12, catastrophe was
once again upon them. While Iowa City did not suffer as
severely as was feared, the destruction in Cedar Rapids
was very extensive. At one point, virtually the entire city
center comprising more than 1,000 blocks was under
water, and extensive property damage was reported.
President George W. Bush arrived at the disaster area
with Air Force One on June 20 to inspect the damage
with his own eyes. In addition to evacuation of more than
20,000 Cedar Rapids residents by the authorities, flooding
in the area was estimated to have caused damage
for several billion dollars.
Munters’ service technicians participated in the
clean-up from the start and were responsible for 44
major restoration projects, including police stations, fire
stations, libraries and other large public buildings over
the entire disaster area. As is often the case in this type
of disaster work, employees in some cases worked for
weeks on end, and the strain on the entire organization
was substantial. All assignments were completed in a
commendable manner, and the Munters employees
who took part in the work have every reason to feel
proud of their efforts.
Munters Annual Report 2008