Annual Report 2006 - Munters

“The development of framework agreementshas progressed the farthest in theUK, and is predicted to spread to additionalmarkets. This trend will benefit Munterssince the MCS Division is one of only a fewdamage restoration firms that operateglobally.”of demolition and rebuilding, results in both environmentalgains as well as cost-savings for insurance companies. The twolargest competitors are Belfor and ISS.Developments during the yearDuring 2006, both earnings and market share improvedwithin the European operations, despite difficulties in Germany.The German operation has been turbulent for severalyears and measures to break the negative trend were in focusduring 2006. The cost basis has been reduced and the organizationstrengthened, resulting in profitable operations duringthe second half of 2006. Work to further improve margins atthe German operation remains a high priority.Acceptance measures and advances were made during2006 in regard to all strategic initiatives, with the aim ofimproving competitiveness and margins. Among othermeasures, MCS implemented a project leadership trainingprogram, whereby approximately 80 people received proficiencycertificates. The training program will continue to bedeveloped in 2007.Another high-priority strategic initiative at MCS is the newmobile IT platform. The ambition of MCS is to greatlysimplify and improve everyday communications, both internallyand between technicians and administration, as wellas externally with customers in regard to insurance matters.The development of a mobile IT system has been started inorder to reduce the amount of time used to administer variousprojects, such as the completion of forms, damage reports andaction plans. Munters service technicians in the field will beable to more efficiently report and communicate both internallyand with insurance customers. Experience from the UKmarket, where the system has been in use for more than twoyears, has shown significant reduction of costs, while simultaneouslyincreasing service to all customers, especially throughmore straightforward on-line information flow and fasterhandling and service of key accounts. The mobile IT platformwill be launched widely within the Division in 2007.Projects resulting from larger natural disasters havebeen a recurring part of operations in recent years. Between2000–2005, such projects accounted for roughly 5 percentCASEProject manager trainingWithin the framework of the MCS Growth Academy,Munters initiated a global training program for projectmanagers in 2006. The goal is for participants to developtheir ability to oversee increasingly large and complex damageprojects, resulting in higher project profitability. Morethan 80 people participated during 2006, and another 200project managers will receive training during 2007. Many ofthese will also complete the program’s supplementarycourses 2 and 3.According to one project manager: “We recentlycompleted a damage restoration assignment following a firein a 20-storey building, where large portions of the buildingwere damaged by fire, smoke and water. With my recentlyconcluded training, I felt more secure and had a betteroverview of the situation, which enabled me to quickly makethe right decisions in the right order. I also believe that I havebecome better at dealing with the expectations and opinionsof various interest groups.”M U N T E R S A N N U A L R E P O R T 2 0 0 6 21