Construction Division

Share of Group Net Sales
Operating income and margin

The Construction Division develops, manufactures and sells mainly light construction products for sawing, drilling, grinding, polishing and demolishing concrete, steel and other hard materials.

Its products are used exclusively by professionals who demand high-level performance, reliability and superior levels of technical service. Satisfying these demands is crucial for success. The Husqvarna brand is used for the construction products and Diamant Boart is the brand for stone industry products.

Strong global market positions

The global market for the division’s product range for the construction and stone industries is valued at approximately SEK 25bn. The market is fragmented with many small, local competitors and only a few global actors. The division’s combined global market share in relevant product categories is around 15 percent, with leading positions in several areas. Positions are strongest in power cutters, floor, wall and wire saws as well as multi-wire.

Success factors

The division offers high-quality products and solutions to professional customers. A global service network is critical to support the business. Products and services are sold to dealers, rental companies and directly to contractors by using innovative sales processes and tools. High levels of investments are made to maintain the widest, most innovative and powerful range of products in the market.

Towards profitable growth

The Construction Division has completed significant restructuring of its operations since the market downturn in 2008 and 2009, creating a strong foundation for continued profitable growth. The brand portfolio has been consolidated to mainly one brand, Husqvarna. Complexity in the product offering has been reduced, acquisitions have been fully integrated and R&D levels have increased. In 2016, sales rose for the sixth consecutive year. 

Read more about 

Husqvarna WSC4

Comments from Henric Andersson, President Constructions Division on the activities 2016

 

Priorities

  • Continually improve the solid foundation
  • Utilize cost and efficiency improvements to fund strategic investments
  • Focus on key attractive segments
  • Add service offerings
  • Step up in emerging markets

Brands

  • Husqvarna
  • Diamant Boart
  • Pullman Ermator

Product range

  • Power cutters
  • Floor, tile and masonry saws, wall- and wire saws
  • Drill motors with stands
  • Floor grinding machines
  • Demolition robots
  • Diamond tools for construction and stone industries

End-customers

  • Construction industry: infrastructure projects such as road and bridge construction, renovation and construction of commercial residential properties.
  • Natural stone industry.

Distribution channels

  • Direct sales to professional end-users: sawing, floor grinding and demolition contractors
  • Rental companies that rent equipment to building companies and contractors
  • Construction dealers
  • Stone processing industry

Main competitors

  • Hilti
  • STIHL
  • Tyrolit
  • Ehwa and Shinhan
  • Skystone