The investment logics of Finnish industrial maintenance service providers Online publication date: Sat, 23-Aug-2014
by Lasse Hatinen; Miia Pirttilä; Sari Viskari; Timo Kärri
International Journal of Strategic Engineering Asset Management (IJSEAM), Vol. 1, No. 1, 2012
Abstract: Finnish industrial companies are today highly dependable on industrial maintenance service providers practising maintenance in industrial companies. Outsourcing has led to an increased demand of maintenance services, and maintenance service providers have made substantial investments to meet the growth. The total investment rate was on average 1.9 in large companies and 6.4 in small- and medium-sized enterprises (SMEs) in 2003-2007. There are major differences in the investment logics of large companies and SMEs. The target of large companies is to gain a market share with a long-term strategy whereas; SMEs compete with flexible investment logic to face the current demand situation. Investment scenarios are created to calculate the needed investment rates with a forecasting model to face target profitability rates. The investment needs seem to be more moderate than expected, which gives a managerial perspective to investment planning to maintain good profitability.
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