Driving forces

Clear driving forces continue to create demand

Nordic Waterproofing significantly contributes to a safer environment where the focus is on protecting and preserving buildings and infrastructure.

THREE GLOBAL MEGATRENDS

Following three global megatrends have a positive effect on NWG’s operations and, above all, create opportunities for the Group’s range of products and services, but also challenges for the operations’ own impact.

THE DIGITAL TRANSITION

The construction industry is in a significant and necessary digitization process throughout the value chain. A transition that is expected to last for several years. Digitization affects all parts of the value chain, from purchasing, design and manufacturing to how products are marketed and the development of new services in the construction and maintenance market. It means shorter lead times, lower inventories, and costs as well as an increased need for skills development for employees, designers and customers.

The development is also noticeable within the Group’s operations for prefabricated wall and facade elements, where customers largely use a continuous flow of information for construction designs, assembly instructions and specifications of materials. In addition, an increasing part of the production will be handled by robots.

The production of waterproofing layers is also increasingly automated. It includes, among other things, AI (artificial intelligence) which is applied for quality monitoring and temperature control.

An important channel in the customers’ design phase is also Building Information Models, or BIM. The technology is established in the prefabricated segment and is increasingly applied in waterproofing layers and its various properties so that designers, architects, and other prescribers can choose the optimal material and solution for the specific project.

Training for roofers is increasingly taking place in instructional videos adapted for digital channels. It provides detailed product information as well as recommended methods for installing waterproofing products and for maintaining roofs and other building components.

ENERGY AND ECOLOGICAL TRANSFORMATION

The World Economic Forum’s (WEF) Global Risk Report 2021 covers economic, environmental, geo-political, societal and technological risks. NWG’s range of products and services is primarily affected by three of the top ten risks:

Failed climate action – in particular reducing greenhouse gas emissions

Extreme weather – torrential rain, heat waves, drought etc.

Loss of biodiversity

These risks are addressed on several levels, from supranational down to the level of individual companies and consumers.

There is a growing demand for sustainable building and infrastructure solutions, defined as green building materials. The focus is on a reduced climate footprint, resilience to climate change (especially increased precipitation and flood risks), industrial symbiosis (reuse of materials) and energy-efficient and renewable materials.

The green transition – a major driving force

The core of the NWG’s offering is to protect and preserve buildings, both existing and in new construction.

The EU’s climate goal of zero emissions by 2050 and the EU’s green deal are major driving forces that drive the need for investments for increased sustainability also in properties with a focus on reducing the climate footprint and increase the energy efficiency.

The EU’s green deal is also aimed at renovating existing properties with new financing solutions within the EU’s investment program to improve energy efficiency. It is deemed that the pace in which buildings are renovated in terms of energy performance must at least double in order to reach the climate goals.

The biodiversity and an improved microclimate are important components in cities, which benefits human health and well-being while strengthening the biodiversity. This can be achieved through a green infrastructure, i.e., green roofs, vegetation solutions and interconnecting green areas.

Renewable energy production with increased solar cell installations also drives the demand for installation services and technical solutions.

Depletion of natural resources

Another of the WEF’s ranked risks is resource depletion. In addition to protecting buildings and infrastructure with bitumen-based products that are based on a residual product, the company is also increasing its share of renewable materials in the form of wood in prefabricated elements.

DEMOGRAPHY AND URBANIZATION

The urbanization trend in the Nordic region is more complex today and has a different pattern now. Cities grow faster than the shrinkage of the rural area. As an example, refugee immigration to Sweden increased sharply during the years 2013–2017, which meant that the population increased in almost all municipalities. The immigration from abroad increases the degree of urbanization without a migration from rural areas.

A continued urbanization also leads to more commercial and community properties. Changed consumption patterns drive the construction of logistics centers and warehouses. In the Nordic countries, the public sector accounts for a significant share of construction investment, which contributes to a continued demand in a recession. More and more minors and elderly are expected to drive demand for community properties and will increase significantly in the coming decades.

Competition for talent

Being able to attract and retain well-educated and competent employees is crucial for the competitiveness of many industries, including the construction industry. Employees with broad experience and different backgrounds create conditions for new insights and methods as well as strong customer relationships.