Vieskan Elementti’s performance in the early part of the year has been exceptionally good considering the market conditions. Sales Director Tomi Poutiainen states that the company’s highest quotation and order backlog in ten years is backed by a strong belief in their own capabilities and the measures taken within the company over the past couple of years.
“We utilized the quiet period last year for significant renewal efforts. We thoroughly reviewed our competitive advantages and ways to differentiate ourselves in the market. The quiet period was a wake-up call to reflect on our opportunities and core business. This reflection has laid a solid groundwork for future decisions and opportunities.
Now, we have seized the space in the market where we can offer our products and services. We must always consider the next step because the construction industry is undergoing a profound post-crisis transformation. We focus on elementing and finding solutions in that field. All excess has been eliminated.”
Marketing solutions and close collaboration with construction companies also strongly contribute to the order backlog. The goal of marketing is to further increase visibility and brand awareness. This year, we have excellent opportunities to become a significant element manufacturer in Finland and partly abroad.
The elementing solutions for log construction, which are part of our operations, do not yet play a significant role, but the role of log construction is expected to grow in the future, similar to our export share, which is off to a good start. The first export destinations for elements are in Northern Sweden, and the regions and projects will gradually expand. It is safe to start exports with production and delivery construction because the scope of delivery is generally larger, and thus there are fewer external variables in the supply chain.
Overall, the order backlog at the end of April was equivalent to the entire turnover of last year. A vital part of our renewal is the commitment of the entire staff to work day in and day out with our strengths. We proudly stand together as Vieskan Elementti employees, with a common goal from production to the CEO throughout the entire company. We stand behind the choices we have made together.
Vieskan Elementti is growing without compromising quality
The seasonal variations in construction always pose challenges for companies in Finland. Certain tasks are more favorable to be done during the thawed ground period. During December, January, and February, we do something other than digging frozen ground.
“However, growing companies, both our customers and ourselves, need work year-round. We have found customers and companies with the same goal as us, which is to initiate projects throughout the year. We started this year after Epiphany, and all our lines have been full throughout the year.
At the moment, our warehouse space is quite full. When production capacity is full, it also enhances production efficiency.
The estimate for additional workforce needed in the early part of the year has proven to be correct, and ongoing interviews aim to shift element production to two shifts.
Although lead times are shortened, growth is not pursued at the expense of quality. Quality is what we are known for. We have introduced new operating models to ensure that quality remains top-notch, no matter how much work there is. Quality assurance has been greatly enhanced in all processes, and budgets are monitored more closely than ever before. Current technology provides far better opportunities for this than before.
Every era involves making choices based on the best available knowledge at the time. That’s how it has always been and will always be.”
Expansion includes new market areas and increasing facilities.
Poutiainen strongly believes that Vieskan Elementti will consider new warehouse and production facilities sometime this year.
“This doesn’t yet mean action. We must achieve this year’s budgeted target with the current production facilities, but in the future, insufficient space should not become a barrier to the targeted growth. If we want to be the best in Finland in our field, we will definitely have to take action for it.
Seeking new market areas in other Nordic countries also provides growth opportunities, just as strengthening various aspects of our own production does. Halls, residential buildings, and roof structures can contribute to growth through their demand outside Finland as well.
These plans are part of preparing for the possibility that if some unforeseen factor significantly disrupts the market in Finland, we have an alternative direction elsewhere.
Diverse products throughout history are one reason why Vieskan Elementti has survived difficult times. However, with growth, it has been necessary to reduce risk. We cannot rely solely on one product or market in the future either.
Increasing volume helps us grow domestically by reducing production costs through volume. This improves profitability and keeps the order backlog high because ultimately, market determines the price, not an individual factory.
Bankruptcies in the construction industry have reshuffled the market. New players emerge to replace the collapsed ones, and that’s good because the market needs players of all sizes.
Knowing our place has helped us. We are not yet the market leader, but we have a good position to grow in the wake of the market leader. At the top, there is either no role model or it is too far away, and things have to be approached slightly differently there.”
