In 2008, the elevation sector in Spain closed a significant growth cycle which almost all the companies of the sector took advantage of. However, the fact that the real estate activity suddenly slammed on the brakes had a huge negative impact on lift companies. The coincidence with the world credit crunch resulted in a series of defaults on payment, something that hadn’t occurred for a number of years.

MP Situation

It is not easy to quickly adapt to a sudden drop in orders, nor to briefly find alternative solutions. Our current mission is to comply with the scheduled plan before the established deadlines.
On the one hand, it is worth mentioning MP have direct international presence in a large number of countries that have been maintaining remarkable growth levels in such regions as Eastern Europe, America and Africa. The network of lift companies is really strong and keeps increasing day-after-day, thanks to our intense trade work.

On the other hand, MP is the leader of sectors characterized by significant growth in Spain and France, an example of which is the existing building refurbishment sector.

In addition, MP counts on the consolidation of turnkey Installation and on maintenance projects; projects already part of its portfolio. Here the success of our flagship projects should be pointed out, projects such as Sevilla Metro and a number of significant public buildings.

Finally, the line of products designed by MP has been expanded in order to compete more vigorously in the New Building sector, as well as to be in a position to provide ready solutions in the field of Refurbishments.

REFURBISHMENTS

Since it first began to install lifts, MP has actively taken part in the refurbishments market. Our slogan “We adapt to your space” reflects the flexibility of the whole supply chain and our confidence in our ability to perfectly respond to the spatial needs of refurbishments that require customised solutions.  Our line of products, whose model for the refurbishments sector is MP ARES, allows to offer solutions for shafts with reduced pit and headway. It also allows for the replacement of old lifts.
The actions promoted by public bodies devoted to building refurbishments across the entirety of Spain produced positive results in 2008, a trend sure to have yet more positive outcomes in the future. MP's cooperation with these public bodies on a national level is one of the most meaningful endeavours that makes MP a leader in this market niche. That is why, refurbishments are scheduled to cover over 30% of our installation activity.

SPECIALIZATION

During the last years, due to the competitive prices in the New Building sector, the strategy of cost reduction has been prevailing. On the contrary, the strategies of differentiation and specialization will acquire a greater importance in the coming years.
Except for the BRIC countries, we believe that Latin-America and Africa will play a more relevant role in the years to come and, inside Europe, Poland, Czech Republic, Slovakia, Slovenia and Romania have great development potential. MP is directly present in all of the mentioned countries through its own installing farms or through companies distributing its products.

CHALLENGES OF THE SECTOR

Our immediate challenge is to ensure that the current economic crisis does not induce the extinction of Elevation SMEs. Considering the service level, the extinction of small and medium enterprises would affect a sector that necessitates a customised treatment and a close working relationship; an issue which doesn’t concern other sectors working with high unit volumes, such as the automobile industry. As regards elevation, the independent sector shouldn’t lead less than 35-40% of the market.

Normally, efficient production and technology should diminish neither market freedom nor consumer ethics. The existence of a wide independent sector guarantees the survival of such values.

FORECAST FOR 2009

New Building will proceed on very low levels; refurbishment and reform of existing lifts will be  enhanced.

This year will be undoubtedly very hard as the competitiveness of Spanish enterprises and in particular MP will be tested. We did our job and, in spite of the considerable changes, we trust our capacity for work, adaptation and improvement. The current crisis must be an opportunity to face a much more solid and sustainable future, through business structures more agile and flexible.

Antonio García de Alvear
General Manager