Market- and Competition Analysis

Ernst Rumpeltes

> Learn more about Ernst Rumpeltes

Ernst Rumpeltes, Senior Consultant, has been responsible for the preparation of studies and consulting projects at Interconnection Consutling since 2010. He is an expert in market intelligence, brand image analysis and customer behavior. Ernst Rumpeltes studied Business Administration at the Vienna University of Economics and Business.

Contact me without obligation, I support you gladly!

Tel:+43 1 585 46 23 38


Our tools for a successfull sales planning, marketing controlling and market selection

IC Market Analysis

Market Selection

IC Events

EFS | European Facade Summit

Eventpreview – more information coming soon

The EFS | EUROPEAN FACADE SUMMIT is the new industry event all about facades. With a focus on trends, strategies and innovations, as well as analyses of the construction industry, it will feature presentations by leading industry representatives and external experts for façade construction (VHF, Curtain Walls, ETICS), architects and suppliers!

The event will take place from 29-30 November in Vienna. In addition to the lectures, there will be discussion rounds, an award ceremony and a joint evening event. The target group includes management, sales and marketing in the industry.

Tickets are available from € 499.

Detailed information on the programme will follow shortly.

Questions and reservations can be made to Franca Kircher (+43 15854623-15) and Magdalena Seidl (+43 15854623-91).

> read more

Recruiting Excellence Kongress


 .. oder: Antworten und Lösungen zum Fachkräftemangel !

WANN/ 16.11.2023  |  WO/ Wien  |  WIEVIEL/ ab € 299.-

Was braucht es heute für ein erfolgreiches Recruiting zwischen Demografischem Wandel, Fluktuation, Fachkräftemangel, Digital Natives und dem allgemeinen Wandel in der Bedeutung von Arbeit ..?

Mit den Rezepten von gestern ist erfolgreiche Mitarbeitergewinnung heute nicht mehr möglich. Denken, Ansprüche und das Informationsverhalten haben sich grundlegend geändert und so muss sich auch das Recruiting ändern …

Recruiting Excellence nimmt die aktuellen Entwicklungen am 16.11.2023 ins Visier und zeigt in Vorträgen und Diskussionen, mit welchen Tools Unternehmen heute ausgestattet sein müssen, um neue Lösungen in der Mitarbeitergewinnung erfolgreich umzusetzen!


ZIELGRUPPE: GeschäftsführerInnen und Mitarbeitende von Recruiting Unternehmen, sowie LeiterInnen und MitarbeiterInnen unternehmensinterner HR-Abteilungen.

THEMEN: Arbeitsmarkt und Fachkräftemangel | Job-Boom und Great Resignation | Nachwuchs-Recruiting und Young Talents | Social Recruiting und Google Jobs


Mehr Information:


> read more

Brand Performance 2023

Austria’s top event for brand management

BRAND PERFORMANCE is the new business event with a focus on the brand. As meeting place for marketing and brand management from industry and trade, the event will premiere in Vienna on 15 September 2023. Exclusive keynote speeches provide qualitative input on brand building, brand positioning, branding, story, image magic and much more. The brand as a strong mediator of values and brand communication in the (digital) change of times are central to this.

… with Dr. Helene Karmasin, MMag. Christian Schölnhammer, Peter Pirck, Thomas Niederdorfer, Dr. Frederik Lehner, Harald Doucha …

… for management, marketing, product and brand management from industry and trade, as well as agencies and institutes …

… from €299,- (online) and in presence as CLASSIC or PREMIUM ticket …

More information:

> read more

Vienna Window and Sun Protection Congress

Digitalization | Sustainability | Markets

The Vienna Window Convention always looks at opportunities and challenges in the window industry. This year, for the first time, it is also integrating the neighbourly sun protection sector into the programme. The focus is on the status quo of the European markets, as well as their trends. Above all, topics relating to digitalisation and its long-term and short-term consequences were prominently represented in 2022 and will be again in 2023!

At the Vienna Window and Sun Protection Congress, leading industry representatives will focus on innovation, sustainability and success strategies. Practical approaches to solutions will be presented by experts. In addition to the keynote lectures on an empirical basis, interactive discussions, the presentation of the WFK.Awards and an evening event will round off the event.

Detailed information on the program is available here:

> read more

IC News

Window Sales Strongly Affected by Decline in New Construction

In Germany, the number of window units sold will fall by 5.4% this year. The reason for this is a large decline in building completions (-11.8%). With the exception of Saarland, all federal states are experiencing declines in window sales, according to a new study by Interconnection Consulting, which examines the market down to the state district level.

Overall, window sales will fall from around 15.4 million units to 14.6 million units in 2023. The strongest overall declines in window sales were recorded in the federal states of Brandenburg (-8.7%), Rhineland-Palatinate (-7.8%), as well as Schleswig-Holstein and Bremen with -7.7% each. Regions in the east fared best. In Mecklenburg-Western Pomerania and Thuringia, window sales declined by only 3.4% and 3.0% respectively. Bavaria is the German state with the highest sales, with around 3.2 million units sold, ahead of North Rhine-Westphalia with 2.8 million units sold. This is followed by Baden-Württemberg and Lower Saxony with 2.3 million and 1.5 million units sold, respectively, forecast for 2023. The top 10 cities account for about 17% of the window market in volume.

Double-Digit Declines in the Residential Sector

The decline in new construction is impacting sales in both the multi-storey residential segment and the detached and semi-detached house (EZH) segment. In the new-build EZH segment, the declines in the federal states are almost all in the double-digit range. Only Saarland is able to maintain window sales in this segment compared to 2022. Otherwise, the declines are all in the double-digit range. In the new multi-storey residential construction segment, Baden-Württemberg (-15.6%) and Berlin (-15.7%) and Bremen (-26.3%) show the strongest declines. The renovation sector must also expect slight declines for this year. Only three federal states (Bavaria, North Rhine-Westphalia, Saarland) are expected to achieve positive growth in this sector in 2023.

Non-Residential Construction Hit Slightly Less

The picture is similar in non-residential construction, with declines in both new construction (-8.3%) and renovation (-0.5%). The biggest setbacks in new construction were recorded in Schleswig-Holstein with -17.5%. Other federal states with a double-digit decline are Rhineland-Palatinate, Brandenburg and Hamburg. But the other federal states also mostly record only slightly lower declines. In the renovation sector it is Bavaria, North Rhine-Westphalia and Saarland with a positive forecast for this year.

Tops & Flops in the District Area

If you want to look for growth regions, you have to go mainly to the district level. The district of Frankenthal in the Palatinate will achieve growth of 15.6% in 2023 and thus leads the ranking ahead of Delmenhorst and Osnabrück. The negative ranking, on the other hand, is led by Wunsiedel in the Spruce Mountains with a decline of 21.5%, ahead of Altötting and Tirschenreuth.

> read more

Double-Digit Decline in German Housing Construction

In Germany, housing completions fell by 2.2% last year. In 2023, Interconnection Consulting forecasts a crash in housing completions of 11.8% due to the decline in building permits, rising interest rates, high inflation and declines in real wages. Only in the smaller federal states of Thuringia and Saarland will more flats be completed in 2023 than the year before.

Overall, the number of completed dwellings in 2022 was 160,455, according to Interconnection’s regional study, which analyses housing construction at the district level. In 2023, this number will drop to around 145,000. Larger cities in particular are affected by the sharp decline. Berlin, Munich and Hamburg will all lose around 15%. Düsseldorf (21.2%) and Karlsruhe (25.9%) will even have to accept declines of more than one-fifth of the housing construction volume next year. The federal states with the highest housing construction volume, such as Bavaria, North Rhine-Westphalia and Baden-Wuerttemberg, will plunge between 11% in North Rhine-Westphalia and 15% in Baden-Wuerttemberg next year. In all other federal states, too, the decline will mostly be around 10%. Only in the smaller federal states with a lower volume of housing construction, such as Thuringia and Saarland, can expect growth of 4.2% and 2.9% respectively in 2023. But there is still strong growth in isolated cases despite the economic slump in construction. In Osnabrück, an increase in housing completions of over 66% is expected. Similar growth is also forecast for the district town of Saalfeld-Rudolstadt.

Prefabricated Houses on the Rise

One- and two-family houses are even more dramatically affected by the decline than multi-storey housing. In 2022, the decline in single- and two-family house construction was already 8.2%, and in 2023 this will increase significantly to a minus of 16.4%. The decline is greatest in Thuringia at 38%. In the most important federal states in terms of volume, Bavaria (-17.6%), North Rhine-Westphalia (-16.5%) and Baden-Württemberg (-16.7%), the decline is also above the average for the nationwide decline. Multi-storey housing could still record a slight increase of 1.5% in 2022. In 2023 the decline will amount to 9.2%. This is mainly caused by the decline in construction volume in the major cities, which has already occurred before. Overall, it can be seen that the prefabricated house rate is increasing. In Baden-Württemberg, the rate will reach 50% next year. In Rhineland-Palatinate and Saarland the prefabricated house quota also reaches over 40%. In Bavaria, every third new house is a prefabricated house.

> read more

Strong Turnover Growth Expected for Facility Services

Turnover for external facility services (real estate services) increased by 3.5% in Germany in 2022 and amounts to 59 billion euros. A renewed growth of 8.2% is forecast for next year, according to a study by Interconnection Consulting.

The geomarketing study by Interconnection analyses the data of the facility services industry on the basis of existing space and surveyed average sales per service type at the county level (analysis of 402 counties). The strongest dynamics in the market for external facility services can be seen in the south and west of Germany.  In the district of Munich, the study forecasts an increase of 13.4% for 2023. Other districts in Bavaria show similarly high increases. However, the districts with the strongest declines are also found in Bavaria, especially in the region of Upper Franconia, but also in Hannover. Bavaria, Baden-Württemberg and North Rhine-Westphalia are also the federal states with the largest market volume. More than 20% of the industry’s total turnover is generated in the top 7 cities (Berlin, Munich, Hamburg, Frankfurt am Main, Hannover region, Stuttgart, Cologne, Düsseldorf).

Catering Highest Growth Potential

All four examined service segments (catering, cleaning, security, technical) show positive dynamics. Catering shows the greatest growth potential with a forecast increase of 10.2% for 2023-2024. This is followed by the segments of technology (9.1%), security (7.9%) and building cleaning at 7.5%. Overall, the technical services segment has the highest share with 52.7% or 31 billion euros in turnover. In 2023 this share will even rise to 54%. The building cleaning segment has a market share of 25.4%, security 14.6%. “The highest security demand is in the workshop building segment with 30%,” explains Yuliia Hrebenkova, the author of the study.

Hospitals Dispense with External Facility Management

In technical services, the largest segment, factories & workshops represent 30% of the total client portfolio. Offices & administrative buildings make up another 23.3% of the client base in the “Technical Services” segment. Commercial and warehouse buildings account for 8.1%.

> read more

Decline in Construction Completions in Austria

In Austria, housing completions declined by 1.7% last year. Only in Vienna, Salzburg and Burgenland were more flats completed in 2022 than the year before. For the next few years, both building permits and completions will decline overall, as a new study by Interconnection Consulting shows.

Overall, building permits in residential construction will decline by around 12% in 2023, which will also have an impact on housing completions. In 2023, a decline of 5.5% is expected in the entire federal territory. 15,669 residential units were completed in Vienna in 2022, more than in any other federal province. This is followed by Lower Austria with 10,083 and Upper Austria with 8,661 residential units. The largest increase in housing unit completions (single/two-family houses and multi-storey housing) was recorded by Salzburg with a plus of 14.3%. Vienna (+3.5%) and Lower Austria (+2.9%) also recorded increases in completions. In all other federal provinces there were declines in residential construction. In Vorarlberg the decline was 15.9%, in Styria 9.5%. Whereas Styria in particular, and especially the greater Graz area, experienced high construction activity in 2021 and the figures for 2022 are still above the long-term average, as Yuliia Hrebenkova, author of the study, explains.

Boom District in the Ski Region

Graz and the Viennese districts of Donaustadt, Favoriten and Floridsdorf are the districts with the greatest construction activity in the residential sector. In Donaustadt 4,779 residential units were completed in 2022, in Graz it was about 8% less than in 2021, but still almost 4,500 residential units. The districts with the highest growth in residential construction are Zell am See, Liesing and Oberwart (see chart). Districts with strong declines in residential construction were Leoben, Murau in Styria and Hermagor in Carinthia.

One-Family Houses Still in Fashion in Lower Austria

Overall, the multi-storey residential construction sector in Austria completes more than two thirds of all residential units. Naturally, the federal capital dominates in this segment with about 15,000 units, ahead of Styria with about 5,500 units. This is followed by Lower Austria and Upper Austria. In the segment of detached and semi-detached houses, about 5,000 housing units were completed in Lower Austria last year. Upper Austria came in second with about 300 units less. Lower Austria and Upper Austria dominate this segment with about 50% of all completions nationwide.

> read more

Residential construction momentum in the DACH region declines sharply

High interest rates and the increased need for equity in mortgage loans, caused demand for loans to fall dramatically. This is compounded by massive increases in construction costs, which far outpace core inflation. Building permits fell 13.1% in 2022. Construction completions in 2023 in the DACH region will therefore also plummet by a double-digit percentage amount (-11.5%), as a study by Interconnection Consulting shows.

Within the DACH region (Germany, Austria, Switzerland), the number of housing completions in Austria is higher in relation to the number of inhabitants than in the other two countries. While three apartments were built per 1000 inhabitants in Germany in 2022, the figure in Austria was 6.7. In Switzerland, 5.5 apartments were built per 1000 inhabitants. For this year, residential construction in Austria will also show a higher dynamic than in Switzerland and Germany, but at a lower level. In Austria, the decline will be particularly sharp at 15.5%. Whereas around 60,000 apartments were completed last year, the number will fall to around 50,000 this year. A similar reduction in construction momentum is also evident in Germany. In Switzerland, the decline is still a moderate 5.2%. The number of completed housing units per 1,000 inhabitants is down to 5.6 in Austria, 2.7 in Germany and 5.2 in Switzerland.

Construction momentum for single-family homes plummets
Overall, the DACH region is showing a trend toward multi-story residential construction (MGWB). This trend is being further fueled in particular by the sharp rise in mortgage lending rates, explains Ernst Rumpeltes, author of the study. “Especially the construction of single-family homes is collapsing sharply.” In 2018, the ratio of MGWB to single- and two-family homes was 65 to 35. In 2023, nearly 71% of all housing units will be completed in multi-story housing. This proportion should not change much in the next few years.

> read more

Austrian prefabricated house market defies general construction slump

The Austrian prefabricated house market successfully defied the decline in the completion of single and two-family houses in 2022 and grew by 7.9%. However, the further decline in construction dynamics will also result in a decline in the prefabricated house market, as a study by Interconnection Consulting pointed out.

In 2022 there was a decline of -5.4% in the completion of detached and semi-detached houses in Austria. Despite that fact, sales of prefabricated houses increased by almost 8%. In the coming years, the general decline in the completion of single and two-family houses will continue. In 2023, completions of single and two-family houses will plummet by 17%, which will ultimately also lead to a falling sales volume for prefabricated houses for 2023. In Austria, a decline in volume of 7.6% is expected for this year, which, despite sharp price increases, will even result in a drop in turnover in the industry of around 3%. The fact that the decline is not more pronounced is due to the increasing prefabricated houses proportion, which will even rise to 38.8% in 2023. In total, the market volume in Austria in 2022 was 1.3 billion euros.

 More price increases

The Ukraine war has created instability, resource shortages and is affecting the supply side of the economy. The enormous delays in the delivery of services drove the price increases even further. Therefore, on the prefabricated house market, prices increased by +7.3% in 2022, in 2023 prices are expected to increase by +5.1% and in 2024 by +3.9% compared to the previous year.

Turnkey trend

The preferred house type for prefabricated houses is the single-family house. In Austria, the share is currently 78.5%. This is followed by two-family houses with currently 4.9%. The rest is divided into terraced houses and “multi-storey residential buildings”. Frame construction dominates with a current share of 73%. With regard to construction stages, a trend towards “turnkey” can be observed. This stage of construction has shown a continuous increase in market share in recent years, which is currently around 41%. This trend goes at the expense of ready-to-build and ready-to-tile prefabricated houses.

> read more

Sales Growth for Industrial Doors Slows Down

Price increases, political uncertainty and energy costs are having an adverse effect on the sales dynamics of the market for industrial doors in Europe. In the latest study by Interconnection Consulting, the sales forecast for the next few years has been significantly reduced. An average increase in volume of only 1.7% per year is expected until 2026.

Catch-Up Rate Slows Down

The market for industrial doors in the seven countries surveyed in Europe (see below) experienced a partial recovery as early as 2021 after the pandemic-related crash in 2020. However, after the market still grew by 3.5% in 2021, sales only increased by 1.2% in 2022. High energy costs and sharp price increases noticeably slowed sales momentum. Turnover was naturally able to grow more strongly in 2022 (+10.8%) due to inflationary conditions. Turnover will also increase by an average of 5% in the coming years. The largest increase in turnover is expected in France, with a rise of 6.9%. The dominant region for industrial doors is along the Rhine, in North Rhine-Westphalia, where there is a large sales market due to the high industrial density. Overall, Germany and France account for almost 70% of the total market volume. In comparison, Italy only has a share of 13.9%. The most important players in the European market are: Assa Abloy Group, Breda, Condoor, Novoferm, Ryterna, Teckentrup, Wisniowski.

Sectional Doors Dominate

Sectional doors are the largest product segment with almost 250,000 units sold, accounting for 54% of the market, followed by roller doors with 23.9%. In all countries except France, the market share of sectional doors is over 50%. In France, however, the share of roller doors is significantly higher than in the other countries surveyed. Steel is the most important material with a market share of more than three quarters and an above-average growth potential of 2.1% per year until 2026, followed by aluminium, which lost market share to steel last year due to high price increases. Other materials, such as PVC or mixed alloys, have a total market share of around 5%. The market share in value of the top 10 companies in the countries studied is 73.3%.

The study examined the countries: France, Germany, Italy, Austria, Switzerland, Poland, Sweden


> read more

Adverts Work - But How? Measuring Advertising Impact Using Implicit Methods

how does advertising work

The success of an advertising campaign depends on knowing the buying motives of the customers on the one hand and serving them with targeted communication on the other.

Conventional market research methods aimed at analysing the impact of advertising campaigns are mostly based on so-called “explicit” survey methods. These include, above all, interviews. The advantage is that there is always a result. The disadvantage – the result does not correspond to reality. If you base your marketing on this, you burn money.

Where conventional market research reaches its limits, implicit methods bring to light unconscious motivations and emotions of potential customers when looking at advertising.

These implicit methods from neuroscience reveal the unconscious emotional and motivational processes of potential consumers when analysing the advertising impact of campaigns, which include advertising videos, online banners, print subjects or radio spots. These reveal how purchasing decisions are made and how advertising affects the target group.

The neuroanalysis for measuring the advertising impact of advertising media consists of apparative neuroscientific and psychological measurement methods and combines electroencephalography (EEG), eye tracking and the facial coding method.

The combined use of these three methods makes it possible to capture the impact of advertising implicitly in the best possible way, as both the emotional effect of advertising and the motivational factors, which are demonstrably decisive for the purchase decision, are recorded. With the help of neuroanalysis, the success of advertising campaigns can be reliably recorded and predicted in real time (to the second). Applications: Advertising impact measurement of video, audio or print advertising.

Eye tracking

Eye tracking is a procedure that records the attention courses and gaze intensities of consumers in order to reveal unconscious cognitive processes. Eye-tracking measurements are indispensable for reliable advertising research, as visual perception has a strong influence on our cognitive processes, such as memory and thinking. After all, only what is perceived can ultimately penetrate the consciousness. Using an infrared camera, mobile and stationary eye tracking systems record the eye movements of consumers and provide answers to the questions of which areas, for example of a print advertisement or a commercial, are perceived more by consumers and which are perceived less or even overlooked. The results of eye tracking analyses provide valuable information on how advertising media can be optimised in terms of content and design. In the best case, the ideal design variant can already be identified during the conception phase of the subject.


The electroencephalograph is an established neuroscientific procedure that records electrical brain activity, for example, during the viewing of advertising. Factors relevant to advertising effectiveness, such as attention, memory and the motivation required for the purchase decision, are recorded validly and in real time. An in-depth analysis of the advertising media by means of EEG allows statements to be made about the impact of advertising. The findings are used to optimise the effectiveness of the advertising. Due to the high temporal resolution and the resulting second-by-second measurement, a dynamic analysis of advertising spots is possible. This makes it possible to determine exactly which scene of a TV commercial needs optimisation.

Facial Coding

When watching an advertisement or the brand and product placed in the advertisement, the emotional reactions to it often do not penetrate our consciousness and thus cannot be communicated via language. Emotions, however, significantly control our behaviour and memories and play a decisive role in the purchase decision process. But they can hardly be captured with conventional survey methods: Facial coding makes it possible to make human emotions visible by recording micro-movements of the facial muscles and coding them into corresponding emotions. This software-based method provides insights into the emotional states of consumers while viewing advertisements. Since this method not only differentiates between positive and negative emotions, but also identifies the six basic emotions (joy, fear, anger, disgust, sadness and surprise) more precisely, the exact emotions evoked by an advertising medium (such as an advertising scene) can be recorded. Success potentials of an advertising video can be precisely identified through the data generated by facial coding and can subsequently be used to optimise the advertising medium.

By recording all three dimensions, such as attention, emotional activation and purchase motivation by means of eye tracking, facial coding and EEG, the advertising efficiency of the advertising media is implicitly recorded in the best possible way. If necessary, the communication media can thus be optimised precisely before they go on-air in a neuro-optimised way.


> read more

Aluminum Profiles Turnover Rose by 10,4% in 2022

After a 6,4% quantity growth in 2021, the Aluminium Profile Systems market in Europe (windows, doors, facades, sliding systems, conservatories and sun protection) kept gaining in 2022, but at lower rate of 2,4%. Despite a good start, the market started to slow down a bit in the second half of 2022, mainly due to political instability caused by the Russia-Ukraine war tensions and inflationary pressures, which led to an extreme volatility of demand over the year. “After replenishing their stock in 2021 to cope with rising prices, producers of final products had less need to order new profiles” explains Dr. Armandi, the author of the study.

Norway and Italy overperforming

Best performers in 2022 have been Norway and Italy. In particular, the Norwegian market strongly benefited by public projects resumed after being cancelled during the pandemic, an effect which will play out also in 2023. Meanwhile, the Italian market overperformed due to government subsidies for renovation of old residential building. Contrary, despite that the German market counts for almost one quarter of all profiles sold in 2022, slightly underperformed relative to the European average growth. For the whole EUTOP10 profile market, Interconnection predicts the quantity will keep increasing an yearly average of 0,3% for the next three years with a stronger rebound expected only in 2025.

Prices kept rising for all aluminium profile solutions


Even though the quantity sold did not go up a lot, the industry turnover still benefitted from rising prices and managed to reach over 4 billion euros, that is, a 10,4% growth compared to 2021. Higher prices, however, contributed a bit on the decline of demand, especially in the second semester. The reason is the political instability that caused inflationary pressure over the European economy and made the general public more price sensitive than in 2021. As a consequence, the average price kept rising again by +7,5% in 2022. However, as aluminium world prices start to get back to the pre-Covid levels, Interconnection predicts that average price for aluminium profiles will finally start to stabilize from 2023 and total turnover will fall by an yearly average of -1,6% up to 2025.


In terms of products groups, the most popular solutions, windows, overperformed a bit and went from 39,3% to 39,6% quantity shares. Additionally, facades and doors reached quantity shares of 24,9% and 21,3%, respectively. Among the major companies in terms of turnover, we find Schüco, Hydro and Corialis.

> read more

Bioclimatic Pergolas had their first slowdown after impressive growth


Bioclimatic pergolas suffered a setback in volume for the first time and declined by -8,3% in 2022. Especially in the second half of the year, the whole outdoor living market was affected by a lack of demand, mainly due to the negative impact of the crisis on consumers’ spending.  “Bioclimatic pergolas experienced double-digit growth during COVID and a slowdown was expected, although more gradual” explains Dr. Armandi, the author of the study, and adds “in the medium-term fundamentals are still good and demand will resume”. Interconnection that the market will grow at an average yearly rate of 2,3% up to 2025 with a recovery expected only from 2024.

Mature markets underperforming

Demand fell stronger in mature markets like France and Italy. Short-term factors played a role, but the high level already reached by bioclimatic pergolas in these countries pointed to a stabilization. More unexpectedly, the German market failed to grow in 2022, but pergolas overperformed relative to other outdoor living solutions, which were heavily impacted by the crisis. Still, the German market is expected to recover faster in the next 3 years as bioclimatic pergolas are becoming increasingly popular. The French market counts for more than one third of all bioclimatic pergolas sold in 2022, followed by Italy and Benelux.

Prices will start to stabilize a bit in the next 2 years

Average price rose by +11,1% in 2022. Higher prices more than compensated the fall in quantity and  revenues have reached now 420 million euros. Despite the current slowdown, the turnover has doubled in the last 5 years. However, Interconnection predicts that in the next 2 years turnover will go back slightly below 400 million euros as prices will finally start to stabilize a bit.

Premium, high-quality solutions now counts for 32,1% of the market and kept overperforming  in the last years. There are however huge country differences: in Benelux premium solutions covers more than  half of the market, while in France only 1 out of 10 pergolas belongs to the high-end segment.

Pergolas with ZIP-Screens as side protection gaining popularity

Stand-alone pergolas constitute 48,6% of the whole market, while pergolas with a side protection element keep expanding strongly. Among the different types of side protection, Zip-Screens are the most popular: two out of three bioclimatic pergolas are sold with at least one ZIP-Screens and this proportion is even higher in the premium segment. The three main competitors in Europe are Brustor, Pratic and Renson.

Stefano Armandi /

> read more

The Three Musketeers of Sales Analysis | Market Intelligence Tools for More Success in Sales

market intellegence tools

In the area of sales maximization, a lot of thought, money and training sessions are invested in order to optimize how something is sold. However, there are some optimizations that can not only be quickly identified with the three musketeers of sales analysis, they also make a much greater contribution to sales success. In the following, we will introduce you to one tool for each of the posed questions, although there are in fact several ways to answer these questions. We will be happy to show you which one is ideal for you after getting to know your individual situation.


  1. What are the True Motives for Buying?
  • Method of Analysis: Choice-Based-Conjoint

Companies often spend a fortune to equip a product with technical features, which are then prominently highlighted in advertising and in every sales pitch. But what if these features are of no interest to your customer, if you client is more interested in a speedy delivery or simply has developed high level of trust towards your brand, to name a few examples. Knowing which feature is worth how much to the customer means to have an extreme improvement, not only in your acquisitions, but also with your profit margin. Those who communicate the wrong product benefits close fewer deals and consequently have to lower prices in the end…

The simulation tool choice-based-conjoint determines the effective customer benefit of individual product features and services (e.g., delivery time or warranty period). In parallel, the significance of the brand, which often plays a central role in purchasing decisions, is analyzed. The surveyed customer-relevant factors are then emphasized in the sales talk or even in the general advertising of the product, which results in a higher closing rate!

The basis of a product simulation is never a simple survey of consumers (à la: “Which feature is of particular interest for you?”), since this method leads to almost no useful answers. Valid product simulations, such as the choice-based-conjoint-analysis, are based on a realistic simulation of a purchase decision. In this process, several different product bundles are proposed to the respondents, which differ from each other in terms of product features, services, the brand and the price. They thus have to weigh the different product features relative to each other and ultimately decide which option to select.

If all the product comparisons have been carried out successfully, it is then possible to calculate how important the product features, services, brand and price taken into account are for the purchase decision process. Consequently, it is possible to determine which features were especially important in the purchasing decision.

  1. Who Decides When to Purchase?
  • Method of Analysis: Choice-Based-Conjoint

In sales – both B2B, but also increasingly B2C – it is less and less clear which moment and which person are decisive for the sale. The customer first searches on Google, looks at a comparison portal, makes a phone inquiry and then goes into a store with a lot of knowledge just to clarify a few more things. Knowing how this process actually works and when it comes down to the “nitty gritty,” i.e., choosing a brand, is critical for salespeople and is changing every year due to the ever-increasing importance of the Internet.

Depending on the industry and product, the customer journey differs. Potential customers find out about products in advance on manufacturer websites, or rely on recommendations, for example from retailers. The recording and traceability of the customer journey is as interesting as it is decisive: on the one hand, the touchpoints with the brand and the product become traceable. On the other hand, it is easier to understand which optimizations need to take place at the respective touchpoints in order to promote decisions in favor of a particular brand or product.

By means of a customer journey analysis, a number of questions are answered: How and where did the customer obtain information before the purchase, who had an influence on the purchase decision, how long does the decision phase last, what information ultimately led to the purchase, etc.? Thus, the needs of the target group can be identified. Furthermore, you understand to what extent you can serve those needs in the buying process in order to optimize or redesign your touchpoints. Either way. In the end, the insights gained will favor the purchase decision in favor of your brand or product when implemented!

  1. How to Optimize the Sales Process?
  • Method of Analysis: Mystery Shopping

The quality of sales processes is crucial for sustainable business success. Whether in local stores or in online retail, the quality of customer contact points not only delivers enormous added value to customers, but also to the company.

If you want to be successful on the market in the long term, you need to know how customer-oriented your sales conversations and processes are and where your company really stands – also in comparison to the competition – from the customer’s point of view. In order to increase sales success and uncover potential for improvement, a quality check of these customer contact points is essential.

Mystery shopping enables an objective evaluation of the sales process from initial contact to conclusion. Aspects of service, sales and customer contact quality can be objectively analyzed in a staged purchasing process, e.g. through undercover calls, e-mails or in a purchasing situation directly at the POS.  Both the quantitative and qualitative aspects of service quality are taken into account in the analysis. In other words, both the hard skills (waiting time on the phone, speed of response to e-mail inquiries, length of offer, etc.) and the corresponding soft skills (preparation of the salesperson for the sales talk, empathy in the initiation, needs orientation, closing orientation, etc.) are analyzed.

The added value is clear. Based on the results of a mystery shopping analysis, not only can improvement potential be identified, it can also be sustainably exploited through targeted training and education!

Panorea Kaskani /

> read more

Challenge: Leadership in Sales

sales führung

How to Lead a Sales Department Optimized Towards Performance and Motivation!

People in proactive sales have their own DNA. Most of them are active, hungry and hopefully confident, but for the same reasons they are also not easy to lead. They often have their own opinions, a fact that not every executive appreciates. Sometimes they see themselves as a lawyer of the customer rather than as a defender of the corporate objectives (see pricing, goodwill, etc.).

Nevertheless, despite this common special DNA all are individually distinct. “Treat every person the same way as you want to be treated” goes the saying that we have heard so often. Applied to the leadership of people this is unfortunately a tragic error, since this would entail: All people are like you, everybody is “wired” as you, everybody is motivated just like you. But this is just completely and utterly… WRONG!

Leadership According to “Sales Maturity”

Although the maturity model by Ken Blanchard and Paul Hersey has been around for a lot of years and the consequent recommended “situational leadership” has been proven inconsistent by experts, we can still find the same approach in different categorizations and leadership recommendations. Therefore I want to present to you the most important approaches of the model…

How do I Lead Inexperienced Empoyees, How Experienced Employees? When Should I Lead Proactive, When Reactive? …

And: For Every Phase its Form of Leadership!

DIRECTING | Sales Maturity 1: Low Know-How & Low Independence

New employees as well as experienced employees that have been given a new field of work get added to the phase of Sales Maturity 1: give them smaller packages of work with individual working steps, add clear instructions and daily feedback (around three minutes). Create an allowing environment for questions, clear understanding and the possibility of bringing in own ideas. Once a week you should have a longer feedback discussion in order to discuss how accomplishments and failures have been experienced. These discussions are necessary for reaching the next phase and are also essential for communicating a company’s business and leadership culture.

  • TIP: Also use these talks to encourage your new employees to compare their experiences at your company in contrast to their previous work environment. This is an effective lever against internal organizational blindness.


COACHING | Sales Maturity 2: Higher Know-How & Independence in Testing

In the phase of Sales Maturity 2 you furthermore hand over small but completable packages of work. You only communicate the working objective and let your employees explain their working steps to you on their own. You add what is missing and define feedback loops which now should be scheduled and adhered to by the employee. In this phase the feedback comes to you: listen very carefully and support wherever help is asked for.

  • TIP: You can now see who uses their “freedoms” for independence and where the potential is hidden.

SUPPORTING | Sales Maturity 3: High Know-How & Low Independence

To this category your “problem children” are added. The abilities are strong, but the aspiration is weak! The attention of an executive is automatically guided here! (“You can do better! Why is nothing moving forward?”) A special problem here is when the aspiration was once rather high and has now faded away – but more on that later. At Sales Maturity 3 it is essential not to criticise the low motivation but to intensify your relationship and find the reason for the discrepancy. It is also important to have a sequential view: WHERE EXACTLY is the aspiration missing? Are we talking about single areas? Do you know your employees’ preferences when it comes to work? Maybe they are not working in a field that suits them.

  • TIP: Show interest and find the reasons! Frequently the root of the problem lies within industrial hygiene factors (dissatisfiers like: regulations, checklists, personal “quirks”, personal conflicts or team conflicts). Oftentimes those problems are easily eradicated and the path is clear again.

DELEGATING | Sales Maturity 4: High Know-How & High to Highest Independence

In this phase projects are no longer delegated in single packages of work. Apart from the concrete task at hand the employee now also has to bear the full responsibility as well as the decision-making power (without a duty to consult for every minor decision, following the “task, authority, responsibility principle”).

Those are the employees we all want (and ideally right from the start)! Here we have no problems, those are our “workhorses”, …

But in all sincerity: these employees are extremely important. Oftentimes their progression is a long path – but it can yield a double dividend, since they are also able to support the team. They frequently function as an “informal” executive and thereby bear in them the potential of the entire team. Because one thing is clear: team members predominantly exchange views with each other rather than with their higher ups. It is therefore good to know if these employees are sympathetic towards you or not, because they will influence the entire working atmosphere – whether intended or not.

  • This can be used positively if you want to promote certain changes in your team.

Employees in Sales Maturity 4 are also the ideal “godfathers” for new, unexperienced employees. They oftentimes have a role model function within your team.

But there are two sides to every coin… One problem for these routineers is that they seldom give feedback, because “everything is fine anyway”. Another problem is that they often take up extra tasks where others would object, since everybody knows they can be relied on – this can be very demoralizing. A third fundamental theme is that those highly skilled employees with a lot of know-how simply feel bored and can’t see any further development opportunities for themselves.

In my years long experience as a coach I have often experienced, that such employees go into “internal emigration”, which means they can slide back into maturity level three – when there is no aspiration “anymore”. Or they quit and the executive is completely dismayed…

  • TIP: Increase your communication a little bit. Take time for feedback discussions, also if there is nothing to criticise! Use these talks as a chance and have your employees explain to you their success strategy. Who knows, maybe you will get a good tip on how to motivate your other employees?
  • TIP 2: If there is little to no opportunity for a vertical career (only through your retirement), then maybe job-enrichment (horizontal expansion of ones field of work) or job-rotation (something new to try) could be a good fit.

The topic at hand goes way further than described here, so much is clear – e.g., HOW do you take along single employees with their emotional or psychological quirks? But that’s to save for another newsletter. See you then…

Get an individual consultation to establish a quote for your in-house leadership training with: Maurizio Nuzzaci /

> read more

leadership sales

Price Rise Slows Stronger Growth in Liquid Waterproofing

The market for liquid waterproofing did not decline as much as expected during the pandemic. The following years will be characterised by a strong catch-up process, but this will be curbed by a high price increase. In 2022, for example, the market will grow by 22.6% in value, while sales will increase by only 4.9%, according to a new study by Interconnection Consulting.

The sharp rise in prices will weigh on market growth in the coming years. The high price increases will also shift consumer preference towards cheaper product segments. “Therefore, at least in some countries, such as Italy and Poland, there are already increasing market shares for cement as well as bitumen products, which are cheaper than other variants,” says Giacomo Tomada, the author of the study. However, liquid polymer waterproofing will, in contrast, decline in market share. In 2021, this segment accounted for 37.9%, making it the strongest product segment followed by bitumen at 29.4% and cement 20.4% in volume. In value terms, the share was as high as 68.9% due to the higher price of liquid polymer waterproofing. This form of waterproofing is most popular in France, Germany, the UK and Switzerland. In Italy, on the other hand, cement takes the largest share with around 43%. The renovation segment is a stronger sales market than the new construction segment with 55.3%.

Germany Dominates the Market

With about 20.8% in volume, Germany is by far the largest market for liquid waterproofing in Europe. The market value in Germany is € 544 million. Poland follows in second place, with a share of 12.1% due to strong construction activity. This is then followed by the United Kingdom with 7.9%. The fastest growing markets are Spain, Turkey and Italy, which show an average growth of 7.6%, 7.3% and 6.8% annually until 2025. The stronger growth is mainly due to the poorer market performance in these countries during the COVID pandemic and, in the case of the UK, the poor performance at the beginning of the Brexit. Russia is the only country with a negative performance until 2025 (CAGR -2.2% in volume), due to sanctions and the related economic crisis.

Diversification Pays Off

Competition in the industry is very high, especially among the market-leading companies, but there is still enough room for smaller companies. During the pandemic, it was evident that companies with strong diversification, both in terms of products and markets, were the most successful in weathering the storm, in many cases even avoiding declining sales. Some of the most important companies are Triflex, Sika, Mapei, StoCretec, Soprema, Weber, Remmers, Evonik, BASF and MC Bauchemie.

The study examined the following markets: Austria, Belgium, France, Germany, Italy, Netherlands, Poland, Russia, Spain, Switzerland, Turkey, United Kingdom, Rest of Europe.

> read more

Liquid Waterproofing Progressing Gradually in the DACH Region

The market volume for liquid waterproofing in the DACH region rose from €128 million to €133 million in 2021, an increase of around 3.8%. This year, the industry’s turnover is expected to increase by a further 4.6%, according to a new study by Interconnection Consulting.

Dominant Product Segment

Sales growth will remain positive in the DACH region despite the high price increases for raw materials and energy. However, the picture is different in the three countries. In Germany, sales will increase by 3.8% annually in the years up to 2025, in Switzerland by 3.5% and in Austria by only 0.9%. Overall, there is a slight decline in expensive product segments such as liquid polymer sealants due to the strong price increases. However, this product category continues to dominate unchallenged in the DACH region. In value, this product segment has a share of 81.8%, while the share in volume is 53.6%. Bitumen and cement could become the big winners of the increased prices. Cement and bitumen currently have a value share of 7.1 and 5.8% respectively.

Not Just for Buildings

Germany’s share in the DACH region is 78.8% in volume, ahead of Austria with 12.2% and Switzerland with 9.0%. Overall, the renovation sector accounts for about 59% and new construction for about 41%. Residential construction is the largest application area with 47%, followed by civil engineering (building construction, civil engineering…) with around 24%. Overall, buildings account for about two thirds of the liquid waterproofing market. The most important companies in the DACH region for liquid waterproofing are: MC Bauchemie, Remmers, Soprema, Bauder, Mapei, Sika, Triflex, BASF, BMI.

> read more

Residential Ventilation Benefits from Funding and Renovation Programs

The residential ventilation market in Europe grew by 9.8% in volume in 2021, more than offsetting falling sales during the pandemic. The surge came despite global supply chain issues preventing even stronger growth, a study by Interconnection Consulting shows.

In 2020, the sales volume for residential ventilation systems fell by 5.4%. The UK market in particular, as well as the markets in Italy, Spain and Belgium, which were hit hardest by the pandemic at the time, made a very strong contribution to the declining numbers. However, in Great Britain, as in the other countries, a rapid recovery set in. In Italy, volume growth exceeded 15% in 2021, almost entirely compensating for the decline in the previous year, with the “Superbonus” program playing a key role. With a market volume of EUR 279.6 million, Germany is the largest market for residential ventilation systems. Sales there increased by 3.2% in 2021. Even in the Corona year 2020, the German market was able to achieve good growth rates thanks to a stable renovation sector. It was above all the countries in the DACH region and the Netherlands that steered comparatively well through the crisis. As in other sectors, the market for residential ventilation was also affected by high price increases – sometimes in the double-digit range – although there were also considerable differences from country to country. The majority of manufacturers made multiple price adjustments and planned further increases for 2022.

Heat Recovery is booming in some countries

In terms of quantity, exhaust air systems without heat recovery (HRV), which are usually used in bathrooms and toilets, account for the largest share. These account for around 45% of the market share and were able to grow more strongly in value in 2021 with 13.8% growth in value overall market. This is followed by the central systems with heat recovery with a market share of 44%. In France in particular, there was a very strong increase in this category with growth of almost 50% compared to the previous year, breaking the downward trend of recent years. Strong subsidy programs managed to reverse the trend here. Nevertheless, this segment is also the one with the greatest growth potential, as the study shows.

Decentralized heat recovery systems are very popular, especially in Germany. However, other countries also show high potential for catching up in this area, such as Italy, where sales of this product group increased by 34%. In the past, Germany has been able to record growth rates in the double-digit range for some years, especially in the area of ​​decentralized systems, although growth in this area has recently weakened somewhat, with subsidies also playing a role in Germany, where there have recently been some changes. However, in countries such as Austria, the subsidy landscape is even more important as a demand driver, although the Austrian market for domestic ventilation with heat recovery has been suffering from declining subsidies for years, which is also reflected in the market development. Another problem in Austria is subsidized housing, where the construction costs must not exceed a certain amount. Since systems with heat recovery compared to exhaust air systems entail significantly higher costs, especially as an initial investment (even if these are amortized over the life cycle of the property), these are saved again and again by the property developers in order to reduce the construction costs and to avoid the upper price limits still being able to comply with in social housing.

Positive Trends

Before the pandemic, market saturation in the central systems in particular hit the market and led to lower overall growth rates. However, the market situation has changed fundamentally compared to the time before the pandemic. The renovation market is booming thanks to support measures from some governments and has thus become one of the biggest drivers of the market. Renovations are strongly supported in the individual EU countries, e.g., in Belgium through the Renolution program, which promotes the energy efficiency of existing houses in the Brussels region with €350 million by 2024. The goal is to triple renovation spending to reduce the average energy efficiency of Brussels homes to 100 kWh per m2 per year by 2050. Overall, the renovation share in living space ventilation in Europe is 60%. In general, Corona has also breathed life back into the previously stagnant market, as the importance of clean air has regained consciousness and has become an important market driver. Another driver are the increased energy prices, as Andreas Erdpresser, author of the study, explains. New construction, especially as a driver for central heat recovery systems, is currently difficult to predict, as rising interest rates could curb growth in this segment.

Consolidations in a fragmented market

Overall, market concentration has increased somewhat compared to the previous year. Across all 13 markets examined, the top 10 companies had a cumulative market share of 42.4%, the top 20 almost 60% and the top 100 manufactures are accounting for 90.7%, although the market shares of the top 10 can vary considerably depending on the country. In Germany, for example, the top 10 had a cumulative market share of 64.4%, the top 20 in total 83.3% and the top 50 a share of 94.8%.

In the last ten years there have been consolidations in the market with many acquisitions, such as Helios, which took over Vallox, and Zehnder, which took over Paul, Enervent and Greenwood just to give a few examples. Many companies also work with different brands, such as the Arbonia Group with its brands: Sabiana, Vasco, Kermi, Prolux, Termovent or the Volution Group with InVENTer, Ventilair, Climarad, VoltAir, Fresh, etc. Despite major takeovers, the market is still strongly fragmented. Although there are some very international companies, local top dogs still dominate in most countries. The leading companies in Europe include companies such as: Aldes, Atlantic, Centrotec Group (Wolf, Brink), Helios, Itho, Maico, Swegon, Systemair, Soler & Palau, Volution Group, Zehnder, etc.

The study examined the following markets for controlled residential ventilation: United Kingdom, Italy, Spain, France, Belgium, Netherlands, Germany, Switzerland, Austria, Czech Republic, Slovakia, Poland, Nordic countries (Denmark, Sweden, Norway, Finland as one region).

> read more

10 Recruiting-Tips: How to find employees even in rough times


If you like to keep your eye on the big horizon, then it’s nice to say: “If you can’t find new employees, you don’t have a recruiting problem, you have a corporate culture problem.” There is certainly some truth to this and it does result in colossal consulting and change projects. But since the challenge is usually how to get the employees I need in a few weeks, we have summarised seven tips that can be implemented relatively quickly.

         1.optimise job ads – layout & messages

It still exists: the job ad. More often now on a job portal than on old-fashioned paper, but if we assume that the content is predefined, there are still gigantic differences in what content should be mentioned and how it should be placed visually. There are miserable methods and state-of-the-art implicit methods (i.e. those that the respondent does not see through). These are exactly the ones you should use. Details in the next article.

       2. My Home Is My Castle

If you don’t explicitly include “home office” in your job advertisement, you are simply foregoing half of the potential applicants in the white-collar sector, even before a potential interview that will never take place. It is not yet defined whether the home office will be available three times a week from day one or only once a month. Technically, since Corona, every company has the possibilities for this, and in terms of content, the only question is how much home office makes sense.

     3. Speed (S)kills

How quickly should you respond after an application? Simple answer: immediately. Immediately is somewhere between 30 minutes and a day at most. If you can’t do that, you’ll have to outsource the job with exactly that in mind. The first contact does not make much of a difference. You should conduct talks and interviews and give feedback with the same speed. It’s good that you can already do a lot online here. You don’t like that? Unfortunately, that is no longer the question: your target group likes it all the same.

      4. Find a Friend

Not long ago, I asked an employee of a leading job portal how one actually finds employees there. At the source, so to speak, where you can place as many ads as you want at no cost. The answer surprised me to some extent: employees are incentivised to persuade friends to apply. If a company that doesn’t have a shortage of job ads does this, it should be adopted as a blueprint. For 1,000 euros bonus, many employees can have very motivating conversations and will be careful not to recommend someone who does not fit the company.

      5. Tell a Story

The head of the Public Employment Service in Austria has written to the companies that they have to “dance”. This is a wide field, but ultimately an expression of the phenomenon that the labour market has turned around. It is no longer the employers who pick the best applicants from a wide field, but the future employees who look for the best employers and dancing can help a little. In concrete terms, you have to be prepared for questions that you used to like to ask yourself: “Where do you see your company in five years?” will be the new classic and in this race, the winners will be those who have a good story to tell that motivates and carries you along. This can also be trained and optimised.

       6. Find those who are not looking

Why are so many more employees suddenly changing jobs than a few years ago? There is a simple reason: Because even the most loyal souls suddenly get very concrete offers via Linked-In and similar platforms several times a month, which at some point you no longer ignore and which are in any case there to reconsider your own market value. Everybody does that! If you have been searching only through job ads until now, you are narrowing down the market to that segment that is actively looking. In fact, you need to approach people well in advance. Your competitors do the same with their employees

       7. Globalisation is the engine

The labour market, measured in terms of the number of people employed, has been growing non-stop year after year for 60 years. The main driver for this in the last 10 years has been migration. Strictly speaking, those who are shy about taking on foreign employees may not feel a shortage of skilled workers at all. The question is often rather whether one should not recruit directly abroad or delegate this task to professionals. Depending on the size of the company, you have to think further and move entire departments abroad. This is quicker and easier than some people think, although one should have no illusions that skilled workers would be readily available “abroad”. In fact, there are only a few islands left where a large supply of skilled workers meets a weak economy, and there you can quickly build up local companies that can dock quickly thanks to digitalisation.

         8. Digitalisation can be an option

So far, digitalisation has created more workers than it has saved, which is one reason for the shortage of skilled workers. For the individual company, however, the situation is different. There are many areas where you can also replace workers through digitalisation, and these are rarely jobs that anyone is crying over. The longer the labour market is affected by staff shortages, the faster digital models will take hold. In Japan, you can see pretty well how robots, telemedicine and self-check-ins are simply replacing staff in an ageing society.

       9. Forming and binding

If you are not 100% satisfied, try 80%. That used to be a passable joke, now it’s a reality in the labour market. Don’t just look for immediate performance, look for potential. In our culture, unfortunately, degrees and titles are still valued more highly than universally applicable skills. Define what you can teach someone in two to three months and what basic skills they can have to do that. You expand your target group and can also retain employees who will then be available to you for a long time.

       10. Full-time hurts

We are slowly getting onto thin ice, where not every employer can keep up, but the reality should not be concealed. Full-time is certainly still the ticket to a great career and a fatter wallet, but the ideals of Generation Z look very different and the work-life balance asks for part-time. Economically, this is a disaster in that a high proportion of part-time workers that exacerbates the labour shortage, as more people are needed to fill the same number of vacancies. Nevertheless, this phenomenon will remain. Here we have reached a point where many companies cannot change anything quickly. Step one – and this much flexibility is required of every company – is to introduce a flexitime agreement, then you can at least agree on flexible working hours. With further concessions, one has to weigh up – as with all offers to new employees – to what extent the same goodies can be given to the permanent staff.



> read more

Jobpromoter-Score | Small tool with a big effect

jobpromoter tool

Qualified employees are fiercely contested today – a fact that most employers have become painfully aware of at the latest since the emergence of the pandemic. The change in the talent market from an employer market to an applicant market is due to various factors. But whichever way you look at it, this change is here to stay. More and more – especially, but not only – young job seekers prefer flexible working hours, home office and overall shorter working weeks, while also accepting pay cuts in favour of more free time. The shortage of skilled workers, which has been going on for months, naturally plays into the hands of these demands. A circumstance that poses great challenges to the business community today.

Employer Branding & Brand
Employer attractiveness as the new non-plus-ultra

Job boom and shortage of skilled workers, two factors that are interdependent and lead to the also relatively new and yet already buzzing word employer branding. For some time now, companies have been required to compete for the best employees, and this trend is likely to intensify. Therefore, not only attractive offers are needed, but also sharpened employer profiles that are quickly and positively associated on the part of job seekers. In terms of data-driven decision-making, Austrian companies (only about 20% use it) are clearly behind other countries in the DACH region (according to “EB Now 2022” / Universum).

Apart from these data-based analysis tools and more investment in the marketing of one’s own employer brand, there are also other things that can be done…

The optimisation of the job advertisement 

Although the simplest way of finding employees is almost obsolete, this classic tool is still an active and attractive lever when it comes to getting noticed by sought-after personnel. But what makes a good or even better a perfect job advertisement?

It should contain the most important information in a relatively short space and be prepared in such a way that it stands out and attracts applicants – not just any applicants, but exactly the right ones. It is important to know which contents, such as salary information, benefits or the employer profile, are important for a certain target group or in general. What kind of salary information is preferred, how detailed the job profile should be, which key elements should be included or to what extent the design should be oriented towards a certain target group.

Market research can intervene to answer these questions and provide valid and accurate support for HR and recruiting!

The way to the perfect job ad
Job promoter score using implicit methods

Implicit methods such as Choice-Based-Conjoint or Eye Tracking provide very valid insights into the direct advertising impact and the decision-making process and thus reveal results that cannot be achieved by explicit methods such as applicant surveys.

Choice-Based-Conjoint allows the definition of realistic features as a simulation model, which provide insights into which elements and contents in a job advertisement represent the greatest benefit for the applicant and thus the advertiser.

In combination with eye tracking, additional clarity can be gained about the optimal graphic presentation or the positioning of individual text elements. Attention killers that distract from the essentials or attention catchers that lead to increased perception can also be determined in a targeted manner.

The Job Promoter Score, which is the result of these two implicit analyses, ultimately provides you with information about the degree of success of a job advertisement.

Have we aroused your interest? Panorea Kaskani will be happy to answer your questions on the topic!

> read more

Trend Study of the Labour Market in Austria

chart arbeitsmarkt

IC Labour Market Outlook 10/22

Interconnection has examined the labour markets in a short “trend study”. Not surprisingly, the situation is currently very tense. The steadily increasing demand for labour cannot be met by job seekers and domestic workers alone, and even more so, the Austrian labour market would simply collapse without a qualitative influx from abroad.

The fact that the long-term growth of employees from abroad is considered secure is just as evident from the trend study as the fact that temporary employment can position itself as an increasingly strong job provider at home and abroad. Recruiting will be outsourced even more by Austrian companies in the future, and recruiting in foreign markets will also become increasingly important.

The wishes of young job seekers in particular for more flexibility, home office and generally shorter working weeks are still proving to be a major obstacle for Austrian companies.

> read more

CEE Office Furniture Market with Double-Digit Growth Figures

Turnover in the CEE office furniture market grew by 13% in 2021. This year, the market will continue to chase highs with a plus of 12.3%. In addition to inflation, turnover is driven by the increased demand for higher-quality office furniture, as a study by Interconnection Consulting shows.

The consequences for the CEE office market due to Covid pandemic and its economic impact were dramatic. The market crashed by 15.7% in 2020. The recovery of the CEE office market is mainly driven by investments in the refurbishment of old office infrastructure, which also triggers higher demand for premium solutions in the office furniture sector, resulting in higher unit prices. In addition to inflation and a moderate increase in sales, this leads to a strong increase in turnover in the region. The total turnover of the CEE office market amounted to €1.04 billion in 2021 and will increase to almost €1.17 billion this year. In the coming years, growth will slow down but remain high, as the Interconnection study shows. The average growth of the market in the CEE region is 7.7% per year. Poland is the most influential country for the office furniture market with a share of 51%, but the strongest growth in 2021 was achieved by the Czech Republic and Slovenia with +16.8% and 15% respectively.

Seating Dominates

Chairs are the strongest product segment with a share of 50%. The most important product group is the swivel chair, which was sold 2.9 million times in the CEE region in 2021. However, compared to other regions of the world, the swivel chair is not quite as dominant, with a share of around 54% in the seating segment.  Overall, the seating segment is also the category with the strongest growth potential. Partition systems are also a strong growth market after the Corona pandemic and will grow by almost 15% in 2022. In the table segment, it is mainly bar tables that are trending strongly. Lounge sofas and lounge chairs, on the other hand, show somewhat less growth momentum due to the new zeitgeist of social distancing. Overall, the SME sector is the strongest customer segment for the office furniture market with 63%. The most important players in the global market are, in alphabetical order: AJ Products, Antares, Balma, Flokk, Kinnarps, Mobexpert, Nowy Styl, Standard, Steelcase, Techo/Ahrend.

> read more

Office Furniture Market in Western Europe to Grow by Over 10% in 2022

Turnover in the office furniture market in Western Europe will rise by 10.7% this year and thus continue the high-flying trend it started last year (2021: +13.2%). Besides inflation, turnover is driven by the growth of smart office solutions that support new work concepts, as a study by Interconnection Consulting shows.

Many producers were forced to increase their prices in 2021 or at the latest at the beginning of 2022, due to higher prices for raw materials and energy. “This year, we are also seeing a high increase in inflation, coupled with supply chain issues and limited access to raw materials and supplies. Therefore, we expect further price increases this year,” foresees Katarina Gajdova, the author of the study. This means that the office furniture market in Western Europe will also grow to a record level of 8.1 billion euros this year. The strongest growth in 2021 was recorded in the UK, Denmark and France, with increases of 26.5%, 18.3% and 16% respectively. Besides inflation, the strong increase in the previous year was driven by deferred projects during the Covid pandemic. While the industry’s revenue growth is impressive, sales in the regions studied are rising only moderately (2022: +3.8%).

Green Trend Despite Higher Costs

The home office is here to stay, the office furniture manufacturers surveyed in this study are also convinced of this. On the other hand, there is growth in smart office solutions, which should support the overall growth of the market. The redesign of office environments should also contribute to growth, as the study shows. This redesign of the office space should counteract the desire for home offices and thus also bring employees back to the office location. Positive developments are seen especially in the segments of sitting and standing desks of lounge sofas and collaborative work environments. The study also shows that consumers in Western Europe are less price-sensitive than other regions of the world. This leads to a greater focus on eco-friendly materials and sustainability in demand. Overall, swivel chairs are the largest product segment in the market with a 26% share. SMEs make up the largest customer segment with a share of 61%. The home office segment already has a share of about 10%. The public sector accounts for about 15%. The most important companies include: Ahrend, Assmann, Flokk, Haworth, Kinnarps, König & Neurath, Sedus, Senator International, Steelcase, Vitra,

The study examined the markets: Austria, Belgium & Luxembourg, Denmark, Finland, France, Germany, UK, Italy, Netherlands, Norway, Spain, Sweden, Switzerland

> read more

Door Intercoms Defy the Pandemic

The market for door intercoms in Europe (UK, France, Italy, Germany, Switzerland, Austria) grew by 4.4% in volume last year, already more than compensating for the corona slump, which was relatively small. In 2022, sales are expected to rise again by about 3.8% in volume in the Europe Top 6. By 2025, the projected growth rate of the industry in the countries surveyed is 2.7% in volume, as shown in a new study by Interconnection Consulting.

Germany as Growth Engine

In 2020, at the height of the corona crisis, the industry was even able to increase its turnover by 0.9% across countries. A strong upswing occurred in 2021 with a 7.3% increase in turnover. High turnover increases are also forecast for the near future. Until 2025, the annual growth in turnover will amount to 6%, also due to the general price increases. The highest growth in turnover is expected for Great Britain with an annual increase of 8.9%. The largest market is Germany with a sales volume of more than 1.13 million units in 2021. Due to strong government measures in the housing sector, the German market for door entry systems could grow strongly by 8.9% in value and by 5.4% in volume. Growth rates above the European average are also expected for 2022. In Austria, on the other hand, growth rate was modest in comparison, at 0.6% in volume. The situation is even more difficult in Switzerland, where a slight decline in sales was recorded in 2021. Due to the difficult phase in the Swiss construction industry, this downward trend will continue in the coming years. In Italy, on the other hand, a volume growth of +5.3% is expected for the next three years.

Increasing Degree of Digitisation

The study analyses the market for door intercoms and its product segments (internal and external door intercoms, audio-only and audio & video systems, IP and analogue systems). It shows that the internal audio-only market still has the largest market volume, but with a below-average market growth. “Very strong disproportionate growth was attested in the areas of video, IP technology, automatic access control and wireless connection, whereby these developments are stronger in the non-residential sector than in the residential sector,” explains Johannes Lözelt, author of the study. The largest share in audio & video is found in Great Britain with 33.6% in terms of volume, ahead of Italy with 33.5%. Switzerland brings up the rear with a share of 27.9%. Integrated IP systems, i.e. systems that not only offer audio and video but also connect the intercom to the in-house network via WLAN, are also becoming increasingly popular. In 2018, the share of this segment was 14.9% in terms of volume in the Europe Top 6. In 2023, this share will rise to around 18.8%. The distribution in the individual countries varies greatly.  In France or the UK, the share of these systems is currently around 21%, whereas in Italy it is just under 5.5%.

Residential Market Dominates

The largest customer segment for door intercom systems is the residential market for multi-family houses with a share of about 46.6%. Single-family houses account for 16.5% of sales. The remaining share of just over one third is accounted for by the non-residential sector. The most important manufacturers of door intercoms in Europe are: 2N Telecommunications, Comelit, Commend, Doorbird, Legrand, Produkt Ring, Siedle and Urmet.

> read more

Sealings and Fillers Benefit from Rise in Construction

The European sealing and filler market (sealants, adhesives, PU foams, joint sealing tapes) increased in value by 9.6% in 2018, reaching a market volume of EUR 1.2 billion. Driven by the increase in the construction industry, the market is expected to maintain its momentum in the coming years. According to a new study by Interconnection Consulting, the industry in the surveyed countries (Germany, Austria, Switzerland, France, the Benelux region, and Italy) will increase in value at an average rate of 9.0% until 2021.

Nearly 60% of total sales in Europe are generated in the non-residential building segment. In terms of value, however, price increases, which must be passed on to the customer due to increased raw material costs, are also a major driving force. Germany is by far the largest market for joint sealants in Europe, which is expected to grow at an annual rate of roughly 9.5% and reach EUR 547.2 million by 2021. France, the next largest market, had a share in value of over 25.0% of total sales in 2018.


Sealants Dominate

Sealants, accounting for 45.6% of total value in 2018, were the strongest product group on the market. It is dominated by silicones, whose share in terms of value accounted for 56.2%. Nevertheless, the market share of silicones is decreasing in favor of hybrids/MS polymers. “Industry insiders feel that hybrids, which will pick up the market share losses in the silicon segment, have great potential in the European marketplace,” states Julia Tarasenko, author of the study. The second largest product group is joint sealing tapes. Adhesives are close behind, though, with a share of 23%. They also stand a good chance of further increasing their market share. Until the year 2021, their projected average growth will be 10.0%, which is higher than the industry average. Joint sealants are largely employed in the window and door segment, which garners a share of 26.9%, followed by sanitary engineering and flooring. In addition to these applications, roofing, curtain wall facades, EIFS, HVAC, drywall and other applications were each analyzed, separately for indoor and outdoor use.


Green Trend Increases Market Concentration

As the study shows, market concentration is likely to increase in the sealing and filler market in Europe’s top 6 regions. This is because companies need resources for research and development in order to keep up with the current “green trends” and to meet the corresponding regulatory requirements. The Italian market is already considered to be very saturated. As a result, local market players are having a tougher time expanding and are forced to either focus on other products and solutions, or to implement new solutions and technological innovations in order to gain market share from competitors.There is an abundance of companies in the European market for joint sealants, whereby the main players include Arkema Group, DOW Chemicals, EGO Sealants, Griffon, Henkel, Herrmann Otto, Mapei, Otto Chemie, Sika, Soudal, Tremco Illbruck etc.

> read more

Outdoor Living Is Booming again in 2021 as Producers are Pushed to the Limits

Outdoor Living Is Booming again in 2021 as Producers are Pushed to the Limits

The market for outdoor living solutions is overheating since 2020 and demand is expected to remain at the current level despite uncertainty about overall economic growth. In 2021 textile outdoor rose by 9,7% in Europe Top 7, while bioclimatic pergolas keep getting more and more popular overperforming again with 25,4% quantity growth. At the same time, producers are struggling to keep up with demand and have been forced to rise prices as raw materials are getting more expensive. This trend will continue in 2022, but, in case of a prolonged war in Ukraine, producers will have problems in transferring additional price increases to dealers and consumers.


Higher Demand as the new normal?

In the last 2 years, high levels of demand have been in part caused by households diverting their spending toward home renovation and in particular in making outdoor areas more comfortable. Lockdown measures and travel restrictions forced families to stay more time in their homes during the summer months.  However, other structural factors are helping the industry, as for example higher investments in energy saving solutions and climate change. For Dr. Stefano Armandi, the author of the study, “there are early signs that household spending will remain high also in the medium term and Interconnection is confident that the market for outdoor living as a whole will rather stabilize at current levels, at least in absence of external shocks”.

Italy overperformed thanks to government subsidies

Italian market overperformed in 2021 as the government implemented a large intervention by helping homeowners to renovate their homes and covering more than 10% of the final costs. Similar programmes are planned in other countries in 2022, albeit with different coverage and conditions. The German market recorded a robust increase in textile outdoor, while bioclimatic pergolas are still not growing as in other market, like Italy and Benelux.    

ZIP-screens are on the rise

In 2021, all product categories in outdoor living recorded a growth in sales volume. Cross-arm awning, which has the biggest share in quantity, increased above 10%, while the quantity growth of stationary and wintergarten awnings was about 5%. One of the most visible signs of a booming market has been the rise of textile pergolas. After years of declines caused by the introduction of bioclimatic solutions, textile awning grew again in 2021 above 10%. And this happened in a year in which bioclimatic pergolas grew well above 20% on average reaching 50.000 units sold.

Price levels are at all-time high

Most producers were forced to rise prices in 2021 and will likely face rising costs again in 2022. Although prices increased did not yet reduce demand, consumer spending will start to feel the hit of inflationary pressures. The expected rise in energy costs will lead household to reduce spending for other products and services. Interconnection predicts that outdoor living will stabilize in the next 3 years despite some positive growth is still expected in 2022. Textile outdoor will stay around 1,5 million units sold up to 2024, while bioclimatic pergolas are expected to keep growing in average by around 10%.

> read more

European Refrigerated Cabinet Market Races Ahead

The European food retail refrigerated cabinet market recorded a 7.2% increase in 2021, reaching a turnover of €1.6 billion. This increase came after a 6% drop due to the COVID crisis the year before.

From today’s perspective, the market will grow by 6.3% annually in value until 2024. One of the key factors making the food retail refrigerated cabinet market so dynamic is the demand for fast-moving consumer goods. Many of these products have a short shelf life and require cool storage. Due to the ever-increasing supermarket density in Eastern European countries, the demand for processed goods is therefore increasing and, as a consequence, the demand for refrigerated display cabinets.

Slow Switch to Environmentally Friendly Products

The general concern for the environment is leading to increasingly ecological solutions in all sectors of the economy. The refrigerated display case industry in the food segment is no exception. Synthetic solutions such as hydrofluorocarbons (HFCs) can deplete the ozone and cause environmental damage. Therefore, many companies have decided to make the switch to natural refrigerants, such as ammonia or CO2. “In the next few years we are very likely to see an explosion of new sustainable options. CO2-based systems are very likely to play a major role in this in the future,” says Sasha Spiridonov, the author of the study. CO2 is not only sustainable, but also energy-efficient and non-combustible. Western European countries are already much further ahead than the CEE countries when it comes to the switch to more environmentally friendly CO2 cooling systems. In Germany, CO2-based cooling systems already constitutes 16% in volume. Overall, however, the share of hydrofluorocarbon systems is still far ahead at 75%. The somewhat sluggish shift towards environmentally friendly solutions can also be explained by the cost of the changeover, which usually goes hand in hand with a more complex cooling architecture, says Spiridonov.

Remote Continues To Gain Ground

Remote refrigeration units are subject to electronic control. They do not have their own cooling unit, but are connected to a central cooling unit on site. This form of cooling takes up the largest part of the market with a volume of 900 million euros and a growth of 7.8% last year. This means that the remote segment continued to gain market share. The remote segment is strongly dominated by wall refrigeration units, with a market share of 67%. Refrigerated counters come in at 20.5% and refrigerated islands at 12.5%. On the other hand, plug-in systems also achieved stable growth rates with an increase of 6.6% and reached a total volume of 755 million euros. Plug-in systems are ready-to-plug-in refrigeration units that do not require any further system components. They are refrigerated cabinets with an integrated refrigeration unit. They require less maintenance than centrally controlled units. However, remote cooling units are cheaper overall because a lot of energy is saved on cooling and the warm air that escapes can be reused. Furthermore, the cleaning of remote cooling units can be reduced to once or twice a year and the contamination factor is lower.

Italian Market Leaders

The market for refrigerated cabinets remains very concentrated. Italian producers such as Arneg, Epta, De Rigo dominate the market together with Carrier and AHT. Nevertheless, Polish providers in particular are penetrating the market with cheaper solutions and are gaining more and more market share.

The study examined the following countries: Germany, Italy, UK, France, Benelux, Austria, Czech Republic, Slovakia, Hungary, Norway, Sweden, Denmark, Croatia, Romania, Bulgaria, Poland.

> read more

Global Market For Blow Moulding Machines Recovers From The Crisis

The pandemic also caused a slump in the global market for blow moulding and blow moulding machines. The decline in sales in 2020 was over 7%. However, 2021 will see an increase of 3.9% for the global market, as a study by Interconnection Consulting shows.

China Is The Growth Engine

Blow moulding can be used to produce hollow plastic components. Important products include plastic bottles, plastic canisters, washing water containers, fuel tanks, etc. The global market for blow moulding & machinery is led by the China & Taiwan region, which accounts for about one fifth of total sales. China will continue to determine the dynamics of the global market in the coming years. The annual growth rate will be 8.6% in value until 2024, as this study shows. With the new 5-year plan, China will invest heavily in the construction of new hospitals and the expansion of medical care. At the same time, further urbanisation will be tackled, which will also benefit the blow moulding industry in many areas. Besides China, India is an important growth market for the industry. The market for blow moulding machines will increase by 4.2% this year, although the sales level of 2019 will not be reached again until 2022 at the earliest. The beverage sector in particular, with a share of around 48%, dominates the market in India. In terms of total sales, the USA & Canada region is the strongest in the world. But even there, the dynamic growth of the industry was abruptly halted by the pandemic. In the long term, however, the market for blow moulding machines will grow by 5.6% annually until 2024. The fastest-growing markets in the USA & Canada are the cosmetics sector, with  an annual growth of 8.2%, pharmaceuticals and food. In terms of machine types, stretch blow moulding machines (linear and rotary) dominate the market worldwide with 50.8%. This is followed by injection blow moulding machines with 21% of the total market and extrusion blow moulding machines with 18.2%. The blow moulding segment reached a market volume of €535.7 million in 2019. Here again, the China & Taiwan region leads with a 19.2% share of sales, followed by India (14.7%) and the USA & Canada region (13.5%). The strongest dynamics in this area can be seen in the Indian and African markets.

Tougher Competition for Market Leaders

The top ten companies worldwide hold about half of the total market (49.2%). Extrusion blow moulding machines were less affected by the crisis. Accordingly, manufacturers in this segment were also able to gain market share, such as Kautex. The Japanese injection stretch blow-moulding machine manufacturer Nissei was also able to strongly expand its market shares. The undisputed market leader, however, remains Krones. Other important manufacturers are SIPA or KHS Corpoplast.

Sustainability Is The Industry’s Key Topic

A major issue for the blow moulding industry is the global trend towards banning the use of single-use plastic materials and the focus on sustainability and recyclable plastic materials. Meanwhile, the trend against the production of single-use bottles and disposable products has reached almost all parts of the world. China bans single-use plastic in some provinces. In the USA, 95 state laws on plastic have been passed. In the EU, at least 25% of PET plastic bottles are to be be made of recycled plastic by 2025. By 2030, this mandatory target is to be raised to 30%. Nevertheless, the market for blow-moulded plastic will continue to grow, especially in the beverage market. “A steadily growing population in India, Africa and China, and the increasing middle class in these regions of the world are responsible for this increase,” explains Daniel Kollar, the author of the study.

> read more

European Blow Moulding Industry On The Tough Road Back

The European blow moulding market lost 7.8% of its value last year due to the pandemic. A slight recovery is now forecast for 2021, with an increase of 3.2% compared to 2020, according to a study by Interconnection Consulting.

Blow moulding can be used to produce hollow plastic components. Important products are for example plastic bottles, plastic canisters, washing water containers, fuel tanks, etc. Even before the crisis, the European market had the weakest growth dynamics compared to all other regions worldwide. To make matters worse, the regions of Western and Southern Europe in particular were more severely affected by the pandemic than many other regions in the world and recorded a decline of 11.9% and 9.2% respectively. Consequently, the greatest momentum in the future will not come from these regions, but from the CEE region and Eastern Europe. In the CEE countries, the annual increase forecast until 2024 is 5.3%, with the study also predicting similar dynamics in Eastern Europe. For Western and Southern European countries, it will take at least until 2023 before the market level of 2019 is reached again. In terms of machine types, stretch blow moulding machines (linear and rotary) dominate the market across Europe with 60.9%. This is followed by extrusion blow moulding machines with around a quarter (22.5%) of the total market, and injection blow moulding machines with a share of around one-sixth of the total market. Extrusion blow moulding machines in particular were able to gain market share in 2020, as they lost less than other product segments with a decline in sales of 6.2%.

Tougher Competition For Market Leaders

Accordingly, producers in the extrusion blow-moulding machine segment also gained market share, such as BBM. The Japanese injection stretch blow-moulding machine manufacturer Nissei was also able to strongly expand its market share in Europe. The undisputed market leader, however, remains Krones. The top ten companies in Europe hold more than half of the total market (57.9%).

Sustainability Is An Opportunity For Europe

A major issue for the blow-moulding industry is the global trend towards banning the use of single-use plastic materials and the focus on sustainability and recyclable plastic materials. Especially the highly developed industrialised countries in Europe – favoured by strict laws and regulations – are leading the way. In the EU, at least 25% of PET plastic bottles are to be made of recycled plastic by 2025. By 2030, this mandatory target is to be increased to 30%. “Big brands are being forced to minimise the use of non-recyclable single-use plastic materials,” explains Daniel Kollar, the author of the study. Increasingly strict laws are also leading to bioplastic packaging gaining more and more ground. However, due to the diversity in the material, new blow moulds as well as blow moulding machines are needed for processing, Kollar explains. “The trend is driving the development of the technology and the market.“


Regions analyzed:

Northwestern Europe (UK, Ireland, Norway, Sweden, Finland, Denmark, Iceland)

Western Europe (France, Belgium, the Netherlands, Luxembourg)

Central Europe (Germany, Austria, Switzerland)

Eastern Europe (Poland, Hungary, the Czech Republic, Slovenia, Slovakia, the Baltics, Bulgaria, Russia, the Ukraine, CIS)

Southern Europe (Spain, Portugal, Greece, Italy)

> read more

Facility Management in CEE on the Way to Maturity

The facility management market in the CEE countries Poland, Hungary, Czech Republic and Slovakia) will return to growth this year (+3.8% in value) after its stagnation in 2020 (+0.1%). For the forecast period 2020 to 2024, a yearly increase of 3.6% on average is expected, as shown in a study by Interconnection Consulting.

The trend towards outsourcing of corporate real estate management activities continues. In 2013, this share was 30%, in 2024 it will be 39%. This means that the market is still far behind the mature Western European markets. Developments in the area of external facilities vary from country to country.

Poland Weathered the Crisis Well

In Poland the market for facility management actually grew by 2.0% last year. However, considering growth of 3.7% and 3.9% for 2021 and 2022, the dynamics in the coming years will be far behind the years before the pandemic. The market volume in 2020 was €12.9 billion, taking up two-thirds of the total market volume of the CEE-4 countries. The commercial sector was the largest customer segment in Poland in 2020, with a share of 29.8%, ahead of industry (27.0%) and healthcare (14.6%). The Hungarian market fell by 1.7% in 2020. The market volume was €2.9 billion in 2020 and will already exceed the pre-pandemic level in 2021. The Hungarian facility management market will grow by 5.1% per year on average until 2024. The commercial sector is the most important customer segment, with a share of one-third of the total market, followed by the industrial sector (24.7%). The pandemic hit the market in the Czech Republic and Slovakia harder than Hungary and Poland. Both countries suffered severe setbacks with declines of 4.2 and 6.7%, respectively. The reason was a drop in interest in outsourcing during the pandemic and, especially in the Czech Republic, an extremely hard lockdown. However, a rapid rebound is also expected for the Czech Republic with growth rates of 3.7% p.a. until 2024. The largest customer segment in the Czech Republic is industry with more than one-third of the market volume. The commercial sector follows with around a quarter and then the healthcare sector with 11.5%. In Slovakia, the industrial sector has a share of 40%, followed by the commercial sector.

Increased Demand for Cleaning

Overall, facility management can be divided into three core areas (infrastructure services, technical services, business services). Infrastructure is the strongest segment in the CEE-4 countries with 49.5%. This segment includes cleaning, security, catering, gardening, reception, whereby the cleaning sector grew especially in Poland in 2020 due to the increasing demand for disinfection services and the cleaning of e.g. fan systems. The technical services sector (2020: 37.3%) will grow more dynamically in the coming years. “The reason for the increase in technical services is the rising cost of energy and, as a result, a great demand for effective energy management,” says Katarina Gajdova, the author of the study.

Foreign Companies are Leaving Hungary

For many facility managers from Western Europe who pushed their expansion abroad, the CEE market, which is still not very “mature”, became a popular playground. In 2019, however, some companies decided to leave the Hungarian market for different reasons. For example, the Hungarian real estate developer Wing Zrt. acquired Strabag PFS, and in the same year, the Danish company ISS also decided to turn its back on the Hungarian market. The operational business was to be bought by the second strongest company on the Hungarian market, B + N Reference Zrt, but the transaction is still being examined by the European competition control. Major players in the CEE market are Atalian, Securitas, ENGIE, Compass Group, Sodexo, Okin Facility.

> read more

Price Surge in the Sandwich Panel Market

The market for sandwich panels is experiencing a shortage in steel production as a result of the COVID crisis, which in turn leads to immense price increases. The market in the CEE countries Czech Republic, Slovakia and Poland is also affected by this. For 2021, Interconnection Consulting forecasts an increase in market volume in these countries of 32.1%, while sales volume will almost stagnate (+1.7%).

The experts are optimistic that the steel supply crisis will soon be over. A recovery in this regard is expected as early as 2022. The resulting drop in production costs will also lead to rising sales figures. In Poland, prices increased by almost 6% in the last quarter of 2020 alone. At the beginning of 2021, this trend continued at an exponential rate. Overall, Poland, like many other countries, showed a noticeable shortage of labour and reluctance to invest in new construction during the pandemic. This resulted in sandwich panel sales in 2020 falling back down to 2017 levels (-6.4%). By 2022, Interconnection expects a return to the level just before the crisis struck. The slump in the Czech Republic was not quite as severe in 2020, but while sales in Poland have rebounded strongly this year, the decline in the Czech Republic continues at an accelerated pace (-5.0%). The reason for the decline in sales is primarily the price increase for raw materials. The same applies to Slovakia, where sales have fallen by 4% this year.

Eco-Friendlier Materials Sought

Products with higher insulation and fire resistance, (e.g. mineral wool and thicker) are also on the rise due to EU regulations. There could also be a shift towards more ecological, such as halogen-free products, explains Katarina Gajdova, the author of the study. Overall, the study shows that steel dominates the market as a covering material with almost 98 percent. As a filling material, PUR/PIR (panels with synthetic insulation materials) dominate with about two-thirds of the market share. Mineral wool accounts for about one third. Important companies active in the CEE region are Balex Metal, Gor Stal, Kingspan and Ruuki.

> read more

Price Increases Cause Turnover to Rise and Sales to Fall

The market for sandwich panels for thermal insulation of buildings was affected by high price increases during the pandemic, due to shortages in the steel sector. While the market volume in value terms will increase by 16% in Western Europe this year, sales will decline by 6% compared to last year, according to a study by Interconnection Consulting.

The pandemic saw a halt in the production and export of steel production, which mainly brought imports from China, the world’s largest steel producer, to a standstill and resulted in a shortage of the most important cladding material for sandwich panels. Experts expect the situation on the steel market to return to normal in 2022 and prices to move southwards again. The strongest price increases in 2020 were seen in Spain with +10% and France and Austria with +8% each. On a positive note however, the experts’ gloomiest forecasts, which expected prices to rise by 20 to 70%, were not fulfilled.

France Faces a Sharp Slump

While all the countries studied expect a positive turnover trend due to the enormous price increases, which will accelerate again in 2021, sales in all countries will drop sharply this year due to the shortage in the steel market and lower demand. In France, a slump of almost 11% is expected. In Spain, forecasts expect a decrease in sales of around 7%. Germany and Austria will lose about 5% of business. Italy will lose another 3% in sales this year after a 9% slump in 2020. “This is not helped by subsidy measures such as the Superbonus 110, which applies mainly to residential construction, where sandwich panels are not so popular,” explains Katarina Gajdova, the author of the study.

Mineral Wool Catches Up

Steel is the outstanding covering material for sandwich panels with a share of 93.5%. Aluminium is less popular among manufacturers and consumers due to its lower insulating power. When it comes to insulation material, the ecological orientation of products, such as halogen-free, is also becoming increasingly important, as Gajdova explains. Overall, synthetic insulation materials dominate the market with about 71%, but are losing a little market share to mineral wool, which accounts for about a quarter of the market. Important producers of sandwich panels in Western Europe include Brucha, Isopan, Lattonedil and Metecno. Earlier this year it was announced that the Irish company Kingspan, one of the largest players in the sandwich panel market in Europe, had bought the steel division of the Romanian group Teraplast.

> read more

New Conservatory Instead of a Holiday Trip

The market for conservatories and patio roofs in Germany, Austria and Switzerland (DACH) was a big beneficiary of the Corona measures, as a study by Interconnection Consulting shows. In 2020, sales rose by a staggering 16.6% and the boom will continue this year (+13.8%). Austria and Germany even grew by more than 20% in 2020.

Investing in one’s own home became a popular sport during the pandemic. After moderate growth figures in the years before the pandemic, the growth of sales, as well as the turnover of conservatories and patio roofs in the DACH region exploded. The high savings due to travel restrictions and other restrictions on public life were poured into the home. Sales in the sector increased the most in Germany (+21.1%) and in Austria (+20.8%). The Swiss market increased by “only” 13.2% in comparison. “Swiss single-family homes very often have large living rooms and window fronts and therefore, on the one hand, an addition with a ceiling is not necessary and, on the other hand, it is often not even technically possible,” explains Daniel Kollar, the author of the study. For 2021, Interconnection expects growth to continue at a similar level. Many providers are already reporting full order books until September. From 2022, business is expected to decline significantly because people will use their money for travel and other pleasures again. Interconnection expects an average annual increase of 2.0% for Germany, 1.7% for Switzerland and 0.6% for Austria between 2020 and 2024.

Five Companies Share Half of the Total Market

The study takes into account conservatories and patio roofs from profile and system suppliers. Profile suppliers deliver profiles and planning systems to metal builders who produce finished conservatories from these semi-finished products. Important profile suppliers are Schüco and Heroal. System suppliers deliver completely finished systems to building element dealers and metal builders, who then install them at the end customer (e.g. Gardendreams, Aluxe). The products are mostly made of aluminium, more rarely of plastic or aluminium-wood combinations.  Overall, it can be said that patio roofs grew more last year than conservatories (13.4%), with sales growth of 17.3%. Patio roofs account for 82.1% of the total market. In the DACH countries, the market share of the top five suppliers for conservatories and patio roofs is 49.2%.

> read more

COVID forced a thriving sector to decline, but growth will resume soon

Only a prolonged pandemic could have weakened demand for professional coffee machines, as worldwide out-of-home consumption of coffee had been on steady growth trend for the last 10 years in almost all the 16 regions covered by this global report. Lockdown measures and travel restrictions have severely impacted all customer segments, in particular hotels and restaurants, and the worldwide market declined in 2020 by ca. 20% in terms of new machines sold. Interconnection predicts that demand will resume soon and in the next 3 years the global market will grow by a yearly average of 5,6%.


Europe severely hit, but downfall experienced in all regions

In Europe all major markets (Benelux, France, Germany, Italy, Nordics, Spain, and UK) lost combined 23,0% in quantity. Interconnection detected a slightly better performance in Germany and Nordics, while, at the same time, countries like Italy, Spain, and France suffered the most.

Outside Europe demand fell less on average, around 14%, but still high if compared with their performance of the last 5 years. For example, the Chinese market, which had been growing on an average around 30% in the last 3 years declined due to the COVID crisis, despite overperfoming with a fall of -3,3% in quantity. Other best performers have been East and South-East Asia, where coffee consumption is becoming more popular especially among younger generation.


Higher growth for collective/ event catering expected after the crisis


Rapid expansion of coffee houses has been observed especially in less mature markets where coffee consumption is clearly associated with a less traditional, more cosmopolitan lifestyle. A growing segment until the pandemic, collective and event catering lost more than 30% in 2020 because of home office and cancellation of indoor events. However, this segment will start regain market shares in the next 3 years.


Strong demand for touchless solutions and cloud computing

All product types have been negatively affected by the crisis, but fully automatic performed better than  semiautomatic and reached 49,8% quantity shares in 2020. Interconnection predicts that both groups will start to recover in the next 3 years and regain the lost ground with an average growth of 6,0% and 5,2% respectively. Average prices are on the rise and are expected to grow further mainly because of technological innovation, in particular, cloud computing, remote control and touchless solutions. Among the major global players, there are Cimbali, Evoca Group, Franke and WMF.

> read more

Renovation keeps raised floors afloat despite losses

After 2 years of sustained growth, the raised floor panels market has been affected by the COVID-crisis and is expected to experience a quantity loss -6,0% in 2020. Despite an increase in renovation, the fall in new non-residential projects, especially office/administration and commercial segment in the next 2 years will keep the market well below the 2019-level until 2023, as quantity growth will resume only in 2022 in most countries.



Wood and mineral panels most popular as premium solutions


The largest material segments for raised floor panels are mineral with 31,0% quantity shares, which are however falling a bit in part for a reduced availability of the raw material, and wood with 30,6%, which is expected to raise up to 31,1% up to 2023. Wood is already the biggest segment in France, Spain and Benelux, while mineral panels are above 40% in Italy and Germany.

Encapsulated steel is at 28,0% and is the dominant material in the UK market with 68% quantity shares, regaining some of the lost shares as aluminium prices stabilized in 2020.

Hollow floor is extremely popular in Germany with 22,0% quantity shares, but is losing relative to the other segments because of their reduced functionality, especially for office and data centers.



Public investment as silver lining?


Among the positive factors, more investments in healthcare and education by European government will help limit the losses in the next 3 years. Still, most panels are destined to offices and to commercial enterprises and new constructions for these segments will decline strongly in 2021 as new projects will be put on hold. At the same time, renovation of offices rose a bit in 2020 as companies take advantage of the temporary absence of workers during lockdown for restructuring internal areas.



European companies dominates the market


The European market is strongly concentrated, especially in the premium segment, with international and local players counting for 80% of the market and the TOP5 counting for 45% of the total market. Some acquisitions in the last few years increased market concentration further and created some bottleneck for raw materials, in particular for mineral panels. Among the main companies, there are Kingspan (mainly encapsulated steel), and 3 German players, Lindner, Knauf and Mero

> read more

As stroller market shrinks, parents look for innovative solutions at reasonable prices

For the second year in a row, the European strollers market have decreased by -0,9% in 2019 as a recent study by Interconnection Consulting shows. Interconnection predicts that the market will loose on average -1,8% units per year until 2023, in part due to a strong decline in 2020 in part offset by an increase in 2021. Only in France and Northern Europe, the study recognized an increase in quantity sold, while the German and Spanish markets declined for the first time in the last 5 years and the UK market failed to rebound after a sluggish 2018.


Parents more sensitive to prices as competition intensifies

Average prices  failed to grow in 2019 for the first time since the 2010 crisis. Parents have become more sensitive to price differences in the high-end premium segment as competition to gain shares in this segment has increased in the last 3 years. The high-end segment (>1000) lost  shares again in 2019 in part due to the impact of second-hand market, while shares of strollers in the medium-range (250€-500€) have now reached 33,7% quantity shares.  The temporary fall in demand caused by the COVID-19 crisis is forcing producers to offer one-off sales in the first part of 2020. As a consequence, total turnover is expected to fall below 800 million Euros in the next 3 years.

Lighter, cabin-proofed stroller on the rise…  before and after COVID-19

The rise of ultra-light compact in the last few years has been astonishing and more companies are now offering this type of solution. Interconnection expects this segment to grow further in the long-term by taking shares from both compact and buggies, but the COVID19 crisis could reduce their  demand until  travel restrictions are lifted. “This crisis have been put a lot of pressure on the strollers industry in the first half of 2020 and has the potential to modify parents’ approach to mobility and their consumer preferences”.  Comfort is the product group with the largest share (42,8%) and overperformed in 2018, reflecting also the rising shares of multi-travel systems.

COVID19 favors the long-term rise of online sales

Growing trend for online sales set forth and this channel have now reached a market share of 25,8%. Their growth rate is expected to rise even stronger  in 2020, as the off-line channel has been heavily impacted by the current crisis in some countries were forced to restructure due to financial problems. Especially, sales through boutiques and mass market will keep declining in the next 3 years.  Market concentration have been decreasing in the last few years as some newcomers have gained shares and the trend has been confirmed in 2019 with the top 10 companies controlling now 35% of the total market. Three of the largest companies are Artsana, Britax and Dorel.

> read more

Curtain Wall Market is Facing Difficult Times

The six most important markets for curtain walls in Europe (Germany, France, Spain, Great Britain, Italy and Poland) posted a decline in sales of 0.6% in 2019. Follwoing the most likely scenario, the COVID crisis will cause a sharp drop in sales this year (-4.5%). But even after that, the market will find it very difficult to get going, as shown in a study by Interconnection Consulting.

Ray of Hope in Two Years

The decline in sales across Europe – in the most likely scenario – will continue until 2022. While sales in the previous year were around 21.8 million square meters, they will most likely only make up 19.8 million square meters in 2023, as a low demand for new investments in the construction industry is expected until 2022. The developments caused by the crisis in the individual countries are all different. Italy will experience the largest decline in 2020 in the most likely scenario (-12.2%), followed by Great Britain (-9.9%), although it can be said that for both countries this is simply continuing their decline in sales. By far the largest market, Germany, will lose 3.8% of its sales volume this year, ending a long upward phase. On the other hand, France and Poland will actually end 2020 with a slight increase in sales. However, sales volumes in these countries will also decline sharply in the following years due to the consequences of the crisis.

Trending New Materials

In terms of materials, aluminum-glass holds the majority with a share of 82.6%, followed by steel-glass. While the steel segment continues to lose shares, aluminum will continue to expand its market position. However, the strongest trend can be seen in other materials, such as wood-aluminum or wood-glass systems. Alternative elements such as stone, ceramic or plastic are also being used more and more frequently.

Housing Construction Will Collapse

The market share of property construction is 89.5%. With almost half of total sales, the office segment is the strongest customer segment. This is followed by retail (18.7%) and industry with 14.1%. The greatest losses are expected in residential construction, whose sales will fall by 8.3% this year. Around three quarters of the sales volume is used in new construction.

> read more

Parents ready to pay more, while units sold keep falling a bit

The rise of more expensive type of seats (i-Size and Extended Convertibles) keep driving the overall value growth (+0,2% in 2019), but the new study by Interconnection predicts that the market will lose on average -1,1% units per year until 2023. Demand for safety seats have been relatively less impacted by the COVID-19 crisis than for stroller, but still  the aggregated market in the 7 major European markets is still forecasted to fall by 4-4% in 2020.

„Economy and premium segments are increasingly diverging in terms of product characteristics” explains Dr. Stefano Armandi, the author of the study.  Some parents are attracted to multi-year seats as an opportunity to buy only one seat per child and save money in the long-run. At the same, product innovations affecting the high-end segment, as i-Size and spinning and rotative seats, are becoming increasingly popular in the last 2 years.  For example, i-Size seats in the categories 0/0+ and 0+/1 cover now respectively 37,4% and 44,2% of each group’s shares and are already above that level in the medium and premium segment.


Multi-stage seats more popular in Southern Europe

In 2019 downward fall in quantity is mainly due to the negative performances of the Italian, Spanish and UK markets, where in the first 2 markets the rise of extended is reducing overall quantity, while in UK due to a mix of lower life births and economic uncertainty. The two biggest market, France and Germany, kept growing in 2019, but quantity sold will fall in 2020 due to the COVID-19 crisis.

As in 2018, Group 1 and Backless kept loosing shares, while Extended Convertibles are best performer. Despite a positive growth of +0,4%, first sign of a stabilizing trend for 1/2/3 started to emerge in 2019, while 2/3 keep growing benefitting from the fall of backless solutions. Group 0/0+ and Group 0+/1 have been falling in 2019 in total, but performances diverged a bit in each countries. Infant seats in Nordics and O+/1 in Germany are still growing, while both are losing strongly in Spain and Italy (due to Extended).  This trend will keep shaping markets in Europe for the next 3 years, with O+/1 loosing less than 0/0+ on average.


Product innovation as key for growing in shares

All price segments above 100€ kept growing again in 2019, but firms are offering bigger discounts in the early months of 2020 and this will lead to a short-term fall in average price. Still, the trend towards higher average prices will resume in the next 3 years.

‘Online only’ channel reached 21,7% in 2019 and will benefit from the COVID-19 crisis, taking shares away from boutiques and mass market. Also chain specialized dealers with their online shops will be able to defend their market shares and stabilize around 38,5%.This is also the main channel in most countries, with the exception of France.

As some of the main producers have been successfully introducing new innovative models, market concentration raised a bit in 2019 reaching a combined share of 70,3% for the top 10 companies. Among the Top 5, there are Team-Tex (Nania Group), Dorel and Britax, Cibex/Goodbaby and Allison Baby.

> read more

Residential Race to the Bottom at it's Beginning

2020 will finally stop the longstanding upswing  of the construction industry due to the Corona-Crisis. For this year a decline of -2,7% of the residential construction activity is expected, which is only the beginning of the downward trend, as Interconnection Consulting shows in its latest report.   


Bottom will be reached by 2022 

Tightened hygiene- and safety regulations curb the residential building completions already in 2020. Furthermore, closed borders led the shortage of skilled workers on the construction sites which delay completions further. Short-time work and massive unemployment clearly have a negative effect on purchasing power and investment readiness of local households. Consequently investments in  homes are expected to decline leading to a drop of building permits in 2020 by 14,9% compared to the previous year which will obviously effect building completions within the upcoming years. While the downward trend in 2020 will be comparatively moderate, Interconnection’s forecasts for 2021 are drastic with a decline of -8,7%. Due to the delay between building permits and completions of residential buildings, completions are expected to hit the rock bottom by 2022 while in 2023 we can expect a recovery.


Urbanization further Rising 

Due to declined private incomes building completions of detached- and semidetached houses are expected to drop over proportional. While detached- and semidetached houses accounted for 29,0% of all completed dwellings in 2019 this share is expected to drop to 25,0% in 2020. Even though a slight recovery of this segment is expected, the big trend of urbanization continues regardless the corona-crisis. Consequently construction of apartments will further increase. Was the ratio between apartments and detached/semidetached houses 50:50 back in 2008 a significant shift towards apartments within the last ten years (71% to 29%).


> read more

Outdoor venetian blinds hope for a rebound after COVID

Outdoor venetian blinds hope for a rebound after COVID

After years of sustained growth, the market for outdoor venetian blinds for the 7 major European markets (Germany, Austria, Switzerland, France, Spain, Italy and Poland) will suffer a setback in 2020 due to the impact of the COVID-19 crisis. The market will fall by -3,7%. In new study, Interconnection predicts that quantity sold will experience a gradual rebound in the next years, while the volume in 2025 will raise above the 2019-level in all markets analyzed.


DACH-Region Overrepresented

The popularity of outdoor venetian blinds as exterior sun protection element in the DACH-Region is well-known and strongly defines volume and trend for the whole European market. The German market is by far the biggest market with 49,6% shares,  followed by Switzerland and Austria. Still, it will take some years before Germany will reach the pre-crisis level. Rebound will be faster in some of the less mature and, at the same time, fastest-growing countries, as France and Spain. In 2019, the Spanish market grew by +5.3%. In Southern Europe venetian blinds have been struggling to take shares away from other, more traditional, sun protection elements, as wood and roller shutters. For example, the Italian market is less than 1/10th of the German one.

Fall in aluminium price could make blinds more competitive

A positive feedback on total volume sold could be lower prices for raw material, as ca. 90% of all venetian blinds are made of aluminium and price of aluminium had been growing stronger before the crisis. This could help producers to take advantage of the situation and help venetian blinds to become more competitive relative to alternative solutions. One of the reasons why average prices of blinds is relatively high is the motorization level which is dominant reaching 93% in France. Only in Poland only 64% of venetian blinds are sold with a motorization system.

More players, concentration declines

In the last 5 years more sun protection players have started to produce their own venetina blinds and, since 2017, Interconnection recorded a trend towards lower concentration among the top producers. Still, the Top 10 companies covered in 2019 59,8% of the total volume. Some of the Top 5 have lost shares in part because present only in the more mature markets. Roma and Hunter Douglas gained shares in 2019.

> read more

Difficult Years Ahead for Fire Rated Doors

After a very promising start to the new year, the fire door industry in Western Europe experienced a major slump. In the first quarter of 2020, the market fell by 11.5 percent in value compared to 2019. For the full year, Interconnection Consulting expects a decline of 5.6% compared to the previous year. The market level of 2019 is not expected to be reached again until 2023.

Italy, Denmark and Sweden Will See Double-Digit Declines

In Germany, the largest market for fire rated doors in Europe, a decline of 7.4% is expected for the year as a whole, caused in large parts by the strong declines in non-residential construction. One of the strongest slumps in the EU is currently forecast for Italy (-10.1%), while the fire rated door market in the Benelux countries and Great Britain will lose 8.7% and 7.6% respectively. Scandinavia is also hard hit by the crisis and will lose a total of 9.6%, with the decline in Denmark and Sweden likely to be in the double digits.

Great Expectations for EN16034

The market has high expectations for the introduction of new standards for the harmonisation of directives within the EU and Turkey in order to guarantee fair conditions for the manufacturers. However, these changes, which came into force in November 2019, only affected exterior doors and sliding doors. “The outer doors in particular affect only a slight proportion of all fire rated doors and therefore the effects on price harmonisation are not yet as strong as desired,” explains Jan Hudak, the author of the study. However, this is one of the big goals to narrow the big price differences in different countries. Therefore, in the future, wooden doors with fire resistance of 90 and 120 minutes will dominate at the upper end of the price scale, while steel doors will remain dominant at the lower end of the resistance scale (30 min and 60 min).

Gloomy Outlook

The fall in demand in the first half of 2020 will be somewhat weakened from September due to the building permits already issued – which total around 3 billion euros. The two-digit decline figures that are expected by summer can thus be partially offset. Nevertheless, the gradual easing of measures to curb COVID-19 will only partially lead to recovery. The market for fire rated doors will not fully recover from the crisis until 2022.

> read more

Curtain Wall Industry in Germany Will Only Recover Slowly

Sales of curtain walls increased in 2019 by 4.2% to 7.2 million square metres. In 2020, sales are set to decline by 3.8% due to COVID-19, as shown in a new study by Interconnection Consulting. The industry will only slowly recover from the effects of the pandemic by 2023.

In 2020, due to the consequences of the shutdown, sales will most likely decrease to 6.9 million square meters, as the study shows. By 2023, this value will increase slightly, up to 7.0 million square meters. The crisis is set to end the continuous growth of the industry in recent years. The industry recorded an increase from 6.0 to 7.2 million square meters in the five years between 2014 and 2019.

Wood on the Advance

Aluminum is the dominant product group with a share of 78.5% and is not set to lose any of this majority in the future with above-average market growth. Lower growth and thus falling market shares can be expected for steel-glass combinations. The strongest upward trend is the wood-glass combination. „The advantages of the trend-material, like sustainability aspects and easy handling contribute to the rise of this material group. In addition, wood is renewable and resistant and has very good thermal insulation, ”explains Daniel Kollar, the author of the study.

Trade and Industry are Catching Up

The strongest sales segment by far for curtain walls is the office segment with a share of 43.2%, followed by the retail segment with 21.5% and industry. Only then comes the residential segment, which so far only accounts for 12.3% of total sales. This proportion will not increase until 2023. On the contrary, the residential segment will continue to lose shares, while the retail and office sectors will see the largest growth rates until 2023.

> read more

InterConnection at the Research & Results 2019

The market research fair Research & Results will again open its doors on the 23th-24th of October in Munich.

Visit us at our booth 270 in hall 2. We will gladly inform you about our innovative and practice-oriented methods in the B2B and B2C segment and also offer you great workshops on exciting topics such as the following.


Our Workshops

‘Who once lies…’ – implicit methods as the Royal Road of Market Research

Wednesday, 23th of October at 1.15-1.45 pm; Room 1

Consumers lie. Not intended, but especially then, when they are explicitly asked about their preferences, buying motives or purchase wishes. Lies, however, have short legs, so implicit approaches help to make unconscious buying drivers measurable and reveal true buying motives and attitudes. In this workshop we will show you the best implicit methods that have been proved to be effective in practice, with practical applications around brand perception, product design and advertising impact.


  Presentation request


B2B Market Intelligence – Tools for better Market Performance

Thursday, 24th October at 12.30-1.00 pm; Room 7

Market research is facing special challenges when it comes to B2B industries. Traditional market research topics such as the analysis of buying behaviors are much more complex due to various persons involved as part of the buying center. Market analysis need to consider multistage distribution structures and the high relevance of direct sales. Market selection projects are not only restricted to regional respectively industry related markets but industry overlapping application possibilities. This presentation shows business related B2B-Market Intelligence Tools for a better market performance.


  Presentation request



> read more

Market for floor heatings benefits from rising construction of detached houses

The market for floor heatings in the DACH-region not only benefits from the construction boom but also from rising popularity of surface heatings. In 2018 sales increased by 4,2 percent compared to the previous year. Until 2021 it can be expected that the market will reach a level of 27,9 mil. square meters representing an annual average growth (CAGR) of 0,9% – as growth dynamic will slow down significantly from 2019.

> read more

Government investments help Facility Management

In 2018, Facility Management achieved a market volume of €89.0 Billion, which is a 3.2% increase compared to the previous year. A CAGR of 3.2 expected by 2021, as shown in a new study by Interconnection Consulting.

The development in Facility Management (real estate services) reflects the economic situation of a region. In the Nordic countries, subsidies and investments in the energy sector and sustainability benefit growth, resulting in a growth of 4.1% across all countries (Denmark, Norway, Sweden, Finland) in 2018. Italy, on the other hand, still faces stagnation and instability in the financial sector, which in turn affects spending on external facility services. Last year the industry grew by 1.6%. However, the development of new projects and regained confidence will enable higher growth prospects (+ 3.1% per year) until 2021. The Benelux countries have a stable market with the same growth. For the past three years, the market rose by an average of 2.9% annually.

Infrastructure Services Moving Ahead

The facility management services can be divided into three categories – technical services, infrastructural services (catering, security, reception, gardening …) and the commercial sector. Infrastructure services make up the largest share at 53.6%. Growth in this sector was 3.5%. In Italy especially, cleaning and security as sectors enjoyed strong growth rates of 4.2% and 4.7%, respectively. Overall, technical services account for 34.2% of the market. In the Nordic countries, the technical sector has a disproportionate share of 38.2%, due to the high importance of and dependence on fossil fuels in countries like Norway.  Commercial services hold a share of 12.2%. The best growth prospects are in the technical sector, which is expected to increase by an average of 4.1% for the next few years. The commercial sector however is faced with the bleak prospect of a 0.7% annual decline over the next few years.

The State Drives Business

Office space/department stores are the largest customer segment with a share of 18.4%, followed by government & education at 16.5% and industry at 16.2%. The state sector (government institutions, education, health care) is particularly strong in Italy and the Nordic countries and accounts for a total of €29 Billion in the countries we surveyed. The top ten companies retain a market share of 14.1%, which shows that there are many local suppliers in the game and that consolidation is imminent.

> read more

Two-thirds of German Window Dealers Give Automatic Discounts

A mystery shopping test conducted by Interconnection Consulting revealed that 66% of dealers offset their high window prices by offering automatic discounts. Overall, there are large price differences among the 20 window brands surveyed. There also happen to be geographic price differences. Southern Germans, for example, have to dig deeper into their pockets when purchasing windows than their compatriots in the north.


With an average price of EUR 342.70, Northern Germany has the least expensive PVC windows on offer. Far more expensive are the Southeast and Southwest regions, where average prices for PVC windows are 10% and 18% higher, respectively. However, the most expensive region in this segment is the East (EUR 408.30). In the wood/aluminum window segment, the highest average price of EUR 704.60 can be found in the Southwest, followed by the West, the Southeast, and the North at EUR 655.90.


Installation Most Expensive in the East

For comparable wood/aluminum windows (1000 x 1400), the price difference between the cheapest and most expensive providers is 100%. “You’re not just paying for security features or good heat values, you’re also paying for the brand,” explains Viorica Jeler, author of the study. In the case of PVC lift-and-slide doors, the average price was EUR 3,405 and thus significantly lower than in Austria (EUR 4,280). The mystery shopping test also inquired about installation prices. The average price in Germany was EUR 2,557, slightly higher than in Austria (EUR 2,274). Interestingly, the cost of installation was highest in the East (EUR 3,096) and lowest in the West (EUR 2,007). Regarding window suppliers, many of them offset their high installation prices by offering generous discounts. Around two-thirds of the dealers (66%) grant automatic discounts.


Safety Pays Off

Features like lockable handles that increase window safety generally go hand-in-hand with higher prices. Compared to standard models, prices for safety windows are on average roughly one-third higher. In Austria, customers pay significantly more, namely 61.1%, for safety windows than for standard models. Interestingly enough, increased safety in wood-aluminum windows is much more expensive than with PVC windows. “This is just one indication that there are still many price potentials to be exploited in the German window market, in spite of what one often hears that the customer is only interested in the price,” explains Viorica Jeler, author of the study.

> read more

Outsourcing Galvanizes Facility Services

The market for external facility services in Austria will increase by 4.5% in 2018. The boom in office building services in particular is behind the industry’s significant growth in market volume. This trend will lead to a further increase in external real estate services in the future as well. The industry is thus expected to see an average annual increase of 4.6% to the year 2021

Offices Stepping on the Gas

The market for external facility management services will increase to nearly EUR 6.7 billion by 2021, thereby overtaking internal services to an ever greater degree. There are several reasons for this. Companies themselves promote outsourcing as they focus on their core business across all their divisions. New technologies require new types of maintenance and care, even if only a portion of the providers offer these options. With an increase of 6.2%, the customer segment office buildings was the driving force behind external real estate services in 2017. Such momentum is particularly striking since the segment clearly underperformed in the previous years. As a result of this vitality, offices have not only been able to catch up with industry’s rate of growth, but have actually overtaken it (6.2% to 4.6%).

Technical Services Catching Up

Once again, technical services outperformed all others, notching an increase of 6.3%. The tremendous need can be explained by both the continued outsourcing of services and the increase in production, trade, and logistics in the booming economy. Over the long term, technical services will see revenue growth at the expense of the currently dominant infrastructural services. The developments of infrastructural services’ sub-segments were quite varied. While office cleaning/janitorial grew strongly (+4.6%), catering managed a plus of only 3.2%. Growth in security, the other high-volume sub-segment, was also a sub-par 3.3%. “Since 2016, contracts have been expiring that were made during the refugee crisis,” explains Tobias Stickelberger, author of the study. Yet the general need for security has by no means diminished among customers. However, job qualifications have become more stringent, and so not every job can be carried out as requested because the staff is lacking, Stickelberger explains. The largest sub-segment in infrastructure management continues to be commercial cleaning, with a volume of EUR 1.7 billion, followed by security (EUR 652 million) and catering (EUR 608 million). The share of infrastructure services currently stands at 61.0%, ahead of technical services (32.7%) and entrepreneurial services (6.4%).


> read more

Outsourcing is the Turbo Engine for Facility Services in Germany

On account of the ongoing outsourcing of real estate services, growth in the external facility services sector will continue to far exceed inflation in the future. A new study by Interconnection Consulting foresees an average annual growth of 4.3% until 2021. For the first time, turnover in technical facility services in Germany was higher than that of infrastructural facility services.

Technical Services on the Rise

The overall market for external facility services in Germany succeeded in breaking the EUR 60 billion mark for the first time (EUR 60.3 billion). Since 2013, infrastructural and technical services in Germany have been roughly equal. However, on account of lower growth in 2017, infrastructural services are, for the first time, less valuable than technical services, which saw an increase of 5.6% in the previous year. Technological advances make infrastructure maintenance of a given property less labor-intensive and thus cheaper, and yet providers cannot just conjure up a slew of new services. Such is not the case in technical services, explains Tobias Stickelberger, author of the study. “Despite general deindustrialization, the advancement in the mechanization of buildings and facilities ends up generating increased revenue in this sector.”

Outsourcing the Driving Force Behind External Services

The market for external facility management services of all providers will expand to over EUR 71 billion by 2021. Companies tend to focus on their core business especially during difficult economic times and therefore outsource facility services. So it is not surprising that the outsourcing rate in 2017 was 56.87%. By comparison, the rate was under 50% in 2012. Overall, the external market increased by 4.7%, but the overall market for facility management (external plus internal) only by 2.1%.

Bitter Price War

The customer segment industry witnessed a growth of 5.0%, making it the leading segment ahead of transport at 5.1% and trade at 4.8%. 16.5% of all services were generated in the newly formed German states and Berlin, whereby the vitality (+4.3%) appears to be flattening again somewhat. Facility services providers complain of shorter contracts and the frequent need to renegotiate prices. “Even well-known providers are hardly able to distinguish themselves enough from the pack to make the price of secondary importance,” explains Stickelberger. Customers who advertise each maintenance group individually and negotiate strictly according to price are common. The top five companies hold 9.4% of the total market. The top ten have a share of 14.86%.


> read more

China Continues to Fuel Hot Runner Systems

On account of the positive economic trends in Europe and China, global sales in the hot runner systems market grew by 8.2% in 2017. However, the intensifying trade war between China and the USA, as well as the EU, is dampening prospects. According to a study by Interconnection, average annual growth through 2021 is expected to be only 5.7%. Overall, the global market volume was EUR 2.4 billion.


Quality Standards on the Rise in China

In spite of the strong growth, the times of double-digit growth rates in the hot runner systems market seem to be a thing of the past. Markets such as Central Europe and the USA have matured to a point that impedes high-level growth. China was once again the clear driving force in the market, with an 11.8% growth rate and a market volume of EUR 735 million. With a 30.7% share of global sales, China thus remains the largest market for hot runner systems – and its dominance is only expected to increase. The Chinese market is benefiting from both lower production costs and rising quality standards. The growth in China is being fueled to a large extent by the auto industry, though it is not just a matter of production. China is also witnessing a rising demand for cars due to an increase in disposable income. So it is not surprising that rising production costs are forcing production to drift more and more to India from China.


Protectionism Helping the US Auto Industry

The North American market grew 6.2% in 2017, a slight increase over the previous year. The market volume was EUR 432.6 million. Nonetheless, the slowing economic trends are showing all the signs of a saturated market. Even if the current economic conditions are sound, forecasts have been downgraded on account of Trump’s protectionist policies. And yet the US auto industry is actually expected to benefit from Trump’s protectionism and will remain the driving force behind the hot runner sector. Interconnection forecasts a 4.8% average annual growth in the sector through 2021.


Eastern Europe Compensates for Brexit

In Europe, the market volume in 2017 was EUR 639.1 million following an uptick in growth to 6.3%. The economic boom in Eastern, Central, and Southern Europe was thereby able to more than make up for the weak developments in Great Britain, which has been stagnating on account of Brexit. Eastern Europe’s growth in 2017 was 8.1% and will continue to stimulate European growth. Average annual growth through 2021 is expected to be 5.9%. In Europe as well, the market for hot runner systems is also being fueled by the auto industry. The higher production volume in Eastern and Southern Europe, along with the increasing number of new car models, is responsible for the upsurge in the industry.



> read more

Residential construction momentum in the DACH region declines sharply

High interest rates and the increased need for equity in mortgage loans, caused demand for loans to fall dramatically. This is compounded by massive increases in construction costs, which far outpace core inflation. Building permits fell 13.1% in 2022. Construction completions in the DACH region will therefore also plummet by a double-digit percentage amount in 2023 (-11.5%), as a study by Interconnection Consulting shows.

Within the DACH region (Germany, Austria, Switzerland), the number of housing completions in Austria is higher in relation to the number of inhabitants than in the other two countries. While three apartments were built per 1000 inhabitants in Germany in 2022, the figure in Austria was 6.7. In Switzerland, 5.5 apartments were built per 1000 inhabitants. For this year, residential construction in Austria will also show a higher dynamic than in Switzerland and Germany, but at a lower level. In Austria, the decline will be particularly sharp at 15.5%. Whereas around 60,000 homes were completed last year, the number will fall to around 50,000 this year. A similar reduction in construction momentum is also evident in Germany. In Switzerland, the decline is still a moderate 5.2%. The number of completed apartments per 1,000 inhabitants is down to 5.6 in Austria, 2.7 in Germany and 5.2 in Switzerland.

Construction momentum for single-family homes plummets

Overall, there is a trend toward multi-story residential construction (MGWB) in the DACH region. This development is being further fueled in particular by the sharp rise in mortgage lending rates, explains Ernst Rumpeltes, author of the study. “Especially the construction of single-family homes is collapsing sharply.” In 2018, the ratio of MGWB to single- and two-family homes was 65 to 35. In 2023, nearly 71% of all housing units will be completed in multi-story housing. This proportion should not change much in the next few years.

> read more

Hohes Wachstum für Fugenabdichtungen im DACH-Raum

Der Markt für Fugenabdichtungen (Dichtstoffe, Klebstoffe, Schäume, Fugen- Dichtbänder) im DACH-Raum  hat 2018 einen wertmäßigen Anstieg von 10,1% verzeichnet und hält nun bei einem Marktvolumen von 487 Mio. Euro. Getrieben durch den Anstieg in der Hochbauindustrie soll der Markt auch in den nächsten Jahren die Dynamik beibehalten. Bis 2021 wird das durchschnittliche Wachstum 9,2% jährlich betragen, wie eine neue Studie von Interconnection Consulting zeigt.

Deutschland wächst am stärksten

Neben der starken Bautätigkeit stellen in Deutschland auch Preissteigerungen einen wesentlichen Treiber dar, die aufgrund gestiegener Rohstoffkosten an den Kunden weitergegeben werden müssen. Dies führt zu einem CAGR von 9,5% und einem prognostizierten Marktvolumen von 547,2 Mio. Euro bis zum Jahr 2021. Mit 46,1% sind die Dichtstoffe die stärkste Produktgruppe in Deutschland. Vor allem durch den Preisanstieg von Silikonen haben im Bereich der Dichtstoffe Hybride das größte Wachstumspotential. Klebstoffe sind die zweitgrößte Produktgruppe, die mit einem Anteil von 23,9% dicht gefolgt werden von den PU-Schäumen (22,7%).

Schweiz und Österreich mit ähnlicher Entwicklung

Auch in Österreich sind es hauptsächlich die Preisanstiege, die zu einer deutlichen Steigerung des Umsatzes beitragen (CAGR bis 2021 7,3%). In Österreich sind Klebstoffe mit einem Marktanteil von 35,2% die umsatzstärkste Produktgruppe, gefolgt von Dichtstoffen mit 30,1%. Danach folgen die PU-Schäume mit 27,2%. Ähnliches wie in Österreich gilt für die Schweiz, wo das CAGR bis 2021 6,5% beträgt. In der Schweiz sind die Dichtstoffe mit einem Anteil von 36,1% die wichtigste Produktgruppe. Danach folgen Klebstoffe mit 23,6% und PU-Schäume mit 21,3%.

Grüne Wende verstärkt Marktkonzentration

Die Marktkonzentration bei Fugenabdichtungen wird, wie auch in Gesamteuropa in der DACH-Region zunehmen. Denn die immer höheren Ressourcen die notwendig werden um Forschungs- und Entwicklungsaktivitäten durchzuführen, um mit den aktuellen „grünen Formulierungstrends“ Schritt zu halten und die einschlägigen regulatorischen Anforderungen zu erfüllen, werden vor allem größere Unternehmen bevorzugen. Die wichtigsten Unternehmen in der Branche sind Sika, Soudal, Tremco Ilbruck, Hermann Otto, Arkema Group EGO Dichtstoffe, Henkel, PCI.

> read more

Finestre in Italia 2019

Percezione del mercato delle finestre italiane attraverso agevolazioni fiscali

A causa degli incentivi fiscali del governo, i quali stanno dando i suoi frutti soprattutto nel settore delle ristrutturazioni, il mercato delle finestre in Italia crescerà del 4,4% nel 2019, secondo un recente studio di Interconnection Consulting. Complessivamente, lo scorso anno il mercato delle finestre ha raggiunto un volume di 1,57 miliardi di euro. Nei prossimi tre anni, si prevede che il mercato italiano delle finestre avrà una crescita annua del 2,7%, dovuta soprattutto all’incremento nel settore delle costruzioni.
Il settore delle ristrutturazioni è particolarmente vantaggioso
Lo Stato italiano assegna alle famiglie uno sgravio fiscale del 50% in caso di ristrutturazione. Inoltre, la fiducia nel settore delle costruzioni e delle finestre è alimentata anche dalla promessa di un cosiddetto “eco-bonus”. Ciò permette alle famiglie di avere un alleggerimento fiscale del 60-65% in caso di ristrutturazione delle loro case. D’altronde il settore abitativo continua a guidare il mercato delle finestre avendo una crescita media prevista del 6,4% entro il 2022, con una quota di ristrutturazione pari all’83,8%.
Il PVC prende il comando
Nel 2017, per la prima volta in Italia sono state vendute più finestre in PVC che finestre in metallo. Sei anni prima, le vendite di finestre in PVC erano dietro a quelle di metallo e legno, che erano tradizionalmente i componenti della produzione vetraria italiana. La tendenza del 2018, nella quale vede la quota di finestre in PVC al 36,9% e il metallo solo al 30,6%, continuerà con molto probabilitá anche in futuro. Nel 2022, Interconnection stima che la quota di mercato del PVC arriverá al 40,9%, quella del metallo si abbasserá al 29,1%, e le finestre in legno si aggireranno intorno al 15,6%. “Questa tendenza è dovuta alla richiesta di materiali più economici e all’ingresso sul mercato dei produttori di finestre polacchi”, spiega Vito Graziano, autore dello studio. Mentre in altre parti dell’Europa occidentale le combinazioni stanno vivendo una ripresa, in Italia il PVC/Metallo (+ 0,9%) e Legno/Metallo (+ 1,3%) continueranno a perdere quote di mercato nel 2019, con una crescita bassa.
Fornitori dall’Europa dell’Est con prezzi più bassi
I produttori dell’Europa orientale, in particolare, beneficiano della forte domanda di finestre in PVC. L’azienda polacca Eko-Okna, entrata nel mercato europeo come un grande principiante, è cresciuta lo scorso anno di circa il 40% ed è molto ben rappresentata in Italia. L’arrivo di molti produttori dall’est ha anche abbassato i prezzi delle finestre in PVC, facendo registrare un abbassamento intorno al 2,4% nel 2018. D’altra parte, combinazioni come PVC/Metallo sperimenteranno un aumento sostanziale dei prezzi. Difatti, entro il 2022 i prezzi di questo segmento aumenteranno dell’1,6% l’anno.

> read more

Southeast Asia Defies the US-Chinese Trade War

The market for curtain wall facades in Southeast Asia will reach a volume of $ 2.55 billion this year, which equates to a sales volume of 13.6 million square metres. In the ASEAN countries that were examined (Indonesia, Philippines, Thailand, Malaysia, Singapore and Vietnam), the curtain wall market will continue to gain momentum over the next few years. This is shown in a study conducted by Interconnection Consulting.

Urbanisation is Driving the Market

The market for curtain wall facades will increase by 6.9% per annum for a total volume of $ 3.1 billion until 2022. Progressing urbanisation, the development of the construction sector, industrialisation and regarding mainly Thailand and the Philippines tourism, are the main factors behind this sustainable growth. Indonesia and the Philippines are not only the most populous countries in the ASEAN economic area, but also the ones with the strongest growth. Vietnam is also one of the fastest-growing economies, with average growth of 6.8% annually until 2022. In this case, it is the relocation of factories from China to Vietnam that has lead to an increased demand. Malaysia, too, is showing no signs of slower growth, while Singapore and Thailand will be sluggish in the future. “According to our analysis, we can say that the ASEAN economy is currently heavily influenced by local economic development programs and the complicated dynamics of the US-China trade war,” said Vito Graziano, the author of the study.

Average Prices are Rising

As far as the materials used are concerned, the market is clearly dominated by aluminum-glass facades, with a share of 85.1%. Expert interviews show that this material remains the clear frontrunner because of its strength, durability and cost-effectiveness. Accordingly, steel and glass constructions only account for 8%. Overall, the new construction sector has a share of 85.7%, while the renovation sector hardly plays a role. Office buildings are the largest sales segment with a share of almost 30 percent. Of the three most important facade types, element facades show the biggest potential for growth, ahead  of post & beam facades and window ribbons. Although average prices have been stable in the past, they are steadily rising as a result of the US-China trade war.


> read more

Strong Fragmentation of the Cold Rooms Market in 2019

The cold rooms market in Germany, Italy, Spain, France, UK, Benelux and Austria recorded an increase in both quantity and value sales of 3.7% and 2.7% respectively. This upward trend is not expected to continue over the forecast period due to the overall stagnation of economy in the euro area. The market is expected to see an annual average growth rate of below 1% over the next three years, reflecting the economic situation in the EU and the expected forecast of gross domestic product (GDP) which is forecast to expand by 1.1% in 2020 and by 1.2 % in 2021.

German Cold Rooms Market Leading Sales in 2019

The total market for cold rooms in the Europe Top 7 (Germany, Italy, Spain, France, Benelux, UK and Austria) experienced an increase of 2.7% in terms of quantity sales, reaching 103,550 cold rooms sold in 2019, while the value sales reached EUR 368.1 million, experiencing an increase of 3.7%. The German market was the biggest in 2019 in terms of quantity sales, accounting for a 25.2% recording an increase of nearly 3%. The market was strongly influenced by the growth within the small cold rooms segment (<20 m³). This segment recorded a strong increase in 2019 of 4.9%. On the other hand the 100-400m³ segment recorded a decrease of 2.8%. This particular trend towards the small cold rooms in Germany is expected to continue over the forecast period. This segment is expected to see an average annual growth of around 1% over the forecast period, while the 100-400m³ is expecting to see a negative development. Both segments will strongly be influenced by the expected slowdown of the retail industry in Germany. The second best market in terms of quantity sales in 2019 was UK which accounted for 18.2%, followed by France with 14.6%, Italy with 13.4%, Spain which accounted for 12.3% and Benelux with around 10%.

Food Processing Industry Generating the Strongest Demand for Cold Rooms

In 2019 the food processing industry was creating the strongest demand for cold rooms in Europe with around 40% of the total number of cold rooms sold in 2019, followed by food service industry with 35.9%, while the specialized food retail industry accounted for a share of around 24%. The food processing industry is a mature sector which is experiencing a turbulent period due to the growing global demands for food safety, increasing food insecurity and consumer demand for higher quality and sustainability; however its importance in creating a strong demand for cold rooms is not expected to diminish over the forecast period.

Strong Trend Towards Customized Cold Rooms

In 2019 factory built cold rooms accounted for 28.4% of the total number of cold rooms sold, while customized i.e built on site cold rooms accounted for 71.6%.

The market is rapidly moving towards customized cold rooms and this trend is expected to reach its peak in 2022. The reason for this particular trend should be seen in meeting the demands of consumers (customization based on real needs and space) and price pressure. Control of installation quality for cold rooms built on site is not that strict, compared to factory built cold rooms.

Strong Fragmentation of the Market in 2019

In 2019 the cold rooms market was quite fragmented with domestic players holding the strongest positions. On the national level the market concentration is very high. In Germany for the Top 10 companies accounted for 76.9% of the total sales, in Italy even stronger 81.2%, France 77.1%, UK 70.2% and Spain 76.0%. However, when it comes to the total market (surveyed countries) the market concentration is not that strong. The Top 10 companies account for 48.2% of the total volume sales, indicating how strong the fragmentation of the market actually is, and that none of the companies established enough influence to move the industry in a particular direction.

The Industry is Facing Challenges

Whilst high costs and instability are likely to cause friction and potentially stop businesses from taking risks, the increase and variation in consumer demand continues to fuel the industry. The cold rooms market is set to see a modest increase over the forecast period at an annual average growth rate of around 1% to reach EUR 364.8 million in 2022.

> read more

Severe crash, quick recovery on the market for suspended ceilings

The market for suspended ceilings in the top 7 regions of Europe (Germany, the Netherlands, Great Britain, Italy, Spain, France, Russia) experienced an abrupt fall of 10.0% this year due to the COVID 19 crisis. Interconnection’s forecast shows that market volume will not return to pre-crisis levels until 2022.

Southern Europe hit the hardest

The forecast numbers for this year are like an omen for the industry. As expected, the southern European countries are being hit the hardest by the crisis not only in terms of health but also economically. The Italian and Spanish markets for suspended ceilings plummeted by 12.0% and 12.8%, respectively. In the UK, the expected decrease amounts to 10.9% and in Russia the same figure is posited to be higher than 11.1%. In Russia, recovery will take a little longer than in the Western European countries, and therefore the market level there is expected to achieve pre-crisis levels in 2022 only.

In Rome, do as Romans do

Office buildings were the strongest area of ​​application in 2019 with a 26.5% market share, ahead of commercial applications, standing at 20%. “The COVID crisis could also lead to shifts there. For instance, owing to smart working, companies will need less office space per employee,” stated Vito Graziano, author of the report. However, there are also country-specific differences in the areas of ​​application. The share of the industry segment in Germany amounts to 23.1%, while it stays consistently below 10% in all other markets examined. In France, the healthcare sector records a disproportionately high share of 18.2%. In terms of materials, the cheap plasterboard gets the lion’s share with over a third of the total market, followed by mineral fibers and metal. An emerging material is veneer wood, which will continue to experience strong growth in the years to come in spite of the crisis. Plank ceilings represent the largest product segment with a share of 35.0%.

Strong market concentration

The market concentration varies greatly between countries. While the markets in Germany and the Netherlands are very concentrated, the markets in Italy and Spain are rather fragmented. Nevertheless, the European market for suspended ceilings is dominated by a few corporate conglomerates from Germany, France and the Benelux countries. The market share of the top 5 companies in Europe amounts to 48.6%.


> read more

Dynamic economy in Southeast Asia is making a quick comeback

The market for curtain walls in the ASEAN countries (Singapore, Malaysia, Indonesia, the Philippines, Vietnam, Thailand) is bound to plummet by 9.6% this year due to the COVID-19 crisis. However, the market will recover very quickly and by 2022 will have already exceeded the pre-crisis market volume, as a new report by Interconnection Consulting shows.

Good conditions for a quick rebound

The integration of the ASEAN region into the global industrialization process, as well as into global tourism and the construction sector, offers strong impulses for the construction industry. The wave of urbanization is also a strong driver of the construction industry and is even more dominant in the ASEAN countries than in Europe or the USA. These factors are decisive for the construction industry and thus also the market for curtain walls to keep going faster than e.g. in Europe.

Vietnam benefits from the trade war

Indonesia and the Philippines are not only the most populous ASEAN countries, but also the most dynamic markets, recording an astounding growth level. Indonesia is also the largest market for curtain walls in the ASEAN region with a share of 32.5%. Vietnam benefits from the trade war between China and the United States, as many foreign factories move from China to Vietnam to avoid trade tariffs. Therefore, despite Corona, the industry growth in Vietnam will average 2.4% annually over the next few years until 2022. By contrast, while Singapore and Thailand have poorer growth prospects, Malaysia has stable growth prospects.

Smart working instead of office presence

The most important material type is reportedly aluminum glass, with a lion’s share of 84.3%. Above all, it is the cost efficiency that speaks for aluminum and against e.g. Steel / glass, which only has a market share of 8.0%. The largest application area for curtain walls is office buildings with a share of 32.8%. In contrast to many other regions, the residential sector (e.g. apartments) remains a very important segment for curtain walls in Southeast Asia at 27.2% of the total. There could also be shifts in favor of co-working spaces in the future. “There will be more smart working and it is likely that there will be less office space for the same number of employees,” stated Vito Graziano, author of the report. Furthermore, it can be expected that the new development of hotels will only progress very slowly in the next few years due to setbacks in tourism.

Downward trend in raw material prices strengthens margins

Overall, the renovation sector makes up a small chunk of the market with around 15% of the total volume. Conversely, new construction makes up for a share of 85.7%, and this trend will not change in the next few years. But the corona crisis also has immediate positive effects for producers: in the wake of the corona crisis, raw material prices are on a downward trend worldwide, which should strengthen the margins of facade manufacturers overall.

> read more

Loader Cranes Soon Return to Growth

The world market for loader cranes is expected to decline by 9.4% this year. However, a new study by Interconnection Consulting expects a fast recovery of the industry. The market volume is expected to return to pre-crisis levels in 2023.

The market for loader cranes is very dependent on the GDP in the individual countries as well as on the construction industry. The picture is heterogeneous in the individual regions of the world. While the US and Europe have seen strong growth in residential construction in recent years, Japan and Australia have seen a negative development in this sector. Other countries, such as China or Brazil, have increased their output, especially in the non-residential construction sector. Overall, the construction projects worldwide caused the market for loader cranes to grow by an average of 2.3 annually between 2016 and 2019. The largest market for loader cranes is Europe with a share of 30.2%, ahead of the USA with 21.1% and China with 17.4%. Like many other regions, the European market is expected to shrink this year in the double-digit range, as are China (-11.3%), Australia and Japan. The US is doing slightly better, with an expected decline of less than seven percent.

Different Speeds

The post-crisis renaissance of the European market will take place in different regions at different speeds. Germany will recover fastest. By 2023, the market volume there will already have reached a significantly higher level than before the crisis. In France, however, the catching-up process will take longer. Between 2020 and 2023 the market there will decline by -3.1% per year on average.

Kuckle Booms Dominate

Kuckle booms are the dominant product group with a market share of 85.8%. The other two important product groups are recycling cranes with a market share of 7.6% and timber cranes. On top of their dominance, the kuckle boom cranes are also the product group with the highest growth rate. Kuckle boom cranes are set to grow by 2.8% per year in value until 2023. The boom for this segment can be seen all over the world. Th sales share of this product is above 80 percent in all regions of the world. Cranes with a height of 10-20 metres are the strongest segment with a sales volume of 36.5%. This height is even more dominant  in China than in most other regions of the world, where this segment accounts for almost three quarters of all cranes. By comparison, the share of this segment in Europe is only 22.8%, holding the third place. Here, cranes up to a height of 10 metres hold first place with around a third of sales.

> read more

Renovation Cushions Crisis in Garage Doors a Little

The market for garage doors in Austria has experienced an upswing in recent years. However, the Austrian construction crisis resulting from the COVID 19 crisis will also affect the market for garage doors (2020: -3.7%). A new study by Interconnection Consulting shows a slightly negative prognosis for the years after 2020.

Renovation as a Glimmer of Hope

Interconnection assumes that the market for garage doors in Austria will only grow by an average of 1.0% per year until 2023. The renovation market, however, is profitable for the major European manufacturers in Austria. After all, garage doors in Austria are changed twice as often on average as in neighbouring countries. Thanks to the crisis, the renovation segment is becoming even more important. The share of this segment rose to almost 70 percent (67.1%) of the total market during the crisis. Before the crisis, the share was around 65%.

Steel and Sectional Doors Dominate

Steel accounts for the majority of garage doors in Austria, with a share of 86.7%. Aluminium is the second most used material with 8.2%. Whereby the share of aluminium is growing particularly in the area of up-and-over and folding doors. Wood represents an elegant but also expensive niche and therefore only accounts for a share of 2.9%. 82.7% of all garage doors are sectional doors.  “This product group has proven itself to be practical and convenient for many years, and is also no more expensive than rolling and folding doors,” explains Vito Graziano, the author of the study. However, up-and-over doors will develop best after the crisis. As a result of the crisis, average prices have also fallen a little, by -1.3%.

High Market Concentration

The Austrian market is characterised by a high concentration of the top 5, with top 5 companies accounting for around four fifths of the total market. The top ranks are occupied by European players.  Domestic companies have mainly created niches in their original federal states, often by marketing their products via direct distribution. Together, however, they account for less than 15 percent of the market.

> read more

Eastern Europe is Reliable Market for Profile Machines

The global market for profile machines for window and door production was €896.9 million in 2020, 0.7% lower than in 2019. This market experienced strong growth in the last few years before the pandemic and was not hit as hard as other sectors. The market will also catch up quickly once the crisis is over, as a new study by Interconnection Consulting shows. 

Europe Leads the Way out of the Crisis

The global market for profile machines for window and door production is linked to the sales situation and the development of the window market. In Europe, the CEE region has seen itself as a motor for the industry in recent years. The region is responsible for 30.1% of the global output of profile machines. The growth of the industry in this region was up to ten per cent in the years before Corona, also due to the demand for PVC machines from Germany. In 2019, the CEE region displayed a growth of around seven per cent. While the outlook for the European markets is good even after the crisis with good expected growth rates, the other side of the Atlantic is in for less rosy times. Growth in the NAFTA region as well as in Latin America will be less dynamic than in Europe. In Asia, China is the clear market leader with a share of over 70 per cent. The young market for profile machines in Asia is still dominated by local manufacturers. Growth rates in the Asia-Pacific region were 7.2% in 2019, the highest in the world. The market there benefits not only from cheaper production costs, but also from rising quality standards and network effects between window and profile manufacturers. Of the three machine types (PVC, aluminium, steel), PVC has the greatest growth potential for the future and the largest market share with over 60 percent. One driver for PVC profile machines is the Chinese window market, where PVC is the most popular window frame material.

New Global Players from China

The market for profile machines is highly concentrated. The top ten companies worldwide occupy more than 50 percent (56.9%) of the world market. The market is dominated by European companies and here again mainly by German companies like Urban, Rotox, Schirmer and Italian companies like Voilàp, FOM Group or Graf Synergy, the Italian PVC specialist. Apart from other big European players, there are only US companies and Turkish manufacturers that are involved in the world market. Also in China, after dominating their local market, some manufacturers are trying to jump into the global market like Zhongwang or Xingfa, which will make competition tougher worldwide in the future.


> read more

Leading Companies trust in Interconnection Consulting


At the IC Impulsworkhop "Sales Optimization" we appreciate not only the practical relevance, but also the eloquent language and the perfect rhetoric. The most important benefit for our company was the sales pipeline. Adrian Capellarie (Head of Sales Admonter Holzindustrie)

Deutscher Holzfertigbau Verband

Interconnection provides us with the prefabricated house study a plausible and veritable data basis for the analysis of the actual situation in the prefabricated house market and beyond for the assessment of the future market development. We are happy to use this interpreted data for our lobbying and everyday work.

Thomas Schäfer (Managing Director, Deutscher Holzfertigbau-Verband)


The prefabricated housing study by Interconnection Consulting shows a real picture of the actual market situation and forms a valuable basis for our strategic decisions.

Gerhard Schuller (CFO ELK)


EPSON is satisfied with the Interconnection's way of communication with the market and with clients. EPSON is also appriciate the Interconnection's continuous work trying to aim the report to be at the higher level. As a result, EPSON rely on Interconnection data, for the market of POS Printers and Systems.

T.Murakami (Brand Management, Seiko Epson Corporation)


I appreciate on the forum "Impulsworkshop Vertriebsoptimierung" the practical relevance of Peter Berger linked with his practical examples. I also liked the sovereign presentation style. The most important benefit was for me, on the one hand refresh of methods and also the sales management tools that were shown. Ing. Dietmar Hammer (Head of Product Management Gaulhofer)


The most important benefit of the Impulsworkshop "sales optimization" was in my view the procedure of the definition of strengths and the entire sales process. Mr. Berger is very competent and professional. Fabian Freund (Sales Manager, Kontron Austria)

Österreichs Personaldienstleister

The sales management tool ZAIS has become indispensable for many Austrian temporary staffing providers for fast and correct sales management decisions. A tailor-made online cockpit provides comprehensive monthly figures and data on temporary work and the labor market in Austria, while at the same time impressing with its overview and intuitive user guidance. Interconnection Consulting has consider individually to all user needs during development process and also convinces with fast response times during operation.

Dr. Gertraud Höltl (Generalsekretärin Österreichs Personal Dienstleister)

Saint Gobain

Long experience and deep understanding of the construciton industry markets make up the quality of the IC studies. Interconnection Consulting is a constant companion concerning the assessment of markets and helpful for decision-making.

Bernd Blümmers (Directeur General, Saint-Gobain Solar Systems, Central Europe, Aachen)


Interconnection Consulting reports deliver a worthfull external perspective and are so a good contrast with regards to our internal market point of views.

Pedro Posada (CEO Salamander Industrial Products Spain)

Scandinavian Business Seating

The IC Report gives a very good overview of the Western European office furniture market, in a well-structured way. The data is helpful to better understand the market developments and drivers.

Beatrice Sotelo (Director Business Development , Scandinavian Business Seating)

Schneider Electric

Under a short time constraint, Interconnection was able to deliver an outstanding study that exceeded my expectation in terms of quality and market breadth. I highly recommend Interconnection to anyone in need of market research.

Jeff Canterberry (Director of Strategy and M&A, Schneider Electric)


When developing new market strategies, Interconnection is a trusted source we always come back to. Christian Frey (Marketing Manager CS DACH)

Do not hesitate to contact us

Please describe your needs or request a callback. We look forward to hearing from you and contact you immediately.

By submitting the request, you agree that your personal data in the database of the Interconnection Consulting Group will be stored until further notice and used for further processing and sending of information. The data will not be shared with third parties.

You can revoke your given declaration of consent with effect for the future here at any time here.