Lakers is a leading Nordic aftermarket service provider of maintenance, service, development and technical consulting of water pumps, pumping stations, electrical motors and related components.
Water pumps serve as a key component in the infrastructure to transport water in the water infrastructure. Lakers also offers its customers niche products including pressure vessels, water filters and other related products. The company operates within the water/wastewater, building services and industry segments through 20 operating entities in Norway, Sweden, Denmark and Finland, serving both public and private customers.
Key developments in 2019
In 2019, Lakers engaged in a range of different initiatives to drive organic value creation and geographic expansion. The company has strengthened the management team, completed the first wave of operational improvement initiatives and is well underway with implementing a new IT system, setting the organization up for scalable growth. Lakers has successfully executed on M&A opportunities, acquiring a total of seven companies during the year. The company has a continued strong pipeline into 2020 with a focus on expansion outside the Nordics.
The Challenges we face
The Nordic water infrastructure is underinvested with large inefficiencies and future challenges. Growth in the service industry is driven by population growth, urbanization, increased connectivity and tougher regulatory standards, increasing the need for maintenance and upgrades. Pumps account for approximately 10% of the world’s total electricity consumption and about 90% of these work inefficiently. If all pumps were switched to high-efficiency ones, this could save 4% of global electricity consumption and 2bn m3 of fresh water (8x Denmark's annual water consumption).
What is the outcome?
Lakers plays a key role in improving the Nordic infrastructure (SDG 9) by solving challenges within the water systems. Well working water systems are critical to ensure clean water and sanitation in our society (SDG 6). Further, by servicing pumps and increasing their energy efficiency, Lakers could help save a large amount energy consumed.
Who are the stakeholders?
Lakers provides critical services for Public and Private customers in the Nordic region, such as municipalities, businesses and private individuals.
How big is the effect, and does it last?
In 2019, Lakers sold over 8,000 and serviced over 17,000 pumps, ensuring a safe and stable supply of water for its customers. Demand for Lakers' services is considered resilient given the critical nature of the business.
If Lakers didn’t exist…
There are few players of Lakers' size and with its capacity and capabilities in the Nordic market. Lakers has an unmatched competence level and is a trusted natural go-to partner for professional advice for many of its public customers. Lack of Lakers' services could imply lower supply of critical service and upgrades in the region, potentially resulting in an increased number of breakdowns and a deteriorated state of the water infrastructure.
Impact risk: what can go wrong?
Lakers' footprint mainly comes from metals and the manufacture of parts and products used or sold by the company. Obtaining full overview of the impact of the supply chain is challenging, and thus, there is a risk of not fully accounting for the consequential impact of this part of the value chain.