The Dutch installation industry has an annual turnover of approximately €28 billion and employs around 143,000 people. About 29% of installation revenue is spent on maintenance contracts, troubleshooting, and modifications such as short-term and customer-specific projects. Around 80-85% of service visits to buildings involve residential properties, while 15-20% concern commercial buildings.
Service engineers drive 264 million kilometers annually. There are 13,200 service engineers on the road daily, each driving an average of 100 km daily, making 11 million visits annually. As evident from a recent Management Center for the Top Sector Logistics study, the installation industry is actively preparing for zero-emission vehicles in city centers for troubleshooting and service jobs.
Zero-emission
The industry recognizes that zero-emission mobility is inevitable and focuses on smart solutions such as digitalization and more efficient planning. Since labor costs play a much more significant role than transportation costs, the emphasis is on working smarter rather than merely reducing transportation expenses.
The study, which consulted 50 installation companies and experts, reveals that many companies are already taking concrete steps. Larger companies lead the way, while smaller businesses struggle with financial feasibility and the ability to pass on costs to customers.
Labor as the main cost factor, transport only 5%
A striking conclusion from the study is that transportation costs account for only 5% of total company expenses, whereas labor costs rise to 82%. This means installation companies achieve the most savings by optimizing their workforce rather than focusing on transport reduction. Installations are increasingly monitored remotely, and service routes are planned more efficiently. Fewer trips and better planning not only reduce CO₂ emissions but also improve business performance.
Examples of Smart Innovations
- More intelligent scheduling software that integrates real-time traffic conditions
- Predictive maintenance to address potential failures before they occur
- Better intake of service requests, increasing first-time fix rates to nearly 100%
- AI-driven remote troubleshooting, such as using technical documentation
- New logistics concepts in collaboration with wholesalers and manufacturers
“The installation industry is simply moving forward. Electrification and smart logistics are part of our job. We shouldn’t fixate on transport costs alone; the total cost of ownership for electric vehicles is now lower than that of diesel,” says Marcel de Boer of Hoppenbrouwers.
Van Dorp City Solutions (CISO) is opening a new location in Amsterdam dedicated to zero-emission maintenance of urban building installations. By using smart logistics and sustainable transport solutions, such as bicycles and electric vehicles, Van Dorp aims to reduce CO₂ emissions in city centers.
Industry leaders invest, others wait
A clear divide is emerging in the sector. Industry leaders already invest in sustainability and collaboration, while other companies await financial incentives or regulatory changes. Nonetheless, the industry is preparing for the implementation of zero-emission zones and actively seeking smarter ways to operate.
José Komin, proud director of IJskoud, commented on their blog: “The energy transition is in full swing and will not be reversed. The sooner we complete it together, the sooner we can all work seamlessly and continue to do so.”
Over the next four years, most companies will closely monitor developments before making informed decisions on the most cost-effective and efficient transportation methods. In the meantime, businesses with Euro 6 vehicles are still allowed to enter cities, but electric vehicles will become the standard in zero-emission zones.
Source: Top Sector Logistics