Good afternoon, everyone, and welcome to Konecranes Industrial Service and Equipment Investor Update. My name is Kiira Fröberg, and I'm the Head of Investor Relations at Konecranes. Presenting today is Fabio Fiorino, Head of Business Area, Industrial Service and Equipment. He will give us an update on what has happened at Konecranes in the ISE business since our last year's CMD. After the presentation, we will have a Q&A, and you can send us questions in the event chat throughout the presentation. Before we start, just a kind reminder, the presentation today includes forward-looking statements. With that, Fabio, the stage is now yours.
Thank you, Kiira, and good afternoon, and welcome on my behalf as well. As stated, we'll try to give you an update from the last CMD, try to focus on some pertinent topics. So, let's get started. With service first, we of course continue to provide industry-leading lifecycle services for all types and makes of industrial cranes and hoists. But why don't we dig a little deeper into our agreement base and some of the agreement-based metrics? We've updated some of those on the presentation. Let's start with the agreement-based coverage, the Demag and Konecranes coverage. If you remember, since the MHPS acquisition, there has been a lot of interest in what is the Demag agreement coverage.
If you remember, there was quite a discrepancy between what the Demag coverage was and what is the Konecranes coverage. I do have some good news for you today. We have made quite a bit of progress over the years in really bridging that gap. Today, the Demag agreement coverage is, let's call it around 50%, Konecranes around 55%, and of course, once you get outside the warranty period, both of those two numbers do tend to go up. So, the other number that I would let's focus on is this, the percentage of the agreement base that's covered by Konecranes family assets. It is now getting closer to 50%. It used to be that's 45% was our own, and 55%, the third parties.
Now, it's more 50/50. Part of the reason is the, you know, the Demag coverage increase, of course. The other part, we've had, you know, a couple of acquisitions and additions to the, to our brands, which was, Whiting and, Munck. Those have added to the installed base, so those two also have helped in, in bringing up that percentage. So it's always good to, to be adding brands to our, our Konecranes family. We look at the overall number of assets, and, I guess before we jump into the numbers, it's always good to remind ourselves, what do we mean by an asset? It's, number of assets is not always the best metric.
You know, an asset could be anything from a chain hoist all the way to a waste-to-energy crane, and of course, the lifecycle value of those two could be an order of magnitude apart. So the quality of the asset or the type of the asset, you know, is very, very important. Right now, you know, our latest numbers are around 570,000 assets. We have cleaned up our asset base, as we continue to do with our 1KC rollout. Our latest rollout has been focused in Latin America and a couple of other places, as well as the Middle East and so forth. So as we continue that rollout, we always do have some cleanup on the asset base.
We also have divested of the industrial products business of MHE, as you well know, last year. That also, of course, also those assets are off the asset base as well. But in addition to that, we have been focusing on the quality of the agreement base or of the assets, focusing on those critical assets, the larger assets, those that bring the most value to our customers as well to ourselves. So that is something to be cognizant about, and we'll talk a little bit about that a little bit later on. In terms of the number of technicians, we're showing 4,300. That's about up 100 from CMD, and that's about the right amount of increase given the growth. And that's...
about that extra 100 is where we kinda need to be at a pace to deliver the growth. Another area maybe that we've updated is this your KONECRANES adoption. It is now up to 70%. I think it was in the low 60%s when we spoke in the CMD. So that's again another positive thing. The part sales through e-commerce are around that 50%, and we've also updated the number of TRUCONNECT connections that enable predictive maintenance. I think that was 17,000, up to 20,000. Now, switching gears, pardon the pun, for industrial equipment. You know, of course, we continue to be the global leader in sustainable lifting solutions, covering a full range of industrial applications. I would say probably the widest range that's out there.
One area maybe to pay attention to is we look at the sales by channel and the number of hoists. We used to be 60/40, indirect to direct. Now, we're moving more to the 65/35. So 65% of the hoists we sell have a brand other than Konecranes, whether it's Demag, R&M, as we have Donati or Verlinde. And part of that movement has been with, you know, focusing Demag more into the Alpha. That's also has moved those numbers, but also a lot of these brands have also shown some good growth. You know, aside from that, generally the rest of the figures are, let's say, remain unchanged, and the overall picture of the business is as presented.
The mega trends and the underlying demand drivers, again, I think are, are positive for our business. They continue to be very much the, the same as, as we spoke in the past. And we've, we foresee that those to continue going into the future as well.... Now, if we look at the market size and market share, again, not a lot has changed in the CMD. We're, we're calling the total market at around EUR 25 billion for both service and equipment. You know, there is, this is no perfect science. We, we do have some countries where we have a lot of really good data.
In other countries, we have to, you know, kind of build this from the ground up or extrapolate and, and compare between countries, but we feel pretty good in terms of the, the, the general size. Equipment being EUR 10 billion, service being EUR 15 billion. I think at the last time we were showing service somewhere between EUR 10 billion-EUR 15 billion , we now feel comfortable using the EUR 15 billion number. There has been, of course, labor inflation and also some development in the, in the service markets, so we feel good about that number. When we look at market share, both EMEA and Americas are around that 15% of that total market, probably a little higher when you look at the addressable market. Maybe about 30% of the market is usually in-house in some of those developed markets.
Service in APAC, you know, smaller percentage, but of course, those numbers do get skewed by China, which of course, is a large part of that, of that market size. When you look at the addressable market, we're, you know, a little much higher than that 5%, and we do quite well in areas outside of China, and in China as well, in the addressable portions of that market. And in the equipment side, you know, EUR 10 billion, again, light lifting, there's, a lot of opportunity there. We're at 10%, depending on the region. Some areas were quite strong, in other areas, there's plenty of opportunity. When it comes to standard cranes and wire rope hoist, that's probably our strongest and more, let's say, traditional area of Konecranes, 20%-25% market share.
Again, it varies by regions, but in a lot of places, still a lot of opportunity for growth as well. And process cranes is the 5%-10%. Once again, that market size does get skewed a lot by certain developing markets, and there are areas in those markets that we, you know, choose not to participate. We are more selective when it comes to the process cranes projects that we do take on. Now, looking at the, let's say, performance of the two segments, service, you know, we've had the pretty proven profitability performance. As you well know, over the years, we have, on average, kind of increased 100 basis points, expanded the EBITDA margin, and last year was no exception.
In fact, we went a little bit beyond that, 130 points. We finished at 19.9%, just shy of that 20%, but I guess we made it up in Q1, where, if you look at the last twelve months, we broke that 20% barrier at 20.1%. So we're now in the range of our target range, and you know, we're confident that we'll continue to build on that with the actions that we do have. And of course, though, here, the focus is on growth. If we go back to 2020, our sales growth has been around 8% on the reported figures. Last year, it was double-digit, especially when you looked at the fixed currencies.
So we feel pretty good about the direction, and we're building momentum also on the growth side. Again, the areas of focus is the base, the continuous improvement, the customer experience, the digital services, building that ecosystem, and of course, the bolt-on acquisitions. Industrial equipment, you know, the focus there, of course, is profitability improvement. We're also quite fortunate we've had a good, strong orders recovery, and it's continue to have a strong back order book. As you know, for many years, we were in that 2%-3% kinda range in EBITDA margin. We now crawled out of the basement and have gone up to the first or second floor.
We're in that new level of around that 7%, and once again, we are pretty confident that all the actions that we're building and everything we have will drive us towards the target range that was already announced. A lot of what's driving that profitability, of course, is the simplification and the go-to-market. There's price management, commercial excellence actions, there's continued platform harmonization and offering renewal, supply chain optimization, operational excellence, and of course, the divestment of industrial products from MHE has also helped in that direction. Now, if we look at our operating model, we presented this last time as well. Just a bit of an evolution, not nothing drastic. You know, we talked about having some decentralization, and Anders has spoken that about in the CMD as well.
We're trying to move more resources closer to the customer and closer to the business, and, you know, we've had the, you know, one decentralization round earlier in the year. We have established the business units. The business units are focused kind of on the end-to-end, on the product platform, on the delivery of the products and services through the front lines. The front lines own the customer relationship and own the frontline resources. We continue to evolve the model. I think it's working quite well. Bringing together, you know, service and equipment into one BA has been really successful. It has really helped, I think, in front of the customer, but also has really helped the teamwork and helped us to become also more efficient and drive us forward.
So we're really pleased at how that's, how that's gone. Now, if we go a little bit deeper, look at the various business units and, also the business lines beneath those business units. Let's start with warehouse automation. Warehouse automation is kind of in its infancy. It is, of course, you know, relatively smaller than any other, other BUs. Currently, it's mostly what we would call our Agilon product line. We haven't done a lot of development on that product line, a lot of work on, on the distribution of the product, so, a lot, a lot of good work has gone into that, but it's one small piece of the entire puzzle. This warehouse automation market is a very large market with a lot of growth and a lot of opportunities, but we're really in the infancy.
We're really now looking at how to structure that, what is our strategy, what are the building blocks that we need to put in place, et cetera. When it comes to BU solutions, which really has two, let's say, product lines or business lines rather, our nuclear cranes and our process cranes, the focus is on improving profitability, and we have done so. It is on a good pace. Nuclear is ahead of process cranes. Nuclear is a really good business for us, and also the Whiting acquisition has added to our nuclear business, so that's an even stronger position than it was before. But of course, this business is the most complex in terms of technology and application, and also has the longest both sales and delivery cycle.
So while we are making a lot of progress, we have a lot of focus programs, and we're pleased with the direction, it does take time, you know, for the profitability, all these actions to really show up in profitability. BU standard equipment, which really has two, let's say, business lines, the components or the Alpha business and the industrial cranes, or maybe otherwise known as standard cranes, which is on the Beta side. Standard equipment has probably benefited the most from our transformation, really, a step change. You know, our components business today with you know, the Demag brand being part of that and the new focus and the new platforms, it is a very good business for us. Our focus here is just to grow it.
It is a very profitable business, and the focus, again, we're shifting that to growth 'cause most of the actions there have been completed. And of course, it'll continue to benefit from the future products as we launch them as well. Industrial cranes is not that far behind, but of course, industrial cranes requires a delivery of the cranes on top of the components. But also, they're benefiting from a lot of the simplification actions, both in platforms and go-to-market. We're still working on that end-to-end and the crane deliveries and improving that, but again, it's in an area where we feel very comfortable about focusing it on growth as well. And last but not least, of course, the service, we know how great a machine that is.
It's very well-positioned for growth, great leverage from that business. So if we can continue to expand the margins, both at the gross margin level and the EBITDA margin, but at the same time, drive growth, then we will see some great benefits flowing to the bottom line. So our ambition continues to be to set the benchmark among industrials. So once again, we feel pretty good about the actions where we are. Sales growth, clearly faster than market, and we define market by nominal world GDP growth. Comparable EBITDA margin of 20%-24%. As you know, we have now entered that range, and we will continue to focus on building that.
Then in equipment, again, the focus is more on the, on the EBITDA margin, 8%-10%. We're now in that 7% level, let's say, and so the focus is to get us into that range as soon as possible. The sales growth in line with the market. As you saw from before in the BUs, there are different levels, where standard equipment, we're very comfortable with being very aggressive on growth, whereas with the solutions business, we want more about quality and focus on profitability. But it's always good also to remind ourselves, the solution business does drive a lot of also business for service, and it's also part of the whole lifecycle services and lifecycle approach with, particularly with our larger customers that have critical applications and complex applications.
So maybe we can dig a little deeper and go into service. So just maybe reviewing the actions that we presented last time, you could see them on the screen, what we had, and then what's the status update. In terms of service programs and the renewal, we have launched a lot of the revised programs. A lot of the tools have been launched, but the implementation continues around the world. Focus on enhancing the customer experience. We have just launched our customer, what's called a unified customer portal, that we started both for Alpha and Beta. That will continue the months ahead as we continue to go through the various units and continue to add functionality and build it to the area we want it to be. But that'll be great addition to the digital customer journey.
Commercial excellence and price management, we did a lot with the spare parts pricing harmonization, and could call it largely complete, but there are still opportunities there. A lot of commercial excellence programs are ongoing. Continued optimization of sales and service delivery. Again, the areas of focus, our predictive maintenance, planning, tech tools. A lot has been launched. I mean, this is an area we do it on a continuous basis. Just every quarter, we have something new, and we continue also to strengthen the underlying, let's say, technology of our systems and updating those as well to improve both the performance, to improve the user experience, et cetera. So again, it's continuous improvement is really at the heart of service, part of the DNA. Equivalent parts, that also is a continuous thing.
We continue to expand that offering, you know, adding brands, adding items. You know, again, that's. There's a vast array of brands and parts, you know, dating back, you know, decades out there that... so this is almost a never-ending work. And bolt-on acquisitions, we are building the funnel. We feel good about the prospects that are out there in various markets. Then perhaps before we go a little deeper, it's always good to remind ourselves of the service model and also what is the agreement base, because it is such a part of the. It's a key platform for growth and asset management through the lifecycle. So the agreement base is really made up of inspections and preventive maintenance, predictive maintenance, and remote monitoring. So largely, it is labor and digital services....
And from that base, basically, a lot of the business flows, a lot of the service orders flow from that base, whether it's, in particular, corrective maintenance, where, you know, we have the inspectors, technician, inside sales, working hand-in-hand on the same technology platform. You know, we're able to drive that corrective maintenance based on the findings and the condition monitoring. A lot of focus here is on speed, on lead generation, and fixing the customer's issues as soon as possible and before they may even happen. Then when we look at the next area is retrofits, consultation services, mods, lifting equipment. Retrofits are basically, you know, when we replace a component.
It could be that we're updating technology, updating ergonomics. We may be adding radio remote controls, we may be adding variable speed controls on a hoist, we may be adding replacing a hoist entirely with something that's more modern, et cetera, kind of one-to-one. Then the consultation services are really could be an engineering study, and the life study could be kind of a geometric service, nondestructive testing. And they're usually a prelude to a modernization or making a decision whether they should be buying new equipment. And of course, through the service network, we do sell lifting equipment, particularly light lifting equipment, since we have such a large network out there, seeing our customers every day. There's a lot of opportunity for looking to also sell lifting equipment.
And spare parts, you know, that's 25% of our sales. That's basically just parts without labor, and within that includes, of course, the parts for both our direct channel or indirect channel, our distributors and anybody else that wants to buy parts from us. A lot of this is very transactional. The focus there is on being on convenience. So the model is, you know, it's very much what it is, and we continue to improve in terms of the... Let's call it the end-to-end process, it's. Now, achieving organic service growth, as I said last time, maybe it's easy as one, two, three. You know, expand the agreement base. Again, here, we're really looking at focusing on comprehensive agreements for critical and production assets with larger accounts.
Again, that's where Konecranes brings the most value, and that's where we also garner the most value from our customers. The other area is enhancing the customer experience, and that will also drive customer retention. Improving retention, of course, makes it easier for us to grow. The other area is to continuously improve sales, efficiency, planning, and as well as service delivery. You know, once we have the agreement, servicing that customer in the most efficient way and improving that experience is what we're talking about. You know, we're continuing to evolve our sales model, leveraging more inside sales and customer support, working on smart planning tools, automated quotations, configurator enhancements, the next generation of field mobility tools and part delivery concepts. Again, this is all continuous improvement.
Everything, you know, we have just about, like I said, every quarter, something rolling out somewhere, either addressing the user experience, addressing the end-to-end process, and once in a while, we do have some pretty, let's say, large improvements that come. So that's another area. The last area here is to expand on third-party equipment. As you know, now we're about 50/50, but there is a huge installed base out there of third-party equipment, how to better address that in the most efficient manner. Equivalent replacement parts, you know, being able to provide our own parts for these third-party equipment. Then, of course, there's hoist and component replacement, retrofits and mods.
So being able to replace, whether it's the hoist, the controls, maybe it's the whole crane at some point, with our own equipment. And again, as we do that, that percentage of the agreement base that shifts to the Konecranes family gets higher, right? As we replace that hoist with our own, that, that originally may have been somebody else's. Once again, to emphasize this, this agreement quality and focus on agreement profitability, you know, the base has grown at about 5%. If you do remember going back to, to the 2019, we want to forget the COVID days, I guess, but the, the base has not really, dipped, right, at that COVID period, necessarily. So it was quite resilient.
It does not mean, though, that in those early days, we were able to get all the invoicing we wanted out of the base. But the invoicing has rapidly come back through those years, and quite frankly, the invoicing is outpacing the base growth, the invoicing growth. So that's also a good feature. We wanna make sure that we deliver the base. That's one of our metrics. And also, if you look at the agreement value per asset, so while the base may have grown 5%, our agreement value per asset has grown at 7%. Again, focusing on the right customers with the right assets, continuously looking at where do we bring the most value, is part of the, you know, our focus and our plan.
Here's just a good example of predictive maintenance, and, you know, it's this new predictive maintenance engine that was launched, let's say, back to last May, over this period, and again, it hasn't been launched right away throughout the entire world, and we continue to launch it and develop it. But within that period, we were able to develop 7,500 predictive sales cases, and with that, we won offers in the around EUR 7 million. So we're very much encouraged by the technology and then how it fits well into our process and then deliverable to our customers.
Again, the data may come from remote monitoring, the data may come from also the age of the equipment and other things, and then the engine will make its predictions in terms of creating either sales cases and also service requests in the future, in terms of, you know, call to action. And we continue, again, to develop the predictive engine, to continue to add various components from basic things, from brakes, coupling, contactors, looking at oil changes, overhauls, continue to add the various brands, obviously, starting with our own, also thence going towards the third-party hoists and so forth. So this is just a work in progress, and but it's very, very encouraging in its capability and its potential.
Then when we look at acquisition opportunities, I mean, pretty much the same focus as was mentioned in the CMD, for service, the bolt-on acquisitions. We, of course, would love to acquire companies that have already an installed base and proprietary parts, and technology like Whiting and Munck, so those were very good acquisitions. But then there are also acquisitions we would do just to add, you know, customer base and then add field resources. And we're able to really very quickly integrate those, and there's significant synergy potential. We have, you know, pretty much built the infrastructure, so it's very easy to integrate and service these days. Technologies and capabilities, you know, industrial automation, systems integration, material flow simulation, these are areas that we look for.
We had a recent acquisition, smaller company, Crane Automation Technology Systems in Germany. We were using already their technology in some of our applications, for example, in automated die handling in automotive. So we wanted to secure that technology. Also, that technology was being used by our competitors as well. So we felt it was a good opportunity to take that technology in-house, to secure it for our own customers, but also to be able to expand its use in modernizations and maintenance and other areas. So that was a good opportunity. Market entry, there are a couple of spots that may interest us for expansion, and then there's complementary products and services. Not our highest priority, but we will certainly look at those as they come available.
Then just in recap here on the service growth plan, you know, pretty much the actions are well on their way. This is the plan we presented, you know, at CMD. You've seen the focus areas, I spoke about them. Those are all well on their way. You know, it is a proven business model, real focus on continuous improvement, and now really it's all about sales acceleration and then just driving it, driving the model faster. So we feel pretty good about the service plan. Now maybe switching over to industrial equipment and its focus on profitability. Here again, what's the update on some of the actions that we had? As you remember, again, the go-to-market and operating model simplification was a big part, that impacts equipment. So this is largely completed.
You saw the operating model and bringing together the service and equipment. Also, the Demag has been moved to Alpha, quite, I would say, quite successfully. So that's pretty well on its way. Platform harmonization, you know, we've ramped down several platforms already. We have others that we look at. The commercial excellence and price management, we got various programs going on in that area, both across channels and within certain channels. Our offering renewal is ongoing, and I'll speak to that here shortly, where we're launching new wire rope hoist platform and electric chain hoist platforms, expanding light crane systems. So that's also we feel very excited about. Supply chain efficiency and operational excellence. Our supply transformation in our Wetter factory in Germany has very much been executed.
A lot of good things going on there, and we still got work to do, but we feel very good about that. Two crane factories have been shut down, one has been right-sized, and of course, as you know, we divested IPD. So most of the things that we put forth are well on our way. So we're feeling pretty confident and pretty good about the direction. Just here, just to emphasize now that we have, let's call it clean Alpha/Beta sales channels, you know, Konecranes very much being the global brand for end users, and then we have these market-specific brands that cover the crane builders, distributors, component integrators, who then in turn sell to end users. So I mean, when you look at these two channels, the...
Our coverage is really quite extensive, and also we can ramp it up quite quickly as well. But again, I think one of the areas of the evolution of this go-to-market strategy is to have a little more focus on Beta, as we talk about in the top segment. Doesn't mean that we will not sell to other segments, but with the focus on those customers that really have critical assets, maybe global customers, regional customers have a lot of assets, really interested in safety, productivity, sustainability, looking at, you know, the whole total cost of ownership and the whole life cycle approach, this is where we shine, and this is where the most value is obtained.
So we'll focus more on that area for Beta, and Alpha is a fantastic sales channel when it comes to delivering volume, whether it's wire rope, hoist components, crane packages, chain hoists, light crane systems, jib cranes, spare parts, drives, digital services. Again, we have some very strong, recognizable brands that are some global, some very strong regional brands, with a fantastic distribution network. I mean, these folks do a good job in the markets they're at, and we wanna continue to support them. And I think this is an area where we can really also grow volume through that channel, as mentioned before. So it's... we kind of continue to tweak a little bit our go-to-market strategy, but I think we're finding the right balance for the focus on the channels....
Here we can see the, let's say, the journey and when it comes to the harmonization of the product with the chain hoist, you know, we're down to about three platforms, but our goal is to get down to one. It does take time to, you know, ramp down inventory and ramp up and get go around the whole world, right? So, we do now have the new platform for Demag launched. New platform was introduced for all the regions for Konecranes and Legacy Alpha. So we're well on our way, but it will take a little bit of time here over the next year to bring it home. Light crane systems, we are on one platform.
We now harmonized to the KBK platform, which was a Demag platform, but we used that KBK brand, which was extremely well known and respected in the material handling industry. So we now call it the Konecranes KBK and the Demag KBK, we branded them both. And of course, the other brands are using their own branding on that product. Wire rope hoist, here is where we probably made the biggest advancement in rationalizing products. We ramped down two product last year. We're now really down to two platforms, two standard primary platforms, which is our Q -platform, which we've had for, you know, 20 + years, and it's been very successful.
Now we're launching our, you know, what we call the R- platform, which is the platform for the future. So eventually, that will move towards this, the R- platform over time. But otherwise, we are on a common global platform now. And then the winch is kind of the same thing. We are... That's primarily talking about process, process cranes, and we're moving towards just, you know, having a modular platform, whether we call that a one-- That doesn't mean there's just one winch, it means that we're gonna focus on having, you know, core lifting components that can be used for general industry-specific and special applications. And then standard cranes, we're down now to one platform. We had the Demag and the Konecranes crane.
Let's say we do have one, and then over the future, we'll just be replacing that hoist with the new hoist as we go forward. A little more color on this product transformation. You could see the electric chain hoist platform. You can see the various brands, and now you also see the product that was also launched for Demag, was shown here in LogiMAT for EMEA in March, and it'll be available in the configurator for June orders. And we continue also to expand the light crane system offering. And here is our new flagship, right? This is the future of standard lifting. We call the crane in the Konecranes world and brand, we call it the X-series crane.
This is our advanced crane with all the smart features, and the center of that crane is what we call the S-series low headroom hoist. Again, it's what's called the R- platform that gets branded by the various brands. And this is really the future of standard lifting. It provides higher performance, meets the norms of the future. It's eco-efficient, a lot less, you know, a lot less parts to kind of, when you come to put it together. It has over-the-air upgradable features. It's quite scalable from having the basic mechanics to quite advanced smart features. Again, it's connected. It's lower production costs as from what we're estimating, and we could also, of course, create new earnings models with the connected smart features and the proprietary empathic technology.
Again, this was launched in for EMEA at the LogiMAT in March. It's available in the configure in Q3 and first delivery is in Q4. So we're pretty excited. The things are progressing as planned. And here's a little more detailed view of the product launches. You could see the, you know, we have to go around the world in launching these products. We're starting with some in EMEA, but then, of course, moving to APAC, Latin America, and the Americas. And it's not just the the cranes and the chain hoists. We do have, like, some expansion on the KBK systems, freestanding systems and structures for the EMEA market in September. We actually do that already in the Americas market. Belt hoist is a nice niche product.
Also, electric chain hoist for hazardous environments as well. So it's not just the ones that I mentioned. But so we're gonna be busy, but we're pretty excited over the next couple of years in terms of the product pipeline. And here's some photos from LogiMAT. As you can see, we're represented by three of our wonderful brands, Konecranes, Demag, and SWF. We felt pretty good about the feedback both from end users, distributors, and dare to say, even competitors. Maybe a little bit of jealousy, I don't know. And then process cranes. Again, the focus here is to improve profitability, productization, commercial and project management excellence. That's the area.
Again, it takes us a little longer here because of the complexity of the product and the long sales and delivery cycles. But real focus, again, is to have, as much as possible, the offering productize. And even when it's a tailored part of the offering, it would be done from the basic components from our library that we can kind of bring together and really leverage our core of lifting here as well. When we look at the manufacturing footprint, not too much changes since last time. As you know, the crane manufacturing capacity is really supplemented by subcontracting, so we can really leverage that. And then we have these component manufacturing centralized in global and regional units.
I guess the main changes from last time, as mentioned, we stopped crane manufacturing in France and Singapore, basically supporting that either from our nearby factories, whether it's other European factories for France or Malaysia, for Singapore, or subcontracting when necessary. We right-sized our Indian labor force. We refocused our Wetter, Germany plant and really invested in intra-logistics and optimized material flow. You know, we're really pleased with that, and we have a lot of opportunity there to continue to deliver great product. And then if we look at the business transformation that you know, we had announced to deliver EUR 40 million-EUR 50 million, you know, the actions are largely completed. Some execution, of course, remains, but everything's in motion. We track this very closely.
The profit impact's already visible, but it will continue to build over the next couple of years. So again, we feel pretty good about, you know, that whole project. And then we do have other actions. We do have these next generation products that, you know, the profitability impact is not yet visible, neither, of course, the sales impact. And as, of course, the volume of these products will develop, we will see that impact as well into the bottom line, as well as the sales leverage and lower cost structure that will be generated. So again, a lot of good things in the pipeline. So then I guess, in conclusion, you know, I think we're doing the right things. I think we made the right decisions, so I would say we stay the course.
If anything, we accelerate the pace. So again, you know, in service, this agreement-based focus on expansion through our service programs, focus on enhancing the customer experience and journey, the commercial excellence, the price management, predictive maintenance, digital services, continue this optimization of the sales and service delivery, equivalent parts, bolt-on acquisitions, again, technician recruitment, development, and retention again. You know, those folks are at the heart of what we do. They're the face of Konecranes. Driving towards a sustainable fleet, it's very important to us as well. Then on equipment, you know, as we have cleaned up this Alpha Beta, focus is expand market coverage via these, these dual sales channels mentioned before. Standard equipment, we could really focus on growth as well.
And again, here, too, the enhanced customer experience and journey, you know, it goes hand in hand, of course, with service, commercial excellence, and price management. There's probably more opportunity in the equipment side now in that area. We've got to complete the platform harmonizations, which were well on their way, but then get this expanded, scalable offering out, which we have already bringing to market now. This improves competitiveness, will reduce delivery times, continue to drive supply chain efficiency and operational excellence, and of course, sustainable factories and offering. So that is it. Thank you very much, and I guess we got quite a bit of time for questions, I hope.
Yes. Thank you so much, Fabio. So, now would be time to send in your questions. You can do that in the chat function, and even though the questions are not available or visible for everyone, so we still access to those, and we're able to present those to Fabio. And I would also remind here that a recording of this webcast will be available on Konecranes investor website afterwards, as will be the presentation slides. So no need to take screenshots of those. But hey, let's start.
Okay.
What would you say are the key benefits from having a global aftermarket platform, referring to service-
Mm-hmm
... I think. Why do you think the competitors are not challenging you in a bigger way? And what are the layers for growth ahead for this business?
Now we're talking service, of course.
Yes, yes.
Well, the global platform, I guess we're uniquely positioned in that we're probably the only global service provider. Most of our, let's say, global competitors, work through distribution. Again, nothing wrong with that. That's also part of our, go-to-market, and then that's a great business. But they do not have... So we have both the right hand and the left hand, I guess. That aspect of the direct and, you know, end user business, most of our competitors, have tried at times, have pulled out, and, so we feel, you know, we're in a very good position, especially on a global basis. Of course, there are local and some regional competitors, but having this global platform, we could really use best practices from across the world.
We can really leverage the development costs. We could really leverage the infrastructure, and also learn from each other from the various, you know, the various regions and everything that's going on. So, I think that makes us uniquely qualified. Also, we're the only ones that can go to a global company and offer, you know, the same across the world, across countries. So, very hard, I think, for anybody to start catching up in that end. And also, our installed, our installed base with all the, the, legacy brands that we do have, and we've added, you know, two, Whiting and Munck, that also gives us quite an advantage, and the ability to create these equivalent parts, again, leveraging that globally, that gives us a lot of benefit as well.
In terms of growth, I mean, as I said it before, it's as easy as one, two, three, that expanded agreement base, focus on the sales and service delivery efficiency, and focus on how to better serve the third-party equipment.
Mm.
Hopefully, I answered the question.
And then, the next question, it's about the components business.
Mm-hmm.
Components business is now mandated to grow. Could you please expand a bit how to grow and take market share in this business?
Sure, and you know, it's like any business, it's also about the customer experience. It's about the products that and services that in the portfolio. You know, we're dealing with distributors, right? And they're the ones dealing with their end users. So if we can make the distributors successful, if we can make our portfolio attractive to those distributors that would rather distribute our products than somebody else's, that's kind of how you grow. You want to be the most attractive supplier to those folks, which means you know, help them to be more successful, help them to take care of their customers, help them to be profitable, which of course they want to be. So by having, I think, you know, the first of all-...
The widest product range, and we believe as we continue to bring out products, those will make those distributors more attractive. Also, the configurators and the things that allow them to sell the products, configure the products, bring those products to market, having improving deliveries, on-time deliveries. You know, we in many markets, that's, that gives us a big advantage. So those are the areas, and then, you know, you could see our component factories across the world. We're able to cover quite a bit of geography. So again, it's just about being the best partner we can be, make it easy to do business with those folks, be in their corner, support them in their business.
You know, we've been doing this a long time, and we have brands that are also very recognizable, brands that also end users, you know, are attracted to. So that helps also our distributors, our distributor partners. I think that's as simple as that. It's good old-fashioned, business development and supporting your distribution network.
Thank you. We have one eagle-eyed viewer saying that slide 30 showed service EBITDA between 22%-24%.
Oops.
Previously, it was 20%-24%. Maybe we can go for that slide. Has this target been updated due to a ahead of schedule?
No, no, it hasn't.
No, no, that's a mistake-
That's a mistake.
... a typo.
Yes.
We will correct that. So 20%-24% is the correct margin range.
Yes.
Apologies for that. We don't actually have any more questions here in the chat function.
Wow!
I think probably-
They're either totally confused or, we covered everything. I don't know.
I think we had a quite, quite good coverage here-
All right
... and preempting presentation. So let's maybe take it that way. Fabio, once again, for being here and giving the industrial service and equipment update, thank you for that, and
My pleasure
... Thank you for all the viewers for your, your time and participation.
Yes, thank you.
Thank you.