22-09-2011

Norwegian companies are searching for Baltic suppliers

Norwegian building statistics show a significantly increased number of dwelling units in 2011 implying a rising need of construction suppliers. GatewayBaltic has identified the major key factors for a successful expansion into the Norwegian construction market for Baltic manufacturers.

According to the Statistics Department of Norway the number of dwelling units from January 2011 - July 2011 increased by almost 40% in comparison to the same period last year.  In January – July 2011 construction of 15 640 of new dwelling buildings was started, which is 4 354 units more compared to the same period last year, meaning Norwegian building market is growing. Having heavily declined in 2008 Norwegian construction market is on the rise again, market recovery is reported from 2010.

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Norwegian companies expressed good feedback about Baltic manufacturers and their delivered products. "I have a good impression about Baltic producers and quality of products.”, Norwegian Purchasing manager ”Our company has imported modules from Estonia and the cooperation was good; our experience with Baltic producers has been successful. Norwegian Purchasing manager

In addition due to the rising population mostly fuelled my increasing immigration, it is expected the urbanization to continue in further years resulting the need of new building projects.  Thus housing developers and builders are open for new suppliers in order to fulfil the demand.

Good feedback about Baltic manufacturers

Baltic construction suppliers are already well known among Norwegian housing developers and builders as a part of them are cooperating with Baltic house construction manufacturers, for instance, Norwegian companies are importing such products as glass, balconies, windows, modules, aluminium facades, steel constructions, concrete and other products from Baltic producers.

Market specifics and requirements

Though in order to be successful in the Norwegian market company should be aware of the market specifics and requirements.

It is important to know that Norwegian partners highly appreciate, if the supplier is able to install its delivered products, for instance, kitchens or bathrooms. Communication, flexibility as well as ability to fix problems are the main key factors determining successful cooperation. As Norway building regulation says that costumer is able to introduce changes in the apartment building plan up to 15% from the apartment building costs, thus it is highly important for the supplier to have a dealer or a partner in Norway in order to have a direct communication with the costumers and to find out their needs.

Norwegian building companies tend to sign 2 years cooperation contracts with suppliers, which have been tested and are recognised as reliable. Search for new supplier starts only when the previous agreement is expiring.

Last but not least - Norwegians do not waste the time – producer, who is willing to export products to Norway, must be ready to start almost immediately, which means that decision of delivery and logistics has to be made before contacting the potential partners.

A success story

The Lithuanian kitchen furniture, bathroom furniture, wardrobes and sliding door systems producer Voke III was entering Norwegian market. Voke III has been introduced to 22 Norwegian building companies and contractors by GatewayBaltic, while 9 of them expressed willingness to meet company’s representatives to discuss potential partnership.

After meeting with the Norwegian companies Voke III received its first order in approximately three months.

Voke III was highly satisfied with GatewayBaltic work: ”We really appreciate our cooperation and in our opinion Your company is in much higher league than other consultant services. The business meeting in Norway was very useful; companies are willing to cooperate with us in the future.”

Author: Dovile Buskeviciute - Project consultant, GatewayBaltic