Since the beginning of June 2020, Serman & Tipsmark in Brønderslev, Denmark landed a string of new orders which meant that the hydraulics company, despite the COVID-19 pandemic, done well through the first half of the year.
In particular, sales of specialised test systems for industry and the energy sector, including the offshore and wind industries, are picking up.
The onset of the pandemic created a lot of apprehension earlier in the spring, but before the summer months in 2020, the market really took off again.
“Since then, the orders have been coming in from existing and new customers which has created a lot of activity at Serman & Tipsmark”, explains CEO Alex Laursen.
“The spring offered a smaller turnover, but due to some adjustments to the costs, revenue increased, and this has resulted in increased growth on the bottom line compared to the same period in 2019. So even though the outlook was bleak for large parts of the spring, we have become strong again”, he continued.
Alex further elaborated, “We had a busy first half of 2020. This offered many new, exciting projects from customers at home and abroad. Due to the high level of activity, we did not send any of our employees home and turned down the aid packages that the government launched in connection with the closure. It was simply not necessary as we needed all of our employees.”
Serman & Tipsmark’s success of 2020
Over the summer, Serman & Tipsmark received orders from major Danish industrial companies and won public tenders. In addition, their specialised test systems for the energy sector saw the company distribute to the offshore and wind industry, resulting in a raised bottom line for the Danish hydraulic company in the first half of 2020. These test systems are used to quality test everything from wind turbine components, control systems for oil wells and other critical industrial components.
“The industry in Denmark started back up again near the end of 2020 and it is spreading to a company like ours. In addition, despite the continued very low oil prices, there is still activity in the oil industry, where we also have customers investing right now. The order book is therefore not full, but it looks sensible in the coming months”, Alex Laursen explains.
He points out that Serman & Tipmark’s solutions are not off-the-shelf products, but must all be designed for each customer.
“It may take some time before, for example, a test system can be delivered. It must first be designed, projected, assembled, and finally thoroughly tested. Therefore, many of our customers typically had a deadline for new investments before the summer holidays, so they have the solution delivered during the autumn”, says Alex Laursen.
Although 2020 was an unexpected year, with the continued support from customers and staff, Serman & Tipsmark have continued to be resilient and stay positive throughout.