Product development puts compact multi-purpose loaders on top
In little less than twenty years, continuous investments in product development have made Avant Tecno Oy, from Ylöjärvi, in Finland, a global market leader in compact multi-purpose loaders weighing less than 2,000 kg.
From the ruins of bankruptcy to success
Risto Käkelä, the founder and owner of Avant Tecno, worked for a long time in the product development and marketing unit of Ylö-Tehtaat Oy, a manufacturer of agricultural machinery. The company went bankrupt in 1991.
”Certain product lines of the bankrupt company were sold, and I decided to establish a business of my own, Avant Tecno. It was difficult to start a business because there was an economic recession and the company had plenty of debt—but the small company persisted.”
Exports started with support from Finpro
“We soon noted that compact multi-purpose loaders had good market potential. With my friend Keijo Rekola, we invested everything we had into the product development of the Avant loader.
The product development was so successful that we were able to immediately start exports to Germany. Thanks to Finpro, we were able to quickly join trade fair events to market our product.
Today, we sell loaders to Europe, Australia, New Zealand, the Middle East and South Africa. We have a total of thirty-five active export countries, and with Finpro we are currently studying the opportunities to start exports to South America.”
Strong growth in the 21st century
Avant Tecno has already manufactured more than 25,000 compact multi-purpose loaders at its factory in Ylöjärvi. Over the past three years, the company has seen growth of more than 30% until the global economic crisis hit. Käkelä says that the turnover of EUR 58 million recorded for last year will fall somewhat this year but the company aims at continuing its growth next year.
The factory currently employs approximately 150 people.
Globalisation Prize in 2008
Avant Tecno was awarded the Globalisation Prize 2008. The prize was presented last winter by the President of Finland Tarja Halonen.
The purpose of the Presidential Globalisation Prize, organised by Finpro, is to promote global business.
The global success of the Ylöjärvi-based company is illustrated by a recent survey in Norway where Avant was considered the best when comparing the loaders of five manufacturers.
Five series, more than 100 attachments
Avant’s compact multi-purpose loaders are used, for example, in planting, environmental management, construction and different agricultural sectors. Equipped with versatile attachments, Avant’s machines often replace ATVs as leisure and practical application machines.
Five different series of Avant’s machines are currently manufactured. There are more than one hundred attachments for the loaders, including buckets, trailer, mini digger, lawnmower, dozer blade, flail mower, snow blower, pallet fork, forestry trailer, auger, grinder, sand/salt spreader, winch, and log splitter.
Customer-centred approach most important
Käkelä stresses the fact that a customer-centred approach is the key to Avant Tecno’s business. Each product must solve one customer problem, and do it better than the competition.
“We have developed an extensive selection of attachments which we can effectively and cost-efficiently modify based on the needs of customers all around the world,” he explains.
Product development boosting growth
“Even though production and marketing have important roles, the best product for our customers is focus—in which all product development activities, and actually our entire business, culminates.”
Käkelä says that despite the global economic crisis, Avant Tecno continues to invest in product development even more than before.
“We are continuously launching new models. Product development and growth are the basis for our competitive edge. Simultaneously, we boost the Avant brand worldwide.”
Companies do not always know how to use public services
Avant Tecno has cooperated for a long time with the Finnish Funding Agency for Technology and Innovation, Tekes,in product development. In the past few years, a remote control method for the devices has been developed in Tekes’ MASINA technology project. The Avant Tecno product line will probably include remotely controlled attachments in the future.
“Public sector corporate service providers, such as Finpro, Finnvera, Tekes and the Employment and Economic Development Centres, have been important cooperation partners for us. In hectic business life, companies do not always understand or have the time to utilise the opportunities available. Major projects and new strategies are often hampered by the busy daily life of business.
Text: Jorma Marttala / Aurora Borealis Production
For further information, please visitwww.avanttecno.com
This article is freely available to the media. When published, the source must be acknowledged: www.yrityssuomi.fi / Jorma Marttala.