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What does urbanization mean for KONE?

Urbanization is an enabler of economic growth, prosperity

and well-being, and it creates a very significant business

opportunity for us. Over the next 15 years, over a billion

people will move into cities. Asia Pacific will house about

350 million of that, and Africa and the Middle East will be

as big as Asia Pacific. These areas have very high population

densities, and there is a need to build higher. As buildings

grow higher, we have seen a significant rise in the number

of elevators and escalators (E&E) being installed per million

square meters built, which is a crucial driver of growth in our

industry.

Take China, for instance. Since 2000, the E&E intensity

doubled from 100 units per million square meters to 234 in

2013. It is driven by the growing share of mid and high-

rise buildings, and the increased usage of E&E in low and

mid-rise structures. So we see a massive potential, and our

mission is to provide best people flow experience and help

people move conveniently, safely and in the fastest way

possible in these rapidly urbanizing environments. But we

have to remember that although urbanization is strongest

now in developing markets, Europe and the US continue to

urbanize too.

: How are your markets in Europe and US different from

emerging economies?

There is a new wave of urbanization in Europe and the

US driven by two specific reasons – aging population and

changing preferences of the younger generations. As people

get older they are moving away from suburbs into cities,

where services are closer. They get care and stay longer in

their own homes, which means their buildings must have

good accessibility, and our people flow solutions play a key

role there.

There is a growing demand for single-person housing

in the US and Europe, as people are living alone for longer

periods of time. The younger generation now prefers to live

in cities and opts for public transportation instead of cars.

So you see the choices are changing, and that dictates the

nature of urbanization.

: From densely populated countries to continents with

changing demographics, KONE is present in dynamic

locations. How do you manage the complexity of

different markets while providing people flow solutions?

I think the most important thing is to constantly improve

our understanding of how we can make urban environments

better and this way support our customers globally. KONE

is a global company with very strong local operations. Our

broad network around the world helps us understand what

is happening in specific markets. Our global solutions can be

adapted to local needs to better support the development of

each market. For example, buildings in Asia are on average

much higher than those in Europe and North America. That

calls for unique solutions in providing the best people flow

experience while minimizing energy consumption.

: There is a lot of debate on how cities should be

built, but there are no clear answers. How does KONE

contribute to creating sustainable cities?

At KONE, we look at how we can help cities grow in a

sustainable way and improve the quality of life for people.

As buildings consume a very significant part of energy in the

world, we provide best people flow experience that minimizes

energy consumption. We help cities become more resource-

and energy-efficient. We also look at how to make crowded

cities function better. As travel or commuting consumes

substantial time, our solutions for public transportation are

planned meticulously to ensure that the movement of people

is seamless, comfortable, pleasant and, above all, safe.

: On a more personal note, what do you think will be

the new developments in urbanization?

Going forward, there will be an increased emphasis on

diversity. It will become important to create a design that

integrates people from different demographic backgrounds,

because diversity provides better sustainabilty to the

environment. Another point of focus will be to build

the whole infrastructure network economy – education,

healthcare and employment opportunities – as a part of the

process of good urbanization. /

By 2050, almost 70 percent of the world’s population will live in

cities, and that presents a plethora of opportunities for the elevator

and escalator industry. Henrik Ehrnrooth, President and ceo, KONE

Corporation, explains how KONE is actively participating in creating

livable and sustainable cities in different geographies.

Tapping the potential

of urbanization

TEXT

ASHA GOPALKRISHNAN

PHOTO

KONE

“The most important

thing is to constantly

improve our

understanding of how

we can make urban

environments better

and this way support

our customers globally.”