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Q:
What does urbanization mean for KONE?
A:
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.
Q
: How are your markets in Europe and US different from
emerging economies?
A:
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.
Q
: 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?
A:
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.
Q
: 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?
A:
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.
Q
: On a more personal note, what do you think will be
the new developments in urbanization?
A:
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.”
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