For a country that is not under pressure to conserve water, Sweden takes its plumbing industry extremely seriously.

Sweden is a country slightly larger than the State of California (about 3,731 square miles or 49,964km2) with a population of about nine million.

The capital is Stockholm, which has about one million inhabitants. Sweden favors a constitutional monarchy in which King Carl XVI Gustaf is head of state and Fredrik Reinfeldt the head of government.

Sweden is a highly industrialized country enjoying low inflation and strong economic growth, although unemployment hovers about 6%.

The average rainfall is 22” (560mm), and agriculture used to account for nearly all of Sweden’s economy. However, that sector now employs less than 2% of the workforce.

The replacements are mining (iron ore), hydroelectric power and large areas of forest which, through the use of technology, have helped position Sweden as a leading exporting nation.

About 80% of the Swedish workforce is unionized. Operating alongside most unions are counterpart employer organizations. The unions and employer groups are independent of the government and political parties.

According to Roine Kristianson, chief executive of the plumbing and heating organization in Sweden, VVS Företagen, the Swedes take their plumbing very seriously. Entry qualifications for a plumber are extremely high – greater than for an engineer and on the same level as someone wishing to enter the medical profession.

Courses for training installers are also very popular, Kristianson says.

VVS Företagen, an employer and industry association, has about 1,400 companies as members. It is a part of the big Swedish trade organization Svenskt Näringsliv, which caters to a range of companies in plumbing, heating, air-conditioning, refrigeration, ventilation, insulation and sprinkler installation.

“In Sweden we have VVS-konsulter (technical engineers) who design plumbing. Some of the big plumbing companies have their own in-house designers, but the plumbers carrying out the installations often complain about the quality of the technical drawings and must do several corrections to the plans.”

Sweden is in a very strong financial position. Gross domestic product grew 3.6% in the second quarter of 2007, placing it in the top five countries in Europe.

Kristianson says environment protection is a big business in Sweden and everyone is talking about it. Companies like Sweco, WSP and AF have built an excellent international reputation.

VVS Företagen members employ about 20,000 staff. The three biggest companies are Bravida, YIT and NVS. All three have more than 1,000 employees. Most plumbing and HVAC (heating, ventilation and air-conditioning) companies employ between one and 10.

According to a large national survey, the plumbing and HVAC business sector grew 14% in 2006.

“It’s fantastic,” Kristianson says. “Now our turnover is equivalent to US$3 billion a year.”

The market is still growing, and the Government has offered large financial incentives to stimulate energy efficiency and modernization of the housing stock. The development of new housing is high.

Kristianson says the plumbing sector has undertaken a huge campaign in Sweden called ‘Säker Vatteninstallation’. The concept translates to ‘guaranteed safe water installations in all types of buildings’. Nearly 10,000 plumbers have been educated and licensed, and the program has had positive feedback from insurance and real estate companies.

“Even the Government has applauded the initiative,” Kristianson says. “This year Säker Vatteninstallation won the top award in the building sector in Sweden – Innovation of the Year, 2007.”

A big problem for the plumbing sector is the low charging rate for labor, and many plumbing companies complain of poor profitability.

In Sweden debate rages in the building sector about how to reduce costs. The Government has stepped in, saying it also wants to see lower prices.

Large Swedish building contractors Skanska, NCC and Peab have indicated they will build bathrooms in their factories. Naturally, plumbers don’t like it: maybe in future they will only ‘plumb in’ the installations. Kristianson doesn’t see this as progress.

Heat pump technology is a big business in Sweden, which is a leading country in heat pump equipment. The big manufacturers are NIBE, Thermia, IVT and CTC. It was a record year in 2006 for manufacturers, which sold a total of 127,000 units. Air-air heat pumps dominate with a market share of 41%, but the water heat pump industry is experiencing rapid growth at 42% over the previous year’s figures.

In Sweden there is a very influential group of plumbers called Comfort. The group sells and installs bathroom, heating, water and plumbing products and has an annual turnover equivalent to US$525 million.

It seems many installers are dealing directly with the manufacturer, a practice in operation for some years but now gaining in popularity. Kristianson says some of the bigger installers are buying directly from overseas manufacturers – a growing trend.

The biggest wholesalers are Dahl, Ahlsell and Onninen.

There are many globally recognized manufacturers in Sweden, such as Gustavsberg (now owned by Villeroy & Boch), and Sanitec, which owns Ifö Sanitär and Ido Badrum. There is also the Finnish company Uponor, which has many factories in Sweden and maintains a strong position in the market.

Mora Armatur and FM Mattsson are two big companies in sanitation (shower products and bathroom faucets). Now they have the same private equity owner and work closely together to produce their product range in the same factory.

The Danish company Danfoss has bought heat pump manufacturer Thermia. Danfoss has the ambition to be the largest heat pump manufacturer in Europe. The German company Bosch Gruppe has bought IVT, the biggest Swedish heat pump company.
Two other big Swedish brands in the HVAC sector are Alfa Laval and Nibe, both listed on the Stockholm Stock Exchange.

Like other developed countries, Sweden is suffering from an ageing workforce and, through VVS Företagen, is undertaking a recruitment and education drive as a priority.

Kristianson says the local plumbing sector has to attract and train more than 1,000 people a year to service the country’s growing needs. At present, this is a popular career choice and the plumbing sector media are playing an important role in maintaining the momentum.

“You can always get a job as a plumber,” Kristianson says. “Now it is four or five candidates for every training place. To be a plumber is more attractive than becoming an engineer, and on the same level as becoming a doctor.”

One enormous plumbing project is the Preemraffs refinery in Lysekil, in the west of Sweden. The US$1 billion project began in 2005 and was unique in the huge amount of piping and tubes it required. More than 200 installers/service men were needed to construct and assemble the 3000 tonnes of piping.

Kristianson believes the plumbing and HVAC sectors will continue to have a high status.

Our thanks go to Lars Roselius for his assistance with this article.