KONE and TK Elevator (TKE) recently announced a proposed merger that could reshape the elevator industry, pending regulatory approval. While the transaction is not yet finalized, the potential impact is already worth considering for building owners and facility managers.
In the world of massive corporations, this is a €29.4 billion “strategic alignment.” As a building owner or facility manager, you aren’t managing a global portfolio on a spreadsheet, you’re managing a real property with real people who need to get to the 5th floor without a headache.
When two of the world’s largest elevator manufacturers become one giant entity, it changes the way your equipment is serviced, how your parts are sourced, and how much you pay. Here is what you need to know about this shift from our perspective as your local, independent service partner.
The Consolidation of Choice
With KONE and TKE joining forces, the “Big Four” manufacturers are essentially becoming the “Big Three.”
When competition at the top shrinks, the pressure to provide competitive pricing on service contracts often diminishes. For you, the buyer, this means there is one less major player “bidding” for your business. In an industry already dominated by a few giants, losing one more voice at the table rarely leads to lower costs for the end-user.
The "Digital Lock" Dilemma
As these two R&D powerhouses merge, expect an even faster push toward equipment that is “closed-loop.” This can make it difficult for you to switch service providers in the future, which can make it more difficult to switch service providers over time.
We continue to advocate for Open-Market Equipment. We believe you should own your elevator, and that means having the freedom to choose who maintains it based on performance, not because they hold the only digital key to the controller.
The Integration Gap
Mergers of this magnitude are messy. Over the next 18 to 24 months, these companies will be busy merging payrolls, consolidating branches, and shuffling sales reps.
In our experience, large-scale mergers can create short-term challenges for customers during the transition period, such as:
- Account Manager Turnover: The person who knows your building’s history might be relocated or replaced.
- Response Time Lag: Administrative hurdles during a merger can slow down the speed at which a technician is dispatched to your site.
- Pricing shift: With less competition and more control over the market, there is less incentive for fair and competitive pricing.
Why LOCAL is Best
While the giants are focused on their global integration, we are focused on your lobby.
The primary benefit of working with an independent company is that you are a partner, not a unit number. We don’t answer to shareholders in Europe; we answer to you. When the industry consolidates, the value of a local relationship – where you can call the owner directly and get a technician on-site today – becomes your greatest asset.
The Bottom Line
The KONE-TKE merger is a sign of the times, but it doesn’t have to be a headache for your facility. Now is the perfect time to review your current maintenance agreement and ensure you have the flexibility and transparency you deserve.
We aren’t trying to be the biggest elevator company in the world. We’re just trying to be the best one for your building.
VETERAN ELEVATOR IS AN HONEST, COST-EFFECTIVE AND VALUE MINDED PARTNER DELIVERING RESPONSIVE, AND HIGH QUALITY ELEVATOR SOLUTIONS
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