Mika Mahlberg: Fortaco Focuses on Fundamentals
Mika Mahlberg, Fortaco Group President & CEO, says growth of the company is still important, but focusing on the fundamentals of profitability and continual improvement will take priority.
Mika Mahlberg became President & CEO in January 2025. After nine months on the job, we were curious about what he has seen, and where he plans to steer Fortaco in the near future.
When a new manager takes the helm, stakeholders often wonder about how things will change. Can you remark on your approach to leadership and management style?
If there is a leading theme in the way I manage, it is surely influenced by the fact that my last 20 years in the business have been spent in positions responsible for profit and loss. I don’t try to be an expert on anything, and I don’t tell people how things should be done. I trust in our people, and I trust in their expertise when it comes to the details. My responsibility is to make sure the whole business works. Of course, this approach does not mean I won’t step in if something isn’t working. But it does mean I try to focus on the big picture, and I don’t get involved trying to solve every problem myself.
Before joining Fortaco, you spent nearly 27 years at Konecranes. What perspective does that give you on the off-highway business?
Coming from Konecranes means I’m coming from the customer industry which, over my 26 years there, transformed from doing its own manufacturing to doing contract manufacturing. In my division we had minimal factories, and we called this approach “asset light.” Today, when I look at Fortaco customers, as well as my colleagues at other OEMs, I see that many are now just starting this journey to becoming asset light. My background means that I can relate to the situations of our OEMs, as well as understand the customer’s business logic. And I see a lot of potential.
Is the market moving in that direction? Or will Fortaco have to push it that way?
The market is moving that way, and OEMs are interested in developing very good products and in supporting their customers after the sale. Usually, for an OEM, after-sales service is more profitable than selling equipment. If an OEM is manufacturing absolutely everything itself, then this takes energy away from the company and its core mission, forcing their focus to be on areas that don’t have anything to do with their end customer.
For example, if you have a full-function factory with a welding shop attached to it, the management team will find itself discussing why Jack is on holiday and could we get Sheila to replace Jack, but no, she’s ill, so let’s see if we can get Tom. You have a half-billion euro business and you’re discussing the welding shop in a management meeting! Instead, management ought to be concentrating on the competitiveness of its product. Working with Fortaco enables an OEM to focus on what’s most important.
There is an impact on profitability, too. Many OEMs are located in very expensive countries, and it makes more financial sense to do final assembly in those countries, not fabrication. I see that OEMs are all moving in the same direction, just some are doing it faster than others.
Where will you place Fortaco’s focus in order to take advantage of where the market is heading?
In my career I have been dealing with a lot of aspects of manufacturing that are very important for Fortaco today: automating operations, productivity, and other improvement programs. This is Fortaco’s focus today.
Take productivity improvement, for example. Our customers have assembly lines onto which they feed our cabins and steel structures. It’s normal for them to have continuous improvement targets to decrease hours used by six percent every year. And they are asking that of us, as well, which means we have to continuously improve at both our business sites and at headquarters. I have brought in performance management and reporting to help embrace continuous improvement and increase profitability. The Fortaco 25 program is a good example of this, and we’ll continue with Fortaco 26.
But what about growth of the company through acquisitions?
We do have a growth target and we are always looking for opportunities. But growth through mergers and acquisitions requires a lot of energy, and controlled growth is more important. Our strategy is to be very good at what we do and to excel in our market.
Each business site is P&L-responsible. I am very happy with our setup, and we will play the game with the team we have.
I do, of course, believe we should make acquisitions, but we should also grow with our customers at the same time, always making sure that we are using our people and our resources to their fullest potential.
