Evolving “Sweet Spots”

In this Industry Dialogue, your author (KW) catches up with Schindler Canada President Lisa Konnry (LK).

While conducting research for the Canada Market Trends piece in this issue (p. 32), your author learned that, more than 10 years earlier, Schindler Elevator Corp. (Schindler Canada) handled a complex, “world-first” vertical-transportation (VT) project that involved installing four Schindler 9500 moving walks in a tunnel beneath Lake Ontario connecting the mainland with Billy Bishop Toronto City Airport. The project also included installation of six new escalators and eight new elevators to transport airport passengers to the departure hall. The Billy Bishop project is a memorable one for Schindler Canada in that it highlights the OEM’s legacy in landing, and successfully delivering, one-of-a-kind VT contracts in Toronto and other major Canadian cities. In 2020, Schindler Canada President Lisa Konnry, a native Canadian who has spent her entire career in the VT industry, expressed optimism that the nation would emerge stronger than ever from the COVID-19 pandemic (EW, August 2020). At that time, Schindler Canada had just been awarded a VT contract for National Bank (Banque Nationale) in Montreal, showcasing the OEM’s double-deck technology and going on to win the ELEVATOR WORLD Project of the Year (PoY) in the Elevators, New Construction category this year. Your author recently caught up with Konnry, who shared insight about a VT market where demand is shifting — and one in which Schindler Canada is playing and will continue to play an integral role.

KW: Has the Canadian VT industry fully recovered from the COVID-19 pandemic?

LK: Although data shows a decline in the market year over year (YoY), we are seeing a combination of recovery and a change in segmented market demand. The market has not yet returned to pre-pandemic levels. We will continue to see growth in key cities like Vancouver, Calgary, Toronto and Montreal in the next few years. There will be a continued need for affordable housing as our population continues to grow, and an increasing global desire to live in Canada. As market pricing for single-dwelling homes continues to rise and with the aging population looking to downsize, there will be increased demand for high-rise living. We are seeing an increase in residential rental projects, especially close to retail and transit. We continue to see strength in the low-rise market outside of city centers where we experienced YoY growth in 2023. 

We are also seeing a strong resurgence in retail investment.  The retail escalator replacement market is growing as we see malls gaining back clients when they remodel and upgrade their sites to be more inviting, with the customer experience in mind. We see an emerging market for our InTruss escalator replacement solution. This product offers clients a turnkey solution for upgrading older escalators with the latest technology in rider safety and performance, with impressive energy savings. We are currently starting a Schindler InTruss escalator replacement at the Cadillac Fairview (CF) Toronto Eaton Centre. This is the fifth retail project where we have partnered with CF in the last couple of years. 

Building owners are looking for a quality service experience for their tenants and customers. They expect their VT supplier to use the latest connectivity tools available and processes to improve equipment uptime, while ensuring that a high level of compliance and safety on the equipment is being maintained. Rider tracking and security interfacing are expected to be the standard with OEM advanced control systems.

KW: In 2020, you observed that Schindler focuses not on entire markets, but rather “bids on its sweet spots,” which are tall buildings served by fast elevators. What are a few examples of this kind of work going on right now or coming up for Schindler?

LK: Firstly, we are very excited to be awarded the 2024 EW PoY for new elevator installations for our Banque Nationale, double-deck, destination-dispatch, high-rise project in Montreal (EW, January 2024). That was, indeed, tall and fast. The key to success lies in the planning and execution of the project. With all of our projects, we build a strong, collaborative relationship with each stakeholder, leading to on-time delivery and an award-winning project. In 2022, we also won an EW PoY in the modernization category for Scotia Plaza (EW, January 2022). This was also a double-deck project with destination dispatching. We have outstanding products and a great execution team, so we thrive with these complex projects. We have a Large Projects Division in Canada with excellent additional support from the U.S. and our head office in Switzerland. “Bidding to our sweet spots” is now turning more toward partnering on projects with business partners we want to work with, rather than specific market segments. Given our strength in escalators, elevators and moving walks, we really have no limit. We are open for business!

KW: Are infrastructure escalator projects still a business driver for Schindler? If so, what sort of work is the company doing right now in that regard?

LK: Strong infrastructure projects are on the horizon across the country. As an industry leader, we are involved in key design discussions. We see infrastructure investment continuing for some time to come.

KW: What is your VT business outlook for Canada for the next five years?

LK: Firstly, we are seeing many of the smaller, single-generation elevator companies wanting to sell. We have seen a lot of that activity as a result of recent financial challenges. Many of these smaller companies focused on low-complexity modernizations that were amongst the hardest hit. Most clients see the value in destination dispatching for their elevator systems. We have a destination-dispatching interface that we can retrofit on most OEM elevator controls that eliminates the need for a full modernization at a fraction of the price and time. The benefits of a destination-dispatching system are well known in the areas of faster time to destination, system efficiency and flexibility, as well as energy savings.

When it comes to elevators and escalators and the crucial role they play in a building, the rider experience and safety, clients know it is very important to choose a VT partner that shares their corporate values. Clients are looking for a strong value proposition and a partner they can trust, count on and enjoy doing business with. In this way, I believe the number of elevator companies will decline, and there will be an increased push for quality products with connectivity, strong processes and quality people to ensure the highest level of rider experience. With the influx of people and capital to Canada, the VT business will continue to look bright for the next few years and beyond. As land becomes increasingly more expensive, the trend will continue to move toward living in vertical spaces connected by public transit as we look for connectivity to where we work, live and play.

KW: Is there anything you’d like to add?

LK: This year, Schindler celebrates our 150th anniversary. This business sustainability reminds us all of our need for environmental sustainability. Schindler has embraced a green initiative, having made a commitment to be carbon neutral by 2040. You can be assured that our products, manufacturing, sourcing and recycling initiatives all have this goal in mind.