QuerĂŠtaro, 4-7th March 2009
Gaining a 70% Market Share The UK Experience in Structural Steelwork
Richard B Barrett President British Constructional Steelwork Association
Topics
• Introduction • Market Share Transformation • Key Success Factors • Bringing it all Together • Summary & Conclusions
Introduction
Barrett Structures Ltd – Non-Executive Chairman
UK Steelwork Contractor
100% Design-Build
15,000 tonnes per annum
Sales $60m
Single and Multi-story Buildings
Introduction
Barrett Steel Ltd - Director • UK Steel Service Centres
• 31 Depots in UK & ROI • 450,000 tonnes per annum
• Sales $600m
• 25,000 customers
Introduction
BCSA - President
British Constructional Steelwork Association
“BCSA President” role is similar to “Chairman”
UK trade association
130 Fabricator members
80 Associate Members
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1980
33.3%
Concrete/masonry/timber
66.7%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1981
35.4%
Concrete/masonry/timber
64.6%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1982
36.6%
Concrete/masonry/timber
63.4%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1983
38.8%
Concrete/masonry/timber
61.2%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1984
40.5%
Concrete/masonry/timber
59.5%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1985
42.9%
Concrete/masonry/timber
57.1%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1986
49.8%
Concrete/masonry/timber
50.2%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1987
51.3%
Concrete/masonry/timber
48.7%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1988
52.8%
Concrete/masonry/timber
47.2%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1989
52.3%
Concrete/masonry/timber
47.7%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1990
50.7%
Concrete/masonry/timber
49.3%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1991
58.1%
Concrete/masonry/timber
41.9%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1992
56.9%
Concrete/masonry/timber
43.1%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1993
62.2%
Concrete/masonry/timber
37.8%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1994
57.7%
Concrete/masonry/timber
42.3%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1995
55.9%
Concrete/masonry/timber
44.1%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1996
61.6%
Concrete/masonry/timber
38.4%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1997
58.1%
Concrete/masonry/timber
41.9%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1998
65.1%
Concrete/masonry/timber
34.9%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
1999
68.0%
Concrete/masonry/timber
32.0%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2000
66.6%
Concrete/masonry/timber
33.4%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2001
68.1%
Concrete/masonry/timber
31.9%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2002
67.4%
Concrete/masonry/timber
32.6%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2003
69.4%
Concrete/masonry/timber
30.6%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2004
69.2%
Concrete/masonry/timber
30.8%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2005
70.9%
Concrete/masonry/timber
29.1%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2006
72.0%
Concrete/masonry/timber
28.0%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2007
71.1%
Concrete/masonry/timber
28.9%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2008
70.1%
Concrete/masonry/timber
29.9%
Market Share Transformation
UK Market Share - Multi-story Buildings (Non-residential)
Steel
2008 1980
70.1% 33.3%
Concrete/masonry/timber
29.9% 66.7%
Key Success Factors
• Technical Issues • Supply Chain • Design-Build • IT Integration • Speed
• Current Hot Topics • Cost
Key Success Factors – Technical Issues
• Steel Construction Institute (“SCI”) • Comprehensive Design Guides • Section and Load Tables • Excellent Design Software • Supporting Universities
• Composite Construction
Key Success Factors – Technical Issues
• Fire • Fire Tests • Design Guidance • Intumescent Paints • Steel is a Fire Engineered Product
Key Success Factors – Technical Issues
• Fire • Fire Tests • Design Guidance • Intumescent Paints • Steel is a Fire Engineered Product
Key Success Factors – Technical Issues
• Fire • Fire Tests • Design Guidance • Intumescent Paints • Steel is a Fire Engineered Product
Key Success Factors – Technical Issues
Key Success Factors – Technical Issues
• Sound and Vibration • New Building Regulations
47 x 147 soleplate with packer 5 mm flanking strip 18 mm chipboard on 45 (nom) Danskin SF battens with resilient strip on 13 mm acoustic quilt (36 kg/m²) Concrete floor slab on SD 225/1.1 decking
• “Robust Standard Details” • Design Aids & Guides
12.5 mm plasterboard on 45 x 38 mm battens 200 x 100 RHS 8.0 edge beam with welded flangeplate 47 x 147 mm head-rail with packer
Key Success Factors – Supply Chain
• Competitive, vibrant, deep, diverse • Large number of competitive fabricators • Output/man 1983=30t, 2006=240t = +6% p.a. • Bending, Cellforms, Fabsec, Intumescent • Steel suppliers – Service Centres, JIT, Processing • Specialisation • Fabricators focusing on specific sectors
Key Success Factors – Design-Build
• Design carried out by Fabricator • Fixed Price Package • Advantages • More competitive design • Designed for Manufacture
• Optimise choice of steel shapes • IT Integration • D-B Share = 40% Multi-story, 90% Single
Key Success Factors – Design-Build Basic 3-D model Structural design Structural detailing in 3-D Lotting. DSTV files
DSTV clean up Routing, Batching, Prioritising, Material allocation & nesting Add Fit-up scribe data Process data into machine format Make steel
Key Success Factors – Speed
• Fast-Track Construction • Large capacity >1000 tonnes per week • Project Management Skills • One-Stop Shop = Better co-ordination • Steel & Decking
• Steel & Pre-Cast Concrete • “Wet” Trades – pouring concrete
Key Success Factors – Current Hot Topics
• Safety at Work • Off-site workforce is safer • Off-loading of vehicles • Positive Lifting • No men on Steel
Key Success Factors – Current Hot Topics
• Sustainability • BCSA Sustainability Charter • Zero Carbon Buildings • Steel Solutions • Steel & Concrete Structures have same Thermal Mass • School: 40% reduction in CO2 for no extra cost
Bringing it all Together Construction - Raw Material Costs Relative to Inflation Source - DTI
Cost
50
Real Cost Change from 1995 (%)
40 30 20 10 0 -10 -20 -30 -40 1995 1995 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1
Steel Sections
Ready Mix Concrete
Reinforcement Bar
Bringing it all Together Construction - Constructed Component Costs Relative to Inflation 50 30 20 10 0 -10 -20 -30 -40 -50 H 1 19 95 H 2 19 96 H 1 19 96 H 2 19 97 H 1 19 97 H 2 19 98 H 1 19 98 H 2 19 99 H 1 19 99 H 2 20 00 H 1 20 00 H 2 20 01 H 1 20 01 H 2 20 02 H 1 20 02 H 2 20 03 H 1 20 03 H 2 20 04 H 1 20 04 H 2 20 05 H 1 20 05 H 2 20 06 H 1
Real Cost Change from 1995 (%)
40
19 95
Cost
Structural Steel
Insitu Concrete
Fire Protection
Metal Decking
Placed Reinforcement
Bringing it all Together Comparison of UK Steel and Concrete Frame and Floor Costs Various Building Types and Locations
Cost
£170 £160 £140 £130
Concrete Framed Steel Framed Inflation tracker
£158
£120 £110 £100
£111
£90 £80
H 1 19 95 H 2 19 96 H 1 19 96 H 2 19 97 H 1 19 97 H 2 19 98 H 1 19 98 H 2 19 99 H 1 19 99 H 2 20 00 H 1 20 00 H 2 20 01 H 1 20 01 H 2 20 02 H 1 20 02 H 2 20 03 H 1 20 03 H 2 20 04 H 1 20 04 H 2 20 05 H 1 20 05 H 2 20 06 H 1
£70 19 95
£ per square metre (GFA)
£150
Bringing it all Together
Steel Market Share in UK
Sector
%
Offices
71.9
Retail
70.0
Leisure
70.1
Education
68.9
Health
68.3
Residential (multi-story)
26
Steel Market Share in UK
(Multi-story buildings, nonresidential)
19 8 19 0 8 19 1 8 19 2 8 19 3 8 19 4 8 19 5 8 19 6 8 19 7 8 19 8 8 19 9 9 19 0 9 19 1 9 19 2 9 19 3 9 19 4 9 19 5 9 19 6 9 19 7 9 19 8 9 20 9 0 20 0 0 20 1 0 20 2 0 20 3 0 20 4 05
Bringing it all Together 80
70
Steel Concrete
60
50
40
30
20
10
0
Summary & Conclusions
• UK was a “Concrete” Country • UK is now a “Steel” Country • A Series of major initiatives over many years • Design Guides • Solved Fire “problem”
• Proves Markets can be Switched • I wish Mexico great success!
QuerĂŠtaro, 4-7th March 2009
Gaining a 70% Market Share The UK Experience in Structural Steelwork
Richard B Barrett President British Constructional Steelwork Association