novabuild ecoconstruction cluster presentation - bi norwegian business school
TRANSCRIPT
Novabuild eco-construction cluster
Olivier CORALLO Tanguy LE FLOC’H
BI Norwegian Business School Oslo 14-‐04-‐2015
GRA 6829 Strategies for Industrial Competitiveness
Eco-construction Cluster:
NOVABUILD
AGENDA
① Economic context ② Construction: a sector in crisis ③ Competition in construction industry ④ The Eco-construction industry ⑤ Novabuild Cluster presentation ⑥ Novabuild: Missions and Services ⑦ Actors involved: Cluster Map ⑧ Report of activities ⑨ Diamond Model
Economic Context
66M
€ 2052 Bn
+ 0.4% (2014)
10.4%
3%
92.2% debt
+0.7%
> Representing 5% of the country GDP > 1.3 million of workers > 513,000 firms > 25% of the overall investments in France
over the 2014 year > Global turnover of €282 billion
French Construction Sector
Acrtivities breakdown: part of construction turnover Buildings construction
Civil engineering
Demolition and site preparing
Electric installation, plumbing and other installation work Completion work
Other specialized works
> 53.9% of public contracts
> 24.6% of residential
> 21.5% of non-residential
Construction: a sector in crisis
80
90
100
110
Production index in French construction (2005 = 100)
Production index (2005 = 100)
French concrete production index (2010 = 100)
1990 2000 2010
Deep sector crisis
2008
Growth Crisis Forecasted upturn
Historic trend of the sector … In crisis since 2008 but with some signs of upturn
> Sector completely slowed down by the 2008 financial crisis: 8% of activity decrease on 2009 year
> 3 to 4% of decline in public supply > 1/3 of french failures in this sector
> Massive investment plan designed by the government in 2014 > 4.4% of CAGR forecasted between 2013 and 2018 > Stabilized margins
Competition within the construction industry Threat of New Entrants > Barriers to entry:
- Public and non-residential construction (important groups): very high due to need for expansive equipment and expert workforce
- Very small for SME wanting to compete with the artisans of this industry
> Very difficult for new firms to survive
Threat of Substitutes > No real threat of substitutes for the
construction sector
Bargaining Power of Buyers > Local demand for SME: weak bargaining
power as the buyers are small and numerous
> Call for tenders (important projects): Important bargaining power of buyers which are very price sensitive and have several suppliers
Bargaining Power of Suppliers > Raw material suppliers: hard competition that
makes their bargaining power weak > Specialized markets (ex: machinery): few
suppl iers that benefit f rom a bigger bargaining power
> Subcontractors: weak bargaining power due to numerous actors
Competitive Rivalry > Market divided between big groups
(important contracts) and SME > Lot of small companies: very dense
network > Prices of raw material and exit costs rising > Demand contraction since the crisis
Evolution of the number of firms in the sector
€M Turnover Profit Employees European
rank Vinci 38,703 1,906 185,300 1 Bouygues 33,100 807 127,470 3 Eiffage 13,987 1,347 66,022 6 Colas 12,396 604 62,800 8
Principal french construction firms
Evolution of gross margins in the sector
The eco-construction subindustry
An ecological way of building: > Use of biosourced and local
materials > Optimal use of renewable
energies > Better management of
water resources
Several activities: > Project managers > Architects > Builders > Product manufacturers > Maintenance professional
? How to define the eco-construction sector?
> High environmental quality buildings
> Bioclimatic buildings
> Low-consumption buildings
> Passive energy buildings
> Positive energy buildings
Specific buildings and green projects
A bumping market
Rising demand in the United States: > A jump of 50 % over the 2010 year > A market more than $135 Bn worth for the
residential sector, $120 Bn to $145 Bn for the non-residential
> 25% of new buildings are greenly constructed
A market with a great potential in France: > 2/3 of the houses constructed before
1975: an important renovation potential > Strong regulations that makes green
building necessarily for those renovations representing €600 Bn for the next 40 years
Novabuild Cluster Presentation
Novabuild
• Created in 2003, new division
and renamed in 2012
• Region Pays de la Loire Ø 3,6M inhabitants
Ø 5th french Region in GDP rankings
• Public initiative: PRI Program
• ADEME
• Key Figures
• History
• Network « In’Novabuild »
Ø + 250 members: companies,
associations, institutions, universities)
• Permanent team of 5
• Board of Directors from the business
area
Ø President Laurent ROSSEZ
Ø 7 Vice-Presidents
• Location
Cluster’s Missions
Mission: Gathering the actors of the industry to share their skills, experience and knowledge and face the future
challenges
• Issues & Challenges
• Innovation
• Change Management
• Skills & Knowledge
• Key Strategies / Themes
• Modeling & Digitizing the process
• Health & Wellbeing
• Evolving facilities
• Products life cycle Optimization & Industrialization
• Circular Economy
• Collaboration with local marine cluster (St-Nazaire)
• Improving the identification of needs & trends
In’Novabuild: Services Provided
> The members directory
> Reports related to the industry
> Technical guidelines or tips
> Newsletters, Media reviews
> Conferences, Fair trades, Traineeships
> Different themes and formats
> Job offers publications
Cluster Map
> Raw material manufacturer > Architects/designers > Specific equipment distributors > Constructors- artisans > Real estate developers > Certifications/Label agencies
Novabuild’s eco-construction firms
> State – French Government > Regional council > Municipalities (urbanism dpt.) > Social landlords > CCI (Chamber of Business and
Industry)
Public authorities
> Transportation services > Banks – private investors > Insurance companies > Consulting and audit firms
Related Industry
Partner universities - schools > Nantes University > Ecole Supérieure du Bois > ICAM, IUT Nantes St-Nazaire > Polytech Nantes
+ Praxibat program
Education
Private labs > CERIB, CSTB, Ocean Vital, LASIE,
IRSTV, INNOBSYS, GEM, IFSTTAR
+ public research reports
Research
> Regulation > Collaboration for
development > Tender call
> Projects, programs > Jobs offers > Knowledge > Innovations
> Services > B2B > Strategy
> Innovation > Material > New solutions > Energy perf.
Regulations
Grants
Grants
Collaboration/sharing facilities
Collaboration
Dynamic and evolution
31 events à 970 participants
60 professional consultants
20 scientific advisors: research labs
70 new members
Innovative Projects Contest
TIPEE ID+
Nova’TP > Activity report 2013 > Current projects &
programs
Projects in collaboration with universities, high schools,
private schools…
Demand • Landlords (social
housings) • Public/municipal projects • Main criteria are first
price and location • Economic yield >
Ecologic yield for many customers
Competition • Industry less impacted by
the crisis than others • New companies are still
entering the market • Nantes ≅ 100 real estate
developers
Cluster conditions • Public: ADEME + Region • Linked to other clusters • Strong links with labs and
education • Various types of
members
Factor conditions • Expensive raw material • Importance of:
§ Knowledge § Innovation § Skills § Regulations, norms § Certifications/labels
Government
≠ level of public authorities
Grants for buyers + searchers
Building permit
Investment, public exp.
Chance
Timing:
Expansion of the industry + Ecological transition
Projects like mini power plants grids
Society
Ecology as a political issue
Trendy ? Experimentations, not a praxis
¾ houses < 1975 = mature Mkt.
Culture
Not as important as in other countries (Holland, Scandinavia…)
Future perspectives and recomendations
A market full of opportunities
> 75% of french houses will need to be repaired in the years to come: green solutions should be adopted
> Help to homologate innovations: a decisive competitive advantage
> Novabuild is pioneer in numerical technologies of construction
> Houses will become micro-energy-generators
> They will be integrated in a peer-to-peer network of energy (smart grids technologies)
> Positive-consumption houses will be needed
Novabuild should be a provider for all the solutions of those energy networks
One strategic turn: the participation in the « third industrial revolution »