European and Global Potential for Steel in Construction

1
European and Global Potential for Steel in
Construction

• Dr Graham Owens
• Director
• The Steel Construction Institute

2
AGENDA

• How important is construction?
• What do clients want?
• Trends in Industrial Buildings
• How do we influence specifiers?
• What are the Eurocodes and do they matter?
• The S.T.E.E.L. Project
• Conclusions

3
Importance of Construction UK Govt Workshop
The Future of Steel Jan 2004

• Presentations on strategy from
• McKinsey Global Strategy Consultant
• Hatch-Beddows Specialist Consultancy on Metals
• Director UK Government Science Laboratory
• Chairman Construction Research and Innovation
  Strategy Panel
• Four influential, senior, independent voices
• Conclusions
• Long term commercial success requires down-stream
  added value, for all application sectors in steel
  production
• Construction products will always be sourced
  regionally
• Construction sector will grow in importance for
  all European Steel Producers

4
Importance of Construction IISI Strategy 2001

• Construction market will grow in importance -
  globally
• Action is required!
• Construction Marketing Committee
  revitalised(Chairman (Pertti Sandberg,
  Rautaruukki Oyi)
• Major initiative on Growing the market for Steel
  in construction (previously Steel in the City
  of Tomorrow)
• approved by Board in May 2004
• primarily residential
• primarily developing world
• targeted at global urbanisation
• the next ULSAB?

5
Client Requirements UK Perspective

• Major, government-led, drive for improvement
• Constructing the team Latham (1994)
• Rethinking Construction Egan (1998)
• Accelerating Change Egan (2002)
• Strategic Forum
• Commission for Architecture and the Built
  Environment (CABE)

6
Client Requirements UK Perspective

• Importance of the Built Environment to Quality of
  Life
• Holistic approach to design/procurement
• Procurement by (life cycle) value not (first)
  cost
• Benefits of partnering the design and
  construction chain
• Importance of sustainability.

7
Client Requirements European Perspective for
next 3-5 years

• Flexibility
• Architectural interest/merit
• High Quality Environment (HQE France)
• energy efficiency
• recycling
• durability/maintenance
• Modern Methods of Construction (MMC)
• speed
• quality
• safety

8
Industrial BuildingHolistic Solutions in steel
9
Contributions to Value in Industrial Buildings

• Primary (steel) frame 35
• Purlins/secondary structure 15
• Cladding Envelope and insulation/lining to
  walls and roof 50

10
Global Trends in Industrial Buildings
11
Why does steel consumption grow with increasing
wealth?

• Increasing performance requirements
• Spans increase
• Buildings become more sophisticated
• Adaptability
• Greater architectural diversity
• Requirement for speed of construction
• Sustainability requirements (for the future)

12
Western Europe Steelwork in Industrial
Buildings
13
Western Europe Target in Industrial Buildings
14
Contractor-led Procurement of single storey
(Industrial) Buildings

• 80 of market (UK)
• Shade and shelter
• Driven by general contractor
• Synergies between frame and cladding
• Separate procurement of frame and cladding.

15
Designer-led Procurement of single storey
(Industrial) Buildings

• 20 of market (UK)
• More prestigious exotic structures
• Design driven by quality/appearance
• Frame and cladding design integrated
• Separate procurement of frame and cladding.

16
Specifiers of Contractor-led Construction
17
Specifiers of Designer-led Construction?
18
Influencing the Specifier (Architect and/or
Engineer)

• Material supplier is remote from specifier
• Material supplier has resources to influence
  specifier
• Intermediaries can assist material suppliers in
  influencing specifier
• Cf role of SCI in UK market growth.

19
What are the Eurocodes?

• European statements of design requirements for
  the Structural Engineer
• In many parts
• 34 separate documents for a simple building
• Different from every existing national standard
• Incomplete much additional information required

20
Where have the Eurocodes come from?

• Initiated in 1975 for publication in 1992
• Objective to improve cross border trade in
  construction products and services
• Being published from 2004 to 2008!
• Mandatory for public works from 2006
• National Standards withdrawn 2009

21
The attitudes of Structural Engineers to the
Eurocodes!

• Initially some interest (1975 1985)
• Concerns at complexity/novelty of draft ENV
  versions (1992 1994)
• Relief that they were not mandatory
• Complacency at the delays (1995 2002)
• Concern at costs of change (2002 2003)
• Panic at nearness of the change! (2004)

22
The Eurocodes Create a major marketing
opportunity for European Steel Producers in
Construction

• Meeting the business needs for good technical
  information for 150,000 structural engineers, as
  they face up to the biggest ever change in
  codified design
• Making the independent designer an ambassador
  for steel
• Minimising design costs for steelwork contractors
  your direct customers improving their
  competitive edge

23
The S.T.E.E.L. Project A Supranational Tool for
the Enhancement of the Eurocodes on-Line

• 1,950,000 Euro from EU eContent Programme
• Balancing funding sought from steel producers
• Sponsorship committee co-chaired by
• Roland Junck, Director, Arcelor
• Paul Lormor, Executive Director, Corus
• First meeting 22nd September at Ascot.

24
OBJECTIVE OF S.T.E.E.L

• To create and disseminate technical
  information that makes the steel Eurocodes work
  effectively
• In every EU country and market
• For all types of specifier
• Client advisors
• Architects
• Structural engineers

25
LEVELS OF INFORMATION

• Level 1 Project Initiation
• To inspire, reassure and inform
• Level 2 Design Development (Conceptual Design)
• Guidance from decision to build to detailed
  design
• Level 3 Verification of detailed design
• Calculations to the Eurocodes

26
System Architecture
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Harmonised European Content
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Discussion Groups
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THE TEAM

• Project Management and IT
• Steel Construction Institute (UK)
• Localisation
• Bealtaine Ltd (IRL)
• Technical Content
• Centre Technique Industriel de la Construction
  Métallique (F) Rheinisch-Westfälische Technische
  Hochschule Aachen (D)Stälbyggnadsinstitutet
  (S)Steel Construction Institute (UK)
• Engineering Software
• Computer Services Consultants (UK) Ltd.
• Supply chain/Steel Producers
• Arcelor (L)Corus (UK/NL)

29
A Glimpse of the Future?

• Demonstration of new marketing direction
• innovative best use of IT products and systems
• professional all major European Institutes of
  Steel Construction
• highly geared lt 15 cents/tonne/year
  subscription
• New, pre-competitive partnership between steel
  producers and institutes
• Sponsorship Committee will drive the concept
  forward

30
CONCLUSIONS

• Construction is of growing global importance to
  all steel producers
• Influencing specifiers is very important for
  market growth
• Holistic markets benefit from holistic marketing
• The turmoil and change of the Eurocodes creates
  opportunities or threats for all specialist
  supply chains in Europe
• The STEEL project, valued at 4 million Euro,
  provides a unique opportunity to influence
  specifiers.
• All commercial interests are invited to join the
  Sponsorship Committee