Sector activity

Economy: 10,000 projects for the construction industry

“We forecast a 6% drop in volume for 2009. But if we don't start to see the signs of a recovery soon, we are going to have to start preparing ourselves for an even more severe drop - 10%, perhaps even 15%”, says Patrick Bernasconi, chairman of France’s national federation for civil engineering (FNTP). Morale is low among the construction industry contractors. Their predictions regarding future business (information from INSEE/FNTP) are at their lowest since 1993. The FNTP has therefore compiled a list of "10,000 construction industry projects" - in fact, nearly 11,000, which represent a total of less than
€50 million. In other words, they represent "the equivalent of six months of work for the
8,300 companies that make up the sector. This means some 125,000 direct jobs, as well as a further 45,000 jobs created indirectly...". This is worth €20 billion, specifies the chairman. Projects that he would like to be in addition to the government's recovery plan. More than 90% of the
"10,000" projects listed have been commissioned by a local authority: 50% by communes, 25% by intercommunal groups and syndicates, and 16% by départements. They involve all aspects of the sector: urban planning, civil engineering, water and sanitation, roads, electrical works, etc. And the projects are spread throughout France, across nearly 4,500 communes. How can they be supported financially? Patrick Bernasconi is advocating the creation of a new “Sustainable Infrastructure savings account”, or “LID”. It would be used to finance local authority projects, in the same way that the other accounts have been introduced for financing social housing and energy savings projects in France (the Livret A and the sustainable development Livret de Développement Durable). It would be tax-exempt with the same ceiling as the Livret A - i.e. €15,000 - and could create €5 billion of outstanding credit in the first year it was introduced. This would make it possible to finance €12 billion worth of projects.
 

Equipment: Bell’s 45 tonner

The South African manufacturer Bell has earned itself a solid reputation in the world of articulated dump trucks. It's still the only company to offer a vehicle with a 50 ton rated payload (45 metric tonnes) - the B50D. And now, it is adding to its range - which also includes the B25D and the B40D - a machine with a 45 ton rated payload (40.5 metric tonnes) which will be unveiled for the first time at INTERMAT 2009. The model in question is completely new and unique in its category. Bell has used the same components as for the B50, but with a lower payload capacity. The result is outsized, and highly durable. Its 350 kW Mercedes-Benz engine is slightly smaller than the B50’s 390 kW. Its bucket is as wide, but slightly less high, giving it a lower centre of gravity. The differential and drop box ratios are the same as for the B50D, as are the bucket jack barrels, if a little shortened. Bell is aiming its B45D at earthwork contractors, as well as companies working with mines and quarries.

Interview: Gérard Bobier, Chairman of the CNATP: “a trade show is also a source of information”
 

• What are investment prospects like at the moment for companies in the construction industry?
  The market is looking very nervous for 2009. Construction firms have spent a lot of money over the last few years, particularly on equipment. The economic climate has now changed - there is less work and that new equipment is not being used. In some firms, the equipment use rate has now dropped to 50%. Now is not a good time to invest.
  
• Given the current climate, do you think these firms will be attending INTERMAT 2009?
  Of course. Not necessarily to make a purchase, but to keep up to date with developments. A trade show is not only an event at which companies close as many sales as possible. It's also a place where visitors make discoveries and find out about new techniques.
  
• Do firms in the construction industry have any purchasing habits?
  These are people who are loyal to a particular brand. Very few of them have more than one supplier. Having said that, they attach a great deal of importance to after-sales service. And this is a fundamentally important consideration when they make their purchase.
  
• Do they ever use hire equipment?
  Of course. For machinery that they don't use every day... machinery with a low use rate. It's quite common for small firms in the construction industry to hire machinery.
  
• Do you think they will be hiring more during the current economic crisis?
  I don't think so. Perhaps at the start of a recovery, but it is unlikely. At the moment, their own fleets should be enough to meet their needs.
  
• So there has been a lot of mechanisation over the last few years...
  There has definitely been mechanisation. Nowadays, nobody is going to dig a trench by hand: doing it without a mini-excavator would be unthinkable. Mechanisation has two benefits: a reduction in production costs and an improvement in working conditions. The second point is important if we want to attract young people to our profession and make provision for the future.
  
  * National chamber of construction and landscape firms (CNATP)
  

Worksites: Seguin island on the Seine: getting 23 cranes onto a 17 ha space

The area that was vacated when the Renault factories closed down in the western suburbs of Paris is currently being developed. 70 ha on the banks of the Seine, including the famous Seguin island. However, housing and offices are only going to be built on a small section of the island - 17 ha. "There are four property developers, five main contractors (Spie Batignolles, Bouygues, Vinci, Eiffage, Cari), and a multitude of subcontractors all involved in developing this area. We had to avoid one of the contractors taking control of the development project in such a way as to disadvantage the others”, explained the project manager. Hence the need even to supervise the way in which the construction site was managed. This involved overseeing the setting up of the cranes, implementing traffic plans, connecting contractors up to the networks, etc. The position, length and height of each crane determines the positions, lengths and heights of the others. The SMIE system uses software to centralise all the information which can then be consulted via a PC. The SMIE SCG 240 crane management system provides information in real time about each crane’s position and logs every event. Each time the security systems are intentionally disconnected, and every time a machine is shunted, all the others are disrupted. Each unjustified power cut has been sanctioned by a penalty against the company in question. This has had the immediate effect of reducing shunting from a maximum of 121 one week to 4 per week.

This section is produced in partnership with the Moniteur Group editorial team.

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