Gaining A 70% Market Share: The UK Experience in Structural Steelwork

Querétaro, 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 Concrete/masonry/timber
1980 33.3% 66.7%

UK Market Share
(Non-residential)
1981 35.4% 64.6%

UK Market Share
(Non-residential)
1982 36.6% 63.4%

UK Market Share
(Non-residential)
1983 38.8% 61.2%

UK Market Share
(Non-residential)
1984 40.5% 59.5%

UK Market Share
(Non-residential)
1985 42.9% 57.1%

UK Market Share
(Non-residential)
1986 49.8% 50.2%

UK Market Share
(Non-residential)
1987 51.3% 48.7%

UK Market Share
(Non-residential)
1988 52.8% 47.2%

UK Market Share
(Non-residential)
1989 52.3% 47.7%

UK Market Share
(Non-residential)
1990 50.7% 49.3%

UK Market Share
(Non-residential)
1991 58.1% 41.9%

UK Market Share
(Non-residential)
1992 56.9% 43.1%

UK Market Share
(Non-residential)
1993 62.2% 37.8%

UK Market Share
(Non-residential)
1994 57.7% 42.3%

UK Market Share
(Non-residential)
1995 55.9% 44.1%

UK Market Share
(Non-residential)
1996 61.6% 38.4%

UK Market Share
(Non-residential)
1997 58.1% 41.9%

UK Market Share
(Non-residential)
1998 65.1% 34.9%

UK Market Share
(Non-residential)
1999 68.0% 32.0%

UK Market Share
(Non-residential)
2000 66.6% 33.4%

UK Market Share
(Non-residential)
2001 68.1% 31.9%

UK Market Share
(Non-residential)
2002 67.4% 32.6%

UK Market Share
(Non-residential)
2003 69.4% 30.6%

UK Market Share
(Non-residential)
2004 69.2% 30.8%

UK Market Share
(Non-residential)
2005 70.9% 29.1%

UK Market Share
(Non-residential)
2006 72.0% 28.0%

UK Market Share
(Non-residential)
2007 71.1% 28.9%

UK Market Share
(Non-residential)
2008 70.1% 29.9%

UK Market Share
(Non-residential)
2008 70.1% 29.9%

1980 33.3% 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
• Fire
• Fire Tests
• Design Guidance
• Intumescent Paints
• Steel is a Fire Engineered Product
• Fire
• Fire Tests
• Design Guidance
• Fire
• Fire Tests
• Design Guidance
• Sound and Vibration 47 x 147 soleplate with packer
5 mm flanking strip
18 mm chipboard on 45 (nom) Danskin SF battens with resilient strip
• New Building Regulations

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 Real Cost Change from 1995 (%) 50
40
30
20
10
-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

Construction - Constructed Component Costs Relative to Inflation
Cost Real Cost Change from 1995 (%)

50
40
30
20
10
0
-10
-20
-30
-40
-50
1
1
H
H
95
95
96
96
97
97
98
98
99
99
00
00
01
01
02
02
03
03
04
04
05
05
06
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
20
20
Structural Steel Insitu Concrete Placed Reinforcement
Fire Protection Metal Decking
Comparison of UK Steel and Concrete Frame and Floor Costs -

Various Building Types and Locations
Cost £170
£160 £158
£150 Concrete Framed
£ per square metre (GFA)
£140 Steel Framed

£130 Inflation tracker
£120
£110
£100 £111
£90
£80
£70
1
1
H
H
95
95
96
96
97
97
98
98
99
99
00
00
01
01
02
02
03
03
04
04
05
05
06
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
20
20
Sector %
Steel Offices 71.9
Market Share in Retail 70.0
UK Leisure 70.1
Education 68.9
Health 68.3
Residential (multi-story) 26
UK
Steel
residential)
(Multi-story buildings, non-
Market Share in
0
10
20
30
40
50
60
70
80
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
Steel
19 4
9
19 5
Concrete
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
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!
Querétaro, 4-7th March 2009
Gaining a 70% Market Share

The UK Experience in Structural Steelwork
Richard B Barrett
President
British Constructional Steelwork Association

Gaining A 70% Market Share: The UK Experience in Structural Steelwork

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Querétaro, 4-7th March 2009

Gaining a 70% Market Share

Barrett Structures Ltd – Non-Executive Chairman

Barrett Steel Ltd - Director

• 31 Depots in UK & ROI

1980 33.3% 66.7%

1981 35.4% 64.6%

1982 36.6% 63.4%

1983 38.8% 61.2%

1984 40.5% 59.5%

1985 42.9% 57.1%

1986 49.8% 50.2%

1987 51.3% 48.7%

1988 52.8% 47.2%

1989 52.3% 47.7%

1990 50.7% 49.3%

1991 58.1% 41.9%

1992 56.9% 43.1%

1993 62.2% 37.8%

1994 57.7% 42.3%

1995 55.9% 44.1%

1996 61.6% 38.4%

1997 58.1% 41.9%

1998 65.1% 34.9%

1999 68.0% 32.0%

2000 66.6% 33.4%

2001 68.1% 31.9%

2002 67.4% 32.6%

2003 69.4% 30.6%

2004 69.2% 30.8%

2005 70.9% 29.1%

2006 72.0% 28.0%

2007 71.1% 28.9%

2008 70.1% 29.9%

2008 70.1% 29.9%

• Steel Construction Institute (“SCI”)

• Sound and Vibration 47 x 147 soleplate with packer

18 mm chipboard on 45 (nom) Danskin SF battens with resilient strip

• New Building Regulations

• “Robust Standard Details”

47 x 147 mm head-rail with packer

• Competitive, vibrant, deep, diverse

• Design carried out by Fabricator

Basic 3-D model

Routing, Batching, Prioritising,

Add Fit-up scribe data

Construction - Raw Material Costs Relative to Inflation

Cost Real Cost Change from 1995 (%) 50

Steel Sections Ready Mix Concrete Reinforcement Bar

Construction - Constructed Component Costs Relative to Inflation

Cost Real Cost Change from 1995 (%)

Comparison of UK Steel and Concrete Frame and Floor Costs -

£140 Steel Framed

• UK was a “Concrete” Country

Gaining a 70% Market Share

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