T
here was a lot to digest at last month’s International Construction
Economic Forum (ICEF) in Amsterdam. You can read about
many of the key talking points – including the winner of the
coveted International Construction Project of the Year Award – starting
on p.14 in this month’s issue, but here are a few of my personal
observations from the day.
iC
contributor Scott Hazelton of IHS Global Insight kicked off the
conference with what I took to be a reasonably up-beat assessment of
the global construction market. Growth should be around +4% to +5%
this year and next, and although there is no ‘boom’ expected, many key
countries should enjoy better market conditions next year.
But EC Harris/Arcadis’ Simon Rawlinson made some telling points
about the impact that high growth rates in the construction industry
can have on prices. This applies particularly to emerging markets –
where some of the highest growth is expected over the next few years
– because of poor management and a general lack of capacity in the
industry.
Jules Janssen of Besix, speaking at ICEF with his European International
Contractors (EIC) hat on, also highlighted the need for better
procurement, pointing out that a life-cycle approach to costs would lead
emerging countries to make better use of their money. He also argued
for the combination of development funds with commercial financing
to deliver more projects and the need for fair and balanced contracts.
Another striking insight into industry issues was given by Xavier
Therin of Lafarge, who highlighted some of the difficulties for materials
producers working in emerging markets, many of which will apply to
contractors too. Challenges in financing equipment in the preferred
way and getting options on equipment like telematics were problems he
said, as were issues like a reliable supply of spare parts and local dealers’
abilities to service machines.
There were many more highlights – Zeng Guang’an, president of
Liugong – spoke frankly and honestly about the challenges in the
Chinese construction equipment industry, while Trimble vice president
Dr Roz Buick gave a glimpse of the construction sites of the future where
an ‘Internet of things’ would facilitate much better communication
between people, machines and the overall needs of the project plan.
But the most enjoyable part for me was the ICEF awards ceremony,
where we honoured some great innovations by contractors and
equipment manufacturers that have a real impact on the productivity,
efficiency and safety in the industry. Congratulations to the winners
and commiserations to those who were short-listed, but missed-out on
the night.
And of course, don’t forget to market 29 - 31 October 2014 in your
diary for the next ICEF, which will be held in London.
Chris Sleight
Editor
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COMMENT
3
december 2013
international
construction
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