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A U G U S T 2 0 18

SITEONE

Embracing technology to drive expansion

Fletcher Building

Robust roofing for the MEA region

PERI S.A

Redefining South African construction for a digital age

JLL’S BID TO

TRANSFORM THE FACE OF REAL ESTATE

YULIO

The new age of construction and architectural design

EMBRACING DIVERSITY ACROSS SOUTH EAST ASIA Interview with Will Kennedy-Cooke, MD WT Partnership

TOP 10

TALLEST BUILDINGS


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FOREWORD

ello and welcome to the August edition of Construction Global, the must-read publication for executives working in the construction, infrastructure and architecture industry sectors. We have another packed issue for you this month, with our exclusive interview with Will Kennedy-Cooke, MD WT Partnership (South East Asia), about the challenges as the business rolls out a consistent and reliable service across diverse jurisdictions in an evolving economic landscape. We also speak to his fellow MD’s Keith Wong (China) and Mark Van Beers (Hong Kong & Macau) about the challenges and growth in their respective regions You will also find a number of eye-opening company reports, with interviews from Peri SA, SiteOne Landscape Supply, Groningen Seaports and Fletcher Building – Roof Tile Group. Elsewhere we speak with JLL’s co-CEO, about the company’s bid to change the face of the real estate sector by investing in the hottest proptech prospects the industry has to offer. JLL is a multi-billion-dollar company that is considered one of real estate’s leading lights, so it’s an interview you won’t want to miss. And in our top 10 this month, we countdown the world’s tallest buildings. We hope you enjoy this month’s issue, and we’d love to hear what you thought of any of our features. You can get involved in the conversation on LinkedIn, Twitter and Facebook.

H

Have a great month...

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CONTENTS

WT PARTNERSHIP

TACKLING DIVERSITY ACROSS SOUTH EAST ASIA

10 32

Construction Strategies

JLL’S BID TO TRANSFORM THE FACE OF REAL ESTATE

THE NEW AGE OF CONSTRUCTION AND ARCHITECTURAL DESIGN IS HERE – THANKS TO VIRTUAL REALITY PLATFORM YULIO


Top 10 tallest

buildings in the world 56 66

44 Construction 4.0

Events


Ozan 72 Dr.Koseoglu

10

84 Groningen Seaports NV


00 PERI S.A 114 Fletcher Building

126

SiteOne Landscape Supply


n

10

AUGUST 2018


ASIA

WT PARTNERSHIP

TACKLING DIVERSITY ACROSS SOUTH EAST ASIA WRIT TEN BY

ANDRE W WOODS PRODUCED BY

MIK E SADR

City Garden, Vietnam w w w. c o n s t r u c t i o n g l o b a l . c o m

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W T PA R T N E R S H I P

12

Will Kennedy-Cooke, MD WT Partnership (South East Asia), discusses the challenges as the business rolls out a consistent and reliable service across diverse jurisdictions in an evolving economic landscape.We also speak to his fellow MD’s Keith Wong (China) and Mark Van Beers (Hong Kong & Macau) about the challenges and growth in their respective regions‌

W

T Partnership is an independ-

and South East Asia (SEA), occupies a

ent international provider of

key position in one of the most culturally

quantity surveying and

diverse and economically-tempestuous

construction cost management services.

regions on earth. A fast-growing global

Founded in 1949 and with a presence in

company with an expertise that extends

Asia since 1962, its Asian Holdings

bespoke offerings of quantity surveying,

regional business, comprising Greater

cost management and facilities manage-

China, Hong Kong, Macau, North Asia

ment consultancy across Asia and

AUGUST 2018


ASIA

period. In the short term WTP plans to open fulltime operations in two additional countries with staff numbers potentially growing to 300-plus in three to five years. “We have been very strategic in each location, harnessing homegrown talent with international expertise where and when required, but without losing sight of being a local business able to support local developers,” Will explains. “Our Singapore office is a hub that supports the region as a whole from which we can add management expertise to any location, together with sharing resources in specific sectors such as infrastructure and facilities management consultancy. internationally, WTP is highly regarded in the

“It is an integral part of our strategy

region, with unprecedented growth in SEA over

that we play to our strengths, work

the past decade.

with the clients and partners that are

After an initial spell there in the early 1990s, Will

a best fit with our people and

Kennedy-Cooke, MD SEA, relocated back to

develop a business that is built to

Singapore in 2006. At that time, after more than

last. We do not need or want to be

40 years of continuous operations, the SEA

the biggest, taking on any and all

business comprised 40 staff in two locations.

opportunities without regard to

Today WTP employs more than 200 staff based

suitability. However, we do strive to

in six offices across four ASEAN countries

be very good at what we do, to be an

working on projects across the region with

employer of equality and choice, to

revenue increased by more than six times in that

grow while retaining quality of w w w. c o n s t r u c t i o n g l o b a l . c o m

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Paya Lebar Quarter, Singapore

14

Barangaroo South, Australia

Creating landmarks that define cities

Elephant & Castle, United Kingdom

Tun Razak Exchange Lifestyle Quarter, Malaysia

Lendlease is known internationally for creating award winning places. Operating in Singapore since 1973, today we are also located in Malaysia, China and Japan. Our integrated approach means we harness our expertise in construction, design, development, investments and management to deliver a project from conception to completion. We help shape city skylines, create iconic structures, breathe new life into forgotten precincts and create places and spaces for generations to enjoy.

AUGUST 2018

www.lendlease.com


ASIA

Toll offshore petroleum supply base, Singapore

service, to aspire for continuous improvement and to care for how our clients optimise value from their development investment decisions. “We get involved with all sizes and types of projects providing proactive and assured construction cost management for our clients’ investments, together with enduring interest, variety and opportunity for our staff,” says Will, who oversees operations across the 10 ASEAN countries. “Our significant presence in the region ensures we are able to deliver both local and international services with a reputation for providing effective delivery of complex and mega projects.”

“WE AIM TO PROVIDE VALUE IN MINIMISING WASTE THROUGH DESIGN, CONSTRUCTION AND OPERATION. WE LOOK AT HOW THE TOTAL PRODUCT CAN STILL BE COST EFFECTIVE, BUT BECOME LEANER WITHOUT COMPROMISING TIME OR SAFETY WHILE IMPROVING SUSTAINABILITY” — Will Kennedy-Cooke, Managing Director (South East Asia), WT Partnership

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W T PA R T N E R S H I P

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“QUANTITY SURVEYING IN HONG KONG, MALAYSIA AND SINGAPORE IS AN IMPLICIT DISCIPLINE, BEING THE LEGACY OF BRITISH INVOLVEMENT IN THEIR DEVELOPMENT, AND TODAY THESE LOCATIONS PROVIDE EDUCATION THROUGH FULL-TIME COURSES IN THE EXPERTISE” — Will Kennedy-Cooke, Managing Director (South East Asia), WT Partnership

Macau Studio City, Macau Due to WTP’s longevity in the region, it enjoys excellent relations with some premium partners from a variety of locations. Will has been involved in some high-profile projects in SEA covering both commercial and public-sector constructions including World Trade Centres 2 and 3 in Jakarta, TRX Living Quarter in Kuala Lumpur, Australian Embassy in Bangkok, the International School Ho Chi Minh City and Marina Bay Sands in Singapore. “In SEA we’ve undertaken a lot of work with Cognita, a leading global education provider,” says Will. “The relationship with Cognita stretches more than 12 years based on the

AUGUST 2018


ASIA

17

formation of trusted relationships with their key

“Our Hong Kong office was

people while creating a baseline for common

initiated in 1976 to start working with

understanding. We have collaborated on more

Hongkong Land, a member of the

than 10 projects across SEA markets, assisting

Jardine Matheson Group. We are

Cognita to provide world-class teaching

very proud of the relationship that

environments. It continues to be a very strong,

has flourished through several

fertile and mutually beneficial relationship.

generational changes of key

“We continue to work with Toll, an Australian

personnel in either business over

origin logistics group now owned by Japan

more than 40 years and continues

Post. We started working directly for them in

today working across multiple

Asia a decade ago and more recently, having

markets in our region. Project

successfully delivered a number of projects

locations include Cambodia, China,

in Singapore, we are also working with them

Hong Kong, Indonesia and

in Australia and New Zealand.

Singapore with the most recent w w w. c o n s t r u c t i o n g l o b a l . c o m


W T PA R T N E R S H I P

BIO

Keith Wong Executive Chairman, Asia, Managing Director (China)

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For our business in China, employing two site staff working in a client’s site office when we started in 1996 in Shanghai, expanding to 50 in 2006, to more than 500 today with 8 offices across China. We adhere to a traditional quantity surveying practice but when we started, Chinese projects were highly protected, mainly state-owned enterprise (SOE) government projects, although they welcomed foreign investment. And so, we followed Hong Kong developers as they delivered projects in China. At that time more than 95% of our clients were from Hong Kong or overseas with very few local clients. There was no quantity surveying in China then; they had some cost engineers, but didn’t provide a comprehensive service as we do, from inception to completion of the project. It was not an easy task, at that time, because they just didn’t understand the purpose of undertaking cost control. They didn’t understand

AUGUST 2018

why they needed an independent professional to update the interest of the client side because, at that time, the local client were often very big state-owned enterprises that didn’t know or worry about where the money had been spent. Our local clients grew to 10% after seven years or so, starting from smaller projects, before getting bigger and bigger. The major opportunities were still foreign (mainly Hong Kong) as local investment was more or less owned by a local government or state-owned enterprise. From 2005 to say, 2010, most of our projects were in real estate: property development, residential, commercial, hotels, and mixed use. The client’s just build and sell for a quick cash return. The scale was getting bigger and bigger during that period of time; in the UK, 50,000 sqm may have been considered to be a big project but in China, a big project by then was 500,000 sqm. The clientele has since continued


ASIA

to shift from foreign to local and some 70% of our clients are Chinese now with the rest foreign. So, that change is quite substantial and we’re now doing 4,000,000 sqm projects. Currently, we are working for insurance companies like Ping An Insurance and financial institutions such as Shanghai Stock Exchange, that we were never able to get in touch with 10 years ago. E-commerce is expanding so fast and we have done an increasing amount of work in logistics relating to that sector, with clients such as JD.Com and Alibaba. We’re doing a 800,000 sqm data centre campus for them and companies like JD.Com, who is the second biggest e-commerce company here. We are also doing a lot of campus work for telecommunication giants Huawei and Tencent. Now we’re helping also lot of local developers going overseas to do projects in the likes of India, Vietnam, Australia and Italy. Something like

90% of the senior management in Chinese companies cannot speak English and so that’s why we have a very major role to play. China is changing so quickly. The second-child policy was introduced in 2015 and now the birth rate is 22mn babies per year with estimates this will increase to 30m very soon. The wealth of the Chinese community is expanding and the middle class is quite affluent now, so they’re prepared to pay a lot of money for their children’s education. Consequently, international schooling is a booming market and we are currently working for AIS, Yew Chong International School, Wellington and Harrow from UK who all have big expansion plans in the coming few years.

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An inspiring world of education Cognita is an extraordinary family of diverse yet connected schools joining forces in an inspiring world of education with one common purpose: building self-belief and empowering individuals to succeed. With over 70 schools in Europe, Latin America and Asia, Cognita provides a uniquely global education for more than 40,000 students that goes beyond grades to develop all-round academic excellence.

Find out more about us at www.cognita.com

YOUR WORLD OF OPPORTUNITY Jakarta Land is a joint venture between CCM and Hongkong Land, which develops and manages the 8 hectare WTC Complex on Jalan Jenderal Sudirman, Jakarta, Indonesia.

Website: www.jakland.com Email: leasing@jakland.co.id


ASIA

budget through collaboration with the client and, where available, with input from the principal design team members. We will then be employed to continuously advise, monitor and update, providing forward forecasting to enable decisions that deliver the completed project to budget. Assuming the budget for capital expenditure is correctly established and informs the feasibility for the project, and assuming revenue

Ningbo Shangri–La Hotel, China

projections are met, then delivering to, or within, that capital budget

completion being World Trade Centre 3 in

means the project returns for the

Jakarta for PT Jakarta Land, a company jointly

client will be met or even enhanced.

owned by CCM and Hongkong Land.

We provide an early warning system

“Another client we do a lot of repeat order work

for issues that are either likely to

for in SEA is Lendlease which has been in

compromise the budget or may

Singapore since the early 1970s. We’ve been

provide value-added opportunities,

fortunate to be involved with their more recent

meaning the earlier you capture it,

SEA development work and we’re currently

the easier it is to plan for how and

working on both their Paya Lebar Quarter

when that issue is to be managed.”

project in Singapore and their Tun Razak

When commissioned to do so,

Exchange Lifestyle Quarter project in Kuala

WTP provides and facilitates formal

Lumpur; the latter being delivered in joint venture

value engineering, or value

with TRX City, a wholly owned subsidiary of the

management workshops early in

Malaysian Ministry of Finance.

the design process to help establish

“In an ideal sense, we get involved right from the outset,” he explains. “Setting the construction

the real aspirations and requirements of a project. Focus is set upon w w w. c o n s t r u c t i o n g l o b a l . c o m

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W T PA R T N E R S H I P

what’s wanted rather than “what’s

whatever reason, is unable to deliver to time and

nice to have” and the removal of

cost. Our cost forecasting to the completion of the

waste. In the process of determining

project helps manage financial decisions and

value, WTP assesses what has to be

mitigate opportunities for dispute. However,

there and what is discretionary for

should a client become engaged in difficulties on

the design to balance the budget

a project, then we’re there to help, interpret and

and project brief.

diffuse,” he explains.

“Much of the discipline of managing the budget obviously depends on

Quantity surveying is an historically entrenched part of the construction process across

the procurement system that transfers the project to the construction phase, together with the profile of the client and its risk appetite. Time is 22

always a big issue because time is cost and therefore overall project programme has a big influence on the procurement strategy. Alternative approaches allow for transfer of construction time and cost risk at various points in the design process depending on the profile tailored to the client’s objectives. Once the transfer of that risk has been completed, the business of construction begins,” says Will. “We’re also the certifier of payments made to the contractors and we deal with any change through variations, getting further involved if the contractor, for AUGUST 2018

Team Building


ASIA

23 parts of the western world,

three locations, quantity surveying is just a part

principally where the British had

of the DNA of the construction and develop-

some involvement with establishing

ment industry. However, in the other SEA

standards and procedures, yet

locations, there are a number of developers who

differs in relevancy and application

may often be unaware of the discipline of cost

in other locations, especially in

planning and construction cost management,

today’s emerging markets.

or how to use the expertise.

“Quantity surveying in Hong

“While the core of quantity surveying and

Kong, Malaysia and Singapore is

construction cost management may be similar

an implicit discipline, being the

the world over, the detailed services we provide

legacy of British involvement in

across SEA markets varies and can also differ

their development, and today these

from those required, for example, in each of

locations provide education

China, Japan, South Korea or Taiwan. Day to

through full-time courses in the

day in SEA we are still mostly commissioned to

expertise,” Will explains. “In these

provide a very traditional, almost old-fashioned w w w. c o n s t r u c t i o n g l o b a l . c o m


W T PA R T N E R S H I P

BIO

Mark Van Beers Managing Director (Hong Kong & Macau)

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Hong Kong’s one of our oldest offices in Asia and we’ve been here for just over 40 years with our track record in major and mega projects being significant. There’s currently a bid for a design, build and operate project, at the old airport, for a sports precinct of three stadiums and other ancillary facilities and we are in one of the three shortlisted bidding consortia. So, we’re currently working on that bid, six months in already and, if successful, we will then be providing services to that project for another four or five years. Corporate fit-out is an important sector of our market in Hong Kong. We’re currently working on two substantial office fitout projects for Goldman Sachs including the restack of their headquarters. We’re doing another large scale fit out for J.P. Morgan to consolidate a lot of their space into one prime building. Hong Kong Housing Authority is the public housing body and we currently

AUGUST 2018

have over 20 commissions with them that are a mixture of new builds and term maintenance work; some of them very sizable. There’s a lot of competition in Hong Kong in our market. There’d be anywhere between 15 and 20 firms that could undertake commercial quantity surveying work, maybe more, and there are probably six or eight who are of a similar size and scale as WTP. Another principal market for us here is Macau where there are 500,000 residents, comprising the entire population from young to grandparents, yet they have 30mn visitors a year. The whole infrastructure of Macau is still playing catch up with the boom in hospitality and tourism. The construction boom is primarily driven by the gaming operators who are developing mega-scale resorts. In Macau, in terms of professional consultants and construction workers, there’s a minimal resident labour


ASIA

force to deliver the mega resorts. So, the challenge for us is getting people to be based in Macau to live there for a number of years and to cover that cost. It actually turns into quite an expensive place to build and has become one of the most expensive in the world. The construction cost, salaries and everything are higher than Hong Kong, actually, and although this market has proved successful for WTP, it comes with truly significant challenges. The boom and bust in Macau goes from one end of the scale to the other. There could be very few projects for a couple of years and then suddenly all the gaming operators will simultaneously launch their next phase of major projects. Consequently, our headcount in Macau from 2004 until today, has varied between two and 50 people and it’s gone up and down quite a few times with the cycles of work.

I guess there’s two parts to the Macau market, one being a very local market that seldom uses quantity surveyors at all with the other being the five or six international businesses who have the gaming licenses now, for example MGM, Wynn, Melco and a few more. Actually, these opportunities all start with architects and engineers designing in Hong Kong and then become a Macau project with a lot of people moving to Macau to work on the procurement and construction. Increasingly, we are also seeing demand to service projects in Taiwan, South Korea and Japan which are markets that we are looking at the potential for future expansion, each being subject to timing and a deliverable business model.

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W T PA R T N E R S H I P

service, that almost mimics what used to be extremely quickly, adopting fast track seen in the British market when I started my methods for those who can accept both career there in the mid-1980s. “Although catching up fast and introducing many of more recent approaches from

alternative systems and a different risk profile. But the project still needs to be delivered to budget.�

other more developed international markets, we do lag behind them in many

NEW TECH

jurisdictions where the infrastructure is not

A typical opportunity for potential disagree-

as well developed and the majority of work

ment between contractors and professional

is still executed in a highly traditional

quantity surveyors has been the quantifica-

manner; the client’s team completing full

tion. Ask several people to measure the

design before going to a hard money tender same major project, you will inevitably end 26

to builders. However, especially in the

up with differing opinions on the quantities

complex and mega projects, there are

for individual components. However, if you

more clients now with the appetite to finish

can get reliable and meaningful quantities

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ASIA

out of an accurate computer-generated

future operations as well. The opportuni-

model this issue should be resolved.

ties with other new technologies are

“BIM (building information modelling)

immense and the data input requirements

and other technological advances, should

to maximise the effectiveness of BIM is

be embraced fully by all parts of the

coming up to speed. WTP is ready and

construction industry and should certainly

looking forward to the potential to move

not be seen as a threat to the quantity

towards real time cost planning & estimat-

surveying profession,” Will explains. “With

ing and cost management.”

readily accessible, reliable and useful quantities, experts can focus on what

NEW SERVICES

really drives the cost aspects of the

“Most of our work traditionally has been in

project. We will see in due course, sooner

the core building sectors, but we now have

rather than later, a coordinated BIM output

a flourishing infrastructure division working

that incorporates both time and cost, not

on roads, rail, airports, renewable energies

only for the construction process but for

and utilities (including water, waste, power

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W T PA R T N E R S H I P

and district cooling), together with the full range of

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“BIM (BUILDING INFORMATION MODELLING) AND OTHER TECHNOLOGICAL ADVANCE SHOULD BE EMBRACED FULLY BY ALL PARTS OF THE CONSTRUCTION INDUSTRY AND SHOULD CERTAINLY NOT BE SEEN AS A THREAT TO THE QUANTITY SURVEYING PROFESSION” — Will Kennedy-Cooke, Managing Director (South East Asia), WT Partnership

land reclamation and other large-scale infrastructure.” Facilities management consultancy services, led from Singapore, is another more recent addition to an increasingly diversified offering from WTP in Asia that is an extension to the same services that have been established earlier within the Australia and UK businesses. “We introduced FM consultancy services into the region just over 12 months ago and have already completed several interesting commissions, both for new and existing clients. The wider market for these services is not very mature and currently nearly all of the work we’re undertaking is in Singapore and Hong Kong,” Will explains. “There are a number of international Asian-based operators that are quite sophisticated in their approach to FM, but generally the facilities management market in this part of the world is playing catch-up with the West. Sustainability is a key requirement in every sector and is of growing importance to WTP’s services offering. “Several world markets have initiated sustainability targets through a point-scoring exercise,” Will says. “We have Green Mark in Singapore and Australia has Green Star. Leed, a United States Green Building Council initiative, has wide international recognition with a high profile for many corporate clients and there are a number of other sustainable

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ASIA

standards in particular markets.

we better with this particular system

Where there isn’t a standard in

or an alternative one? Establishing

a country, they may well adopt one

life cycle models and completing

so we have projects, for example,

whole-of-life studies are an

in Vietnam that are being done to

emerging requirement, harnessing

LEED and others in Indonesia being

both our sustainability and FM

delivered under Green Mark.

consultancy expertise.

“Originally we became involved

“We can also become involved

with how the cost achieves those

with reviews of how existing

sustainable standards in terms of the

buildings can be improved in

capital expenditure. We now look at

energy management to the

not just the cost through the initial

long-term benefit of a building

construction project, but also

owner and the occupants. We aim

examine the implications for the

to provide value in minimising waste

building’s operational life cycle. Over

through design, construction and

the economic life with an appropriate

operation. We look at how the total

planned maintenance regime, are

product can still be cost effective, w w w. c o n s t r u c t i o n g l o b a l . c o m

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W T PA R T N E R S H I P

but become leaner without

planning we do, to the extent that when

compromising time or safety while

we do go into new markets or provide

improving sustainability.”

new services, we have the best chance to get it right. That’s about people and

EXPANDING FOOTPRINT

network. It’s about understanding the

WTP’s expansion in SEA hasn’t

market and not overstretching our

seen the company veer too far from

management capabilities. It’s about

its ethos thus far. “Our growth, short

structuring a business that is sufficiently

to medium term, has been to stick to

flexible, agile and mobile with capability

our core competences; continuing

to both deliver to the local market

to do what we do well,” Will explains.

expectations as well as the requirements

“We’re careful about the model we

of our international clients as opportuni-

adopt for each location and the

ties evolve in different locations.”

30

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ASIA

Internationally, in addition to the long-term operations that originally started in Australia and the UK, WTP has now also been operating in North America and India for a few years with the Middle East being a more recent market entry. As an international group, the geographic footprint is also growing as more opportunities arise and the business is confident of its ability to both plan and manage this expansion programme that is sure to see the company continuing to spread, and deepen its roots.

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International Commerce Center, Hong-Kong

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LEADERSHIP

JLL’S BID TO TRANSFORM THE FACE OF REAL ESTATE WRITTEN BY

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TOM WADLOW

AUGUST 2018

JLL’S SPARK DIVISION SEEKS TO INVEST IN THE HOTTEST PROPTECH PROSPECTS AROUND. CO-CEO MIHIR SHAH ANSWERS OUR QUESTIONS


33

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LEADERSHIP

P

roptech is the latest segment of technology to be handed its own single-word title, joining the likes of

fintech, insurtech and edtech as mainstream channels in its own right. For the real estate industry, proptech is

34

already transforming the way companies go about their increasingly digitised business. $6.8bn JLL is one of the real estate industry’s household names. Its history can be traced back two centuries, with innovation through the years key to its longevity. Now, through its JLL Spark division, it is looking to futureproof itself and the industry through investment in the brightest proptech ideas. Construction Global posed the following questions to Co-CEO Mihir Shah.

AUGUST 2018


TELL US ABOUT YOUR RELA– TIONSHIP WITH INNOVATION. WHAT ENTICED YOU INTO THE TECHNOLOGY SPACE?

innovation which is effectively giving us a glimpse into the future of real estate, which helps us to tailor our offering at JLL – and help develop the market – all for the benefit of the end user.

I have always been passionate about

product executive and angel

WHAT IS YOUR APPROACH TO INNOVATION? ARE THERE ANY DO’S OR DON’TS IN YOUR OPINION?

investor. My roles in the tech

I think innovation is all about the potential that

industry prior to the launch of JLL

technology has to transform the world as we

Spark include vice president and

know it. When looking at a truly transformative

general manager at Groupon.

product or idea, there are three key characteris-

Previously I was the co-founder of

tics you’ll find: the magic to thrill the user/

Mob.ly (subsequently acquired by

consumer and an entire industry, quantifiable

Groupon), and I also have Silicon

value, and scalability of the business model,

Valley experience including early

technology platform and its deployment.

technology and that is where I have built my career as an entrepreneur,

investment start-ups such as Uber. Proptech was the obvious next step for me. Just as technology is transforming many traditional industries across the business world, such as transportation, the time is right to make change happen for real estate. Having the opportunity to work with the most driven and ambitious entrepreneurs in the proptech space, whilst growing their companies and developing their ideas, is enhancing the real estate

Mihir Shah, Co-CEO, JLL Spark

sector all the time. It is this tech w w w. c o n s t r u c t i o n g l o b a l . c o m

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LEADERSHIP

WHEN AND HOW DID JLL SPARK FORM? HOW DID YOU GET INVOLVED? JLL launched JLL Spark in July 2017, with the aim of accelerate the firm’s position as proptech leaders in digital real estate services. In this time, we’ve seen JLL Spark go from strength to strength, which is crucial given the fast-paced nature of the proptech industry. Myself and my co-CEO Yishai Lerner had previously led the 36

“HAVING THE OPPORTUNITY TO WORK WITH THE MOST DRIVEN AND AMBITIOUS ENTREPRENEURS IN THE PROPTECH SPACE WHILST GROWING THEIR COMPANIES AND DEVELOPING THEIR IDEAS, IS ENHANCING THE REAL ESTATE SECTOR ALL THE TIME” — Mihir Shah, Co-CEO, JLL Spark

charge on a number of JLL initiatives, including founding, managing and investing in a number of technology businesses. Joining JLL Spark felt like the natural step forward for us.

SUM UP THE MISSION STATEMENT OF JLL SPARK. JLL Spark is the intersection of real estate and technology. We are dedicated to transforming the real estate industry through technology-based innovation. Our aim is to allow the best startups to tap into JLL’s expertise and resources to build on their existing businesses and help turn their visions into tangible products and services.

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E, D

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LEADERSHIP

38

“OUR FOCUS WILL BE ON PROPTECH COMPANIES WHOSE PRODUCTS CAN HELP JLL CLIENTS, SUCH AS INVESTORS AND OCCUPIERS, AS WELL AS THOSE PRODUCTS AND SERVICES THAT CAN BE USED BY OUR GLOBAL BUSINESS LINES TO BETTER DELIVER JLL SERVICESE”

I SEE YOU HAVE JUST LAUNCHED A $100MN GLOBAL INVESTMENT FUND. WHAT WILL YOU BE LOOK– ING FOR THIS TO ACHIEVE? The $100mn JLL Spark Global Venture Fund is an extension of JLL Spark’s mission to transform the real estate industry through technologybased innovation. The fund will invest in companies focused on leveraging technology

— Mihir Shah, Co-CEO, JLL Spark

to improve everything about the real estate experience, be it developing and managing to leasing and investing in real estate while enhancing the experience of those who occupy it. Our focus will be on proptech companies whose products can help JLL clients, such

AUGUST 2018


39 as investors and occupiers, as well as

track the testing of new technology and

those products and services that can be

help startups get quick feedback on what

used by our global business lines to better

their product is doing.

deliver JLL services.

to market. Our plan to help build that

WHAT DO YOU LOOK FOR IN A STARTUPWHEN DECIDING WHETHER TO INVEST?

infrastructure is twofold: first, we are

First and foremost, we want to work

building the ‘growth team’ made up of

with great entrepreneurs whose

talented product marketers and

missions inspire us. We want to work

developers. This team will measure how

with companies that show great

well the startups are connecting with JLL

potential we can help to grow and scale,

and how much value their products are

not only in the service or product they

providing clients. In addition to this, we

offer but also the teams. It is really about

will develop a network of building labs in

finding companies with the spark, or

the largest metros in the world to fast

ideas that excite us.

Having been entrepreneurs ourselves, we know how hard it is to bring a product

w w w. c o n s t r u c t i o n g l o b a l . c o m


LEADERSHIP

HOW MUCH OF A NEED IS THERE FOR THE INDUSTRY TO INNOVATE AND TRANS– FORM? DOES THE SECTOR/ COMPANIES RISK BEING LEFT BEHIND?

in terms of tech making an impact on and improving experience for clients. This is a really exciting time to workin this sector.

industry. Those three elements

WHICH TECHNOLOGIES CAN YOU SEE BEING PARTICULARLY DISRUPTIVE TO THE CONSTRUCTION/REAL ESTATE INDUSTRY IN THE COMING YEARS?

I mentioned earlier – magic, value

We see the potential for smart building

and scale – are already coming

technology to impact energy and space

together to transform real estate.

utilisation while driving value-added services

For instance, smart buildings are

like predictive maintenance. We see algorithms

getting smarter every day, gather-

using a variety of public and private data to

ing very important information that

vastly speed up the process of underwriting

can then be factored in crucial

a building. We also see potential for blockchain

strategy decisions that will help you

technology to improve the transaction process

make your business more resilient.

and make it easier to trade shares in a building.

We are already starting to see the seeds of transformation in this

40

Commercial real estate is at a real tipping point

FAST-FORWARD FIVE YEARS – WILL THE REAL ESTATEINDUSTRY LOOK FUNº– DAMENTALLY DIFFERENT TO HOW ITIS TODAY? ARE YOU OPTIMISTIC ABOUT ITS OUTLOOK? There is much to be optimistic about when it comes to the future of real estate. When you consider the vast number of high quality proptech startups entering the field in the last 12 months, the prospects for the next five years are extremely exciting. Software will both dramatically enhance AUGUST 2018


41

“WHEN YOU CONSIDER THE VAST NUMBER OF HIGH QUALITY PROPTECH STARTUPS ENTERING THE FIELD IN THE LAST 12 MONTHS, THE PROSPECTS FOR THE NEXT FIVE YEARS ARE EXTREMELY EXCITING”

how services are delivered in the real estate industry and also automate a lot of the processes that are slow and cumbersome today. This will lead to things like greater liquidity in the asset class and faster decision making while

— Mihir Shah, Co-CEO, JLL Spark

maximising the value of assets.

w w w. c o n s t r u c t i o n g l o b a l . c o m


We deliver you the stories that matter… Click to read

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– Murat Ungun, Senior VP Supply Chain Kudu Corp

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CONSTRUCTION 4.0

44

THE NEW AGE OF CONSTRUCTION AND ARCHITECTURAL DESIGN IS HERE – THANKS TO VIRTUAL REALITY PLATFORM YULIO Yulio allows for key decision makers on construction projects to insert themselves within the design at critical points in the decision-making process ­— Construction Global speaks to the company’s CPO to find out more… WRITTEN BY

STUART HODGE

AUGUST 2018


45


CONSTRUCTION 4.0

46

C

harles Dickens once said: “The whole difference between construction and creation is exactly this: that a thing constructed can only be loved

after it is constructed, but a thing created is loved before it exists.” But what if a technology solution emerged which allows for the middle ground between both to be explored? Well, that’s exactly what Yulio provides. Yulio offers architects a DIY virtual reality (VR) platform. The technology, developed by a Canadian team, enables 3D designs to be instantly turned into living, breathing, tourable virtual reality experiences. The platform has already been adopted by a number of notable construction firms and architects from across the AUGUST 2018


47

globe and it allows them to communicate

uct Officer, Ian Hall, is in no doubt that

and demonstrate new building designs

this product will go on to have a pro-

to clients, simply by providing them with a

found impact on the construction

VR headset. They can then immerse

industry as a whole.

themselves in a new building before con-

“This is a fairly conservative industry in

struction even starts and tour through

general,” says Hall. “But there’s been this

each room, making key design decisions

realisation that there is no such thing as a

based on experiencing the full structure

successful company today that isn’t also

around them.

a technology company. We’ve got some

It’s an important move forward within

of the largest construction companies,

an industry which is sometimes slow

certainly in North America, using our

to adopt technological trends and

products and they’re using it in their

advancements and Yulio’s Chief Prod-

design area. w w w. c o n s t r u c t i o n g l o b a l . c o m


CONSTRUCTION 4.0

“And when you speak with their

48

“So, with all of that in mind and

visualisation leads, they’re pretty

the fact Yulio essentially allows for

frank. Competitive differentiation

all of this, I think this is essentially a

is: can you get your ideas across

billion-dollar transformative tech-

better, more efficiently? And, if

nology for this industry.”

you start really looking at the root

That’s a bold proclamation, but

ROI behind all of this, can you get

things certainly seem to be head-

your designs to market faster?

ing in the right direction for the

Can you get them to market more

team at Yulio. To date, it has deliv-

accurately? Are you gonna be

ered around 250,000 unique

able to remove ambiguity, basi-

virtual reality experiences on

cally so that when somebody

behalf of customers and that

responsible for the actual con-

number is continuing to grow at

struction is experiencing it in

a steady pace.

virtual reality there is no ambiguity

Hall is convinced that one of

about what they are to build?

the key reasons for this continued

“And then after it’s built, there’s no

growth is the discipline the com-

ambiguity around quality assurance.

pany has shown, in terms of

Does it look like it looks in the CAD?

maintaining focus on its end goal

“I THINK THIS IS ESSENTIALLY A BILLION DOLLAR TRANSFORMATIVE TECHNOLOGY FOR THIS INDUSTRY” —

Ian Hall, Yulio’s Chief Product Officer

AUGUST 2018


Click to watch ‘Yulio VR– CanBim 2017’ 49

without becoming too distracted by fashionable trends and industry developments along the way. “There’s been always that temptation

our approach has been very pragmatic. “I think what that’s done, is it’s positioned us as a partner that delivers value not hype. So yes, there are a lot of com-

to kind of go down and do the next sexy

petitors coming in and they’re going down

thing in the space,” he says. “‘Hey, we’re

similar paths that we went down in the

gonna do AR before it’s really ready for

early stages. They’re kind of focusing on

business’, and we’ve resisted that. ‘Let’s

the ‘big shiny bauble’. Whereas we’ve paid

do tethered, let’s do complex HTC Vive

our dues, we’ve done the field research,

full room breaks, because it’s really sexy

and we’ve spent upwards of a thousand

when you video it’.

hours of usability testing, in terms of

“It is sexy when you video it but you can

human factors designed for both the

maybe do one of those every few months

content creation and the consumption

because it’s so cost-prohibitive, whereas

of this stuff.” w w w. c o n s t r u c t i o n g l o b a l . c o m


CONSTRUCTION 4.0

And what is the by product of those hours spent refining

timidated” gives him the belief that

the platform?

the future of architecture, and con-

“Getting it simple enough that a 50-year-old CEO of a major corporation deciding whether to

struction and design in general, is in good hands. He is also adamant that the time

spend a few million dollars on this

for people to be investing in the

floor plate can go in there, without

product is now, if they wish to avoid

feeling intimidated, and not feel cut

being left behind.

off from their peers when they’re

50

manner that he describes as “unin-

“You’re going to see an exponen-

looking at this stuff in this technol-

tial adoption of this because it

ogy,” Hall adds. “That is a very

works,” says Hall, simply. “The ROI

tough needle to thread. That’s

is starting to become self-evident.

what we focused on.” And what Yulio now has is a situ-

“For those people that have adopted and embraced it, the first

ation where it has a growing

time that you’re presenting some-

customer base and a platform

thing in VR and your competitor

which is gaining both notoriety

isn’t and you win the deal and they

within the marketplace and

don’t; or the first time that you have

respect within the industry.

an insight where you shared a

The company has also entered

design element with a peer and

into a partnership with Ryerson

they noticed something that the

Architectural College in Toronto

two of you hadn’t noticed whilst

where the students get to use the

looking at the floor plan and the

platform during their studies, and

CAD models – any moment that

Hall says seeing the next genera-

you kind of make an adaptation due

tion engaging with Yulio in a

to this visualisation technology giv-

AUGUST 2018


“OUR APPROACH HAS BEEN VERY PRAGMATIC. I THINK WHAT THAT’S DONE, IS IT’S POSITIONED US AS A PARTNER THAT DELIVERS VALUE NOT HYPE” —

Ian Hall, Yulio’s Chief Product Officer

w w w. c o n s t r u c t i o n g l o b a l . c o m

51


CONSTRUCTION 4.0

ing you a different perspective, those are the moments that the hook is set. “I think what’s going to happen is, as more companies experiment with this, you’re just going to start to see it become broadly adopted. “It poses challenges. The IT department in these companies are already pretty overloaded. A lot of people are saying

‘we’re sitting by the sidelines until the dust

Ian Hall, Yulio’s Chief Product Offic

settles and then we’re going to jump on whoever the winning vendor, or whatever winning technology is’. Late adopters, 52

“YOU’RE GOING TO SEE EXPONENTIAL ADOPTIO OF THIS BECAUSE IT WO THE ROI IS STARTING TO BECOME SELF-EVIDEN

they’re always going to be out there. “The really smart guys, though, what they’re saying is ‘this is not something where we want to be late to the game’. The survivors of the next five-to-10 years of innovation will be the ones that embrace this technology, that have figured out how to get commercial advantage out of it, and that have made it part of their DNA. “It cannot be something they bolt on after the fact, five years later, after everybody else has figured it out. If you’re coming to the game late, I think you’re putting your business at serious risk.”

AUGUST 2018


AN ON ORKS.

NT”

cer

53

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T O P 10

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AUGUST 2018


Top 10 tallest

buildings in the world This article takes a look at the top ten tallest buildings on Earth, according to recent lists released by The Tower Info and The Skyscraper Center Database W RI T T E N BY

HARRY MENE AR

w w w. c o n s t r u c t i o n g l o b a l . c o m

57


T O P 10

Guangzhou CTF The ninth space on the list is also occupied by a Chow Tai Fook Finance Center, this time located in the Tianhe district of Guangzhou, China. Completed in 2016, the Guangzhou CTF also measures 1,739 ft tall, with a total of 97 floors above ground. The building contains five floors below ground, however, but only 355 apartments and 251 hotel rooms, instead dedicating more space to offices. Designed by Kohn Pedersen Fox Associates, the Guang-

58

Tianjin Chow Tai Fook Finance Center

Located in the Binhai New Area of Tianjin in China, the Tianjin Chow Tai Fook Finance Center began construction in 2013. As of 2018, the structure is architecturally topped out, and the project is expected to reach completion in 2020. Designed by Skidmore, Owings & Merrill LLP, the Tianjin CTF Center stands 1,739 ft tall, and contains 97 floors above ground and four below. Floor space is divided between office space, luxury serviced apartments, and a hotel containing 365 hotel rooms and 266 apartments, according to The Skyscraper Centre. AUGUST 2018

zhou CTF has a sharper external appearance and, at 4,284,036 sq ft, almost double the floorspace of the Tianjin development.


Lotte World Tower The tallest building in Seoul, South Korea is the Lotte World Tower, which stands 1,819 ft tall and contains 123 floors above ground and 6 below. The development, which began in 2011 and was completed in 2017, was overseen by Kohn Pedersen Fox Associates, along with Lotte Property & Development. In addition to 260 hyper-luxury

One World Trade Center Built in 2006 (completed in 2014) on the previous site of the North Tower of the World Trade Center, New York City’s One World Trade Center is the tallest building in the Western hemisphere. Standing a patriotic 1,776 ft

hotel rooms and large areas of dedicated office space, the LWT also plays host to retail components, and the top ten floors, which are dedicated to public use, contain entertainment facilities and a rooftop cafe. The LWT also has the joint-smallest number of elevators in the top ten list, with a mere 58.

tall, the building contains 94 floors above ground and five below, and was designed by CTF Tianjin architecture firm Skidmore, Owings & Merrill LLP. Costing $3.8bn, the development is the sixth most expensive building in the world, not including the Two and Three World Trade Center towers, due to be completed in 2022 and opened to the public in June 2018 respectively.

w w w. c o n s t r u c t i o n g l o b a l . c o m

59


T O P 10

Ping An Finance Center

Located in the Futian District of Shenzhen, China, the Ping An Finance Center is the tallest building in the city, and the second-tallest completed building in Asia. Construction finished in 2017, with the tower reaching 1,965 ft. The building contains 115 floors

Goldin Finance 117 60

Imminently expected to claim the title of Tianjin’s tallest building the Goldin Finance 117 project, currently on hold, but expected to reach completion in 2019. The final height of the tower will be 1,957 ft, with 128 floors above ground and eight below. Upon completion, the tower will be divided, with the lower floors being dedicated to office space, and the upper levels serving as a luxury hotel. According to the Skyscraper Center, “the surrounding Goldin Metropolitan development... [will contain]... a large high-end residential area, entertainment venues, two international standard polo fields, training facilities, retail outlets, and green spaces.” The report adds that, “a 200m office tower will be located nearby, satisfying the feng shui requirements set out for the development area.” AUGUST 2018

above ground and five below. According to The Skyscraper Center, Ping An Finance Center represents “a new generation of the prototypical Asian skyscraper: very tall, very dense, and hyper-connected”. The tower is situated in the center of the city and connects to neighbouring commercial and residential properties by means of the Pearl River Delta high-speed rail corridor.


Wuhan Greenland Center

With construction currently on hold, and no scheduled completion date, the Wuhan Greenland Center is indefinitely in waiting to officially claim the title of second-tallest building in Asia. When the mega-skyscraper opens, however, it will join a select list of buildings whose uppermost points breach the coveted 2,000 ft marker, in the Greenland Center’s case, by a single

Abraj Al-Bait Endowment Complex

foot. Construction began in 2012, and

Completed in 2012, the Abraj Al-Bait

over 1,000 parking spaces.

the final development is projected to 186 apartments, 292 hotel rooms, and

Endowment Complex is, in terms of development size, the largest on the top ten list, covering 16,961,985 ft². Located less than a mile from Islam’s holiest site, the complex’s Makkah Royal Clock Tower stands 1,972 ft tall, claiming the record for both tallest clock tower and tallest hotel in the world. In 2016, the Abraj Al-Bait Endowment Complex was named by the Daily Telegraph as the second most expensive building in the world, with a total construction cost of $15bn. w w w. c o n s t r u c t i o n g l o b a l . c o m

61


T O P 10

62

Shanghai Tower Wearing the crown of tallest building in Asia is the Shanghai Tower, located in the heart of the city’s Lujiazui Finance and Trade Zone. The tower stands 2,073 ft tall, and contains 128 floors above ground, and five below. The building’s distinctive twisting shape, according to The Skyscraper Center, both symbolises the emergence of China into the modern world, and also channels wind around the structure, reportedly reducing stress on the structure by 24%. Inside, the building is separated into nine zones divided into leisure, office, residential, and retail space. It also contains the highest number of elevators in the top ten, with 106.

AUGUST 2018


63

01

Burj Khalifa Completed in 2010, the Burj Khalifa (otherwise known as the Burj Dubai) stands 2,723 ft tall and has retained its title of world’s tallest building for eight years. It is likely to retain that title until the 3,000-plus ft tall Jeddah tower, which began construction in 2013, is completed. The Burj Khalifa contains 163 floors above ground, with only one below. These floors are divided between office, retail, and residential space, with 900 apartments and 304 hotel rooms. The tower was also designed by Skidmore, Owings & Merrill LLP. Unexpectedly, the Burj Khalifa is tied with the Lotte World Tower in Seoul for the smallest number of elevators in the top 10, with a mere 58 cars travelling 10 m/s, less than half the speed of those in the Shanghai tower.

w w w. c o n s t r u c t i o n g l o b a l . c o m


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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY ANDREW WOODS from around the world

23 OCTOBER

Global Construction Summit [ SHERATON, NEW YORK, USA ]

25–26 SEPTEMBER

66

Construction Technology Forum

The 2017 Global Construction Summit, presented by

[ HOTEL DUBAI MARINA, DUBAI, UAE ]

ENR and Marcum LLP, brings

The inaugural Construction Technology Forum 2018 is a

together the construction

new two-day event designed to provide insights on how

industry’s top world market

adopting technology can reduce operational costs, boost

experts to help attendees

productivity, and enhance overall quality across all ele-

build their business and com-

ments of the industry supply chain.Attend and hear about

pete on the international

specific technological solutions from leading clients,

playing field. Event partici-

engineers and top-tier vendors involved in the region’s

pants will gain market

leading built environment projects. The event will focus on

intelligence to grow and lev-

the transformation of the industry over the next decade as

erage their company’s

the adoption and application of technology is acceler-

strengths among new and

ated.UAVs, 3D printing, BIM, driverless cars, autonomous

changing opportunities in

equipment and advanced building materials will be just

Asia-Pacific, North and

some of the key technologies profiled.

South America, Europe,

www.constructiontechnologyforum.com

Africa and the Middle East.

Click here for more info AUGUST 2018


07–09 NOVEMBER

Design-Build Institute of America DBIA Conference & Expo 2018 [ NEW ORLEANS, LA ] DBIA’s annual Design-Build Conference & Expo grows each year as an increasing number of the nation’s owners and design-

23–24 OCTOBER

London Build 2018

builders declare this is their number one design-build event. 2018 is also DBIA’s sil-

[ OLYMPIA NATIONAL ]

ver anniversary, so come celebrate 25

London Build is the leading construction

years of design-build success with us.

show to cover London and the south of

Owners and design-builders across the

England. London Build unites an incredible

nation, as well as sectors and professions

range of high-level attendees involved in

come together for three days of work-

construction, architecture, infrastructure

shops, panel discussions and keynotes by

and design in London to discuss a wide-

industry leaders addressing the real-

ranging source of issues relating to every

world challenges America’s design-build

aspect of the industry.

teams and owners face across all sectors.

www.londonbuildexpo.com

www.dbia.org

w w w. c o n s t r u c t i o n g l o b a l . c o m

67


EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences from around the world

15–17 NOVEMBER

National Construction Equipment 14–16 NOVEMBER Convention (NCEC) [ SYDNEY SHOWGROUND, SYDNEY OLYMPIC PARK ] Greenbuild 68

[ MCCORMICK PLACE, USA ]

The inaugural NCEC is a newly designed mega show that

Greenbuild is the world’s

builds on the success of three biennial state-based shows

largest conference and

to make a new national event (a three-day hub for indus-

expo dedicated to green

try). NCEC is Australia’s first industry-owned,

building. Greenbuild

multi-disciplinary, multi-event platform for the earth mov-

International Conference

ing and infrastructure construction sector with Hitachi,

and Expo provides the

Komastu, Volvo/CJD, Toyota Materials Handling, Tutt Bry-

opportunity to visit with

ant and Clark Equipment attending this year’s show. “With

more than 750 suppliers

the theme ‘Think Globally, Act Locally’ this three-day

and top manufacturers

event will give you the opportunity to interact face-to-face

of the latest green building

with industry leaders. NCEC will form a vibrant industry

equipment, products,

hub, working with major associations to create an event,

services, and technology

for the industry, by the industry to conquer common chal-

available in today’s market.

lenges and drive the sector forward together. With a focus

Click here for more info

on infrastructure and cutting-edge technology, this is the time to get involved in this fast-paced industry.”

ncecaustralia.com.au


TBC

28–30 NOVEMBER

The Buildings Show

Construction News Awards 2018

[ METRO TORONTO CONVENTION CENTRE ]

[ TBC ]

Canada’s largest exposition, networking and educational

The Construction News

event, The Buildings Show is the leader in sourcing, net-

Awards are back, celebrat-

working and education in Canada for the design,

ing 22 years of rewarding

architecture, construction and real estate communities.

the very best companies

The Show is home to Construct Canada, HomeBuilder &

and individuals in construc-

Renovator Expo, PM Expo, STONEX Canada, World of

tion. Hundreds of global

Concrete Pavilion. More than 30,500 trade profession-

companies with combined

als attend the show annually to discover new innovations

revenues of more than

across the building industry and source the latest materi-

$148bn will enter the Con-

als, products, tools and technologies from more

struction News Awards to

than 1,600 Canadian, US and international exhibits.

have their work recognised

Through the show’s comprehensive seminar programme,

as the best in the infrastruc-

attendees can choose from 350-plus seminars, keynotes,

ture, property and

summits and roundtables led by a roster of 500-plus

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industry experts.

Click here for more info

www.thebuildingsshow.com w w w. c o n s t r u c t i o n g l o b a l . c o m

69


EAST AFRICA

DIGITAL

CONSTRUCTION 2018

14-15 NOVEMBER 2018, NAIROBI, KENYA

Vaughan Harris

Executive Director BIM Institute, South Africa

Marius Mostert Technical Principal, Urban Development SMEC, South Africa

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Chairman Town and County Planners Association of Kenya (TCPAK)


ORGANIZED BY:

KEY HIGHLIGHTS: • SPEAKER PRESENTATION: Uptake and application of BIM | Digital Disruption in Construction In • ROUND TABLE SESSION: Is East Africa on the bus to Digital transformation? • GLOBAL CASE STUDY: Impact of 3D clash detection in the largest multidisciplinary project

• TELECOM PERSPECTIVE: Implementing Cloud and ERP solutions right at the design stage • FINANCE PERSPECTIVE: Capital Projects in a Digital Age • NEED OF THE HOUR: Smart Town Planning and Development

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E: mohor@saifee-events.com Website: www.saifee-events.com


� LU D R . O Z A N K Ö S E OG

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Cons

t

AUGUST 2018


EUROPE

73

structing

the airports of tomorrow’s world DALE BENTON LEWIS VAUGHAN

WRITTEN BY PRODUCED BY

w w w. c o n s t r u c t i o n g l o b a l . c o m


� LU D R . O Z A N K Ö S E OG

What will the airport industry of tomorrow look like? Dr. Ozan Köseoğlu, a CTO operating in the industry, talks about navigating the increasing complexity of airport construction onstruction projects are often complex ecosystems, with layer upon layer of stakeholder. From the contractors on the ground, the construction managers right through to the executive teams, each party has a key role in the development of any project. But one particular stakeholder is proving more and more integral to the successful delivery of any construction and that is the customer and end user.

C

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AUGUST 2018

When the project in question is the construction of a technologically advanced airport, created to host an annual passenger capacity of more than 200mn, the complexity of that ecosystem only intensifies. “Airports are very complex infrastructures, far more complex than the building of any other infrastructure project,” says Dr. Ozan Köseoğlu, Chief Technical Officer in the construction industry.


EUROPE

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� LU D R . O Z A N K Ö S E OG

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“It’s a massive building, utilising large scale technologies and a hugely complex ecosystem. So, the best way of managing that is to understand how the whole place and the whole ecosystem is going to work together, and then you can bind them together.” Köseoğlu has built an entire career around construction, construction managmeent and technology and engineering projects. Over the course of his career, he has worked on major airport projects in the United Kingdom and the Middle East and it is this experience that he feels grants him a unique understanding as to how the construction of airports is continuously evolving. “The construction of a major project like an airport requires much more management. I’d manage the whole design engineering construction and day-to-day operations,” he says, “as well as communicating and collaborating with the individuals involved and the digital platforms implemented to bring together that whole infrastructure ecosystem. “It’s certainly going to be a new way of managing the whole lifecycle of construction with stakeholders.” AUGUST 2018

The lifecycle of construction, and the collaboration between the various different stakeholders is becoming increasingly defined by technology and innovative tools in order successfully deliver a project in the most efficient way possible. Köseoğlu believes that this changing landscape of airport construction and technology can be broken down into two parts – the project phase and the operation phase. Throughout the project phase, technology has seen the time and cost of a project come under greater scrutiny. An airport by its very nature creates a more demanding environment, with governments expecting a certified completion date in order to begin full scale operations, clients and client representatives needing to be available and ready and even commercial operators looking to be in house and ready for operation to begin. To this end, Köseoğlu notes that it requires a more focused


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“The only way to make something really efficient and robust, like an airport, is to readjust the very nature of how you can deliver a product, which is where technology comes in. It’s very critical to apply technology in the right way and the right places in order to deliver the very best project we can in the limited time environment” — Dr.Ozan Köseoglu Chief Technical Officer w w w. c o n s t r u c t i o n g l o b a l . c o m


� LU D R . O Z A N K Ö S E OG

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approach to the implementation of technology in order to navigate what he describes as a more “commercial constraint” environment. “The only way to make something really efficient and robust, like an airport, is to readjust the very nature of how you can deliver a product,” he says. “Which is where technology comes in. It’s very critical to apply technology in the right way and the right places in order to deliver the very best project we can in the limited time environment.” As Köseoğlu notes, the complete lifecycle of an airport project does not end with the finished construction. Once the airport goes into the operations phase, the requirments of the stakeholders shift but the complexity of the infrastructure remains. Through operations, the end user and the passengers become the key cog. Airports after all are a business venture and so they must be able to make money from the airlines that use them and the passengers that travel through. In order to do this, passengers must enjoy the airport and journey experience. This is where the successful implementation of technology proves crucial once again. “When passengers commit to a flight, the experience starts the moment they set foot inside the airport doors,” says Köseoğlu. AUGUST 2018


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“Through technology systems, passengers can access their terminal, get into check in areas and interact with digital platforms to retrieve their tickets and boarding passes. So, the technology we use helps facilitate a greater experience as it creates efficiency in the administrative parts of the journey so that they can enjoy the retail or entertainment parts of the airport.” As businesses focus their attentions on improving the passenger journey experience, they require an understanding of their behaviours and their demands. In order to glean this information, Köseoğlu notes that airport businesses will explore data capture technology to form a clearer picture of the modern-day passenger and how best to serve them. This is important as airports, when fully operational, will continue to be driven by business requirements which are ever evolving. “The airports will continue to evolve and develop,” Köseoğlu says. “They will get bigger and so the requirements and the demands will continue to get bigger. This is the future for any airport but at the end of the day, it will always come back to the client and the passenger.” w w w. c o n s t r u c t i o n g l o b a l . c o m

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“The only way to make something really efficient and robust, like an airport, is to readjust the very nature of how you can deliver a product” — Dr.Ozan Köseoglu Chief Technical Officer

The operating phase of the modern airport is reliant on the successful implementation of that “efficient and robust” IT infrastructure. This is the very core foundation on which the rest of the airport can build upon and grow. Without it, everything else will fall apart at the first hurdle. “A challenge for any airport of scale is translating the backbone of IT and technical achievement into the operations phase,” says Köseoğlu. “You need to have your mechanical systems working and

your IT systems otherwise how can you successfully operate, let alone grow or continue innovate?” This is where partners and technology vendors prove a key addition to any infrastructure project. The right partner and the right vendor will be one that will remain with the business from the very start of the project, through to the operation phase and beyond. Köseoğlu belives that in order to be a successful partner one must work closely with the business throughout the entire lifescyle, including continuous operations. As noted, the airport construction industry is changing and becoming more technologically advanced which in itself means time constraints and commercial constraints are getting stronger. Business are redefining their own business models in order to adapt and thrive in this changing landscape, and Köseoğlu believes that vendors must adopt this same level of cultural change. “Partners need to change and innovate alongside you throughout the journey,” he says. “The partners that invest into their business and look at ways of disrupting their own way of working, they are the ones that will stay with you and continue to provide value as you move into the future.” w w w. c o n s t r u c t i o n g l o b a l . c o m

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� LU D R . O Z A N K Ö S E OG

82

“Through technology systems, passengers can access their terminal, get into check in areas and interact with digital platforms to retrieve their tickets and boarding passes. So, the technology we use helps facilitate a greater experience as it creates efficiency in the administrative parts of the journey so that they can enjoy the retail or entertainment parts of the airport” — Dr.Ozan Köseoglu Chief Technical Officer

AUGUST 2018


EUROPE

Industries and sectors all around the world are being redefined by technology, but with technology the transformation never truly ends. The technologies of today may not be the technologies of tomorrow and businesses are becoming more aware of the need to constantly innovate and improve. Köseoğlu recognises that this is the market he is in today, but notes that while we have one eye firmly on the future we should not forget the past. “There are strong examples of the successful construction and operation of incredibly innovative airport projects and we must take lessons from these into the future,” he says. “In order to do that you need to have an open door towards technologies, you have to continuously look for ways in which you can innovate the business. “In doing so, it not only means you have the most innovative operations, it means you are operating in an intelligent way in order to better serve everyone in that infrastructure ecosystem.”

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AUGUST 2018


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CONNECTING THE

WORLD WITH GREEN ENERGY

WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

LE WIS VAUGHAN

w w w. c o n s t r u c t i o n g l o b a l . c o m

85


The data centre industry and subsequent demand for energy is growing apace. Manager for Energy & Dataport, ROBERT VAN TUINEN, tells us how Groningen Seaports is catering to this demand

ROBERT VAN TUINEN is responsible for the development of the energy, IT and automotive sector within both ports. He has an academic background in business administration and previously worked for a national bank and as a manager for an energy knowledge institute.

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AUGUST 2018


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Chemical industry Delfzijl

T

he ongoing demand for

In particular, there are big invest-

connectivity has led to an

ments coming from the data centre

exponential boom within

sector itself,” explains Robert Van

the energy sector, thanks largely to

Tuinen, Manager for Energy &

the launch of data centres world-

Dataport at Groningen Seaports.

wide. The communications industry

Consisting of two seaports, the

is set to absorb up to 20% of the

port of Delfzijl and Eemshaven, as

world’s electricity by 2025, as busi-

well as two inland ports, Farmsum-

nesses and consumers depend on

erhaven and Oosterhornhaven, Van

the increased use of digital data to

Tuinen has led the growth of one of

fuel business growth.

Europe’s largest energy hubs for

Europe has become a significant

data and a growing offshore wind

player, where competition remains rife

sector. The 1,319 hectare site at

in an area of unprecedented potential.

Eemshaven has been transformed

“A major change is that it’s no

into an area of international signifi-

longer big telecom operators or

cance within the data centre

state-owned telecom companies

industry, renowned for accessibility

who are investing in connectivity,

and quality. Utilised by international

it’s mostly commercially driven.

companies, the area is driven by w w w. c o n s t r u c t i o n g l o b a l . c o m

87


Your business case today

translated in smart data centre space for tomorrow

Royal HaskoningDHV is an independent, international engineering and project management consultancy with 135 years of experience. Backed by the expertise and experience of 6,000 colleagues all over the world, our professionals combine ‘global expertise’ with ‘local knowledge’ to deliver a multidisciplinary range of consultancy services. By showing leadership and innovation in the design of data centres, we are creating solutions for a vital infrastructure in our modern live and empower a sustainable society now and into the future. For more information, please contact: Martien Arts, Director - Mission Critical Facilities T: +31 88 348 6550 M: +31 6 51846333 E: martien.arts@rhdhv.com www.royalhaskoningdhv.com/datacentres


EUROPE

100% renewable energy. “In 2012, we said that we were going to invest millions in this new port area. We had this million-euro programme to redevelop land and start conversations with landowners and foreign investors to take a look at Eemshaven. It was still predominantly farmland, but people needed to believe in this,” Van Tuinen recalls. “A few years back, I thought, ‘we need others to tell our story as well’. We combined the data port development together with

“IT’S NO LONGER BIG TELECOM OPERATORS OR STATE-OWNED TELECOM COMPANIES WHO ARE INVESTING IN CONNECTIVITY, IT’S MOSTLY COMMERCIALLY DRIVEN. THERE ARE BIG INVESTMENTS COMING FROM THE DATA CENTRE SECTOR” — Robert Van Tuinen, Manager for Energy & Dataport

partnerships, who we call ‘preferred suppliers’. These were the early movers who believed in the concept. “Energy suppliers in general weren’t used to structured power purchase agreements based on joint equity or very long terms for instance,” he continues. “This may sound funny, but five or six years ago, this wasn’t something normal for energy companies. Eneco was a good match with the specific demand coming from the industry, one of the first w w w. c o n s t r u c t i o n g l o b a l . c o m

89


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EUROPE

companies to believe in the area and

GAINING SUPPORT

pioneered the way.

To gain further clout, the company

“Most energy companies were

appointed Deloitte to undertake an

scared at doing structured deals, so it

essential market analysis on the data

was a different time. The other thing

port area. Finding Eemshaven to have

was asking fibre developers to join. We

future potential, Groningen Seaports

partnered with Relined as it was the

also appointed specialists who worked

first company with a network in the

specifically for technology companies,

Eemshaven area.�

such as Microsoft, Google and Apple.

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w w w. c o n s t r u c t i o n g l o b a l . c o m


Your datacenter running on additional renewable energy in 2020? Wind farm Delfzijl currently supplying GOOGLE datacenter Eemshaven

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transition requires us to work together in a different way. The current customer-supplier relationship is disappearing. Individuals, companies, municipalities and other market parties are now working with each

Joost de Boer

other in multiple changing roles. Eneco Group – with its numerous

Manager the Nederlands–North for Eneco Group

brands and business units – is the connecting link bringing parties

joost.deboer@eneco.com | +31 (0)6 – 55 69 70 91

Welcome to the new world.


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“It’s a pretty strong story with a lot of partnerships, but these companies are

Haskoning DHV is independent, it believes in the story and has a strong

also competing against one another with advisory opinion.” Van Tuinen says. more renewable project coming online in the next few years,” adds Van Tuinen. “We have a partnership with Eneco, but also with other energy companies,

“They look not just at land development but also cooling. They believe Eemshaven is a good area; it has lots of air, good quality, good wind, and is one of

which is why we call them ‘preferred sup- the best locations. The company also pliers’. Of course, data centre companies bought investors to our port. When are free in who they want to work with” Additionally, the company’s strong

they’re busy with conducting business, they use Eemshaven as an example port.”

partnership with Royal Haskoning DHV has provided support across its data

GREEN DATA PORT

centre operations.

Harnessing a combination of green

“We asked Royal Haskoning DHV to

energy, the largest onshore wind farm

inform companies of our technology mis- is located in Eemshaven together with sion and why they believe Eemshaven is a multiple substations connecting good area for their data centres. Royal

Danish and Dutch offshore wind farms, w w w. c o n s t r u c t i o n g l o b a l . c o m

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94

“ROYAL HASKONING DHV IS INDEPENDENT, IT BELIEVES IN THE STORY AND HAS A STRONG ADVISORY OPINION” — Robert Van Tuinen, Manager for Energy & Dataport

AUGUST 2018


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besides the 30MW solar farm, iSunport Delfzijl, the largest solar energy park in the country, all of which fall under Groningen Seaports’ umbrella. “If you look for the major developments worldwide, it clearly makes sense to think about data centres. However, to be honest, we didn’t expect such a demand for land usage,” reflects Van Tuinen. “I don’t think the sector itself could have foreseen how much land it would need for further growth”. “Google has recently purchased all green electricity generated at Sunport Delfzijl for 10 years as part of a second deal with Eneco on top of the earlier energy deal combined with a local Eneco windfarm. The company recently announced another €500mn investment after €950mn spent over the last couple of years. This is great news for our region, which has shown great support for the data port development. The challenge was that we

w w w. c o n s t r u c t i o n g l o b a l . c o m

95


needed to develop more land close to

Marc Oman, EU Energy Lead at

the port, anticipating all further growth

Google recently commented in a press

from the data centre sector itself.”

release: “We are proud that our data

“We did this in partnership with the

centre in Eemshaven has been powered

local government and environmental

by renewable energy since day one

organisations, who saw an opportunity

thanks to our agreements with Dutch

to combine green energy and recreate

suppliers. After the agreement with

some major values before it was all

Eneco for the delivery of wind energy

agricultural. A data centre provider

from WindPark Delfzijl and the agree-

must feel comfortable with their invest-

ments with the wind parks Krammer and

ment, of course, which has to do with

Bouwdokken, we are pleased that we

the local support,” adds van Tuinen.

can now also make use of solar energy.

96

The Vole au vent jack-up vessel AUGUST 2018


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Click to watch: ‘Googles EU data centre community Stories from the Netherlands’ 97

“Google is the world’s largest corpo-

“The ‘plug and play’ model has also

rate purchaser of renewable energy.

helped with the technical part. Through

Contracts like this also give companies

our partnerships we secured extra

like Eneco the economic certainty to

international fibre, boosted cooling

invest in new renewable energy capacity.” water facilities, reinvestments, and of course the redundant power connec-

TECHNOLOGICAL BACKBONE

tions with the grid operator.”

In order to strengthen its connectivity

Additionally, by attracting investors

capabilities, Groningen Seaports has

from fibre companies, it has attracted

worked to house a ‘plug and play model’

essential fibre packages, with low latency

across its operations, where its need for routes crossing Amsterdam, Germany, cooling water and redundant power is

Denmark and other parts of Scandinavia.

set apart from its power purchase

“Data centre companies need a cer-

agreement based on green energy.

tain amount of connectivity via separate w w w. c o n s t r u c t i o n g l o b a l . c o m


routes or a different fibre system.

interesting market for data centres and

If you want to attract various new

not just the Google’s of this world,” Van

economy industries, this is essential,”

Tuinen says earnestly.

says Van Tuinen. “The most important thing is that

By combining green energy cables across the Northsea with essential

we succeeded in enabling Google to

fibre packages, the company has man-

work with Eneco. It was a new project

aged to reduce costs significantly and

and provided an opportunity for

created the fastest route between the

Google to harness green energy. They

Netherlands and Denmark with Eem-

have run on green energy from day

shaven becoming a fibre and data

one and enhanced major green

roundabout in North West Europe

investments in the region.”

thanks to Relined’s network. With greater demand for green

98

GROWING DEMANDS

energy on a global scale, the compa-

“The Netherlands has proven to be an

ny’s largest wind farm is set to grow

AUGUST 2018


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a further 200MW in the next three

“Everybody needs to keep pace with

years, providing time to further

a new economy,” he concludes. “The

enhance its data centre operations.

good news is that all political parties in

“Demand for land in Eemshaven is

Groningen are very supportive towards

rising fast, not just from the data centre

data centres, the automotive sector

sector but also with the launch of elec-

and the new economy. It provides a

tric and hybrid cars. The automotive

good combination of economic oppor-

sector is looking at Eemshaven and are

tunities together with boosting on and

interested in port areas where they can

offshore green power.”

develop their newly-built cars, which is really cool. It is something we are anticipating now, but we weren’t three years ago. This sector is again new economy industry, which fits well with the infra-

99

structure at our port,” says Van Tuinen.

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PERI

READYING SOUTH AFRICAN CONSTRUCTION FOR THE DIGITAL AGE

100

WRITTEN BY

DALE BENTON PRODUCED BY

STUART IRVING

AUGUST 2018

Bringing profound knowledge and innovative construction solutions, PERI looks to navigate the digital revolution of South Africa’s construction industry


AFRICA

101

w w w. c o n s t r u c t i o n g l o b a l . c o m


PERI

102

A

s the world’s largest manufacturer of formwork and scaffolding, PERI is a company defined by a core mis-

sion to bring profound expert knowledge in both industry best practice and technology through a strong understanding of local environments and requirements. This mission places PERI as a key contributor to the redefining of the construction space as technology and innovation continues to drive real change. This unique position is what excites Willem Adriaan Brits, Director of Engineering for PERI in sub-Saharan Africa. AUGUST 2018


AFRICA

103

“I’ve been very passionate about con-

insight into what the real stumbling

struction my whole life,” he says. “At PERI

blocks are in the industry, not only in

we are at the forefront of real change and

day to day operations but in embracing

a position where we can make a differ-

technology and innovation.

ence to the research and the

That is essentially his role with PERI

development of new ideas. We are look-

across South Africa – to enable con-

ing at innovation and improvements

tractors in the construction space to

which will enhance construction projects

construct their projects faster, more

and the constructability of these projects.”

efficiently and more safely, and the

Brits has extensive experience in the construction space, having worked in a number of construction roles over the

major piece in this puzzle is technology and digitalisation. “The key thing for us in improving con-

course of his career. It is experience

structability is to build information and

that he feels provides him with a key

wider access to that information,” he says. w w w. c o n s t r u c t i o n g l o b a l . c o m


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AFRICA

“What it boils down to is creating access to people on construction sites and seeing 3D designs with live documentation, live design guides, design manuals etc. “This will make it more effective, more efficient and easier. That’s what we do, we shoulder customer problems through digital construction solutions and a more modern thinking approach to construction.” The challenge in changing an industry, one that is historically one of the slower moving sectors in the

“THAT’S WHAT WE DO, WE SHOULDER CUSTOMER PROBLEMS THROUGH DIGITAL CONSTRUCTION SOLUTIONS AND A MORE MODERN THINKING APPROACH TO CONSTRUCTION” — Willem Adriaan Brits Director of Engineering for sub-Saharan Africa

digital space, is changing a culture. With technology transformations and a shift towards digital innovative solutions, what impact does this have on the people? Construction by its very nature relies on labour and in South Africa and sub-Saharan Africa, labour is far cheaper than other countries. “Unfortunately, cheaper labor results in a lack of or considerably lower skill levels across the sector,” says Brits. “In turn, this means that actually applying digital and innovative solutions comes at a price. w w w. c o n s t r u c t i o n g l o b a l . c o m


“So, there is a tendency across

PERI works with what Brits

the industry not to move forward

describes as the entire engineering

and rely on cheaper solutions

value chain. Looking at the con-

attached with cheaper labour,

struction sector there are the

which then means projects take

property owners, infrastructure

longer and aren’t completed as effi-

owners, designers and developers,

ciently. It’s a real stumbling block.”

engineers and the mechanical

Brits notes that to break down a culture established over

teams that work on site. In order to adopt a new way

hundreds of years is difficult,

of working and implement new

but that there is an opportunity

technology enabled solutions

to embrace a new, more effi-

across that ecosystem, it

cient, safer and innovative

requires collaborative communi-

industry. It will just take time

cation at every stage of the

and communication.

value chain.

AUGUST 2018


AFRICA

BIO

Willem Adriaan Brits Director of Engineering for sub-Saharan Africa With hands-on experience on infrastructure and building projects and an MBA (University of Stellenbosch and Vlerick in Belgium) he gained the necessary knowledge to effectively influence, coach and manage teams and managers to enable business units to achieve key performance targets. His passion for sailing/work life balance has enhanced his ability as a leader though the application of the strategic, risk and people management and environmental-awareness skills gleaned to other aspects of both life and work. Through his tenure, Riaan has always contributed to the larger society as a whole and have been actively involved with Professional Industry bodies in the form of office bearer with bodies such as the Concrete Society of South

Africa (CSSA), Young Professionals Forum (YPF), South African National Standard for Scaffolding and Formwork (SANS, current) and the Institute for Working at Heights (IWH - current). His contributions have not stopped at industry only and he also believe in social awareness and has been integrally involved with the Imadaba Social project which fosters social cohesion since 2016. Riaan is driven by a desire to actively expand his horizons, build human capital and coach people to continuously improve themselves. He lives a full life and is a blessed husband and father who draws strength from his family.

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PERI

“Through information and management tools it enables everyone to link up more collaboratively,” says Brits. “We can see and help

108

design the buildings and look at the constructability at the very early stages. All of

Click to watch: ‘Formwork, scaffolding and engineering from one source’

this will directly relate in cost savings, from the initial set up of a programme right through to construction. “All the clashes and stumbling blocks can be addressed, resulting in a much smoother construction process.” As with any technology implementation, capability is key. But what can be readily adopted in one construction space in Europe, or the United States, may not be as simple in South Africa or sub-Saharan Africa. This is

AUGUST 2018


AFRICA

“MOST PEOPLE ARE EXCITED ABOUT THE CHANGE TO DIGITAL SPACE. IF WE CAN COMMUNICATE TO THEM AND SHOW THEM HOW IT WILL BOOST THEIR ACTIVITY AND THEIR EFFICIENCY,THEN THE INDUSTRY WILL IMPROVE. IT’S A MINDSET,AND MINDSETS CAN CHANGE” — Willem Adriaan Brits Director of Engineering for sub-Saharan Africa

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PERI

something that Brits is all too aware of as he feels that, much like the reliance on cheaper labour, there is a reliance to remain using the current, outdated software. Alas, new technology is being adopted more and more across the continent, and the key for Brits is practice and communication. “We need to discuss the cost of software and the business

“IF YOU’RE CLOSE TO THE SUPPLIERS,THEY UNDERSTA BETTER WHERE YOU WANT TO GO AND WHAT WE WAN TO ACHIEVE – THEY HELP US MAKE THE FIRST MOVE.THE ARE ENTRENCHED IN THE INDUSTRY AND SEE HOW BEST TO NAVIGATE THE OBSTACLES ALONG THE WA

case for it more and more,” he 110

says. “Most people are excited about the change to digital space. If we can communicate to them and show them how it will boost their activity and their efficiency, then the industry will improve. It’s a mindset, and mindsets can change.” Brits also points to the future of digital requiring more skilled people and so PERI works in skilling and reskilling people to better prepare the industry for this digitally enabled future. Navigating the journey of adopting and implementing technology across a largescale sector is a task one cannot complete alone. PERI works with a number of contractors and suppliers across the entire AUGUST 2018

— Willem Adriaan Brits Director of Engineering for sub-Saharan Africa


AFRICA

AND

NT S EY

AY� 111

1969

Year founded

670

Approximate number of employees

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construction value chain and Brits feels that the relationships that PERI forms and fosters with these suppliers is crucial. “In all the areas – design, construction, technology and engineering – it’s paramount that you are close to the suppliers,” he says. “If you’re close to the suppliers, they understand better where you want to go and what we want to achieve – they help us make the first move. They are entrenched in the industry and see how best to navigate the obstacles along the way.” The construction industry in South Africa is changing, for better and for worse. Brits AUGUST 2018


AFRICA

113

points to how a number of larger play-

ogy brings to the industry, and that it is

ers in the sector, ones that have

only just beginning.

operated for hundreds of years, have

“I really see a big space for applying

had to change their operations in order

digital information and having live data,

to survive. In some cases, some have

just that information sharing collabora-

fallen into liquidation and disappeared.

tion process. There’s a lot of space for

To look at it from a different perspective, this has seen smaller companies

that,” he says. “I think there’s a large amount of

and the companies that have survived

opportunity. There’s a big change and a

this change becoming far more agile

big shift that’s going to come.”

which is key to embracing the technological and digitally defined future. For Brits, these movements highlight the opportunity that digital and technolw w w. c o n s t r u c t i o n g l o b a l . c o m


Fletcher Building RTG Delivering robust, sustainable and cost-effective roofing across MEA WRIT TEN BY

TOM WADLOW PRODUCED BY

CR AIG DANIEL S

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FLETCHER BUILDING ROOF TILE GROUP

Through its three well-established brands, Decra, Gerard and Fortiza, the subsidiary of New Zealand construction giant Fletcher Building is looking to grow across the Middle East and Africa in an improving investment climate The Middle East and Africa (MEA) region is awash with opportunities for forward-thinking construction companies and their suppliers. Following the economic slowdown of a decade ago, operators in the region’s construction industry and supply chain are observing a stabilisation of the market thanks to an improving financial picture, driven in part by recovering commodity prices. Fletcher Building Roof Tile Group (RTG) is one such observer. A regional division of the New Zealand building giant, the unit delivers roofing solutions through three brands – Decra, Gerard and Fortiza. In charge of growing brand awareness and facilitating innovation of Fletcher Building RTG’s product portfolio further is Lamjed Kefi, Managing Director Middle East and Africa. Having worked out of the Middle East since 2007 for two construction multinationals, Kefi

O

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MIDDLE EAST

“We need to realise that the Africa-Middle East region is a large one, and that by 2030 around 25% of the world’s population will live in this part of the world.There will be a big housing deficit and that is a huge opportunity.” — Lamjed Kefi, Managing Director Middle East and Africa

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FLETCHER BUILDING ROOF TILE GROUP

says that the investment climate is improving, and that Fletcher Building RTG is well-placed to take advantage and supply this demand. “We see stability coming and that economic improvement can benefit our business,” he explains. “We need to realise that the Africa-Middle East region is a large one, and that by 2030 around 25% of the world’s population will live in this part of the world. There will be a big housing

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deficit and that is a huge opportunity.” Kefi also points to the wider Fletcher Group’s formidable history and reputation in the sector, something which will stand it in good stead when looking to expand into new markets. The Kiwi corporation can be traced back to the early 1900s, and over the course of the last century has developed into a multibillion-dollar multinational.


MIDDLE EAST

“We have already built up a very high brand equity in the region.We are the largest branded metal rooftile supplier, and that is in part due to what we have invested in marketing, not only online but also on billboards, at trade shows and on TV and radio spots” — Lamjed Kefi, Managing Director Middle East and Africa

A standout portfolio Fletcher Building Roof Tile Group manufacturers solutions under its three brands from plants in Asia, Europe, the US and New Zealand, and pioneered in the first metal roofing tile in 1957, a formula which defines the company’s products today. It is this characteristic that enables it to provide a massive 50-year warranty to customers, with tiles able to withstand the harshest of environments, from extreme heat to Arctic cold. A durable base coat and layer bonding also ensure these tiles can withstand being chipped or strained, making sure the important 100% coverage remains. “When I found out about the warranty before I joined it said to me ‘wow this is a very special product’,” Kefi says. “It also said that this was a special company that commits to home owners and customers.” Another key characteristic of Fletcher Building RTG’s w w w. c o n s t r u c t i o n g l o b a l . c o m

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MIDDLE EAST

Click to watch: Fletcher Building Overview

portfolio is that it covers a wide range of price points which can cater to various budgets and specifications. This ability to be competitive is underpinned by an efficient manufacturing and transportation operation. Kefi explains: “The lightweight products we have are up to seven or eight times lighter than our competitors, which allows us to transport goods very economically from the likes of New Zealand. Not only does this keep our cost down, but lighter

tiles also save on the structural elements of the house or building.” Further, energy efficiency qualities also help to make Decra, Gerard and Fortiza roofing solutions economically sound. “They are 100% recyclable,” Kefi states. “The material is thin and light so that means it cools down quicker during the evenings than clay or stone tiles, which radiate heat through the night and results in higher energy consumption.” Based in Dubai, Kefi cites signifiw w w. c o n s t r u c t i o n g l o b a l . c o m


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cant construction projects in the emirate that Fletcher Building RTG has supplied through the decades, the most notable being Jebel Ali Village and several landmark hotels such as Jumeriah Beach and Murooj Rotana. It also provided roofing solutions for the Dubai Mall. Innovation In order to keep securing significant building projects, innovating a fresh offering and differentiating from competitors will be crucial to Kefi and his team. From diversifying colour palettes to developing an authentic slate-style tile, Fletcher Building RTG is constantly seeking to offer something new to existing and prospective customers. “We are able to have a profile which has the same look and feel,” Kefi says, “and that gives our customer the option of a

“The lightweight products we have are up to seven or eight times lighter than our competitors, which allows us to transport goods very economically from the likes of New Zealand” — Lamjed Kefi, Managing Director Middle East and Africa AUGUST 2018


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lightweight product but with the beauty and look of slate. That’s one of the inventions we have worked. Of course, we keep on inventing and making the system more user friendly and easy to install, using tooling which is more friendly and safer for installers.” Beyond reformulating products, Kefi also explains how the business has introduced more innovative ways of marketing and reaching out to its customers in the first place. “We are very active on social media

and try to reach out to the end users to make them aware of our product, our advantages and what it is giving to them,” he adds. “We want them to use our products and let them experience the durability, the warrantee, the cost saving they’ll have in the long term and in the short term because of the installation cost. “We have already built up a very high brand equity in the region. We are the largest branded metal rooftile supplier, and that is in part due to what we have invested in marketing, w w w. c o n s t r u c t i o n g l o b a l . c o m


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not only online but also on billboards, at trade shows and on TV and radio spots.” Receiving feedback from these customers is equally as important to Kefi, who highlights how communication with distributors is vital in ensuring that comments make their way back to decision makers at Fletcher Building RTG. “We have set up training programmes to train professional and approved installers for our products and these guys are constantly on the road installing our roofs,” he AUGUST 2018

continues. “They come up with very valuable feedback on what they experience, how they experience it, especially when we launch new products.” A partner-powered future Looking ahead, as well as growing its presence across the MEA region, Kefi and his division may explore the possibility of moving production closer to its key markets. “Bringing some production locally should have a significant cost advantage, but it is not likely at this stage,” he explains. “We always revaluate


MIDDLE EAST

these options and it might be possible in the future that we do this.” Whether relocating production closer to customers or simply expanding the Decra, Gerard and Fortiza brands in MEA markets, utilising local partners is and will continue to be paramount. “Local distributors and agents have that knowledge of the market, rules and regulations that we need in order to be successful,” Kefi says. “Further-

more, we are cooperating with the New Zealand Trade Organization who is helping us a higher level. We hear more about trends and what’s going on, on a political level, about the currency available in the region as well. “This knowledge will help us deliver our key priorities of reinforcing our presence and differentiating from the competition.”

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EXPANDING TERRITORY

Vision aids technology at SiteOne Landscape Supply


SiteOne Landscape Supply is preparing itself to better serve the changing face of North America by adopting a new technology-led culture

WRIT TEN BY

JOHN O’HANLON PRODUCED BY

ANDY TURNER


S I T E O N E L A N D S C A P E S U P P LY

O

n March 2014 Sean Kramer was appointed CIO of what was then John Deere Landscapes, two years later, moving home and

family from Detroit to Roswell, Georgia. A big step for someone whose career that far had seen him rise to senior IT leadership roles at iconic motor industry giants like DaimlerChrysler and, most recently, Volkswagen. But the last four years have been a time of unbelievable change for North America’s leading wholesale distributor of landscape supplies: he was keen to apply his skills to the challenge of maintaining John Deere’s reputation for integrity while leveraging IT to deliver outstanding customer service levels. 128

In 2014 John Deere sold a majority interest in the business to private equity investor Clayton Dubilier & Rice (CDR) and at the time not only Kramer came on board but also the present CEO Doug Black. In October 2015 the company changed its name to SiteOne Landscape Supply, launching its new identity at the Green Industry & Equipment (GIE+) Expo in 2016 at Louisville, Kentucky following its IPO on the NYSE in May that year. With over 500 locations in the USA and Canada, SiteOne is by a long way the largest wholesale distributor of landscape supplies for ‘green industry’ professionals in North America. It sells irrigation supplies, fertilizer and control products, landscape accessories, nursery goods, hardscapes, and outdoor lighting, along with a broad array of services designed to help landscaping contractors operate and grow their AUGUST 2018


USA

BIO

Sean Kramer is a senior executive who is transforming business processes and leading digital transformation through innovative technologies and data analytics. As CIO at SiteOne Landscape Supply, he leads capacity planning for a rapidly growing company, manages applications (including ERP, POS, website) as well as infrastructure, network connectivity, integrations w/cloud systems and the security program. Sean oversees a team of seven IT Directors. 129

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“On the IT side we had to rebrand all our systems and forms down to the logos on the laptops” — Sean Kramer, CIO

businesses. Over four years, the company

THE PRIOR STATE CHALLENGE

has made 27 acquisitions, from single

That level of expansion would not have

location businesses to groups with up to

been possible using the IT infrastructure

33 branches, expanding product lines, for

Sean Kramer found in place when he

example in nursery and hardscape

arrived: “We took over a business that had

products, and enhancing each branch

a lot of operational instability. Basic IT

with access to the full SiteOne product

services such as email and point-of-sale

range.

(POS) were very unreliable: we were

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131

running on hardware that should have

strategic partnership with Microsoft,

been retired years before and our server

establishing that its Dynamics AX platform

room was in an office in Michigan. My first

would be, over the long term, the most

year had to be focused on operational

effective backbone ERP to support the

stability.� A legacy ERP system dating back

business as it grew.

to 1986 did not work with the POS system,

Deployment of the new system took a

so retiring that was a priority: Kramer and

full year, and at the same time the business

his team worked hard to establish a

was grappling with rebranding from John

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S I T E O N E L A N D S C A P E S U P P LY

Deere to SiteOne Landscape Supply across the entire organization. “There was massive change management challenge,” he recalls. “Our operational teams had to change the imaging in the stores, delivery trucks and signage. On the IT side we had to rebrand all our systems and forms down to the logos on the laptops.” At the same time, the company was preparing for an IPO – as anyone who has been through this process will appreciate a public 132

company has to work in a very different regulatory environment from a private business. Readying the systems for compliance best practice presented a major challenge for the IT team, but there were yet other large pieces of the jigsaw that could not be neglected.

SIMPLE SOLUTIONS FOR COMPLEX ISSUES As the outward face of the business the company website is just as important as the name over the door of the branch office. A new website was launched in 2018 after two years of development – and it’s still a AUGUST 2018


USA

work in progress, he emphasizes. “Optimizing our e-commerce capability is the driver here. For example we put in a new pricing engine with real B2B capability – after all we had to make sure that our pricing was consistent not only at the point of sale but across the website as well.” To help customize and optimize Dynamics AX to manage trade and revenue management complexities, he brought in a new technology from FlintFox – again after exhaustive consideration of available packages. Integration of the diverse acquisitions the company would be making threw up issues that could adversely affect the SiteOne brand. Product duplication was a case in point he recalls, where the company that was being integrated had its own product listing, pricing and customer data that could frequently overlap and conflict with SiteOne’s existing record of the same products and customers. E-commerce being seen as an important service enhancement for SiteOne’s customers going forward, he selected integration platform as a service (iPaaS) Dell Boomi to manage the integration layer and the SAP Hybris platform, a cloud-based suite of highly integrated products for online selling. “Hybris gives our customers the ability to order products online for either delivery or pick-up, as well as to create lists for commonly purchased products. We were fortunate to have Dave Brower (VP of Marketing) and Colleen w w w. c o n s t r u c t i o n g l o b a l . c o m

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Romero (Director of Digital Marketing) join our team and help lead this implementation. They have a track record of launching successful ecommerce platforms and made sure we had our bases covered.” The problem of data management was addressed by partnering with Information Builders to implement Omni-Gen, a single platform for generating applications combining data integration, data quality, and master data management. Omni-Gen has reduced confusion when acquired businesses are integrated and helped expedite the process. SiteOne uses the platform to govern product lines and related 134

variables such as color, size and texture. It also helps to standardize the customer data to ensure it’s consistent across the board. “With ecommerce , we can provide an efficient system for our customers to order that they haven’t had before. We’re excited to partner with them on how to make the system even better going forward. With e-commerce working for us, we are now able to turn our attention to a mobile app focused on improving the efficiency of inventory management in the branch, as well as checking out customers quickly to allow them to get to the job site faster and save labor cost. “

SUCCESS THROUGH STRONG COLLABORATION As a wholesale distributor, SiteOne lives according to how well it satisfies its customers. AUGUST 2018

“Advanced analytics is an opportunity for us to further enhance our 360-degree view of the customer” — Sean Kramer, CIO


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When it came to restructuring the IT

systems each business unit leverages to

department to support future growth and

run its core business. “This close

build more capabilities, Kramer and his

partnership with our functional teams is

manager , Executive Vice President Ross

part of our secret sauce.” says Kramer.

Anker, felt it was imperative to align the

Sean also established an “Enterprise

application development team with the

Services” side of the department which

business units they support. He broke his

handles among other functions the

application teams into four different

service desk, end-user computing,

groups: Sales & Marketing, Supply Chain,

infrastructure & technology, and cyber

Finance & Accounting and Acquisition

security. Last year, they migrated their

Integration. Each is led by a Director well

data center out of that office in Michigan

versed in the business processes and

and into two well-established co-location w w w. c o n s t r u c t i o n g l o b a l . c o m


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137 sites. Their security program has continued to evolve. Starting from scratch at the beginning of his tenure, SiteOne’s Chief Information Security Officer, David Black, has brought in technology and processes to help combat vulnerabilities daily. As the team looks to the future, SiteOne partners with many security firms to proactively address new risks when they surface.

THE TEAMS THAT DELIVER He personally interviews every new member of his team. “I want to know that they understand our culture, and that they hear it from me.” He has not found it hard to attract people hungry to work at a fast-growing company that is bringing in new

“HYBRIS GIVES OUR CUSTOMERS THE ABILITY TO ORDER PRODUCTS ONLINE FOR EITHER DELIVERY OR PICK-UP, AS WELL AS TO CREATE LISTS FOR COMMONLY PURCHASED PRODUCTS” — Sean Kramer, CIO

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Solutions, Resources and Products, we are IT.

iConnectX www.iconnectx.com www.v2soft.com

info@v2soft.com

866-9-V2SOFT

qwik.events

technology. True, he says, to this point it has been mainly what he calls ‘foundational technology’ driving the functionality of Dynamics with partners like FlintFox, Hybris and ServiceNow, but the team realizes that they will soon focus on enhancing customers’ ecommerce experience and evaluating new technology that can be put into the hands of these customers to improve their business processes. “Like everyone else, SiteOne Landscape Supply. Stronger Together.

we want to further develop our analytical capabilities. You see it in all areas. I saw it in the automotive industry: advanced analytics is an opportunity for us to further enhance our 360-degree view of the customer. The landscape industry can be impacted by many different factors - weather, construction, etc. As

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USA

we expand our product offering, this

He doesn’t regret the move from

analytical data will show correlation

Detroit to Roswell either. He does

with the desires of the local market.”

prefer the Georgia weather, but what

IT at SiteOne is essential to deliver-

inspired him more was the constant

ing the corporate strategy, which Sean

support he has had from Doug Black,

Kramer summarizes as establishing a

Ross Anker and the senior leadership

full product line offering in every major

team. “We have had tremendous

market for the landscape contractor in

support from our CEO and the

North America. “We have to make sure

executive leadership. I have never

that we continue to be the best

worked anywhere where we’ve had the

wholesaler that the landscape

teamwork and the support that the

contractor has ever seen. We want to

technology department has received

stay ahead of the curve in terms of

here.” Without that support, he

technology, making sure the customer

concludes, he couldn’t have moved the

experience is world-class in itself – and

state of SiteOne’s IT from low tech on

head and shoulders above the rest of

life support, to being a real driver for

the industry!”

future growth.

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Construction Global - August 2018  
Construction Global - August 2018