Enhancing Extrusion s Position in the New World of B&C 2017 Management Conference September, 2017

Transcription

1 Enhancing Extrusion s Position in the New World of B&C 2017 Management Conference September, 2017 IPSC

2 Today s Discussion Review Commercial B&C Market Research Outline Next Steps Forward

3 Building & Construction The Issues: The building delivery process appears to be changing rapidly, and reducing the significance of our traditional target market. How should we be segmenting the market? Which or our attributes are most relevant to the key segments? Our Direction: Retained Ujjval Vyas to assess: How the building process is changing What segments result Who are key decision makers; what are their material selection criteria Which value our attributes the most How do we reach them and what is needed to make extrusion s case

4 Segmentation - Structure Comm l B&C Mkt High rise: >12 14 floors Aluminum still dominant due to structure, loads, codes Mid rise: 4 12 floors Strong developer market, material battleground Institutional Monumental Statement Design and Build (50% of $) Low rise: <3 5 floors Vinyl dominant, little arch involvement, cost rules. Storefront still AL. Modular opportunity?

5 Segmentation - Structure Comm l B&C Mkt High rise: >12 14 floors Aluminum still dominant due to structure, loads, codes Mid rise: 4 12 floors Strong developer market, material battleground Institutional Monumental Statement Design and Build (50% of $) Low rise: <3 5 floors Vinyl dominant, little arch involvement, cost rules. Storefront still AL. Modular opportunity?

6 Segmentation - Process DBB (design bid build) vs. D&B (design and build) Sequencial process Parallel process w/ build team VE at the end, when over budget VE up front collaborative Bid often fixed bid Often negotiated price Architect in driver s seat Contractor (D&B firm ) is driver Architect legally responsible Contractor legally responsible Design Assist A specialist contractor is called in typically as an assist to the architect to provide expertise re a specialty subsystem (e.g.: curtain wall) Architect retains legal responsibility

7 Segmentation Comm l B&C Mkt Segments Key Buyer Values Mid rise DBB D&B Statement Builders What else? Institutional or Corporate Owners building for duration & statement; e.g. HQ, Medical, Public Sustainability Sightline/glass area Durability Strength/wind load Custom capability No Red List Local Flippers Developers with a 3 7 year horizon Cost Construction Speed Low rise Branders Flippers Retail or other consumer with strong brand statements As in mid rise; e.g. flex space, strip shopping Custom capability Field repair/refinish Glass area/sightline Security As in mid rise

8 Segmentation Comm l B&C Mkt Segments Codes Key Buyer Values Life safety, thermal performance Relevant Extrusion Attributes DBB Statement Builders Flippers D&B What else? Sustainability Sightline/glass area Durability Strength/wind load Custom capability No Red List Local Cost Construction Speed LCA, EPD, Documented Recyclability & Rec Content Strength span, profile design Non corrosive, proven longevity Strength retained over time, on going leak resistance Finish options; widespread local bespoke capability Inert, no harmful chemicals Wide network of local/regional extruders Cost Construction Speed Branders Flippers Custom capability Field repair/refinish Glass area/sightline Security As in mid rise Choice of coatings, multiple cost points, bespoke Can field repair and refinish painted extrusion Strength, span As in mid rise

9 Threats and Opportunities in Mid Rise Threats: Window wall vs Curtain Wall: installation from inside cuts cost dramatically (3 man vs. 2 $200) Support of slab reduces structural requirement Code manipulation: building 4 floors of wood frame on 3 floor podium (concrete /steel) considered as 2 structures for code purposes allows residential code to higher floors Traditional design, bid, build invites aggressive VE with focus on aesthetics façade, windows Focus for developer action multi use bldg with short term flip; won t pay for durability Opportunities Preference for larger vision area, large glass doors Design & Build locks in selection early on, avoid last minute VE Portion of the market still open to traditional al appeals: e.g. Health care, institutions, corp showcases where environmental attributes, red list, long life have impact Potential for bespoke elements e.g. canopies, atrium skylights Local nature of extrusion supply chain

10 Segment and Differentiate our Messaging Low Rise: Focus on Storefront Don t overpay don t spec 2605 inside and out; don t spec 2605 for a 5 year design life (retail) Aluminum extrusion s ability to handle large spans, integrate security, custom appearance, finish Retrofit potential Mid rise: Design & Build, Halo/Image building Preference for larger vision area, large glass doors, test & document structure Cost management Light Weight: 1 person vs. 2 conduit example Industry Structure AEC B&C specialists vs. unknown offshore (AEC warranty fund?) Local supply of bespoke elements e.g. canopies, atrium skylights Collaborate with window mfgr on improving performance, reducing cost : E.g. structural adhesives and extruded corner blocks Demonstrate improved leak resistance

11 Building & Construction The Issues: The building delivery process appears to be changing rapidly, and reducing the significance of our traditional target market. How should we be segmenting the market? Which or our attributes are most relevant to the key segments? Our Direction: Retained Ujjval Vyas to assess: How the building process is changing What segments result Who are key decision makers; what are their material selection criteria Which value our attributes the most How do we reach them and what is needed to make extrusion s case Conclusions: Segmentation and data supported attributes are key Our battleground should be 3 14 floor structures we have a relatively secure position in high rises and a losing cost position in low rises The growing Design/Build segment appears most susceptible to our attributes properly documented Objective: position AEC B&C members as key decision partners to the building team