Flying in the face of foreign competition

The champagne corks must have been popping in Bouygues' boardroom when it learned it had scooped a major job for one of the UK's top retailers (see page 1). Strangely enough, there may have been the odd glass raised on this side of La Manche, too.

It is a nice job to win, made all the more impressive because it is for a smart client and it was won in competition with strong local opposition. That is precisely why some UK clients will be cheering the news. A number have been saying privately that UK construction firms have been putting off radical change because they don't believe the threat of foreign competition is real. This development will give them ammunition to show construction - like other industries - is becoming truly global, and that if local practices aren't up to scratch overseas competitors are ready to come in and clean up.

For Bouygues, the reasons for celebration are more immediate and tangible. The Computer 2000 contract provides both an opening to the UK and an open door to one of the largest retailers in the world, whose UK arm just happens to be fond of long-term agreements. Gazeley Properties is clearly already impressed with the way Bouygues operates, and as the contract comes at a time when it is re-assessing its supply chain processes, it is tempting to conclude that if Bouygues delivers the project well, a partnering appointment could be there for the taking.

A spin-off benefit could well come if Gazeley and its parent company Asda Wal-Mart succeed in exploiting their distribution centre know-how to mainland Europe. The UK is years ahead of Germany and France in retail logistics, and there are major opportunities for exporting this expertise - perhaps opportunities that Asda Wal-Mart will find itself pursuing with a French, rather than British, partner.