Steel focus: Aesthetics and sustainability boost steel

The decline of manufacturing in the UK has not hit steel fabricators and erectors as hard as might have been expected. While heavy industry has migrated to Europe, the logistics associated with sorting, storing and transporting these goods manufactured elsewhere has spawned a whole industry in itself. This has proved profitable for steel fabricators and contractors, with the rise in warehouse and shopping centre construction more than offsetting the drop-off in construction of manufacturing facilities.

Steel's market share has now hit record levels, and the British Constructional Steelwork Association (BCSA) reports that its members' order books are healthy. The latest Construction Market Shares survey, commissioned by Corus, shows that in 2006 steel's share of the multi-storey market rose by 3.7% to 71.8%, while in the key office market steel's slice rose from 71.9% in 2005 to 73% in 2006.

The strongest sector is the single-storey buildings market, which steel dominates with a share of more than 96% of the industrial sector and almost 90% of the sector overall. "Steel remains the leading choice even when only direct costs are considered. Once speed of erection, flexibility, predictability of project completion and all the sustainability benefits are factored in, it is no surprise that steel is achieving record market shares," comments Alan Todd, Corus general manager.

According to the UK Structural Steel Market Research Report compiled by Market & Business Development (MBD) the UK market for structural steel has demonstrated year-on-year growth since 2001, with the exception of an 11% decline in 2005. MBD anticipates that output will increase during every year between 2006 and 2011, with annual growth rates of between 1% and 5%. This forecast is backed up by Derek Tordoff, director general of the BCSA, who predicts a further increase in output of 1% to 2% this year.

Despite MBD reporting strong demand for retail space boosting construction output in the warehouse sector - with an increase of 13% in 2006 - Jason Hensman, the new managing director at Conder Structures, says that it has been a quiet three months to June. "However, the situation is fluid and from Conder's perspective the market is now more active with important decision-makers now making decisions." Delays that have stalled the starts of projects are directly related to planning issues, he says, and influenced by the growing requirement for each project to display sustainable credentials.

Sustainability

The area of sustainability is fast becoming a key battleground, with both concrete and steel suppliers keen to promote the environmental benefits of their respective materials. With regard to steel, the BCSA points out that it may be continually recycled without any loss of properties. In the UK, 94% of steel is reused or recycled. It also claims that steel structures have a low carbon footprint and are lighter than concrete frames, requiring less foundation construction. In addition, the organisation says that steel structures require fewer site deliveries and are fabricated offsite.

In this context, Conder's Silver BCSA Steel Construction Sustainability Charter has influenced contract wins. "It confirms the importance of sustainability and Conder's ability to deliver those 'vital standards', emphasising the need for our sustainability policy and its consistent application," Hensman says.

In spite of this, Conder reports some slowing in the large shed market. "All leading main contractors are placing enquiries and orders, but there are clear indications of less certainty in funding for speculatively built sheds," says Hensman. The increase in interest rates may be having an effect, while a change to the sliding scale applicable to unoccupied properties has also influenced the speculative build market.

However, in Conder's experience, rather than looking for generic solutions, clients are increasingly demanding each portal structure is more detailed and aesthetic through the use of cladding and finishes, as was the case in its recent work on Project Phoenix for Adidas in Manchester. "The days of the simple shed has passed, with cladding being installed as steelwork bays are completed in entirely re-worked erection programmes," explains Hensman. He also noted that on new industrial estates or shopping parks the designs for each shed are frequently different, as planners increasingly look to avoid row upon row of similar warehouses or shops.

Bespoke design

The trend towards more customised sheds has also been recognised by Phil Gilday, design build manager at Pettifer Construction. He agrees that in terms of distribution centres clients are looking for something bespoke, rather than a generic shed. "There are opportunities for warehouses, but there are many large developers who concentrate on these areas," Gilday explains. "In many cases they will have a supply chain set up for this kind of work and win a large proportion of the contracts."

Pettifer has been winning design and build projects for sports halls in Solihull and will soon begin developing an £8m call centre in Coventry. "The choice of steel for the sports halls for Solihull Metropolitan Borough Council was driven by the function of the buildings," says Gilday. "Similarly, because of the spans required for the call centre, the structure had to be steel." For this reason, Gilday says, steel still picks up the majority of office schemes. "I think the solutions tend to fall into particular categories, with steel specified for most projects requiring long spans.

"It's a tried and tested method, which is financially competitive," he continues. "You can create large spans and minimise the number of columns, which means that the client can market a higher saleable area. It is also possible to limit building heights by incorporating floors within the steel decks, allowing lower capital costs and lower running costs."

The same benefits apply to multi-storey buildings, says Tordoff, who explains that the ability to design long spans coupled with speed of erection can realise cost savings and add to steel's appeal. "As an industry, we try to be as transparent with price as possible," he adds. "The differential between steel and concrete is the same in multi-storey buildings. Concrete is cheaper when designing with shorter spans, but most high-rise buildings require long spans and for these projects steel continues to be more suitable and cost effective." He predicts that steel contractors will win the majority of the multi-storey projects coming up for grabs in London.

Quality first

However, Campbell Gillan, group managing director at structural steelwork fabricator Watson-Towers, says that contract wins are now less decided by price and more on quality. "Cheap and nasty is out," he says. "Clients now want different designs tailored to their own requirements." He explains that the market is buoyant at the moment, but shares the view of Conder's Jason Hensman that the past few months have not been as prolific as was expected. "I think it simply takes longer for the work to come through. There's plenty in the pipeline, but nowadays it seems to get slowed down in the system."

Watson-Towers has been working on a number of accommodation developments, as well as car park and shopping centres. "In all cases it seems that aesthetics is taking over more than price," Gillan continues. "In my opinion it's easier to add some features and make an appealing look with steel. We have a blacksmith side of the business and that's very busy as clients ask for architectural metalwork with a different aesthetic." He explains that clients have always looked for design differentiation on high-quality flats, but now even car parks and warehouses require some individuality, which the adaptability of steel can provide.

While price may have been the deciding factor in the construction of manufacturing facilities, providing steel remains competitively priced then its competitive advantage is now seen in terms of aesthetics and sustainability. And as long as the constructional steelwork sector continues to innovate, it looks set to continue its monopoly of the multi-storey and warehousing markets by providing the design differentiation and detail that clients desire.