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4 | Leaders 2013 Totex – driving more than co


With less than two years to go before the arrival of AMP6, contractors are re- porting strong order books. And they are already preparing for an AMP cycle with will revolve around total operat- ing expenditure


THE LEADERS 2013 is the only guide that offers an insight into how the leading civil and process engineering companies serving the wa- ter industry are performing in a very competi- tive market place. We have taken the top 60 Tier 1, 2 and 3 con- tractors and profiled each company in turn, and including accounts for the for the past three years*, where available. This reveals how com- panies are measuring up against their rivals, as the industry moves rapidly towards AMP6 and in trying economic conditions. In terms of turnover, Balfour Beatty remains top for the third consecutive year with a turno- ver of £9.5B. Morgan Sindall was second, with a turnover of £2.05B, and VINCI was third with nearly £1.1B.


The turnover for all the contractors com- bined, where we have the figures, totalled £20.2B and while the figure for pre-tax profit is £167.4. the number of staff is 113,744. Despite market conditions continuing to be challenging, contractors report strong order books as the water sector and major contracts being signed.


Supply chain


There has also been mergers and acquisitions, starting with Enpure last summer. The water and wastewater engineering company went into administration with its key assets being bought by South Korean heavy industries equipment manufacturer Doosan.


Will carbon reduction feature as a priority in the next AMP cycle?


This year we have seen Enterprise plc being taken over by Spanish group Ferrovial in a deal worth £385M. Enterprise is now being integrat- ed with Ferrovial subsidiary Amey to create a group with a £2.3B and 21,000 employees. No sooner had the ink dried on this acqusi- tion than May Gurney Integrated Services was at the centre of a tug of war between Kier and Costain. Kier won, with its £221M bid. Of course, the industry is now less than two years away from AMP6 and what that will bring. There is already much greater interest in engag- ing the industry’s supply chain for the next


cycle, ensuring a higher degree of planning, early involvement and input to solutions. Contractors expect the overall spend for AMP6 to remain consistent with that seen in the current cycle, which sis around £22B.


Pioneering development The new AMP cycle is widely expected to revolve around total operating expenditure (Totex). Contractors say Totex will be about more than just driving down costs. It will ultimately drive more innovation than has been seen in AMP5, in other words Totex “is beyond simply driving costs out by adopting different methods and technologies”. Totex will come to the fore as part of pioneer- ing and solution development. To support this companies are developing whole life cost mod- els and capability to help customers in their


A supplement to WET News and WWT


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