Benchmarking Analysis of World’s Top Contractors
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CSCEC—The King of Landmark
The four-in-one business model comprising planning, investment, infrastructure and construction, the market layout of international companies, regional companies, number companies and professional companies, and its management which had balanced authorization and control have all contributed to the unique advantages of CSCEC in the field of construction.
However, there was a gap between CSCEC and top international contractors in terms of business ecology building and integrated overseas investment, construction and operation.
The business diversification and cross-border development and the priority of overseas business and reform have become the theme of the future for large international contractors, posing both threats and opportunities for CSCEC to remain in a leading position in the international market, improve diversified business, expand international market and energize international projects.
CCCC—Defining Your Own Business Model
In 2018 analysis, we made it clear that CCCC is a contractor that plays a strategically leading role in the future.
By 2020, an absolute advantage has been secured by CCCC over most rivals in terms of thought, organization and business ecology.
Though it’s hard to see performance change in the short term, the strong endogenous momentum will definitely make CCCC get a head start on building a top enterprise driven by technology, management and quality in the three years to come.
*For more detailed analysis, see this chapter.
CRCC—The Voyage is a Long One
The year 2020 is when CRCC experienced up and downs in the international construction industry.
The downward pressure has made the growth of CRCC more precious.
After the surge in 2019 and the first half of 2020, CRCC was faced with a series of problems to seek balance between scale and quality, vision and reality and other development issues concerning thought unification, development strategy and business model.
In the post-epidemic era, in what way will CRCC implement its strategy to prioritize the international development and push forward reform?
*The answer will be in this chapter through analyzing CRCC’s performance over the past year and five years of development.
Last year witnessed the CREC’s thorough institutional reform.
The top design was improved by overseas priority strategy;
The operation structure was improved by upgrading “one body, two wings and multiple driving forces”;
The operating system was improved by integrated development from region, country and project level with regional headquarters at its core;
The development foundation was improved by recently inaugurated regional headquarters and upgraded COVEC.
Despite all the resolute decisions, practical approaches and fast pace, it’s hard for such a behemoth to take swift actions against chronic problems.
*For the business reform, opportunities and prospects, see this chapter.
PowerChina is a widely-acknowledged top enterprises in power construction and investment.
In its area of expertise, PowerChina has advantages over its rivals such as CEEC, SINOMACH, Samsung Construction, ACS and Salini Impregilo to varying degree.
However, it doesn’t mean that PowerChina will spearhead development in the international market all the way in the future, for its business has benefited from the established advantages in terms of management, model and business activity, which limit the approach backlog.
Management advantage - the seamless integration of the group's overseas division + international companies;
Model advantage - the doubles of international company and international investment companies;
Business advantage - large market share in the hydropower sector.
All these advantages led to the concerns over PowerChina’s momentum of overseas business in the long term.
*This chapter will lead you to the near future of international power engineering industry based on PowerChina’s performance and development path and methodology.
We have always believed that the biggest challenge for CEEC in its going global is to fix the internal issues such as the coordination of CEEC International, Gezhouba International and Gezhouba Overseas Investment, the management of several strong construction units and design groups, and the arrangement of headquarters including the International Department and the Strategy and Investment Department.
In 2020, the two former major leaders of CCCC and PowerChina took office, which brought new things and solve the rooted problems. Freeing the mind sounded the innovation horn for CEEC’s transformative reform.
With the breeze of reform, can it break the shackles of rigid thoughts and wade out a new path of development? Will the new leader be able to lead the group to transform and rejuvenate itself?
Founded in 2000, Vinci Group has grown from a simple contractor to an enterprise that provides investing, construction and operating services based on its concession and contracting business model, becoming one of the most profitable evergreen companies in the international contracting industry.
Vinci resorted to restructuring and integration five to ten years earlier than many of our domestic enterprises. Moreover, there was at least a ten-year gap between major contractors in China and Vinci in terms of international operation, integrated management and capitalization.
In 2020, Vinci’s business was greatly affected by the epidemic. However, it expanded investment instead of slowing down the internationalization and the development of concession.
How to read Vinci’s positioning and development approach? What are the key factors that made Vinci secure strong profitability and become such a unique international contractor?
* This chapter will provide guidance for contractors to rank among the top by analyzing Vinci’s experience.
Through merging and acquisition, AECOM has grown into a top player in engineering design sector in the 20 years since its founding. AECOM was listed in the top 3 ENR Global Design Firms and was No.1 in many segmented markets.
However, it sold management and service, one of the four major business lines in 2020 after ceasing merging and acquisition activities. Additionally, the infrastructure, power and oil engineering construction business under the engineering construction sector were transferred to assets to be sold.
2020 witnessed AECOM’s transformative business reorganization. Was it due to over business expansion and bad operation or was it a strategic move based on the insights into the future?
* The answers are in this chapter, together with the analysis of its operating and financial indicators, major business and strategy.
Webuild—Meeting a Great Time with Struggles
Webuild was one of the backbones of international engineering industry, taking up 10% shares in the ENR 250 International Contractors.10%的数量和市场份额
However, affected by the announcement of BRI, Italian contractors was decaying and their market shares dropped to 3% in 2020.
As the best of them, Webuild retrieved high quality development through restructuring and replanning.
In 2019, Webuild spearheaded the withdrawal from Progetto Italia Plan, aiming at regaining the position in the international contracting industry and revitalizing the infrastructure industry of Italy through integrating domestic infrastructure resources.
The possible development of this tycoon will be discussed in this chapter.
As the first firm to carry out concession business of highway in the Spain, it avoided rat race in the domestic market. Driven by contracting and concession, it focused on transport infrastructure and pushed forward the development of other business at the same time, selected strategically significant markets to deepen operation and accelerated capital flow instead. It was a familiar face in the ENR top Contractors in several sectors and regions.
Spain was a traditional force in contracting. Its market share didn’t shrink due to the ballooning Chinese contracting industry, it secured constant growth instead. The accurate judgement from the top enterprises like Ferrovial was one of the reasons.
Ferrovial has been advancing the asset sales in services sector since 2019, switching its focus on infrastructure.
*This chapter will try to read the signal and find out the trick of Ferrovial’s leading role in the industry.