Our markets

Industry trends

1. Urbanisation/large scale developments:

this holds for almost all geographies. It is driving growth and increased complexity in the market. As urban areas and large developments are constructed they require increasingly sophisticated solutions.

2. Brownfield/marginal land:

typically in developed nations, means that Keller’s more sophisticated ground improvement techniques come into play.

3. Infrastructure renewal:

creates new demand for us, typically operationally efficient given scale.

4. Complete solutions:

customers want to reduce their burden of managing complexity and are trusting us to take on more roles for them, this helps make our work more efficient.

5. Technical complexity:

the equipment sophistication and products required by the market are increasing in complexity. Our rigs are becoming more digital (including monitoring and automatic controls), making us more efficient and creating barriers to entry.

Industry overview

$50bn global market:

this is defined at the geotechnical contracting market within the construction industry. It includes China, Japan, Korea and Russia – markets where we don’t operate. If removed, the size drops to $25bn. It is an estimate based on data from IHS and other local sources. Typically geotechnical contracting is around 1% of the construction market.

Wide variety of projects:

variety in terms of scale, location, end use, geotechnical technique. Scale is from around £25k up to more than £10m. Locations are spread all around the globe. End use covers the full range including Infrastructure/Public Buildings, Power/Industrial, Office/ Commercial and Residential. Geotechnical technique includes all our 10 product groups (e.g. bored piling, driven piles, diaphragm walls, deep-soil mixing, vibro compaction, anchors/nails).

Diverse customer base:

typically no single customer is more than 1-2% of Group revenues in a single year. We mostly serve as a subcontractor working for a general contractor, however, also contract directly.

Fragmented competition:

three types of competitor with a large variation between geographies. Type one is the global geotechnical contractors (3-4 of these), not all present in all markets. Type two is the general contractor-owned, national geotechnical contractor. Type three is the local, independent geotechnical contractor (typically family owned businesses).

A strong position but plenty of room to grow

 

Keller is the world’s largest geotechnical contractor with over 10,000 employees

  • geotechnical solutions are a small, niche sub-sector of construction
  • growing faster than construction, reflecting:
    • more pressure to build on brownfield and marginal land
    • more ambitious development and infrastructure projects

Unrivalled geographic coverage, working in over 80 countries

  • clear market leader in the US, Canada, Australia and South Africa
  • prime positions in most established European markets
  • strong profile in many other developing markets

Generally work as a subcontractor for main contractors

Typical contracts are

  • short duration and less than £500k
  • across the construction spectrum

A balanced geographic and customer portfolio

  • Good access to all markets

How are we responding to our markets?

Keller Complete Solutions

What is a ‘complete solution’?

Defined as a project where Keller takes on a role beyond the pure geotechnical contracting and includes use of sub-contractors. For example, including demolition, earth removal and dewatering in addition to foundation construction.

Why does Keller offer ‘complete solutions’?

There are circumstances when our geotechnical work can happen in parallel with other, related, site activities. In this situation Keller can deliver a complete solution and save the client the burden of managing and coordinating multiple suppliers. It also provides the economic benefit of having less overhead on the project.

Where does Keller offer this service?

Typically these types of projects happen in urban environments of highly developed economies – where time and space are tight and Keller has a strong history of project execution. As this service requires Keller to take on additional delivery and supplier responsibility we are very selective to avoid excessive risk.

Keller at a glance

10,000

staff world-wide in more than 40 countries

Multimedia

Keller at work

Worldwide contacts

Keller is in over 40 countries across five continents

From our history

1954

Keller is established

1984

Keller acquired Hayward Baker (US)

1994

Keller IPO on London Stock Exchange

2002

Acquired Mckinney (US)

2006

Acquired Piling Contractors (Australia)

2015

c.10,000 employees, Acquired Bencor (North America) and Austral (Australia)