“The traditional way of performing EPC business does not work any longer. The way how we manage the Engineering, Procurement and Construction (EPC) of industrial plants (and other businesses) today has not very much changed in the past 50 years. The plants we build are technically not much different from the ones built 50 years ago. The oil and gas industry is world champion – in avoiding digitalization. The EPC industry as a whole is spiritless in driving innovations, compared to automotive or even the IT sector. It is an open secret that productivity has not increased since 20 years. Consequently in the global competition for investments the EPC business is clearly the looser.
Within the entire value chain from CAPEX to OPEX, from the E‐P‐C of industrial plants to the operation and maintenance, we burn money through disastrous project planning and execution, and inefficient operations. We pay banks and lawyers and insurances that do not add any value to our basic business objectives. The CII (Construction Industry Institute, Texas) determined that 40% of the project costs are just transactional costs – imagine the potential cutting them down!” – believes Frank-Peter Ritsche, Project Director at thyssenkrupp and CEO at ProjectTeam
Mr Ritsche will deliver a keynote speech about cost burners and the hidden potential of “Industry 4.0”, market and megatrends in EPC business, learning from other industrial sectors and an outlook to new business models for EPC.
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