APC 1998 Annual Report Download - page 30

The construction market
Industrial, commercial and residential buildings
Providing a safe, comfortable
environment, managing electrical
distribution and saving energy
T he construction market involves all aspects of power distribution,
management, and optimization for residential buildings (including single-
family homes and apartment buildings), commercial buildings (offices,
hotels, hospitals, shopping centers, etc.), and industrial buildings.
T his is largely a local market, governed by standards and practices that differ
substantially from one country to another. Our customers are building
owners, prime contractors, systems integration engineers, panelbuilders,
electrical contractors, and electrical equipment distributors.
We offer a complete lineup of Merlin Gerin and Square D low voltage
equipment (circuit breakers, enclosures and cabinets, prefabricated busbar
trunking), medium voltage distribution equipment, building management
and safety systems, and Square D and Telemecanique components
and equipment for control and automation systems.
Market sales
Strengths Outlook
Schneider Electric is world leader in the main areas
of power distribution and control systems for buildings.
Our leadership rests on a strong international presence
and a wide-reaching network of partners. That’s why
we can offer scaleable, user friendly, customized
solutions for both sectors of this specific market.
For residential buildings, the goals are to make life
more comfortable and pleasant for residents, enhance
the safety of people and property, optimize electricity
consumption, and automate heating, air conditioning,
and lighting.
For commercial and industrial buildings, the focus is on
distributing electrical power, protecting people and
equipment, increasing user comfort, guaranteeing
uninterrupted service, reducing operating costs, and
facilitating future improvements.
Local standards and practices traditionally play
a decisive role in the construction market.
Schneider Electric products and solutions are readily
available through our worldwide distribution network,
and are installed by local contractors. These partners’
expectations have a considerable impact on our offering.
Schneider Electric’s construction market is closely
linked to the renovation sector, which can account
for as much as 70% of the market in certain countries.
This explains the relatively non-cyclical pattern
of demand.
We hold strong positions in commercial and industrial
building applications, but there is room for gains in
the residential sector.
Schneider Electric is in the process of acquiring Lexel,
Europe’s second largest manufacturer of products
for consumer final low voltage. This move will bolster
our positions in the residential and commercial market.
Demand here is being shaped by socio-economic
and demographic trends--notably the spread of home
offices, the increasing use of information highways,
and the aging of the population. In the medium term,
and especially in the industrialized countries, these
changes will significantly modify the needs for housing
and workspace. Automation will be engineered into
a growing number of applications, while demand for
telecommunications and security systems will expand.
Construction market
sales as a % of total
FF 22.7billion
€3.5billion
46%