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The construction business is in the middle of a cultural change. The new boss André Wyss brings with him a knowledge of Novartis that meets the challenges of the construction sector
André Wyss worked for Novartis in Greece and the United States. (Photo: Keystone)
Anton Affentranger could hardly have chosen the best time to entrust the position of leader to the largest Swiss construction company, Implenia. Construction activity is booming in this country, but prospects can get bogged down anytime. André Wyss will face the consequences, a former director of the pharmaceutical company Novartis and, from 1 October, the new CEO of Implenia. One can say something similar of the construction company's strategy: Affentranger successfully launched the internationalization of Implenia. To what extent is society really anchored abroad, but remains open? A third concern of the 62-year-old is also in the balance: Wordy he's complained over and over how much the construction sector was unproductive. Most businesses still rely heavily on sales rather than profitability, and the processes that ultimately lead to the finished object are often very traditional.
Insufficient Industrialization
Affentranger initiated a cultural transformation at Implenia, as hiring a manager who should swear the company on the principles of lean management. In the industry, they are already widespread. Car manufacturers, for example, are constantly striving to reduce costs, eliminate waste of resources and focus on higher value-added activities. With regard to systematic work, the construction sector is sometimes far behind the other sectors
So it is not a coincidence that Implenia on Affentranger is not followed by a construction specialist but by an experienced manager. Other companies in the sector have recently hired such experts, and Lean Management Manager of Implenia is a manager who previously worked for a consulting firm from Porsche. At Novartis, Wyss was responsible for production during his 30-year career.
In addition, the 51-year-old man has international experience that no construction official in Switzerland has acquired. For Novartis Wyss was not only active in Switzerland, but also in Greece and the United States. Swiss construction companies have almost always focused exclusively on the domestic market. Implenia was the first major player to emerge.
Risk considerations played a major role. For years, Implenia has relied on large-scale, high-margin projects, such as the new Gotthard rail tunnel. However, Implenia did not receive any income from this project for a short time. This breakup had already been apparent years ago, that is why management was already very early on how the loss could be compensated. Projects in Russia and the Arabian Peninsula proved to be a failure.
Present in attractive markets
Implenia's revolutionary transformation was finally achieved with acquisitions in Norway (Betonmast, 2010) and Germany (Bilfinger Construction, 2015, and Bilfinger Hochbau, 2017). These two countries are among the most attractive DIY stores in Europe. In Germany, it seems that it is the agenda to invest more money in the infrastructure that is currently not worthy of a large industrialized country. At the same time, the Norwegian government plans to invest about 89 billion euros in transport infrastructure between 2015 and 2030 and the country will be able to afford such a sum thanks to oil exports.
However, expansion in other countries is not without risk. In Norway, for example, Implenia has recently suffered losses. This is due in part to the former management of the Bilfinger Construction unit acquired three years ago. Also attracted by the good prospects in Norway, she had made infrastructure deals for Germany and speculated on the lack of market knowledge.
Overproduction on the domestic market
With the bursting of the domestic market, the direction of Implenia becomes more sophisticated. The army of cadres has increased and, in day-to-day affairs, there have been cultural differences. This is undoubtedly also for this reason that Implenia's new boss is not a manager of the commercial construction industry, but a leader who has worked for a large company up to 10 years. This spring.
But the biggest challenge for Wyss will nevertheless represent the domestic market, which accounts for two-thirds of Implenia's sales despite internationalization. Low interest rates and high levels of immigration have boosted the construction sector and recently, 50,000 apartments were built each year. However, migration is declining and in 2017, it still had 54,000 people (net), 40% less than the peak. Until now, too many apartments are under construction. He does not come to Implenia as a restructurer, but as a strategist, innovator and facilitator, Wyss said in an internal statement. But there is a risk that the construction sector will face more difficult times and that restructuring capacity will soon be in demand.
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