ASM & COAA Adding Value to Alberta Energy Sector projects
Jan 15, 2016
ASM & COAA
Adding Value to Alberta Energy Sector projects
The priority today
• Increase shareholder value
• Increase project profitability
• Reduce project risk
• Improving productivity is vital to industry success
Understanding our Customer
Understanding our Opportunity
The Buying Process - Kevin Davis, Topline Leadership
What is ASM doing to improve?
ASM – Competitive Advantages
1. Competitive Total Installed Cost 2. Capacity Improvements3. Safety 4. Quality5. A Sustainable workforce
Initial Purchase Cost Comparison
Delivery Format OptionsLogic Sequence
Total Installed Cost ComparisonAdjusted for Forex Changes
Alberta Capacity
1. Increasing through Investment, Expansion & Partnerships
2. Capacity – Alberta has PLENTY!
Revenues have DOUBLED
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
7000
$1.189 Bil-lion
$2.535 Bil-lion
*Related to Investment in Technology, Innovation & Continuous Improvement
Years
113% in-crease in ASM related products
Source: Gov’t of Alberta
Capacity IMPROVEMENTS
“ASM is INVESTED”• $885 MILLION invested in Fabricated
Metals industry
• $147.5 Million average investment/yr
Source: Govt of Alberta, 2007 – 2012, Major Indicators for the Metals & Machinery Industry
Success Stories - Capacity
“Through partnerships, our capacity can double market demand increases”
Source: Edmonton based ASM member
Success Stories - Capacity
“Doubled Manufacturing & Service capacity recently via capital investment”
Source: Edmonton based ASM member
Success Stories - Capacity
“Significantly INCREASED structural steel and modular manufacturing capacity”
Source: Source: Edmonton based ASM member
Structural Steel Capacity – Alberta Nov/13
Current/4 months – 26%12 months – 71%24 months – 95%
Source: Ground State Market Solutions – Quarterly Backlog report - Nov 13
Modular Assembly Capacity Available – AB
Current/4 months – 64% 12 months – 90% 24 months – 95%
Source: Ground State Market Solutions – Quarterly Backlog Report – Nov 13
ASM – A Strong Culture of Safety
“Alberta lost-time claim rates at an ALL TIME LOW of 1.39”
Overall, the lost-time claim rate for Alberta industry has dropped from 3.52 in 1993 to 1.39 in 2012
For Primary Metal Products industry, lost-time claim rate has reduced from 3.46 in 2006 to 1.61 in 2010
– a 53% REDUCTION Source: Workers Compensation Board
A Culture of Safety
WORKING
SAFELY
PROUCTIVELY
Increasing Quality – Independent Certification
Minimize re-work & project delays through Independent certification bodies (CWB, ABSA)
Success Stories – A Sustainable Workforce Improved labor pool through real time on-site CWB certification
Source: New Innovation from an Edmonton Based ASM Member
Project OptionsShareholder Goal•Maximize production at high oil prices by expediting or speeding up project schedule completion date
Project Solution – “Fast Tracking”•NOTE. To date, projects where fabrication starts earlier than normal using partial engineering have consistently led to cost & schedule overruns
ASM Value – Project Flexibility•Easily accessible local resources & expertise offer maximum flexibility to support changes to project engineering or schedule
Project Options
Shareholder Goal•Secure cost certainty
Project Solution – Lump Sum•Projects with fully engineered drawings allows fabrication suppliers more production efficiency, leading to cost savings and project certainty
ASM Value – Competitive Total Installed Cost•ASM experience is best equipped to support Lump sum bids at a very competitive Total Installed Cost
Project OptionsShareholder Goal• Maximize profitability • Secure LOWEST total installed project cost• Secure FASTEST schedule completion time• Reducing project risk
Project Solution – Fully Integrated Model• This model includes supply chain collaboration and expertise early on and
throughout project. • Through shared risk & reward, the lowest overall project cost and fastest
completion time is consistently delivered
ASM - Value through Collaboration & Expertise• ASM’s unique industry knowledge and proven experience will help you
exceed your shareholder expectations related to project cost, scheduling and project risk
ASM Value
• Our customer is our TOP priority • COLLABORATION with our customers &
partners is vital to our future • ASM is INNOVATIVE with UNIQUE value • ASM has CAPACITY• ASM is more COMPETITIVE & working
hard to improve
SUMMARY