Why Diversification is a Strategic Priority for Colas
Colas has built its reputation on its longstanding core business: roads. But the Group has never limited itself to this one area of expertise, developing a diversified range of business lines to meet the needs of its customers. In a constantly changing world, these related activities could well represent promising opportunities for Colas. We shine the spotlight on businesses with a bright future.
Colas, road specialists? Nearly a century of experience and innovation in road construction and maintenance around the world has served to cement this image. But with 64,000 employees in 50 countries, Colas boasts a wealth of diverse - and sometimes unexpected - talents. Acquisitions over the years, along with specific local characteristics, have led the Group to accumulate a wide range of skills. These constitute new growth levers for Colas. “The conclusion is clear: we need to break away from our reliance on conventional road construction work if we want to remain competitive”, observes Clément Bouygues, Chief Operating Officer at Colas France. “And it’s a trend that’s already being seen in our profit centers, reflected in projects far-removed from our traditional activities.”
Continuity
Does this mean radically changing what Colas does? Quite the contrary. Diversification is not a break with the past but a way of ensuring continuity: the idea is to reinforce the model with new expertise, to broaden the Group's operational scope, and to support its long-term development beyond its three traditional businesses: roads, railways and materials. To an extent, it ’s about not putting all its eggs in one basket, as Sébastien Bessière, Colas’ Strategy Director, explains: “We need to look at markets that don’t have the same cycles or dynamics as roads, exploring adjacent activities by building on our core expertise”. Although maritime works and ecological engineering projects may represent a shift away from Colas' core business, they nonetheless draw on key skills that teams already possess: earthworks, civil engineering, utility networks, redevelopment, etc. That’s why the Group's companies around the world are increasingly taking on less traditional projects, where people might not necessarily expect to find them.
Trust, a Key Asset
As a trusted partner supporting sustainable regional development, Colas capitalizes on the long-term relationships it has forged with its customers. “Our longstanding customers know that we are solid and reliable in our traditional markets”, says Mathieu Deschamps, Brittany Regional Director (Colas France). “It’s this trust that gives them the confidence to come on board when we explore new activities. And once we’ve acquired these first references with them, that opens the door to new customers, sometimes outside our usual scope.” The number of “unusual” projects is growing, ranging from plantbased wastewater treatment facilities to peat bog restoration, and the control of invasive alien plant species.
Enriching the Offering to Meet New Needs
Broadening Colas’ sphere of activity means identifying complementary solutions for existing customers and exploring new opportunities with prospective customers that previously seemed inaccessible. Now is the ideal time to do so, given the new challenges facing local authorities and other contracting parties. The fact that it masters a broad variety of skills also means the Group can offer more during the bidding process. “Today, our customers expect much more than roads: they need a comprehensive solution to their problems. Expanding our business portfolio allows us to enhance our offers and create value, over the long term, while at the same time addressing evolving societal and environmental needs”, explains Bertrand Jamot, Colas’ Director of Sales and Business Development in Europe.
Putting Nature Back Center Stage
New ecological standards, combatting land artificialization, natural disasters... environmental issues are reshaping urban planning projects and putting nature back center stage. “The mandatory planting of trees based on the number of parking spaces, or the goal of “zero net artificialization” in France are standards that will shape the cities of tomorrow. Colas must prepare now”, explains Constantin Aynaud. A qualified landscape architect and specialist in local development issues, he joined Colas' Environmental Works unit in Western France as a project manager for landscaping activities. Professions like his, which might, at first sight, seem to be far removed from Colas' businesses, are now making their mark in the world of road construction.
Targeted Development
The acquisition of specialist companies also paves the way for new activities. For example, Destia became Colas Group’s first Finnish company in 2021, bringing its considerable expertise in energy related projects. More recently, in France, Colas acquired landscaping specialists, Brosseau. The SME's expertise, built up over a period of 20 years, opens up new opportunities for both companies. “Colas couldn’t have broken into some markets on its own due to a lack of expertise, and a lack of resources would have prevented Brosseau from doing so. Joining forces removes these obstacles. We’ve increased our coverage of the French ecological engineering market from 30 to 40% to nearly 80%”, recounts Vincent Guerville, Regional Director for Colas France Pays de la Loire, who is responsible for overseeing the integration process. Colas’ image is evolving as a result. The Group is emerging as a legitimate player in these new markets and as a global operator in sustainable regional development.
Attracting Young Generations Through a Diverse Range of Careers
Diversification has an impact on several levels: skills evolve, of course, but so do customers, stakeholders and markets, with new products and solutions emerging. All that makes Colas a more attractive place to work. External applicants are drawn by the chance to join a dynamic group that innovates and opens the way for new career options. Existing employees are also motivated to explore new opportunities. “These new types of jobs are particularly appealing to younger generations, as they meet their aspirations and offer real career development potential”, adds Mathieu Deschamps. “Even those who start out in our traditional business lines see diversification as an advantage, an opportunity to broaden their career horizons in the future.”
Colas' Expertise also Extends to...
Ecological Engineering
This set of techniques aims to reinforce the resilience of ecosystems, prevent flooding, preserve biodiversity and water resources, and restore natural and artificial environments. These projects are all about “repairing”: ecosystems that have been damaged by human activities are being rehabilitated to restore their natural functions.
Landscaping
Landscaping consists in enhancing a living environment to make it easier for people to integrate into their surroundings. It draws on a set of techniques to combine living elements (fauna and flora), natural components (landforms, bodies of water, etc.) and urban amenities (lighting, benches, fountains, etc.) which help preserve water resources and soil.
Pollution Clean-up and Waste Management
Giving artificialized and polluted spaces a new lease of life: Colas is the company for the job! The Group has delivered projects using all pollution clean-up techniques and implements innovative, customized solutions to rehabilitate industrial wasteland. With more than 750 recycling facilities, Colas also has the capacity to recover and recycle materials from its construction projects and other industrial activities
Water Professions
Water transport infrastructure is vital to the day-to-day life of communities. Wherever water flows, Colas mobilizes its expertise to ensure the continuity of essential facilities: networks, rainwater recovery systems, retention basins, pumping stations, treatment plants, etc., enabling more responsible, resilient and sustainable water management.
Adaptation to Climate Change
Colas anticipates, designs and implements infrastructure that is resilient to climate-related events. Protecting communities from these risks hinges around concrete solutions, such as reducing the impact of urban heat islands, land greening projects, permeable surfacing, shading, etc. In emergencies, the Group also mobilizes its teams to ensure post-disaster resilience by quickly restoring essential infrastructure and supporting the affected communities.
Article published in the Routes magazine 54
