SMEs and Internal Market: the Construction Sector Prague, 6th May 2009

Table of contents NORMAPME Who we are and what we do Communication with SMEs Excursus: what is European Standardisation Standards: Pro and cons Benefits and burden for enterprises Why standards do not fit SMEs How to influence standardisation SMEs access to the system Good results can be achieved SMEs in the Construction sector The European construction sector: figures Difficulties and solutions for SMEs in the construction sector

NORMAPME is the voice of Smes in standardisation: a useful tool you can use

European Office of Crafts, Trades & SMEs for Standardisation NORMAPME – who we are European Office of Crafts, Trades & SMEs for Standardisation International and non-profit association Sister organisation of UEAPME UEAPME/NORMAPME represent 11 M enterprises in EU and EFTA countries SMEs 99% of enterprises 65 M jobs

NORMAPME – what we do MISSION Defend the interests of all European SMEs in the Standardisation process Actions Information on Directives and standardisation Formulation on proposals on standards and New Approach Directives Promotion of the interests of European SMEs on standardisation issues Present in working groups and Boards discussing standardisation at EU level

NORMAPME in the system EC EP NORMAPME Secretariat Members ISOs ESOs Nat. repres.at EU National Government NORMAPME Secretariat Members SMEs associations ISOs ESOs NSOs BTs & GAs BTs & GAs TCs Experts EC: European Commission EP: European Parliament ESOs: European Standardisation Organisations ISOs: International Standardisation Organisations NSOs: National Standardisation Organisations BTs: Technical Board GAs: General Assemblies TCs: Technical Committees

NORMAPME – main activities Technical Committees NORMAPME aims at representing SMEs interests in standardisation. We recruit experts for different subjects to follow and report the work in European and International TCs SMEs Consultations NORMAPME aims at representing all European SMEs. In order to voice their concerns, we undertake consultations on general standardisation policy or sectoral issues Political Interventions NORMAPME influences European standardisation and political issues via its membership in high level groups Projects NORMAPME aims at providing tools for SMEs and creating European networks

NORMAPME details of activities Technical Committees NORMAPME has 25 experts for different subjects to follow and report the work in European and International TCs. We have experts in the Quality Managemens System, Electrical Installations, Timber Structures, Doors and Windows, Environmental Management System etc

NORMAPME details of activities SMEs Consultations NORMAPME launches SMEs consultation when the EU wants to consult SMEs on specific matters dealing with Standardisation or Internal Market. In particular NORMAPME has launched consultations during the last months on CEN-CLC SMEs Access Project EIM Study on Access to Standardisation…

NORMAPME details of activities Political Interventions NORMAPME’s Director and staff take part in several working groups and Boards at EU level This participation is fundamental for ensuring SMEs raise their voices on how to re-shape the system (Balanced representation of interests in TCs is crucial)

NORMAPME communication: how do we inform? All publications and the website are translated in six languages: ENG, FR, DE, SP, IT and PL

What is an European standard? Excursus on European Standardisation

What is an European standard? A document, that is: established by consensus, on a voluntary basis, by the main stakeholders approved by a recognised body (CEN-CLC-ETSI) providing - for common and repeated use - rules, guidelines or characteristics for activities or their results aimed to achieve the optimum degree of order in a given context, based on the consolidated results of science, technology and experience publicly available in all stages of standardisation process until ratification Specifications of private companies and organisations are not standards and do not comply with this definition.

Standards, regulations and private specifications Law Regulations Mandatory Voluntary Standards Public Professional good practice, corporate spec., etc. Private

What is European standardisation? Voluntary process based on consensus amongst all stakeholders (Industry, SMEs, consumers, workers, public authorities, NGO, etc.), Made by independent, officially recognised bodies on National, European and World level, Increasingly used by EU authorities as a tool in their legislation(New Approach), EC sees a strong Standardisation infrastructure in Europe as an effective tool to harmonise legislation and to represent European interests world-wide.

European standardisation process Industrial or Society needs EC - mandate hEN NSBs or other stakeholders EN REQUEST DECISION – Technical Board Use existing document (e.g. ISO) Work with ISO (Vienna Agreement) Set up new Technical Committee OR OR PUBLIC ENQUIRY FORMAL VOTE NATIONAL IMPLEMENTATION

Pro and cons of standardisation Standards : benefit or burden?

Benefits of standards to the economy “Production of public goods through network externalities” Standards contribute 1% to the annual growth of the German economy (DIN study, 2000) Standards have contributed 13% towards the growth in the productivity of British workers since 1945 (BSI/DTI study)

... replaces 30 different national standards in Europe A fact to remember. . . 1 European standard ... replaces 30 different national standards in Europe ... creates potential access to a market of 490 million consumers

Standards: Benefit or Burden? Good use of standards reduces cost of operation Less product/process variation, Reduced risk in exports, in supply to large customers Legal protection Increased efficiency What you do right you don’t do twice!

Reality: Standards as burdens and costs ? Issues of concerns for SMEs: standards should be market driven Lack of consideration for practical issues Examples, tables, charts are crucial Number of references and pages “Rigidity” of the standards Simplification of standards Standard structure - Presentation and organisation Use of simple language is needed

Why a burden? Lack of consideration for SME concerns Limited participation of SMEs in standardisation - Due to lack of human resources - Due to lack of financial resources Overwhelming participation of some types of stakeholders Standardisation experts have only few knowledge of the reality of SME activities

Influence standardisation and shape standards according to SMEs needs

How to influence standards and directives at European level? National committees composition: Large enterprises Government Research institutes/Universities Consumers (National organisations) SME (National/Sector organisations)  European committees composition: National delegations: to be present in NSO delegation is crucial + Sector representation (liaison members without voting rights)

SMEs: Can they influence the standards at European level? Yes: 1) By being present at national level in the NSO and at EU level with a NORMAPME expert 2) By your presence in parallel with NORMAPME via an European network : Receive fast information targeted on the needs of the SME, SME alert system towards Brussels Raise your voice on problems encountered on the field Be constantly in contact with your national associations and with NORMAPME

SMEs in the Construction sector

The construction sector in Europe: 2.7 million companies Key figures of construction 2.7 million construction companies 13 million people Average manpower/company 5 persons 1,288 billion euro Turnover 10% of the EU GDP

Difficulties of SMEs in the construction sector ) CE marking issues for Craft and SMEs… NO CROSS-BORDER ACTIVITIES FOR SMALL ENTERPRISES Two different cases when considering construction companies: Companies taking direct advantage of European regulations and standards because of their “cross border” activities within the internal market And the rest of the business community acting on regional and/or local level.

Difficulties of SMEs in the construction sector NON SERIES: DISPROPORTIONATE COST OF TESTING The CE marking procedure for construction products has been conceived for the industrial production in series Testing individual and non series products implicates 1 unit manufactured = 1 unit tested! The cost of testing - between 5000 and 20000 € - is obviously disproportionate to the production cost of products made to measure or in non-series.

Difficulties of SMEs in the construction sector IN SUMMARY Costs of conformity assessment Also for system 4 (auto certification) SMEs don’t have the tools to undertake it consultants & certifiers costs Liability always on manufacturers ! Disproportionate administrative burden for manufacturers for Factory Production Control

Solutions: properly apply the NLF Provisions for non and small series production Request to certifiers to consider the size, the structure and the sector of the enterprise Accreditation of laboratories and conformity assessment structures belonging to SMEs' organisations

Solution in Construction legislation and relevant standards Self-attestation of conformity by the manufacturer for individual and non series production provided that products do not have important implications for health and safety Reducing ITT costs Cascading Shared ITT results Reducing Factory Production Control burden GPM

Solutions in standardisation How to better draft standards for the construction sector: a) Obtain EN standards adapted to SMEs needs  Participation in TCs at national and EU level How to use and implement standards in an appropriate manner: b) Implementation guides of standards to facilitate SMEs products compliance to the law Translate the provisions to practical actions to undertake on the field Train and inform SMEs on how to apply the standards and much more...

QUESTIONS ?

Thank you for your attention! Valentina MAURI T.: +32 (0)2 282 0541 E-mail: v.mauri@normapme.com Website: http://www.normapme.com