CLUSTER ECO-CONSTRUCTION

Key words: Clusters and business networks, Transfer of technology, Energy efficiency Other key words: Innovation education and training

Region: ,

Programme type: Objective 2 Rural (2000-06)

Duration of project: September 2002 – July 2004

Funding: Total cost: € 141,134, including € 70,556 from the ERDF

The Eco-construction cluster was created in 2002 in Namur where there was an urgent need to address the coordination of SME activities in 'up and coming' sectors. The Chamber of Commerce and Industry, assisted by the Economic Office in the Province of Namur, initiated this project along with ten SMEs from the eco-construction sector which were selected on the basis of their motivation and expertise. These SMEs have cooperated with public and private entities in order to develop new processes and products.

The Eco-construction cluster was established in the context of a political strategy to concentrate efforts on the development of a few key sectors in the region. A study of the region concluded that the eco-construction industry and agro-alimentary activities (both already performing well in the province) had the greatest potential for further development.

The project pursued certain economic objectives: • to make the eco-construction market in more dynamic • to create new jobs in Wallonia • to increase turnover in the companies involved in this sector • to create new businesses and new possibilities for development

and also ecological objectives: • to reduce environmental pollution caused by the building industry

and social objectives: • to encourage the reintegration of people into the job market by offering them specific training in new techniques of eco-construction • to educate the general public about eco-construction

1 The project was innovative in different ways. An independent structure was created and represented various actors in the sector (for example; federations, associations, companies and universities). Moreover, a specific statute was created enabling less experienced actors to participate in the network.

The projects achieved the following results: • The number of companies and organisations has increased rapidly, with 68 full members and 50 candidates in 2007. • The geographical coverage of the cluster has spread from the province of Namur to the whole region of Wallonia • The number and quality of the research projects has greatly increased.

• Cooperation in this field outside of Belgium has been established. For example, this project is an associated partner of the campaign for Sustainable Energy Europe and shares its experience abroad in countries such as and the Grand-Duchy of .

I. PROJECT DESCRIPTION

Project objectives:

• The initial objectives were the following: 1. creating a cluster of businesses operating in the eco-construction sector, with activities spread throughout the province of Namur. 2. grouping together of a minimum number of businesses into this cluster (the cluster should have a minimum of 10 members). 3. motivating a minimum number of operators and/or businesses with an awareness of how the cluster works (minimum 40 entities). 4. organising of activities to promote the eco-construction sector in the province of Namur.

• At the end of the project, these objectives had been more than achieved: - the cluster covered a wider area (the whole Walloon region) than envisaged in the project (the province of Namur); - it also had more members (25 members) and more associations and organisations with awareness of its activities (50 entities) than initially foreseen; - promotion of the sector through conferences, internet site and communication materials has resulted in a heightened awareness on the part of the general public and players of the environmental, economic and social issues of the eco-construction sector.

• The initiative has also allowed other long-term objectives to be realised: - stimulating the eco-construction market in the Walloon region by organising conferences, supporting initiatives by builders and investors, promoting model builds, etc.,

2 - encouraging exchange of experience between members by creating working groups and organising company visits and study trips, etc., - establishing reference models to provide information for members on projects and techniques used elsewhere, - promoting Walloon eco-construction sector players abroad (participating in various conferences and symposia, having a presence at fairs/shows, receiving foreign delegations, supporting our members’ participation in European consortia), - increasing partnerships and collaboration between players (businesses, universities, promotional associations, designers, etc.), strengthening “business relations” between members (regular presentations to each other of members’ activities), - creating jobs (centralisation of job offers, etc.), organising suitable training based on identified needs, - encouraging putting quality products at competitive prices on the market (thanks to cooperation and/or healthy competition between companies), - prompting a change of mentality among builders by encouraging more environmentally friendly solutions.

Description/type of activities

1) The bases of Cluster Eco-construction (2002-2004) were established thanks to the involvement of the Chamber of Commerce and Industry (CCI) of the Province of Namur, the Economic Bureau (BEP) of the Province of Namur, ten or so companies specialising in eco-construction and a day-to-day leadership coordinator. Once equipped with communication tools and essential information, the cluster has led many actions to create new opportunities for its businesses and the general public: - awareness raising among the general public, the authorities and potential investors via articles and meetings, - conferences and seminars (mostly organised by the Namur CCI and BEP and held on their premises), - joint promotion of businesses at local, regional and foreign shows and fairs, - promotion of experience sharing, - setting up partnerships between businesses (including businesses in the social economy sector), - proposing joint investment and construction projects, - setting up training aimed at strengthening and improving companies’ skills, - distribution of newsletters to professionals in the sector to inform them about successful projects;

2) In 2004, the cluster moved from the start-up stage (cluster of 10 members with a sub-regional spread) to the mature stage (cluster covering the whole region with a growing number of activities and range of partners). The Walloon region decided to subsidise only the Cluster Eco-construction; 3) In 2006, the cluster adopted the status of an independent association. The founding members are businesses, research centres and universities, associations and federations, and the number of signatories to the statutes reflects the level of interest

3 in this initiative. New actions have been taken, such as more targeted canvassing of under-represented trade associations using lists of businesses to which the cluster has access. Transversal actions have also been taken with thematic groups (eco-materials, energy performance of buildings, etc.) and local clusters put in place at the demand of various businesses.

Beneficiaries:

• The direct beneficiaries are the cluster members, namely: - businesses (architects, entrepreneurs, suppliers and manufacturers of ecological materials, suppliers and installers of equipment that uses renewable energy such as solar panels and biomasses), - universities and research centres: the cluster enables the latter to find experienced partners with whom to implement joint research programmes, - players specialising in professional training (training for work businesses, professional training bodies, etc.), - sector promotional associations (timber sector, for example) and professional federations;

• Other interested parties have benefited from positive knock-on effects from the cluster:

- private individuals and the general public. Thanks to the cluster, there are various services available to them: names and addresses of businesses in the sector on the cluster’s website, conferences and free exchanges of experience at the conferences, free entry to shows/fairs and to organised events (energy days, etc.) in which the cluster and its members participate, an on-line newsletter giving dates of events, sharing of experience, reporting and good practice;

- owners/developers and public and private investors. People who want to construct or renovate buildings can consult the cluster. Meetings are regularly held between investors and cluster members (for example: a research consultancy has met various cluster members concerning the construction of an office building using renewable energy; a local council has presented a bioclimatic housing estate project, another example is an eco-housing project, etc.).

II. POLITICAL AND STRATEGIC CONTEXT

Strategic context:

When the project was presented, the eco-construction sector’s importance in the economic development of the Province of Namur, and more widely of the Walloon region, was clearly demonstrated by a study carried out by the Walloon authorities. This study shows that the eco-construction sector is rapidly expanding and offers great prospects for the future. Moreover, the sector offers young people and people

4 with problems opportunities for rehabilitation into the workplace through training that raises their self-esteem.

The Cluster Eco-construction project meets specific regional needs. In the first place, the Walloon economy is primarily driven by small and medium-sized businesses and public and state employers (and many are members of the cluster). Secondly, businesses in the eco-construction sector, including renewable energy, are young and developing (as are most of the members of the cluster). Finally, the market is expanding. In conclusion, the small and medium-sized businesses and public and state employers of the eco-construction sector in Wallonia, who need the benefit of advice, help, know-how, innovation and development policy, must be able to count on the support of a cluster that puts in place a global strategy under local authority supervision.

Furthermore, the Walloon public sector offers relatively few model constructions; therefore the cluster carries out promotional activities aimed at local communities. It is also important to note that there are not many producers of ecological materials in Wallonia. Therefore the cluster supports the development of new channels of production of ecological materials. The channels grow as small businesses are created, but the human and technical potential varies from business to business. Participation in the cluster as a member, or in the network, is subject to relatively strict conditions

The Cluster Eco-construction project is something of a forerunner in the Walloon region. On its integration into the Walloon region operational programme in 2002, within the ERDF (objective 2 rural) framework, it was one of the first projects to be included in the Walloon region clustering policy initiated in 2000. In 2004 it acquired the status of Walloon cluster and was among the first ten Walloon pilot clusters.

Innovation:

At the time the project was launched, the cluster concept was relatively new at regional level. The networking of businesses in this way was new. Even on a European scale, clusters in eco-construction were relatively rare. Creating a transsectoral cluster that brought together architects, builders, materials suppliers, research consultancies, renewable energy and water component manufacturers was also new. There were not really “exchange links” between the various professionals, the sectorial federations and the universities involved in the construction of environmentally friendly buildings. Considering the transversality of activities involved, no professional federation brought together the businesses operating in the field. Eco-construction (techniques, materials, concepts, etc.) was formerly not very developed and little known.

Political support: 1) The cluster is politically and financially supported by the Walloon region: • The Walloon region has provided 50% of the financing, the other 50% coming from ERDF, within the Objective 2 programme, during the first two years after it was created, from 01/09/2002 to 01/07/2004;

5 • from 01/07/2004 till 01/12/2007, the project continued, but the Walloon region took over all the financing, keen to encourage the development of this new initiative; • since 01/12/2007, when the Walloon region considered that the cluster was capable of taking on some of its own financing (members’ subscriptions, paid services, etc.) it has only covered 80% of its costs; • in the longer term the Walloon region sees the cluster becoming financially independent. 2) The cluster also receives support for its implementation and its management: • in 2002, within the framework of the Objective2 programme, the Walloon region assessed the application; • in 2004, when new cluster objectives were defined with a view to acquiring the status of Walloon cluster, the Walloon region examined the cluster’s progress. • in 2006, when the cluster was constituted as an ASBL (not-for-profit organisation), the Walloon region put in place a quarterly evaluation structure to be carried out by a steering committee (set up by the Walloon authorities).

III. IMPLEMENTATION

Programming

As outlined above, those responsible have taken a long-term view since the start of the project, the objective being to extend it beyond the duration and geographical area initially foreseen.

The project has moved forward in several stages:

2002: launch of the cluster through a working group of about ten businesses located in the districts of . A full-time coordinator oversees coordination with administrative support from Namur CCI (project leader) and Namur BEP;

2004: acquisition of Walloon cluster status. Extension of the geographical area of activity and addition of new members from the whole Walloon region (+/- 25 members). The cluster is supported by the official authorities: an steering committee made up by representatives of the official authorities follows the activities of the cluster actively. The contacts with the official authorities (local and regional) are frequent in the context of projects (for ex. The eco-hamlet or eco-allotment projects in various cities or Walloon communes) but also within the framework of various events (communal days of energy, etc.)

2006: creation of an independent legal structure in the form of an ASBL (not-for- profit organisation). Formation of an administrative council including representatives of the various sector players (federation, association, businesses and universities). Growth of the cluster and integration of various players in the process (arrival of new members representing federations, associations and universities). The cluster moves

6 offices. The coordination team consists of two people. Businesses join the management of the expanding structure. Growth of research projects, exports, contacts abroad. Creation of “prospective member” status allowing less experienced bodies to join the network. Strong growth in the number of members. The cluster becomes an associated partner of the Sustainable Energy Europe campaign;

2007: the cluster receives more and more requests to share its experience abroad (mainly in France and Luxembourg) and to receive foreign delegations. The cluster is evaluated by an external consultant appointed by the Walloon authorities; in view of the positive results, it has been reappointed for a further three years. The cluster puts forward numerous project propositions in response to appeals for national, European and international projects. It participates in a European clustering project (Intelligent Energy Europe Programme). It now has 68 full members and 50 prospective members.

Management structure quality and effectiveness:

2001: Introduction of a draft constitution of cluster CEE-CONSTRUCTION within the framework of the ERDF calls by the Chamber of Commerce and Industry of the Namur Province and the economic Office of the Province (first meeting of the companies of the Province interested by the cluster.

September 2002: Cluster became official with the launching of CEE- CONSTRUCTION on Philippeville Dinant's districts.

July 2004: recognition of the cluster in Cluster Walloon (the Walloon Government's decision). Extension of the geographical area covered by the cluster to Wallonia.

Management of the cluster is currently still in the hands of the Walloon region, which continues to award the cluster its grants: - a steering committee (composed of Walloon region officials with expertise in the fields of economics and employment, research and technology, energy, and ministry representatives) meets three times per year; - an administrative council drawing together businesses, universities, associations and federations also meets three or four times per year; - a steering committee made up of eight businesses representing the whole industry (architects, builders, suppliers and manufacturers of eco-materials, renewable energy equipment suppliers, etc.) and the Chamber of Commerce and Industry meets roughly every two months; - the leadership team is made up of a coordinator (leader) and a head of project/communication. An external consultant and the cluster members (who are involved in activities such as promoting the cluster abroad, speaking at conferences, etc.) provide particular support.

The work programme is drawn up by the coordination cell. The proposition is then validated by the steering committee, and then presented for approval to the Walloon region steering committee. Finally, it is submitted to the administrative council.

Partnership:

7 The number of members has increased rapidly. In 2003 the cluster started with 10 members (9 enterprises, 1 federation). In 2004 they were 25 (including 2 universities). In 2007 the cluster worked with 84 members including 9 universities: Mons (Faculté polytechnique), Liège (Université libre, Departement des sciences et du management de l'environnement), Leuven: UCL: architecture et climat, 8 training operators, 8 federations, 9 associations and enterprises) etc…

All the operators (designers, contractors, equipment suppliers, etc.) who intervene in projects of construction environmentally friendly are involved in the cluster and are represented in manner balanced. Companies are primarily SMEs and more often TPE with 5 to 6 people, the largest company employs 70 people.

There are 3 main criteria to become member of the cluster: • the reputation of the company/applicant: the cluster consult information available on the candidates including a check with operators such as the Chamber of Commerce and the professional federations (the company already go bankrupt? what is the reputation of the company?…) • the qualification of the organisation: the cluster evaluates the knowledge and the competences of the company in terms of eco-construction (what are the principal achievements, what is the training followed by the collaborators?) • the motivation of the company: the cluster evaluates the interest taken by the company or the applying body with respect to the cluster (the company it is interested by partnerships, by collaborations with other members?…).

The application is evaluated by a jury (Management committee) made up of companies from the various sectors of activity (architect, manufacturer, material suppliers, persons working in renewable energy). Expertise is evaluated on the basis of a complete file before becoming a member. Motivation is evaluated on the basis of the presence of the member applicants in the activities of the cluster or not.

In order to make it possible for young companies to evolve in the sector, they receive the statute of member candidate (who did not prove yet sufficiently their motivation and their expertise in the field of the eco construction). But only the full members' details are placed at the disposal of the general public in particular via the Internet site www.ecoconstruction.be .

The contribution to the cluster is 100 or 150 EUR for the candidates 75 EUR for would be applicants.

The members are not formally divided into sub-groups, but a transverse approach is generally taken in this sector which often includes different steps of activity (eg: design of a building, demolition, construction, use of the building). Complementarity between the members constitutes one of the principal assets of the cluster. It is important to improve permeability between the various specialties existing within the sector of eco-construction (to encourage the technical exchanges between the architects and the manufacturers, the exchanges of good practices between the manufacturers and the material suppliers, etc.).

However, departments may be created on a case by case basis. They concern for example the approval and the recognition of eco materials, the transposition of

8 regulations on the energy performance of the buildings in the Walloon Region, the identification of the training needs in the sector, and the appropriateness of the sector of eco-construction for the social economy companies,

Marketing

In the first phase, the cluster was furnished with a full range of management and communication tools: logo, charter, website www.ecoconstruction, information letters and leaflets.

Afterwards, the cluster has taken initiatives to increase the participation of public bodies with various actions intended for the public bodies: conferences, individual meetings, setting in liaison with the professionals of the sector, etc. Thanks to this awareness-raising, several organisations have already invested or are in the process of investing in the sector.

The same efforts have been made to inform universities and research centres to participate, and they have succeeded as the majority of the universities in the region are active members of the cluster.

Obstacles in terms of design or implementation:

• At the start of the initiative, the eco-construction was a little known sector. The initiatives and projects were relatively rare. At the beginning of the cluster, partnerships and the trade were relatively limited.

• The cluster itself was little known to the companies, to the investors, to the general public and to the various Walloon authorities. The communication actions set up by the cluster were numerous and aimed at all the public.

Transferability:

The results of this project have been implemented both within and outside the region. The principal developments are: • the creation of an ASBL (an independent association) Cluster by the companies via a management committee - CEE-CONSTRUCTION. • the new partnership with the Centre of Energy and Environmental competence of the Forum of Mons (training centre), • the diversification of the members, with new applications from universities, federations, associations, • the wider geographical distribution of the cluster members in the Walloon region, in order to have a network of companies throughout the territory, • the internationalisation of activities with the drafting of proposals for projects in answer to calls for tender (INTERREG, 7th framework programme, etc.), • the implementation of research • the participation in projects for the creation of new training, • the collaboration agreement with a French cluster (Eco Energy of Rhone's Alps) and the reception of foreign delegations for exchanges.

9 • The support for the adoption of similar steps abroad (Burgundy, the -Pas- de-Calais, Luxembourg, etc.). • Study trips abroad in collaboration with various Belgian or foreign partners (Freiburg, Germany – Wels, Austria),

IV. EFFECTIVENESS

Effectiveness:

The project has enabled members of the cluster to make contact with other local firms and establish reciprocal trust, collaborate with other businesses, benefit from exchanges and create partnerships.

The project has enabled the starting up of various businesses, especially in the social economy sector (a business providing training for young people with problems).

The project has also been able to demonstrate to businesses that university-business partnerships are possible and worthwhile.

As a result of the project, the general public and potential investors in the eco- construction sector have had access to help and support for their projects.

Impact

The creation of the cluster has also made it possible to bring together and unite various players in the economic world, to make them aware of the economic, environmental and social issues of building. From a general point of view, the cluster has participated in the development of member businesses (very small and very young businesses for the most part), contributed to the training of and improved the skills of workers. The cluster has also become the promoter of the sector and its businesses (in Belgium and abroad).

The cluster brings together not only businesses but also research centres and universities, it has opened the way for “business-university” cooperation. The "Minergibat" programme enabled the company EGELEC to collaborate with the Energy pole of the Polytechnic Faculty of Mons (FPMS) in setting up 2 new Walloon designed heat pumps (a heat pump used for building heating and the other used for the heating of the domestic hot water and for building heating). The programme future Energy enabled the Polytechnic Faculty of Mons to collaborate with 2 companies of the cluster for the supply of electric radiators via photovoltaic energy (solar panels).

Sustainability:

During the 2 years of co financing by the European ERDF & Walloon region funds, the cluster had progressed as a start-up.

At the end of the project, the cluster has advanced well and continues to be supported by the Walloon region • From the end of 2004 until 2007, the cluster has been financed entirely by the Walloon region with an annual budget of 160.000 €. Since 2008 this support

10 has decreased to 80% as the cluster was considered capable of self-financing 20% of the costs. • The number of members has increased continuously: 30 members at the end of 2004, but 68 members and 50 applicants at the end of 2007. • The structure of the cluster has been modified: 1) In 2002 the cluster CEE- CONSTRUCTION was launched by the Chamber of Commerce and Industry and the Economic Office of the Province in the Philippeville and Dinant districts 2) In July 2004 the cluster has been officially recognised as a Walloon cluster by a Walloon Government decision 3) in May 2006 an independent association (ASBL) has been created by the enterprises, centres of research, universities, professional associations & federations. The cluster has been detached geographically from the Chamber of Commerce and Industry which housed it initially.

V. CONCLUSION

Lessons learnt:

The construction of a network takes time. It is advisable to involve the various actors of the sector and to set up collaboration strategies with them (organisation of at least one common activity for each partner per year: visits of companies, conferences…). It is advisable to maintain regular relations with the member companies. To guarantee motivation and an implication of the companies, regular meetings in the companies must be envisaged. The cluster has to play a role of central point and of information diffuser. It has to collect as much information as possible on the sector (technological innovations, key events for the sector, calls with projects, new exemplary buildings and original initiatives…). It has also to select in an appropriate way the information that it retransmits in the companies. Good knowledge of the members allows the cluster to diffuse relevant information.

Good practices:

• A period of establishing the confidence was necessary so that companies could collaborate. The organisation of regular meetings, of collective stands at the fairs and company visits facilitated confidence building. • In view of the numbers approached within the cluster (water, energy, the environment, housing, the economy, export, employment, research, innovation, etc.), the number of interlocutors and of operators to be met were sizeable. Today, the cluster has good recognition within the administrations concerned. It is also known to the general public and companies. • The communication actions of the cluster must be multiplied and aimed at a wider public. • The participation in professional shows and fairs and the organisation of specialised conferences • The collaboration with the federations and associations opened the door to more important networks of distribution (the members of the federations and

11 of the associations being associated with the various activities of the cluster via their representative)

Added value

• This project has provided the opportunity for promotion of the eco- construction sector (which was little known in 2002), to create new partnerships in the eco-construction and to increase the trade in eco- construction.

• With this project, the cooperation universities-enterprises in the eco- construction sector has been launched

• With this project, the cluster was mature enough to be officially recognised as regional cluster by the Walloon authority

Contact details: Name of contact person for the project: Eddy Bauraing Address of contact person: rue Henri Lecocq 47 bte 7 B - 5000 Namur Tel of contact person : +32 (0)81 71 41 00 E-mail address of contact person: [email protected]

Date of this information: 4 February 2008

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