Fluor 2001 Annual Report Download - page 18

FLUOR CORPORATION 2001 ANNUAL REPORT
This approach not only delivers differentiated value, but is also responsive to customers’
increasing preference to consolidate vendors and have sole-source delivery of their equip-
ment, tool and indirect material services.
In addition to the favorable business outlook for increasing Fluor project opportuni-
ties, AMECO is also pursuing additional growth prospects with third-party customers.
AMECO is focused on selective opportunities to work with new customers who are looking
for an integrated approach that meets their equipment services needs and delivers the
total best value package. During the year, AMECO was awarded a renewable five-year con-
tract with Williams Group, a major construction contractor in the eastern United States,
to serve as the primary equipment, tool and site services provider.
AMECO’s Fleet Outsourcing business targets expanding growth opportunities by
capitalizing on the continuing trend by customers of outsourcing non-core functions.
Typically, AMECO acquires an industrial customer’s equipment fleet and associated per-
sonnel and then provides a comprehensive package of equipment and services designed
to meet the customer’s precise needs. Because AMECO has the ability to better leverage
the assets and increase their utilization across a broader range of clients and markets,
it is able to reduce overall costs for the customer, while providing increased flexibility
by shifting a large fixed cost into a variable expense.
AMECO provides these Site Services and Fleet Outsourcing solutions with a strong
focus on safety, which achieved industry-leading performance in 2001 with an all-time
record low for OSHA recordable cases during the year.
Fluor provides high quality, value-based operations and maintenance (O&M)
services to assist clients in reducing their O&M costs and improving operating efficien-
cies, to enhance the overall performance of their plant assets.
Services are provided globally, primarily focused on targeted industries and
geographic regions that leverage Fluor’s existing presence and client relationships and
offer the most attractive opportunities for profitable growth. Targeted geographic regions
include North America, Australia, Europe, and southeast Asia. Currently Fluor is focused
on providing operations and maintenance services to the targeted industries of fossil
and nuclear power, oil and gas, chemicals and metals. An additional area of emphasis
and opportunity is expansion of facility management services to general manufacturing
and commercial facilities in North America.
Fluor continues to benefit from the
market trend to outsource operations and
maintenance services as companies focus
on their core competencies. To capitalize on
the market’s outsourcing growth potential
and increase market share, Fluor selec-
tively pursues client opportunities where
the company can differentiate its services
through value-based performance incen-
tives. For example, following completion of
a formal opportunity assessment process to
determine potential cost savings and asset
productivity improvement, a contract is
structured wherein Fluor shares in the cost
savings achieved through work process
improvements that drive overall plant effi-
ciency. Fluor’s performance metrics include
safety, client satisfaction, equipment avail-
ability and overall plant performance.
Building on these value-based offerings,
Fluor continually migrates up the clients’
value chain by increasing the scope of
responsibilities and services provided to
expand the potential value added.
Consistent with its strategy of selectiv-
ity, the O&M sales effort is targeting oppor-
tunities that leverage Fluor’s EPC client
relationships. The objective is to achieve
a seamless transition from the comple-
tion of an EPC project to the provision of
ongoing O&M services once the facility
begins operations.
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