Morgan, Bailey and Wright were joined by fellow team members Corby, Wolstenholme and Latham to dazzle the crowd with the m&e sector's skills. Were there any red cards? Any elbows in the face? As you would expect with a theme of 'Our people, our partners, our business', the spirit of the game was one of fair play, with only a few niggling fouls and shirt-pulling along the way.
Construction minister Nigel Griffiths, although not present to referee in person, gave a video welcome in which he praised the work of the ECA and umbrella body the SEC Group for its lobbying work.
He cited the M&E Major Projects Agreement (MPA) as an "important example of partnership" and congratulated BAA's T5 team for being the first client to adopt it. Griffiths also praised SummitSkills, as well as the JIB's management of the ECS certification scheme, including the extension to datacomms operatives.
Newly-inaugurated ECA president Tony Morgan told the audience of some of the challenges facing the industry. Part P of the Building Regulations "will have a major impact on the market," said Morgan. "There could be as many as 40 000 firms seeking registration for self-certification under Part P and the ECA has made plans to increase its membership from 2200 to 3000-4000 or more in the future."
Tony Morgan's passion is to help small-to-medium-sized firms, the SMEs, to grow to be more profitable. "They are a national asset, contributing a major part of the UK's gdp and within the ECA account for over 50% of turnover." He called for the ECA's partnering to be extended to the likes of Business Link and the Federation of Small Businesses.
Morgan also laid down a further challenge for the Association: "With the large m&e companies now packaging out work to subcontractors, we need vision to work out the implications of this way of working. I call for the Association to rise to these challenges and help to take our businesses forward."
ECA director David Pollock responded in his presentation entitled 'Working together, achieving more'. He agreed that practices such as labour-only subcontracting and free issue of materials were not compatible with partnering principles and said that while the ECA cannot force change on the market, "we can encourage appreciation of the benefits of partnering." He admitted that with 90% of all contracts being let under a JCT, non-partnering basis, there is still much to do.
Pollock outlined the co-operation going on between trade bodies, including the ground-breaking partnership with NICEIC over a Qualified Supervisor ECS card.
SMEs are a national asset, contributing a major part of the UK’s gdp
Tony Morgan
Pollock considered indirect employment, whether from agency labour or composite companies to be a "large challenge". The ECA will be working with SummitSkills to adapt its training framework. "The sector has a huge number of apprentices, but we need more," said Pollock.
On Part P, Pollock was confident that the ECA's application, together with the IEE and BRE Certification, to run a self-certification compliance scheme would be successful and "we hope to see the scheme extended beyond dwellings." Pollock also promised to "work hard to get companies to join our scheme in a competitive environment."
The role of the client in driving forward partnering and best practice was highlighted by the next speaker, Andrew Wolstenholme, construction director at BAA's Terminal 5 at Heathrow. With T5 accounting for half of BAA's planned £8.5 billion capital expenditure over the next ten years, it's no surprise that Wolstenholme wants something special from his suppliers: "It's about commitment, teamwork and trust; it's about risk and opportunities," he explained.
People are the most important part of any project and delegates must have wished that more clients went to the same lengths to look after the workforce as BAA. "We employ the best, we equip them, look after them and we enhance them – we want them to be better than when they arrived," said Wolstenholme.
T5 introduced induction packs, has an on-site CSCS test centre, occupational health screening, a site newspaper and a rewards scheme. Something is clearly engaging the staff: over 2500 responses to a survey among 5000 staff is testament to that. The results show that more work still needs to be done – only 18% thought communication between suppliers was good – but 73% thought more emphasis was being given to safety on T5 than other projects and 48% thought it was a great place to work.
Wolstenholme confessed to being surprised by the industry's overall lack of capability and the health screening revealed that over 30% of staff had a medical condition that either they didn't know about or weren't treating.
On the MPA, Wolstenholme said: "The MPA fits the way we want to work. It focuses on innovation and improvement; on productivity. I'm disappointed that we are the only people heading in this direction."
NG Bailey is one contractor used to working in partnership with BAA. In an impassioned delivery, managing director Martin Bailey expressed "real comfort" with the conference theme. Bailey's training pedigree speaks for itself: nine out of every ten apprentices last the course, 90% of its key managers are ex-apprentices, over one-third of staff have been with the company over ten years and more than 10% are still there ten years later.
The MPA fits the way we want to work. It focuses on innovation and improvement
Andrew Wolstenholme, BAA
Despite these successes, Martin Bailey recognises that more needs to be done if the industry is to move forward. "We have to go out there and preach about the exciting things that are happening. There is great potential for construction – you are actually creating something – and the m&e industry underplays its skills in getting the environment right inside those buildings."
NG Bailey is continually examining its recipe for success. Into the mix has come greater aptitude testing to get the right people in the first place, site-based appraisals, work on softer skills such as relationship building, action-based learning where live projects are worked on in training, and mentoring. Bailey summed up the company's philosophy quite simply: "Invest in people and they deliver for you."
Nick Smith, product and technical marketing manager at Hager, developed this theme. "People are the lifeblood of our industry – investment in their training is key." Hager has invested by offering technical expertise from a number of regional centres. "Good customer service is the catalyst for repeat business," said Smith.
You would expect Paul Corby, national officer with Amicus, to stress that this is a people business. "UK plc depends on us for our hospitals, roads, rail, airports, industrial renewal and regeneration. We are a key sector in the total construction process."
Corby lamented the "government error" of granting the CSCS governance over all other site certification and safety schemes, calling it: "tantamount to letting the inmates run the asylum." Corby praised the m&e industry for its superior record, influenced in no small part by the electrical sector's JIB agreement.
Corby attacked the Government for its target of 50% of people to go on to university. "The Government has it wrong. Craft apprenticeships have provided the UK with skilled and talented craftspeople. Why is this frowned upon by educational technocrats?" He called for greater involvement from ECA firms in training and for the reasons behind the high dropout rate to be examined.
A training levy got the thumbs down. "This does not lead to training per se," said Corby. "Those sectors don't have a record as good as the electrical sector."
Corby highlighted the changing industry brought about by the growing use of agency labour, composite companies and those major m&e contractors that employ no operatives directly. He promised that "the JIB will remain a relevant and quality agreement, work will go on and we will continue working together to shape the future."
There is great potential in construction and the m&e industry underplays its skills
Martin Bailey, NG Bailey
In questions and answers at the end of day one, Viv Sullivan of Crestahead asked what could be done about these composite companies. Paul Corby thought that changes to the Finance Act may well stop this tax scam.
ECA past president Charles McKinnon called for the Government and employer bodies to lead by example and deploy best practice whereby firms that do not directly employ and train their staff should not be allowed on tender lists. Responding to a question from Crestahead's Carol Sullivan, Andrew Wolstenholme admitted that T5's policy of direct employment will be tested when it comes down to fourth or fifth-tier suppliers.
While the unseasonal rain forced a move indoors for the evening welcome reception, it did not dampen the spirits of delegates who gathered the following morning for day two, chaired by ECA senior vice president Bill Wright.
Siisi Adu-Gymafi, vice president, marketing with the Eaton Corporation gave a compelling account of why global partnerships make sense for his company and just how they have gone about making them work. Eaton's joint venture with Caterpillar to market intelligent switchgear achieved $60 million sales in its first year and opened up new markets by sharing development costs in new technology, minimising risk and sharing competencies. "Have a strategy first, and make the deal second," advised Adu-Gymafi.
Simon Barkes of Bemco and chair of the European Union of Electrical Distributors gave an overview of the changing face of wholesaling. Mergers and acquisitions have led to less choice for the contractor: 75% of those trading in 1976 are no longer in business. Barkes predicted more change as "it is surprising that USA wholesaling interests have not looked at the UK scene." With Rexel possibly up for sale and Hagemeyer's recent difficulties well documented, the long-term picture is unclear.
The immediate future looks rosy for the healthcare sector. Mike Andrews, business development director at Philips Medical Systems, urged delegates to get involved in the £68 billion annual budget earmarked for capital investment in healthcare facilities. "Get involved at inception stage and be part of a total solution to NHS clients," said Andrews. New hospitals, diagnostic treatment centres and the refurbishment of doctors' premises mean opportunities for m&e contractors of all sizes.
Ken McCracken, director of Family Business Solutions, addressed a subject close to the hearts of many contractors: succession planning. 75% of registered UK companies are family businesses. Too many leave it too late to plan for the future – should you sell, hand it all over to the eldest child or retain ownership but bring in outside managers? McCracken offered no solutions, merely a mechanism to allow firms to make up their own minds. "Expect fear, doubts, anxiety and resistance along the way," warned McCracken. "Explore your options and beware the quick fix. Identify and assess the feasibility of all possible outcomes and seek consensus."
Those particularly interested in this topic, and there were many, were able to examine Ken's model in more detail in the breakout sessions at the end of day two. The other options were adding value by using opportunities brought about by industry change, and two sessions on developing our people. The first looked at skills and training and the second examined rewards.
Apprenticeships have provided the UK with skilled craftspeople. Why is this frowned upon by the technocrats
Paul Corby, Amicus
To kick off day three, Sir Michael Latham chaired the feedback from the breakout sessions. First up, Ken McCracken praised delegates for their honesty during the succession planning workshop. He summed up: "While it is impossible to predict what will happen next, you can start planning for it."
Alan North, ECA vice president, looked at the opportunities that may arise from industry change. He concluded that while the industry does not, as a rule, welcome change, "we can be optimistic because everything relies on electrical power." The industry needs a different grading structure, thought North, including a new grade to reflect the 'plug and play' part of the sector; the Wiring Regs need to break out to embrace new technologies; and contractors "need to decide where they are in the supply chain and get more involved in specification and procurement".
On skills and training, Viv Sullivan questioned the selection process for apprenticeships given the high dropout rate and called for more professional courses. He also wants to see an improved industry image, a fiscal levy on the tender, action to embrace multiskilling and clients to recognise which contractors invest in training.
On rewards, Paul Corby called for a working group to look at a benefit credit for agency labour, accepting that there is a short-term need for top-up labour from agencies. "The MPA offers lessons to be learnt about adding value and enhancing rewards," added Corby.
Latham summed it up with a call to get back to basics: "what does the client want and how do we provide it?" Some clients are writing training provision in to contracts: "if they aren't your workforce, how can you be sure they are well-trained?" questioned Latham.
The final session kicked off with a presentation from Bill Wright on today's challenges. Few could argue with his analysis of abuse of retentions, upstream insolvencies and the amount of money wasted on lawyers in the industry.
Margaret Fitzsimons, managing director of Voltimum UK and Ireland, told delegates of the latest additions to its web portal. New partners, including Draka, ITW and MGE UPS, have broadened the range of product information that can be downloaded and the recent addition of a Technical Expertise section means that queries can be e-mailed to a host of industry gurus.
CIBSE vice president David Hughes gave an alarming presentation, telling contractors exactly why they need to get more involved in sustainability issues: a ten-fold increase in water-related economic losses in recent years and threats that melting ice caps could raise sea levels by 20 feet. If contractors felt that all this was too far away from home to concern them, Hughes pointed out that the Thames Barrier, designed to raise once or twice a year when it was built in the 1980s, rose 19 times in January this year.
Hughes urged contractors to play their part in the shift away from fossil fuels to technologies such as wind power, fuel cells, combined heat and power and geothermal sources. "We need to examine the way we do things and the custodians of the industry should develop a framework for the future."
Source
Electrical and Mechanical Contractor
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