Golf clubs duly packed, almost 250 delegates headed for the Costa Del Sol to discuss the future of the industry.
The newly-inaugurated president David Dennison chaired the first session. The theme – Thinking outside the box – had delegates deep in discussion even before the morning's papers had begun. Just what did it mean?
As quickly became clear, the idea is to look at the industry from a wider viewpoint and with open minds. Dennison explained that it implies new thinking and change. But, he warned: "We must be careful not to confuse change with progress. Progress comes from having a clear sense of direction informed by good intelligence."
One area of change already affecting the industry and singled out by Dennison is the growing convergence of m&e technologies. "This movement is well advanced and has implications on design, procurement, working and installation practices, training, qualification and business management," he said.
Archie Jay, president of SELECT stressed that survival is dependent on the ability to think differently to account for changes in technology, legislation and staff skills. "We are required to continually reinvent ourselves," he stated, but warned, "To change requires great focus and often we need a catalyst for this."
Two of the most important catalysts are that of health and safety and skills shortages. The implications that new health and safety laws will have, in particular the proposed corporate killing act, are immense, stressed Jay, with skilled operatives the key to making legislation work and to ensure the future of the industry.
Scotland, Jay reported, currently has more success at attracting young people into the electrical industry than the rest of the UK, with over 20% of the country's modern apprentices in the sector. However, it is not only new industry entrants that are needed, he warned: "It is common sense to retain and develop knowledge."
HVCA president Peter Hoyle suggested that multi-skilling will become widespread as technology changes how tasks are carried out. Echoing Dennison's view, he observed: "Boundaries between electrical, mechanical and IT are becoming more blurred. Workers are having to expand their product knowledge, and with technology moving so fast, partnering is likely to be the way forward, both within and outside the field."
Hoyle reported a positive outlook for future work in the hvacr market, but repeated the warning of skills shortages. He told delegates that by 2005 the CITB estimates that there will be a 375 000 shortage in skilled labour, 35 000 in the electrical field. He stressed that this downfall in skilled labour will affect everyone in the industry.
Progress comes from having a clear sense of direction informed by good intelligence
Dennison
ECA director David Pollock spoke of the ECA's commitment to challenging traditional attitudes and policies to enable positive change. The DTLR is imminently expected to circulate the final consultation document on the inclusion of the Wiring Regulations into the Building Regulations. "The process seems now next to inevitable," he confirmed.
This move means that the compliance of an installation to the standards must be certified by a competent enterprise. The ECA is striving for corporate bodies to take this responsibility and has invited the Electrical Installation Industry's Liaison Committee to create a standard for their technical competence – the resultant Electrotechnical Assessment Scheme is expected to be published in June.
Tony Matthews of the Building Services Construction Best Practice Programme reminded delegates of the need to streamline changes. "Changing a process that is working efficiently will not add value," he warned. "Firms must be sure where any problems lie before taking action."
Trevor Hursthouse, chair of the Specialist Engineering Contractors Group concluded the session with a reminder of the benefits of supply chain integration. "Working as a team is fundamental to supply chain integration," he stated, and called on the industry bodies such as the ECA and SECG to promote the principles of partnership. "We must go beyond isolated and restricted partnerships and alliances if we are to continue improving the process," he warned.
Planning ahead
Future technologies were the focus of the second day of the conference. Norman Waterman, director of Quo-Tec, began by examining the use of e-commerce in the electrical industry.
With technology moving so fast partnering is likely to be the way forward
Hoyle
A recent study showed that over 50% of contractors surveyed have no web site, over 25% of staff have no access to a pc, and of those with access, 25% have no access to the internet. He cited human concerns, cost and unreliability as reasons for the slow uptake and predicted that distributors are here to stay: "E-commerce will never become the dominant way of communication," he stated. The use of e-commerce is expected to increase and larger firms are now seeing benefits. The Government is trying to push this process forward, with £500 annual tax benefits on offer for providing staff access to pcs.
Customer demand is top of the list in drivers for change, but the introduction of broadband should have a significant effect as it will make the systems faster and simpler to use.
Michael Bullard, chairman of the Electronic Trading Group continued the e-commerce theme. Agreeing with Waterman's prediction of customer-led change, he stressed the need for system compatibility and ease of use.
He described a solution driven by a group of six m&e contractors and four distributors. Here, distributors and buyers trade through a product reference exchange mechanism that allows their individual systems to communicate. To do this, a common coding structure was set up. The firms in the group are currently piloting the scheme. "This [type of communication] is going to happen and once it starts it will snowball," predicts Bullard.
We are detecting willingness on the part of the Government to consider [vocational training] funding post age 25
Harris
Dave Tilley of the Electrical Distributors Association concluded the early morning session by stressing the need for thinking out of the box culturally and taking up the challenge for change. "Without the right culture in a business, knowledge management is a waste," he stated, explaining it is necessary to understand what a firm does in order for it to change and expand.
The second part of Tuesday's programme concentrated on the high-tech products predicted to be on every electrical contractor's future shopping list.
Ray Bardsley, vice president of BESA began the session by examining the virtues of modular wiring. Originally introduced in the mid 1990s, Bardsley cited cost and labour shortages as factors likely to increase the uptake of such products – the speed of installation and the reduction of skills needed to do so make it an economically viable solution he stated.
Howard Porter of BEAMAenergy concentrated on the domestic market, and the well-publicised predictions for smart homes. Factors influencing this area are human-focused: "Technology is not the problem," he confirmed, "the problem is getting it into the market and getting it working." Although uptake has been slow this is likely to change, predicts Porter, due to increased environmental controls and the involvement of industry groups such as social housing providers.
Real partnering produces improved results provided that it is properly prepared and involves a fully committed team
Latham
Recognising that electrical contractors are "ideally placed" to install such systems, BEAMAenergy has obtained DTI funding to carry out a series of training events with the ECA, these are scheduled to take place in late Autumn 2002.
The potential changes in the lighting market were the focus of Richard Stuckes paper, with increases in use predicted for leds and solar panels.
The widespread use of leds is "just around the corner" stated the vice-president of the Lighting Industry Federation, explaining that their light output is expected to treble by 2005.
The rise in use of solar panels will be brought about by increased legislation. Although capital costs remain high, a White Paper published in March announced 50% subsidies and advance payments.
Old hierarchies have been rumbled by progressive employers as an inefficient method of procurement
McKinnon
Training and technology
The final day of the conference saw a return to the training issue.
Bob Harris, chair of the ECA Education and Training Committee outlined the Association's plans for future training needs, stating that programmes will be influenced by the market.
There are healthy signs from the apprenticeship programme but other groups must be attracted if labour demands are to be met warned Harris. "We are missing out on significant sources of future labour," he stressed, referring to graduates and minority groups.
From March to December 2001 the electrical modern apprenticeship had the sixth highest intake of all 75 frameworks, with 3141 new starts. Traditionally, training funding has concentrated on 16-year-old school leavers, but with uptake in this age group limited, there is a need to expand training programmes to cater for different groups and to address commercial and management issues. "We are now detecting willingness on the part of Government to consider funding post age 25," confirmed Harris. "We need to respond to this by developing programmes to support these individuals so that quality staff are attracted to, and remain, within the industry."
Initiatives include the development of a joint m&e framework that provides an approach to multiskilling, and the development of the modern apprenticeships programme through the eMAc skills competition.
Amicus is the largest private sector trade union and has a major role to play in society
Jackson
JIB chair Michael Latham tackled the issue of improving supply chain co-operation to improve performance, looking at the JIB's role in developing these necessary skills.
Time and cost reductions can be made with co-operation throughout the supply chain, stressed Latham: "Real partnering produces dramatically improved results provided that it is properly prepared and involves a fully committed team." But reduced costs, he stressed, should not mean reduced specifications; this saving should come from trust and involving suppliers in the construction process. "Real teamwork is about every participant valuing the whole project," he stated, a challenge that needs a culture change right through the industry to achieve.
But the sector is well placed to make these changes: "Amicus is the largest private sector trade union and has a major role to play in society," reminded Ken Jackson, general secretary of Amicus/AEEU. "It has unrivalled political access and influence on this Government," he added, citing the recent budget, where chancellor Gordon Brown announced £400 million investment in research and development in training, with the promise of more.
Jackson stressed that PPP and PFI are major steps forward and will provide many opportunities in the near future. There also has to be investment in training he insisted, proposing that one of the requirements of tendering for Government contracts should be the ability to show a previous comittment to training: "Without skills we'll achieve nothing," he stressed. He announced that vocational training is being reintroduced, with concentration on 14-19 year olds.
Charles McKinnon, ECA vice-president, identified how changes in procurement methods following the Latham and Egan reports are affecting m&e contractors and bringing added value to projects.
"There has been a significant movement along the supply chain, with services companies being engaged at the very concept of projects," stated McKinnon. "The reality is that the old hierarchies have been rumbled by progressive employers as an inefficient method of procurement."
This early involvement is also recognised to increase safety records as contractors are well placed to understand the consequences that poor design can have on site.
A visual trip around the world by Professor Roger Flanagan of Reading Uiversity emphasised the impact of global issues on industry. An ageing population, climate change and uncertain stock markets are just some of the looming problems that can't be ignored.
The conference concluded with an intense q&a session that questioned what can be done to solve the skills shortages. Past president Ian Crosby questioned whether a training levy should be introduced, but was reminded by Michael Latham that legal backing would be required to apply a compulsory levy across the whole industry. The introduction of Sector Skills Councils will introduce a system where government is looking for more commitment from employers in terms of training," he stated.
Ken Jackson reminded delegates of past changes: "When the industry left the CITB they said they'd fund apprentices, but when times get tough one of the first things people do is stop training. Everyone must take on the responsibility," he stressed.
Source
Electrical and Mechanical Contractor
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