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Executive Report: Link into the supply chain The recent Building Services Summit 2007 held in Wembley discussed key issues surrounding the mechanical and electrical (M&E) industry, one of our industry’s biggest markets. Nigel Strickland reports. The conference, which was sponsored by Hilti (Gt. Britain), was organised by the two dominant trade organisations within the industry, namely the Electrical Contractors Association (ECA) and the Heating and Ventilation Contractors Association (HVCA). Speakers placed particular emphasis on the issues of productivity, sustainability and occupational health, and an audience of more than 100 M&E contractors listened closely to the experiences of several main contractors, including Shepherd Construction, Mansell and Balfour Kirkpatrick. The importance to the hire industry of this particular segment of the construction industry cannot be overestimated. The M&E, or building services, sector has a turnover of £19.3 billion, and almost half the budget of any new building relates to building services installations. A staggering 451,000 individuals are employed in M&E, with 356,000 in the electrical market and 95,000 in heating, ventilation, air conditioning and refrigeration sectors. In addition, more than 18,000 apprentices are in training at any one time. With the HVCA having 1,400-plus member companies, and the ECA more than 2,700, understanding their key issues can give pro-active hirers a commercial advantage. Call for increased productivity Glenn Hawkins, Head of Project Improvement at BSRIA (the Building Services Research and Information Association) highlighted the need for UK construction to achieve greater productivity. The organisation suggests that a staggering 35% of available working time is currently lost through delay. This had improved slightly in the last ten years through the use of modular construction, new working systems and better tools and equipment. However, for productivity to be further enhanced, the industry needed to adopt improved organisational methods, behavioural change and continued improvement through new technology in materials, plant and tools. Any hirer supplying M&E customers might consider identifying equipment that can improve productivity. This might involve a degree of homework, and reliance on good technical data, but showing an awareness of such issues can enhance a business’s reputation. Indeed, it is worth bearing in mind Hilti’s sponsorship of this event and its claims of productivity gains associated with its equipment. Specifically highlighted were a 27% time saving gained by using an infrared measurement and setting-out device, and a 65% reduction in time achievable with the GX120 fastening tool. The topic of Health & Safety was a major element of the conference agenda, and Bob Towse, Head of Technical and Safety issues for the HVCA, described some likely developments. The frequency of routine health surveillance for workers on major construction sites was forecast to increase. This could have an impact on tool hire, with increased demand for HAV data, dust extraction equipment and monitoring systems, as well as operator training. High Health & Safety standards Paul Reeve, Head of Safety and Sustainability for the ECA, said the association aimed to secure a 70% reduction of major injuries within the industry by 2010, and pointed out the success achieved by its Zero Accident Potential (ZAP) strategy, which had reduced serious accidents by 60% since its launch in 2001. He added that the highest Health & Safety standards were also conducive to increased productivity. This outlook can only enhance the commercial opportunities for suitably focused hire companies. If further evidence of this was needed, then the presentation by Paul Coates, Head of Supply Chain at Mansell, provided it with an explanation of his company’s approach to dealing with HAV. A close working relationship had been established with Hilti as part of an initiative with key suppliers to establish and implement a ‘best practice’ policy that, he claimed, had become a benchmark within the industry. He explained that a key reason why Hilti had been chosen was its approach to monitoring HAV exposure by the amount of work completed by the operative (productivity), and not just ‘trigger-time’ (the time spent actually using the equipment). An important outcome of the strategy was the rationalisation of the number of Mansell’s tool hire suppliers from 30 to four, and that these remaining suppliers will only provide tools that appear in the Mansell approved ‘product selector’ list. Following on from this, all specialist contractors were requested to prove that they either had a policy on HAV, or that they intended to set one up; otherwise they were expected to adopt the Mansell policy. To simply do nothing was not an option. Overall, the summit provided a practical insight into the challenges faced by one of the biggest markets for the hire industry. The trend towards supply chain integration and increased importance of partnerships with suppliers will continue apace, with Health & Safety rising even higher up the agenda. Increasingly, hire companies that want to successfully engage with M&E contractors will need to deepen their existing relationships by becoming fully integrated within their supply chains, and to provide innovative solutions that enhance productivity and improve safety. • Executive Hire News › Archives › December 2007 › Executive Report › Link into the supply chain
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