Future W
Initiated jointly by the ECA and NICEIC, 2021 Vision: The Future of the Electrical Contracting Industry is a timely and thought-provoking report into where our industry is going. Here, Chris Ashworth, co-author of the report, outlines some of the key fi ndings
hile the construction industry press continues to publish warnings of doom and gloom for the industry, a recent report: 2021 Vision: The Future of the Electrical Contracting
Industry – shows that there are plenty of opportunities for the electrical contractor. And like so many opportunities, if you fail to take advantage of them, they will become a threat as your competitors act. 2021 Vision is a research project jointly conceived and
funded by ECA and NICEIC to provide a long-term view of the electrical contracting industry over the next 10 years. It identifi es the likely scenarios that will shape our industry, highlighting the character and structure of the wider construction industry, the economic outlook, client and main contractor requirements, the range of work that is likely to be undertaken, the knowledge and skills that may be required, and key product development and installation trends. In compiling it, the authors contacted 34 leading thinkers,
who contributed their views in focus groups and individual interviews. They also reviewed 44 published reports, articles and government briefi ngs to gather previously published views and opinions. In addition, 1,000 electrical contractors and related installation professionals who are members of the ECA or clients of NICEIC gave their views via on online survey.
Market prospects Even before the election of the coalition government, a decline in new build healthcare was inevitable as, following a major investment programme, many of our older hospitals had been replaced with new buildings and the programme of renewal was coming to an end. We also saw the rate of house building fail to meet demand, pushing up prices prior to the fi nancial collapse, which then saw completions at their lowest since before the Second World War. With the continuing low lending rate,
34 ECA Today July 2011 About the author
Chris Ashworth Chris Ashworth co-authored the 2021 Vision report with colleagues Bill Wright and Emma Townend. He has worked in the construction industry for more than 30 years and is founder of Competitive Advantage Consultancy, which provides strategic marketing services to the construction industry. He is a fellow of the Chartered Institute of Marketing, and a member of the organising committee for the Chartered Institute of Marketing Construction Industry Group (CIMCIG).
vision
there is unlikely to be a signifi cant increase in output and, even if there was, the collapse of many specialist contractors means that house builders are concerned that they would be unable to lift output signifi cantly. In the medium term, offi ce construction – in London
at least – is starting to recover. We also have numerous infrastructure projects. Rail development will include many station refurbishments, and the renewal of our ageing power stations is also a priority, but this will only compensate for the decline in public sector construction.
Green opportunities However, the sustainability agenda will provide signifi cant opportunities in renewable power generation as the programme to upgrade the UK’s existing building stock gets under way. Work will be required on virtually every building in the UK, with demand for systems to minimise energy consumption requiring the skills of electrical contractors for installation. So emphasis will move from new build to refurbishment, which is set to be half of all construction activity by 2021. There is no doubt that sustainability will be a major driver
in the construction industry in the next 10 years. All three main political parties are committed to the sustainablilty agenda. This drive is partly about reducing carbon emissions, but also to make the UK more energy effi cient in response to increasing prices of oil and to shortfalls in UK energy output. This will provide many new opportunities for electrical contracting businesses. We already have Feed-in Tariffs encouraging homeowners
to install solar panels to generate their own power. Demand for these systems will increase signifi cantly next year following the launch of the Green Deal in the autumn (see How the Green Deal works on pages 18-21 of this issue). The Green Deal will see a mechanism put in place to evaluate homes and propose upgrades to achieve energy effi ciency, with installation paid for through savings on homeowners’ energy bills. To achieve this, there will be a network of Green Deal advisers and accredited installers. The government is keen that this will provide opportunities for the small and medium business as well as for the larger companies, and estimates that it will create a workforce of 100,000 to fit energy effi ciency measures. Electrical contractors could develop their skills and knowledge of heating and lighting control techniques in order to provide energy effi ciency services, act as Green Deal assessors or become Green Deal installers, replacing other trades.
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