[ Report: ECA Electrical Industry Conference 2011 ]


Opportunity knocking n


How are we ‘as an industry’ going to respond to the


opportunities afforded by the sustainability agenda and other new technologies? Steve Bratt, group CEO of the ECA, posed the question as he outlined some of the opportunities for electrical contractors looking to create a sustainable business, and highlighted attributes successful businesses require to succeed. He also warned that missing these opportunities could open the door for new entrants into the sector from non-traditional businesses, such as giant retail chains. ‘There’s an old saying: “There’s


no such thing as a missed opportunity – someone else has taken it”. It’s absolutely true,’ Bratt told delegates. ‘And for our industry, it might not be the people we would normally expect – and that would be a real shame.’ Taking a broad look across a range of markets, Bratt reflected on


how, as solution providers, it was important for electrical contractors to understand the market from a customer’s perspective, particularly in such a dynamically changing technological and legislative environment.


Highlighting the daunting scale


of retro-fit work required to meet government targets for 2050 reductions in carbon emissions, the group CEO stressed the importance of highly-skilled electrical contractors grasping the opportunities this presents. In addition, he commented on how the demand for renewable energy, smart meters, energy efficient building management systems, integrated data comms and AV systems and electric vehicle charging infrastructure, could all provide new avenues for contractors to develop their businesses and diversify. However, he warned, that


should not cede the initiative –


and business – to newcomers to the sector, as has happened in the past. ‘Electrical contractors having been working on this kind of technology for years,’ Bratt said. ‘It’s a massive commercial opportunity. We have clients looking for solutions. But we need the industry to respond, to take this opportunity, because it genuinely is an opportunity to diversify.’ Bratt also provided his audience with an insight to marketing, contracts, cash and funding issues, particularly as businesses moved into new areas. He emphasised the ‘absolutely critical’ importance of identifying and retaining profitable customers. When it comes to agreeing contracts, businesses should also know what they’re getting into, Bratt said, particularly as they grow and move into new areas. He also warned about competing on costs


in new markets or a ‘race to the bottom’ with ‘kamikaze margins’. Creativity, setting high


expectations, perseverance and tencacity were all key attributes that businesses needed to be successful in the future, he concluded.


Commercial value of sustainability n


Bringing a marketing perspective to the issue of sustainability, marketing and sales consultant Chris Ashworth addressed delegates with a presentation looking at the commercial value of sustainability. Ashworth, who is lead author of the joint ECA NICEIC report 2021 Vision: the Future of the Electrical Contracting Industry, was involved in producing Chartered Institute of Marketing Construction Industry Group’s (CIMCIG) report last June on the commercial value of sustainability, and outlined what the key issues are. He reiterated the point that sustainability was no longer a fringe issue. ‘If you’re not sustainable in your products in your services or in the way you behave, you’re just not going to be there….Very, very soon, those that aren’t offering sustainable solutions will be out of business,’ Ashworth said. He pointed to some of the levers that will push the agenda forward, such as the Green Deal. The need for refurbishments to upgrade buildings’ energy efficiency will be another key driver to help meet the government’s challenging carbon reduction commitments. However, Ashworth commented: ‘For us as an industry it’s not a challenge – it’s an opportunity.’ Businesses have to engage with customers, understand


their needs and find new ways to motivate consumers, Ashworth advised. He outlined how the Green Deal will


work, the mechanics of how it will be delivered, the issues surrounding it – and how the Green Deal will affect the electrical contractor. Despite some negativity towards it from within the


sector, the industry has to be ready to take advantage of the opportunities when it launches in autumn 2012, Ashworth maintained. Government figures suggest the Green Deal will create 100,000 jobs in the first five years, and involve refurbishments of millions of homes and businesses. Figures from the Federation of Master Builders (FMB) suggest five and a half buildings a minute will require refurbishment. The key is to get consumer confidence in place and engage with homeowners, Ashworth said. He warned that new non-traditional entrants– energy companies and supermarkets, for example – were preparing to enter the market, which would present a big threat to the industry. It was important for the industry to look at customer service and attempt to deliver the level of service that customers should expect, and get, from the likes of Tesco and other large commercial organisations. There is a danger that the industry is being left behind, said Ashworth. He explored models for the possible future delivery of the Green Deal, including the possibility of the big retailers sub-


contracting work as part of an overall package. He suggested that, as an alternative, electrical contractors should think creatively, by working with other companies and other trades to offer a range of services.


Ashworth stressed the importance of understanding the customer, and working at that relationship as a way to promote business. He concluded by warning that although the opportunities are there, ‘the threat is, if you don’t get your act together, you’ll be one of those on the sidelines, probably ending up doing lower-paid work, scraping around and trying to survive’.


July 2011 ECA Today 43


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