[ Report: ECA Electrical Industry Conference 2012 ] DAY ONE Introducing the new president...


The formal opening session of the ECA Electrical Industry Conference 2012 saw Paul McNaughton, managing director of Darke and Taylor, inaugurated as the new president of the ECA for the coming year, receiving his badge of office from outgoing president Alun Pearson. Stepping into the role as president, McNaughton has been involved with the association since Darke and Taylor joined the ECA in 1976. He started out as an apprentice electrician for the company and worked his way up to become MD in 2008, giving him invaluable experience of electrical contracting at every level. Following his inauguration, the new president then presented the badge of office to his successor


as senior vice president, Phil Fagg, while the immediate past- president’s badge was conferred on Alun Pearson.


In his inaugural address, McNaughton praised the value of membership of the ECA – including the services the association provides. ‘You get so much more than just assistance and advice,’ he said. ‘The ECA has a fantastic and extremely wide range of services, services that offer something for everyone, from the very smallest contractor right to the largest member.’ He urged members to make the most of these – a message he intends to spread throughout the year when he visits the ECA regions. McNaughton highlighted the


skills agenda as an area that was particularly important to him personally. ‘We must continue to invest in the skills today to secure the future of our industry tomorrow,’ the new president told delegates. ‘And securing the future of the industry is at the very core of what the ECA does.’ Turning to the sustainability agenda and the real opportunities the government’s carbon reduction targets present for the sector, McNaughton told delegates: ‘It’s all of us as electrical contractors who will be the frontline troops in the challenge to reach these targets.’


He concluded: ‘Times are tough, but we are more effective as an


Don’t miss out on opportunities n


ECA group chief executive officer Steve Bratt reminded delegates of the old saying: ‘Happiness is a positive cashflow’ as he presented delegates with his views on how contractors should make the most of opportunities for repeat business with regular customers in order to maintain cashflow stability.


Bratt began his presentation – entitled Fit


and Run – the Lost Opportunity? – with the sobering statistic that over the last three years, every day 10 construction contractors had gone out of business because they had run out of cash – not because of poor profits or sales. He voiced his concern that, both in the wider construction industry and in the M&E industry, the business model is unstable from a cashflow point of view, with a high focus on winning new work, getting new work done, getting paid for new work and finding the next job. Bratt suggested an alternative approach to


identifying the types of work contractors were involved in, by assesing how stable it was, what the payment arrangements were (and how that helped cashflow), and how to get more business from existing customers – all of which helps to create cashflow stability. Bratt gave an overview of market forecasts, outlining some of the areas with potential for electrical contractors – particularly the growing repair, maintenance and improvement (RMI) market, which is likely to benefit from work required to meet the government’s carbon reduction targets.


Underlining his point about customer


opportunities from RMI work, Bratt pointed to recent research from the Maintec exhibition,


industry if we work together to guarantee a future that is beneficial for us all. The ECA is leading the way by being here, front and centre, ready to help our members in any way we can.’


suggesting that 80 per cent of engineering and maintenance managers surveyed expect their maintenance budgets to remain the same or increase, and that 55 per cent of businesses aim to increase profits by investing in technology to increase plant and building longevity – and reducing energy costs was a top priority.


Bratt concluded with some facts about customer retention – that a five per cent increase in retention yields a 25-100 per cent increase in profits, and that repeat customers spend, on average, 67 per cent more than new ones. Some key tips were to: nKnow how to identify and maximise repeat business; nHave the right skills, mindset and business model to maximise repeat business opportunities; nKnow who your most valuable customers are; nKnow why they keep buying from you; nDifferentiate yourselves with the things they value; nKnow how to implement a retention strategy; nKnow how to incentivise customer loyalty; and nAsk loyal customers for referrals.


July 2011 ECA Today 51


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