COMMENT
Addressing the global rail resource challenge
Mark Cowlard, head of rail at built asset consultancy EC Harris, discusses the need for the rail industry to address the global resource challenge in order to meet growing demand.
As
economies across the globe are in the process of recovery following the economic downturn, the rail sector has experienced unparalleled investment.
In the UK, rail spend is at its highest, CP5 has a budget of £37.5bn and there is on-going investment into TfL and Crossrail, which will be bolstered even further once approval is given for HS2.
Meanwhile, outside of the UK, the United States is experiencing similar growth particularly around asset management of pre-existing stock. The Middle East also foresees $150bn of investment into rail infrastructure over the next 10 years - $79bn of which is allocated to Saudi Arabia.
Whilst significant global investment is applauded and welcomed, the industry now faces a global resource challenge to meet demand.
Undoubtedly, the biggest part of this challenge is the need to find resource to fulfil the various different skill sets required for both small and large-scale rail infrastructure projects, some of which are new and very niche.
Added to this is the cyclical nature of rail infrastructure investment, which means that certain skill sets can be in demand for only short periods of time. This can result in businesses unnecessarily holding onto skilled human resource once work is completed and no further investment is made.
Recruiting new talent
New talent drives for rail have previously not matched up to other sectors, resulting in young people being unaware of the viable, long-term career options the industry offers.
Vince Cable is attempting to tackle this through
a Rail Training Academy as part of HS2, which will develop and grow new engineers. Four locations, including Birmingham, Derby, Doncaster and Manchester, have been shortlisted to become the home of the National College for High Speed Rail.
Programmes such as these are vital for rail, but in addition educating young people on the impact rail has on wider socio-economic factors will drive fresh talent and recruitment growth.
Preparing Supply Chain
One of the first steps businesses should take to address the resource shortage is to plan supply chain strategies far enough in advance to recognise the skills and opportunities that will need to be retained, and for what period of time.
A key driver of this will be deciding how far ahead they are willing to commit revenues to supply chains, whilst also seeking collaborative ways of working to ensure clients are presented with attractive and viable propositions.
These challenges are often resource and implementation based and businesses will need to take a thorough look at their supply chains for areas where they can place early orders. This will mean the industry is more prepared to respond to resource needs.
Network Rail has recently attempted this in response to CP5 and has already put frameworks in place. They should now look to assess how they can work collaboratively with their supply chain, to add value to what they’re already trying to achieve, assuring delivery on their portfolio of work.
Investing in technology
In addition, businesses should look beyond human resource by investing in innovative
technologies that offer new ways of working. Off-site manufacturing is often better value because, from a workforce perspective, it’s safer and quicker, and takes away some of the need for people. This is also true for suppliers who should look to invest in the development of factories that can build significant elements of rail infrastructure off-site then transport it safely to the required location.
As rail resource lags behind the investment being placed into the sector, there is risk of inflation in the global market place, particularly as supply chains start to have more choice over where they want to work, drilling down into specific regions and countries that give a bigger return on investment.
We may also see new entries into the global marketplace; new contractors, suppliers and engineers for instance, which have the potential to weaken quality and damage results.
It would be a great shame to the industry to see huge investment and opportunity damaged by a lack of resource to support growth; putting measures in place now will ensure that the industry is able to keep up with investment, securing the industry for the foreseeable future.
Mark Cowlard
opinion@railtechnologymagazine.com TELL US WHAT YOU THINK
rail technology magazine Jun/Jul 14 | 29
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