6 | Leaders 2013
Balfour Beatty Utility Solutions BBUS drives efficiencies
BBUS is performing well, meeting its budgeted water targets. Looking forward, the company aims to offer innovative and flexible solutions in preparation for AMP6 and Totex
THE WATER industry is not much different from the rest of the UK, says Colin Kelly, manag- ing director of Balfour Beatty Utility Solutions (BBUS). “It’s difficult out there, and consumers are less tolerant of wastage.”
As a result, the water companies are having to “up their game” as the industry swiftly turns its attention to innovation and driving efficiencies in organisations.” Kelly says customers are “re- ally coming to the fore so companies are having to work much harder and more cleverly to meet demands”.
BBUS is part of international infrastructure group Balfour Beatty plc, whose revenue of £9.5B meant it topped our Turnover Top 10. But while Balfour Beatty is doing well in the turn- over stakes, its profit fell from £246M in 2011 to £100,000.
Kelly says BBUS performed. “We came in on budget for our water targets. Our water sector has been reasonably solid, and we’ve had to work hard to do that. Real opportunities are still there.”
According to Kelly, Anglian Water is already “top” in pushing the boundaries, in challenging its supply chain.
And BBUS is actively pursuing its own strat- egy in order to provide customers with innova- tive, flexible solutions.
It has created Asset Intelligence Units, for instance, to pinpoint leaks. BBUS is invest- ing £500,000 on bringing innovation to market because it is difficult for developers, says Kelly, to match innovation to the problem.
Operating efficiencies
Process innovation is another area that BBUS is looking at, taking “bite size steps” to find where wastage is and bring together its strengths. In other words, driving operating efficiencies. And then there is Totex, something which Kelly feels BBUS has experience of with its gas operations already adhering to that.
He says the industry has got to see how Totex fits in and how that works but the important aspect is that the water companies will want to get value. “that’s what we’re trying to do, ensure they get value.”
BBUS is looking at its own organisational design to see how it can extract value. “We have to look at the scope and breadth brought to customers and meet their needs.”
Turnover £M Balfour Beatty Morgan Sindall Vinci
Costain
Enterprise Bam
Interserve May Gurney Morrison US Mott
A supplement to WET News and WWT
9,483.0 2,047.1 1,068.12 934.5 926.2 808.7 733.8 695.3 545.2 531.4
Kelly continues: “More importantly, we’ve got to understand risk. We’ve got to work with clients to take that risk. It’s not about chasing turnover, it’s doing what’s best for the client and having an intelligent relationship.”
So what does the rest of AMP5 hold for BBUS? Kelly says the company is “very lucky” that it has long-term frameworks in the water sector, and expects 2014 to be busy for the company. In addition to BBUS’s UK activities, Kelly is also looking at the opportunities further afield – Australia, as well as the Republic of Ireland, with the creation of a new water company there. Then there is AMP6 and what that will bring – high value, low maintenance jobs. Kelly says the huge one-off jobs will be replaced with low overhead solutions “We will see a move away but that doesn’t mean to say there won’t be the odd big project.”
Smaller contractors
As a result Kelly believes the role of a Tier One contractor will involve added value, rather than turnover., especially as some customers may “look directly at Tier Two and go directly with them”. A move towards using smaller contractors
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