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NEWS RESEARCH Manual processes part of profi ts threat
Covid, Brexit and “continued reliance on manual processes” are the greatest factors affecting profi tability for businesses serving the architectural sector in 2022, according to research.
The survey of suppliers by OGL Group (ranging from laser measurement to ladders to power tools) revealed that both the Covid pandemic and Brexit “have hit supply chains hard,” This, exacerbated by stock management pressures, meant architectural, engineering and business wholesale fi rms reported “insecurity around Brexit affecting profi tability” (58%), but this was now being overshadowed by Covid as the top factor at 67%.
The pandemic has led to shortages with some architecture, engineering and building sector businesses stockpiling products and parts to ensure delivery. Manual processes were “still plaguing businesses, leaving them behind the curve with regards to digital transformation,” said OGL Group. Its survey found 75% citing manual processes as “a problem that can lead to potential loss of revenue, and inability to correctly assess performance and sales.”
OGL commented: “Entering another potentially uncertain economic period with continuing supply-chain issues – the Ukraine-Russia war, cost of living and fuel price rises – wholesalers’ efforts to increase profi tability are critical.” The survey found that 92% of respondents agreed that automating business processes “helped their companies stay competitive,” up from 70% of engineering companies pre-pandemic. The research found with a wide spread of technologies used, there are a “disparate nature of systems that are not necessarily talking to each other to provide a full view.” Over 95% of respondents from wholesale businesses were using one or more software systems.
The pandemic has “accelerated digital transformation,” and 83% of respondents agreed that hosting applications and data in the cloud have improved, or would improve, effi ciencies and productivity. Concerns about cloud security remain, though have reduced marginally from 55% in 2019 to 50% in 2022.
ERP (integrated software) systems were seen as a “key technology,” with 92%
agreeing that they give greater visibility and control of stock. The main barriers to such solutions were cost, for 58%, followed by 50% with data security and 33% fi nding a reputable provider.
The survey found that the “architectural industry” was worth £6.5bn, and the UK construction sector contributed more than £110bn per annum and nearly 7% of GDP. Respondents cited “top technology priorities’ for the next 12-24 months as “business performance reporting” 50%, linking ERP with eCommerce at 33%, website creation/update 33% and order management software 33%.
Grenfell Inquiry hears “lack of competence” evidence GRENFELL
The Fire Brigades Union has described a new report to the Grenfell Tower public inquiry as “massively signifi cant” evidence of “multiple failings” at BRE, fi ve years after the tragedy.
The report by Professor Luke Bisby, a professor at Edinburgh University and an expert witness to the inquiry, describes alleged failures at the Building Research Establishment (BRE), and the “development of England’s building regulatory environment.” The BRE was responsible for testing many of the cladding, insulation and other building materials used in the refurbishment of Grenfell Tower.
The report details previous cladding
fi res “which can be viewed as missed opportunities to prevent Grenfell, and BRE failures around them,” said the
Fire Brigades Union. It also “builds up a picture of BRE only doing work within contracts, and only specifi c things – close to client and government demands – within those contracts.” Bisby concluded: “What emerges… is a picture of increasing freedom for industry.” He also highlighted a “profound lack of competence of actors” (making reference to the BRE), and “powerful commercial and ideological objectives to increase fl exibility for industry.”
The union attributed many of the
fl aws to the “creeping, increasing infl uence of the private sector in the BRE in the years running up to the completion of full privatisation.” Mark Rowe, Fire Brigades Union national offi cer, said: “Professor Bisby’s
report details multiple failings on the BRE’s part in the run-up to Grenfell.” He added: “We are clear that BRE was not, and is not, fi t for purpose, because it is privately-owned. It is vital that it is taken back into public ownership and run for the public good, not profi t.” He said that pre-Grenfell, the BRE
was “too willing to please clients and too reluctant to challenge them or the information they provided.” He also claimed that the BRE’s private status meant “it did not share information as it should have done, and there were basic failures of competence in vital areas.”
The Fire Brigades Union represents
fi refi ghters and control staff, including many of those who were involved in the response to Grenfell.
WWW.ARCHITECTSDATAFILE.CO.UK
ADF JULY 2022
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