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Building services sector confident following EU referendum result


T


he building services engineering sector – which makes up 40 per cent of the UK’s construction and


maintenance industry – believes it will successfully weather the outcome of Brexit over the next few years.


That's according to major new survey findings from the Electrical Contractors' Association (ECA), the Building Engineering Services Association (BESA) and Scotland’s trade association for the electrical industry, SELECT.


Almost half of survey respondents


(46 per cent) believe Brexit will have a positive impact on their company in just five years’ time, with less than one in five (19 per cent) saying it will have a negative impact. (23 per cent said it would have no discernible impact). However, the largest contractors in the survey (with over £20 million turnover) are slightly less optimistic about the short term business prospects than smaller contractors.


The sector puts maintaining access to the EU ‘Single Market’ at the top of its list of Brexit aspirations, closely followed by more control of


employment law and the need to negotiate non-EU trade deals. Despite the general positivity about Brexit, 47 per cent of respondents say they believe the cost of materials will rise as a result, while only 22 per cent do not think Brexit will cause this to happen. Reflecting a general tendency to use skilled UK rather than EU workers, the vast majority (92 per cent) of respondents say they ‘do not rely on EU migrant workers’, and only 25 per cent agree that Brexit would ‘worsen the shortage of qualified workers’.


SPIE UK goes underground with BT tunnels B


T has awarded SPIE UK a contract for upgrade works on 23km of its networking tunnels.


Enhancements to the underground channels, which carry cabling forming the base of BT’s central communications


infrastructure, will save BT approximately £1.5m and remove 3500 tonnes of CO2 from its carbon footprint. SPIE, which provides multi- technical services in the areas of energy and communications, was


commissioned to work on two projects – Environmental Ventilation & Humidity Control (completed) and Building Management System & Controls (due for completion in 2017).


The two assignments, worth a combined £3.3m, have seen SPIE provide BT with cost planning and risk management consultancy alongside design and technical management. As part of the work, the Building Services team has been working alongside its Central Engineering and Design


Department to optimise service delivery.


George Adams, SPIE UK’s Director of Energy and Engineering commented: “The BT Tunnel contract and SPIE’s relationship with BT is founded upon innovation and engineering quality, supported by an outstanding project management process. This latest project exemplifies where SPIE can bring value from its technical and management capability to establish a more collaborative client relationship.”


SE Controls’ UK manufacturing increases its competitive edge after Brexit vote


nternational smoke and environmental ventilation specialist, SE Controls, is capitalising on the drop in the pound’s exchange rate against other international currencies after the EU referendum, which has provided an additional competitive edge for its UK-made product range. The company, which is a member of the national ‘Made in Britain’ initiative that recognises and promotes British manufacturing, has had a production base in the UK for the last 15 years.


I


SE Controls’ Group Managing Director, Will Perkins, explained: “We manufacture our control


systems and actuators in the UK, so our products have become more price competitive in the marketplace since the drop in sterling. “We have seen that some of our competitors that rely on imported products, such as actuators for automated building ventilation systems, are experiencing higher product costs from their suppliers. The potential knock on effect is that some firms will inevitably need to increase prices to address the cost increase or absorb the rises, which will have an impact on their profitability.” The recently published ‘State of Trade’ report from the Federation of Master Builders (FMB) appears to support these views with 65% of the


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survey’s respondents predicting material cost increases, while the FMB’s Chief Executive has also highlighted the additional pressures resulting from the “plummeting exchange rate and the gathering pace of price inflation”. “The real benefits of manufacturing in the UK are that we have more control over our quality, costs and supply chain,” continued Will Perkins. “Although the current pricing advantage being experienced by SE Controls and other British manufacturers could only be temporary, our collective reputation for innovation and quality remains unchanged, irrespective of the fluctuations in currency markets,” he concluded.


NEWS BSEE IN BRIEF


AEI Cables reassures customers


In addition, just 1 in 6 respondents (17 per cent) said that maintaining freedom of movement was their top priority. Some 71 per cent of the largest contractors (over £20 million turnover) report they did not rely on EU workers, indicating more reliance than the average for the sector. ECA CEO Steve Bratt commented: “No matter how our relationship with Europe develops, our sector has a huge role to play in achieving UK business growth. This includes providing skilled jobs, fully functional buildings and infrastructure, and UK energy security.”


Cable manufacturer AEI Cables has reassured customers after entering into consultation over possible redundancies. The Co Durham-based company says all orders will be fulfilled for now and the foreseeable future. A spokesman said: “The company has been making significant financial losses for a long period of time and only continues to function with the financial support and guarantees of its parent company. The company believes that profitability is possible only with a fundamental restructuring and a marked improvement in productivity.”


Beckhoff reaches finals of Lux Awards


Beckhoff Automation is a finalist in the Lux Awards 2016 Connected Lighting Innovation of the Year Category. Beckhoff’s lighting control solution is based around its CX-series embedded PC, which provides a simple, single platform that brings various lighting systems and other building controls together for greater synergy and energy savings. Winners will be announced during LuxLive 2016 which takes place in London on November 23-24.


ENGIE wins TFM contract with Airbus


ENGIE (formerly Cofely GDF SUEZ) has been awarded a five-year total facilities management contract by Airbus Defence and Space, Europe’s number one defence and space enterprise. The contract covers sites in Stevenage, Portsmouth and Newport in the UK.


VOL. 35 N0.10 OCTOBER 2016


The Editor and Publisher do not necessarily agree with the views expressed by contributors, nor do they accept responsibility for any errors in the transmission of the subject matter in this publication. In all matters the Editor’s decision is final.


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© Datateam Business Media Ltd. BSEE BSEE Vol.35 No.10 October 2016 Building Services & Environmental Engineer


Essenal reading for building services professionals and specifiers THIS MONTH


uSMART LIGHTING: A tailored approach to lighng controls


uENERGY MANAGEMENT: Building a more energy ecient future


uFIRE & SAFETY: Passive fire protecon in construcon


Our What’s New products and services secon starts on page 32


VISIT OUR WEBSITE: www.bsee.co.uk


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