Conference addresses big industry issues


ACE’s first-ever national annual conference is hailed a “fantastic success” as it strikes positive note in addressing the key business issues facing consultancy and engineering firms.

"The outstanding contribution that consultancy and engineering firms make to the UK economy has been hidden for too long and it's high time that we had a conference like this," said ACE chairman Neil Sandberg opening ACE's first-ever annual conference in London on 25 June 2008.

Photos from the event:

The conference saw consultants, engineers and industry stakeholders gathering at the Renaissance Chancery Court Hotel to discuss and debate the key issues facing the sector in a range of breakout groups and plenary sessions.

Sandberg highlighted the important role of consultancy and engineering as a key player in the economy, a fact he claimed was being increasingly recognised by politicians and government.

ACE had increased its representation of the sector by 30% over the past year said Sandberg, a significant achievement which ACE chief executive Nelson Ogunshakin addressing the conference said was down to the organisation better connecting with its members and the issues they face in a competitive and changing market.

Ogunshakin also stressed the need for ACE to continue to represent the industry positively, talking up its achievements whenever it could in order to raise its profile and attractiveness to investors, government, clients and potential new entrants to the industry.

The conference marked a significant milestone in the development of ACE, Ogunshakin said, and the annual event would be a key focal point for the industry to get to grips with challenges and solutions. “I’m proud to be speaking to you today at an event which I believe marks the growing maturity of ACE as an organisation in tune and in touch with its members and the sector we represent,” Ogunshakin told delegates.

Keynote speaker Mark Prisk MP, shadow minister for Enterprise, Deregulation and Competition, congratulated ACE for organising the conference and for representing an industry that was so important to the UK.

"The construction sector is crucial to the economy. It is the second largest industry in the EU and your profession of engineering is to be commended for making design concepts become a reality," said Prisk. "Without engineering input we would not see the landmark structures springing up like St Pancras Station and the London Eye," he claimed.

In a well delivered and polished speech, Prisk outlined the Conservative Party's plans for making the UK a better place to do business. Cutting corporation tax for businesses to 25p in the pound (20p for small business) was crucial in making the UK tax competitive, said Prisk. "We also need to change government's approach to regulation and fix an annual budget for regulation. Certainty for business is important in creating a stable commercial environment," Prisk said.

Prisk also pledged that a future Conservative administration would review government procurement to deliver more opportunities for small business but they were sensible enough to recognise where the current government had done good things and they would build on those by mapping out a long-term strategy for business. "We won't chase short-term headlines; rather we will work to ensure that government recognises that we don't have all the answers. We need to work with experts, like the firms in this room today, to work out solutions to the challenges we face. Government can and should take the lead especially in areas like procurement and the environment but we should work with business to make things happen," Prisk told the audience.

Prisk gave encouragement to delegates by pledging that a future Conservative administration would ensure that ministers had knowledge of the sectors for which they were responsible. This was especially important with construction, said Prisk. "Specific ministers should have specific tasks and responsibilities and we will restructure Whitehall so that there is a specific minister for construction," Prisk claimed.

In a series of lively breakout sessions, delegates looked at key industry issues like recruitment and retention, young people, working in emerging markets and procurement. The report backs offered much food for thought for delegates and for ACE and the issues and ideas debated will be included in ACE's policy development over the coming months.

Just before lunch Allen Walker, chief operating officer of BST Global spoke to conference on an issue close to the hearts and pockets of all delegates - cash flow and ensuring that it doesn't trip up your business and hamper its growth.

Olympic Delivery Authority chairman John Armitt kicked off the afternoon session of conference by thanking consulting engineers for their hard work and professionalism in getting the 2012 project to where it was today. Much of the groundwork for creating the infrastructure for staging the games had been achieved thanks to the work of members of ACE Armitt told the conference. "All at bargain basement prices," he joked.

In a wide ranging and informative presentation Armitt outlined the progress to date on site and the six phases of construction that will lead to a successful games in 2012 and a meaningful legacy beyond that.

A massive operation like the 2012 project has seen much demolition. Nearly 200 buildings have been demolished and soil reused on a scale not previously seen in the industry.

Armitt outlined the sheer scale of the project - as large as Hyde Park and Kensington Gardens put together - which has to deal with ongoing commercial developments and major infrastructure like the Channel Tunnel Rail Link.

"If ever there was a project where time is of the essence then this is it," said Armitt.

"We are working to BREAM level 4 for the Olympic Village, a level higher than on any other projects. Additionally, 20 percent of all power on site will come from renewables. Sustainability is leading edge as we are trying to raise the bar in this area," said Armitt.

Current economic pressures could have an impact on maintaining targets on the project, Armitt claimed. "With any project scope change remains an underlining risk. The Beijing games will provide a test and we expect some changes to arise from that," he said. "Commodity and labour prices will have an effect though the wider industry recession could make it easier to find people. One risk we haven't got is the risk of the ultimate client not making decisions," said Armitt.

Talking about the legacy, a key reason in London winning the games, Armitt said that the ODA spent "at least 50% of its time looking at the legacy use of buildings". The broadcasting centre would be a flexible design so that future use could be secured. The London Development Agency has ultimate responsibility for legacy and the arrival of a new mayor was another element to factor in to discussions on legacy use said Armitt. "Legacy is the elephant in the room and is there at all times in our discussions," said Armitt.

Regarding the new mayor, Armitt did not see a great deal of difference. Boris Johnson had shown great enthusiasm for the project and any comments on cost were to be expected. At the end of the day though, £8 billion of investment in east London is good news for any London mayor, Armitt explained.

Training and employment was an important issue. Armitt said that the aim was to employ people and equip them with skills that would stand them in good stead going forward. Those people, in the main, would be employed by SME firms discharging a commitment to not only give work to the larger firms.

How did Armitt's new role compare with his previous roles? "My job is to be outward facing and to deal with stakeholders who have an interest in what we are doing. It's been my first non-executive role and I'm enjoying it, who wouldn't? Time flies, I'm seeing a lot of engineering and there are a lot more challenges to come," said Armitt.

Concluding on the skills issue, Armitt recognised that although there were limits on what could be done, it was important to use the games to promote the industry. "Yes we need to ensure that we keep the best engineers and not lose them to the City but we also need to attract others. Where the industry is weak is at the craft and more technical level and we need those people too," Armitt said.

In afternoon breakout sessions, delegates examined sustainability; risk management and insurance trends; the issues for smaller firms and best business practice. Reporting back to conference, speakers highlighted the need for ACE to take a positive lead in these areas by circulating best practice and offering guidance to member firms. ACE chairman Neil Sandberg said that the questions raised would be taken back into the organisation's business groups and, where appropriate, the board with a view to informing ACE policy and strategy.

The conference concluded with a quick-fire question time session with seven key industry figures. The panellists were Ken Dalton, chief executive of AECOM Europe; Graham Nicholson, executive managing director of Tony Gee & Partners; Michael Coombs, senior partner of Alan Baxter Associates; Roger Madelin, chief executive of Argent Estates; Nick Verdi, global economist of Barclays Capital; John Frankiewicz, chief operating officer of Willmott Dixon and John Armit, chairman of the Olympic Delivery Authority.

This eclectic mix of four engineers, a developer, a contractor and an economist helped to spark a lively 50 minutes of debate and discussion on a range of topical business and commercial issues including the effects of the current credit crunch, what ACE should do to raise the profile of its sector, fee levels in construction and what they would do if they could change one thing to make the industry work better. The panel could have gone on longer than their allotted time but like every construction project, a deadline had to be met and so ACE chairman Neil Sandberg closed the conference just after 5pm.

He did so with a rallying call to the delegates to take what they had learned during the day back to their day jobs to help improve their businesses. He also urged them to participate in ACE’s activities so that the voice of consultancy and engineering was heard more widely. “Today has been a fantastic success,” said Sandberg. “It is a testament to the effectiveness of ACE and the enthusiasm of our members that we can pull of events like this. I look forward to seeing you all again next year on Thursday 18 June 2009 for the ACE Annual Conference 2009,” he concluded.