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The start of another year came with bad tidings as GDP shrank in the fourth quarter of 2010. The weather played a big part in that as freezing conditions and heavy snow kept shoppers and workers at home.
It was a disappointing end to 2010 for the construction industry too. Having led the country out of recession, our sector also led the way back into retraction, not least because building works often halt in severe weather.
There was also a weather-related catastrophe for the water industry in Northern Ireland. As temperatures fell to severe lows very quickly, and rose again afterwards, old pipes burst. This is not an uncommon problem but the consequences were uniquely severe.
Despite warnings to commercial properties to turn off their water mains over the cold snap, many did not. That meant that leaks on private property spilled millions of gallons of water and drained the reservoirs dry.
It is hard to find positives in thousands of people losing access to clean water over Christmas. But we can at least hope that the situation in Northern Ireland challenges complacency among the public and policy-makers over infrastructure investment and maintenance.
The government has been clear about the need for cuts. They will certainly hit home this year; the recent downturn will not deter this, nor will the court ruling against the manner of their decision to cancel Building Schools for the Future.
It is clear that we are entering a new world driven by new philosophies. The old language of top-down, state-driven development is becoming obsolete. In its place is decentralised decision-making, local solutions, and community focus. Rightly or wrongly, we can no longer think in terms of the public sector pump-priming development.
So we need to look at how private investment is generated. Private development is key to much of our industry. House building is largely conducted with private money. Commercial property in London has started to rebound and we hope to see that spread to the rest of the UK.
As an industry we will continue to promote investment in infrastructure and encourage better management of risk. The case for this is strong as we look to grow the economy and generate jobs throughout. But we must also look at how that benefit is monetised for investors.
Innovative new ways to make investment pay are needed. Some projects like bridges can be funded with tolls. Crossrail looked at how to generate funds from the appreciation effect it had on nearby commercial property values. Some have suggested that infrastructure can be funded by packaging of land nearby for commercial and residential development.
ACE will continue to work with governments on these issues, and with major financial institutions to generate ideas and develop solutions. We will also continue to work with clients to help them better understand how they can control costs and reduce project risks.
This effort is now built into our new Corporate Plan (detailed across the page). Member firms want a variety of things from ACE and we work hard to deliver them. But what they want more than anything is work.
ACE will therefore prioritise its effort to promote members and the sector over the next three years. We will highlight not just the things members need, but the considerable benefits our industry provides for the country.
A greener environment, economic growth, and technological advancement all need the engagement of our members; so does keeping the taps running and the lights on. 2011 will see further efforts to make that happen.
I would like to express my happiness that Graham Nicholson has been elected ACE chairman for 2012. (see interview on page 12). Graham is executive managing director at Tony Gee and Partners and was treasurer of ACE for the last three years. He will be a great asset to us throughout 2012.
I would also like to thank Michelle McDowell MBE, our outgoing chair of 2011. Michelle has been a pleasure to work with and will no doubt continue to be a great ambassador for our industry.
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