Successfully predicting the UK’s policy, legal and commercial environment is always difficult, and with Brexit, it has become much harder than usual. But whatever happens, there will opportunities and challenges for electrical contracting businesses. By ECA Director of Business and External Affairs Paul Reeve.
Against this backdrop, the ECA, alongside NICEIC and ELECSA, recently updated our ‘2021 Vision’ report, originally produced in 2011, when the industry was still suffering from one of the worst economic recessions ever.
One of the key aims of the original report was to “help the electrical contractor to see past short term survival, and prepare for the next stage of their business development”. The report also aimed to provide insight into what would be required in the electrotechnical industry over the next 10 years, and to help “develop the skills and services that will be required”.
This interim report highlights and assesses over 30 industry predictions that were made in the original report. The review uses a ‘red, amber, green’ system, with supporting narrative. Many predictions have in fact already been achieved or are well on course, while for some others, it is too early to tell. The one area where predictions did not hold relate to the ‘Green Deal’ – the previous coalition government’s now defunct household energy efficiency programme.
In addition to assessing the predictions from 2011, the updated report also provides a commentary on the current state of play and considers upcoming developments in seven key areas, namely:
- Skills – concerns about the shortage of skilled managers and operatives are now even more pressing, and that the industry must raise its game to compete for talent.
- Social – the construction market is likely to encounter only modest growth, with higher profitability likely in diversified specialist and service activity.
- Political – the decision to leave the EU could reopen a series of debates around energy, health and safety, and employment policy, among other issues.
- Customer needs – many customers are increasingly turning to social media and apps to find out more about contractors, arrange work, and indeed seek out customer service.
- Sustainability – renewable electricity has already ousted coal as the UK’s energy source of choice, with more developments expected to shift the country’s energy mix.
- Building design – there are growing trends towards using ‘plug in and function’ technology, wireless systems and BIM – which is being utilised on major public and private projects.
- Product developments – the ‘Internet-of-Things’ and ‘very big data’ are dramatically changing the landscape, with smart buildings set to become increasingly common.
Regardless of any uncertainties, our industry is technology driven, and we can be certain that technology will continue to move ahead, on the road to 2021 and beyond. This means an increasing array of commercial opportunities for electrical and diversified specialist contractors will be on offer.
Over the next five years and beyond, the ECA will continue to collaborate with NICEIC and ELECSA to help ensure the best possible commercial environment for businesses across the entire industry.
To view the 2021 Vision report update, please visit www.eca.co.uk or www.niceic.com
