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Creating the Northern Powerhouse ISSUE 08 | March 2015 FEATURE Peel Group on northern investment page 25 INTERVIEW TECHNOLOGY Structurals Gold 3D modelling Medal winner from photos Tristram Carfrae page 26 page 10 Produced for the industry by the Association for Consultancy and Engineering Creating the Northern Powerhouse Why infrastructure is key to delivering economic growth in the North page 14 MESSAGE FROM THE EDITOR News roundup The political, social and economic imperative to break down the north-south divide with investment in transport, energy and communications infrastructure is clearly growing. will work to ensure an orderly While London has emerged as the UK’s undisputed first city and a global force BUSINESS handover to my successor in in its own right, it is plainly obvious that the nation’s other major cities have the summer,” Dalton said. suffered as a result. And that is bad for everyone. Balfour Beatty has launched Not that a successful, powerful and affluent London isn’t really important to its recovery programme KPMG has warned that the the nation. It most certainly is, and there is no benefit whatsoever in policies under the title “Build UK needs more construction or practice which hold this growth back in any way. But increasingly it now to Last”. The intended staff to deliver the increase understood that vital economic rebalancing goes beyond simply being some transformation in the business in the government altruistic act to redress past failings and boost employment, wealth and lives involves strengthening construction pipeline of outside London. It must be central to the overall UK-wide policy to drive growth financial controls, holding on work. The analysis indicates into the whole economy. to valuable expert staff and that 84% of the projects As can be read in this month’s series of articles, ensuring that the so-called tightening up on project and included in the pipeline Northern Powerhouse remains key to the next administration’s economic risk management. Efficiency (2656) are expected to have thinking is both vital and sensible. It is, as many point out, about creating the savings and working with the commenced construction connectivity and infrastructure that ensures that the north is able, not just supply chain to cut costs are by 2016. This includes 1279 willing, to play its part in the future of the UK. also on the agenda. The move projects which are reported As the RSA’s recent report on “Unleashing the power of Metros” pointed out, this results from a fresh £70M Infrastructure Intelligence and Griffiths and Armour have as being already under Produced for the industry by the Association simply cannot be a “them or us” situation. Instead it must be about encouraging profit warning after a review launched the new Risk Matters hub at www.infrastructure- construction. “It is not yet for Consultancy and Engineering the rise of all cities and “the concentration of productivity, innovation and creativity of its UK construction business intelligence.com. The hub will help share best practice, clear whether the industry that will drive our economic future”. by KPMG. The contractor has improve risk awareness, and assist effective management will be in a position to deliver Infrastructure Intelligence Essentially success comes down to driving and harnessing the power of now cancelled the proposed of risk. On the hub you can find out more about professional the 84% of projects due to start 12 Caxton St, London SW1H 0QL agglomeration – putting in place infrastructure of all scale, from major schemes £200M share buy back, which risk, often overlooked professional indemnity considerations by 2016,” said KPMG UK head T: 020 7222 6557 such as HS2, HS3 and trans-Pennine road tunnels, through to vital investment in would have used some of and ‘lessons learned’ from claims. The Risk Matters Hub brings of infrastructure, building and www.infrastructure-intelligence.com smaller schemes such as improved town centre interchanges that transform local the profits from the sale together all the latest analysis and thought leading articles construction Richard Threlfall. Editor: Antony Oliver, connectivity. of Parsons Brinckerhoff in on critical risk and insurance issues faced by infrastructure 07710 341082, Collaborative, cross regional investment plans such as the One North report are October for £820M to return professionals. “It is very important in a growing market that The construction industry [email protected] a vital step towards the future and highlight the importance of local politicians value to shareholders. businesses do not lose their focus on risk management,” said has to recruit more than Griffiths & Armour chief executive Stephen Bamforth. “It can 200,000 extra workers in the Associate editor: Jackie Whitelaw, and businesses working together to make the case for that investment. Creation of Globally, almost a third of be tempting when times are busy to overlook precautions, but next five years to keep on 07740 740202, the multi regional, multi governmental body Transport for the North is a welcome [email protected] step forward on this. infrastructure companies with resources stretched, firms are often at particular risk. If top of rising demand across are not gathering anti- the claims don’t arise straight away, they will when industry the country according to the Designer: Kieran McCann, Now this momentum must continue if the North and the entire UK is to harness the benefits that can come from great vision and great planning. bribery and corruption turns down again and companies could find themselves very CITB. Its latest skills forecast 0779 000 3972, policies from their exposed. We are working with Infrastructure Intelligence to predicts that to deal with [email protected] Opportunity is knocking. suppliers prior to awarding help firms better protect themselves.” growing workload industry Commercial director: Sally Devine, Antony Oliver, a contract. Further, one needs to recruit almost 45,000 07963 934892, editor, Infrastructure Intelligence in five are failing to obtain workers a year, 8,000 more [email protected] main suppliers’ financial The consumption of bank facility or continuing than predicted last year at Other material contributed by: documents and 12% are not structural steelwork in the to invest in expanding the the start of the recovery. Total Bernadette Ballantyne gathering health and safety UK is expected to increase business organically and construction employment is data. The market survey was 9% to 895,000t in 2015 through partnerships and projected to reach 2.74M in Produced by Victoria Street Capital on commissioned by Achilles, according to a recent survey bolt-on acquisitions. Since a 2019, still a little below its behalf of the Association for Consultancy & Contents Engineering, 12 Caxton St, London SW1H 0QL. which manages supplier by Construction Markets. This low point in 2011, WYG is in a peak level in 2008 of 2.86M. News roundup 5 This month’s top infrastructure stories information and supply chain increase in demand comes period of strong profit growth The views expressed in Infrastructure risks on behalf of more than off the back of a 6% rise in and is now regarded as a Ivor Catto, Hyder Consulting Opinion 6 Comment from Nick Raynsford, Claire Gott, Nick Roberts, Intelligence are not necessarily those of the 850 large companies across 2014, reflecting the ongoing sound business. chief executive during last John Betty, Jo Valentine, Charlotte Alldritt, Richard Association for Consultancy & Engineering. the globe. recovery in the construction October’s £296M purchase of Threlfall and Ann Dowling. Printer: CPG, 9-10 Orchard Business Centre, sector. Growth is forecast the firm by Dutch consulting Interview 10 IStructE Gold Medal winner Tristram Carfrae Sanderson Way, Tonbridge, Kent TN9 1QG. Capita’s property and to continue in subsequent PEOPLE AND CAREERS giant ARCADIS, is to step T 01732 366666, [email protected] Analysis 13 How an Infrastructure Department could drive delivery infrastructure business years, with structural steel down at the end of February 2015 Subscription rates: £80 a year. has signed a five-year consumption estimated to Highways Agency chief as the new combined business Policy 14 Northern Powerhouse: connect to prosper collaboration agreement reach 972,000t in 2018 (the executive Graham Dalton structure rolls out. Alan Infrastructure Intelligence produces a weekly Planning 16 Manchester City Council Chief Sir Howard Bernstein with Spanish transport end of the forecast period). is to leave his job in Brookes the current UK free newsletter. Sign up at the website: engineering and consultancy the summer after seven ARCADIS chief executive, will www.infrastructure-intelligence.com Transport 18 Connectivity to drive local and regional growth company Ineco. This expands WYG has announced a years. The news comes days lead the combined UK team Follow us on twitter @infra_intel Rail 20 Why Liverpool is vital to high speed rail the 2011 deal to undertake strategic review including after the Infrastructure Act to of 3,900 staff under a plan Join the Infrastructure Intelligence group work on the UK High Speed 2 the potential to sell. The full create the Agency’s successor which will bring operations on Linkedin Business 22 Greater Manchester Local Enterprise Partnership project, Lot 1 Civils Country list of potential alternatives Highways England became together in the UK and the North Section. It has also are: a strategic partnership, law. Highways England Middle East by July this year. BIM 24 Costain on a new road that is a BIM trailblazer bought 40 strong Leeds and a merger or acquisition is on course to become a The restructure will also Investment 25 Developer Peel Group on longterm investment London based BCS Design to enhance the scale and fully fledged, arms length see Graham Reid, currently for an undisclosed sum breadth of WYG’s existing government company on 1 Hyder’s UK managing director, Technology 26 Bentley Systems on converting photos to 3D models and has spent £35M buying business, the acquisition April.
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