Supplementary Memorandum submitted by
the Institution of Civil Engineers
The comments below are recommendations from
the ICE-led project "Technology Support for Civil Engineering
Exports" published in September 1998 by Thomas Telford.
1. GLOBAL COMPETITION.
UK INDUSTRY MUST
COMPETE GLOBALLY
BY ADDING
INTELLECTUAL VALUE.
INDUSTRY AND
GOVERNMENT INVESTMENT
MUST FOCUS
ON TECHNOLOGIES
THAT CREATE
OR MAINTAIN
A LEADING
EDGE.
Civil engineering design and construction markets
worldwide are becoming more competitive as more players from more
countries seek work overseas. The UK market for consulting, contracting
and materials supply is open to international competition and
major UK companies cannot survive by relying on UK work; they
must maintain and grow their already substantial international
presence and maintain their competitive advantage through substantial
financial resources and a technological edge.
It is no longer viable for the industry to compete
in international markets on the basis of standard technology and
provision of basic engineering services"we cannot
compete at the nuts and bolts level". The speed of dissemination
of information and worldwide expansion in technical education
and availability of professional skills, means that standard solutions
can be designed and constructed without the need for UK input.
Therefore, UK industry needs to concentrate on adding intellectual
value and providing original and innovative ideas and solutions.
This requires constant investment in research and the application
of technologies to maintain a leading edge for the UK civil engineering
industry.
2. IR INTO DA.
THERE IS
A GREAT
CHALLENGE TO
TRANSLATE INNOVATION
AND RESEARCH
INTO DEVELOPMENT
AND APPLICATION.
A HIGHER PROPORTION
OF INDUSTRY
AND GOVERNMENT
RESOURCES FOR
TECHNOLOGICAL DEVELOPMENT
NEEDS TO
BE FOCUSED
ON DEVELOPMENT
AND APPLICATION.
Innovation, Research, Development and Application
(IRDA) are about translating ideas into practice and the process
through which competitive technologies evolve. The key to success
is to provide a climate for innovation and then the financial
means and incentive to push innovative solutions through into
technology for application. "For every £1 spent on research,
£5 needs to be spent on development and application,"
but companies do not have substantial budgets for implementation
of research results and "everyone wants new technology, but
not on their project first". Recent initiatives such as the
"Best Practice" programme aim to bridge the gulf between
IR and DA. Bridging the gulf is a core requirement if technological
competitiveness is not to be stifled and competitive advantage
lost.
3. STRATEGIC
RESEARCH. A NEW
INDUSTRY-GOVERNMENT
PARTNERSHIP NEEDS
TO BE
FORGED FOR
THE LONG-TERM
MAINTENANCE OF
CENTRES OF
EXCELLENCE.
Government support of research centres of excellence
has been of immense value to the industry and to the UK economy
by maintaining the industry's technological edge. The industry
cannot replace this level of investment from its current slender
profitability. However, the UK's leading edge and intellectual
capital will be jeopardised unless investment is maintained. A
realistic industry-Government partnership is needed for the long-term
funding and maintenance of strategic centres, which provide problem-solving
experience and technical know-how that underpin the industry's
reputation.
To optimise the use of finite resources, the
whole industry needs to be engaged in a co-ordinated andco-operative
plan to work with Government through CRISP (the Construction Research
and Innovation Strategy Panel), Foresight, Partners in Innovation
and the Research Councils.
4. DEMONSTRATION
PROJECTS. INDUSTRY
HAS TO
BE ABLE
TO DEMONSTRATE
NEW TECHNOLOGY,
SUCCESSFULLY APPLIED
IN HIGH
PROFILE PROJECTS.
CLIENTS, INCLUDING
GOVERNMENT AND
THE INDUSTRY,
MUST DEVELOP
MECHANISMS TO
ENABLE NEW
TECHNOLOGY TO
BE APPLIED,
TESTED AND
PROVED ON
"HOME MARKET"
PROJECTS SO
THAT IT
CAN BE
OFFERED SUCCESSFULLY
IN EXPORT
MARKETS.
Potential overseas customers are influenced
by high-profile projects that demonstrate technological success
but the application of new technology in the design and execution
of high profile projects inevitably carries risk. Clients tend
to be increasingly risk-averse and as the finance and procurement
for public projects has moved progressively to private sector
organisations, so the opportunities to prove innovative solutions
using new technology are less widespread. Projects that demonstrate
the successful application of innovative technology are extremely
important for credibility and success in export markets. There
has to be a way of valuing and if necessary supporting innovative
first implementation of technology over and above least-cost,
least-risk considerations.
5. INTEGRATED
AND ADAPTED
TECHNOLOGIES. THE
FUTURE LIES
IN THE
INTEGRATION OF
DESIGN AND
CONSTRUCTION, WITH
ADAPTATION TO
LOCAL CIRCUMSTANCES.
THE INDUSTRY
AND THE
RESEARCH COMMUNITY
SHOULD SEEK
TO ADVANCE
AND EXPLOIT
THOSE AREAS
WHERE IT
FINDS IT
HAS, OR
CAN GAIN,
REAL TECHNICAL
SUPERIORITY, INCLUDING
THE CREATIVE
APPLICATION OF
EXISTING KNOWLEDGE
AND RESEARCH
RESULTS.
Although each sector reviewed has produced its
own specific technology priorities and needs, a common theme is
the need to integrate technologies to deliver whole solutions,
to adapt them to local needs and circumstances and to demonstrate
their ability to work as a team of infrastructure providers. This
is the added intellectual value that gives the UK industry extra
competitiveness. There is a wealth of existing knowledge and research
to be mined, developed and applied and such an initiative does
not depend wholly upon extensive investment in new research programmes.
It is not necessary to be ahead in every aspect of industry technology;
a narrow but appropriate technical advantage can be sufficient
to win a broadly-based project.
6. INTERNATIONAL
STANDARDS. GOVERNMENT
AND INDUSTRY
SHOULD LEAD
THE DEVELOPMENT
OF CIVIL
ENGINEERING-RELATED
CODES AND
STANDARDS WHERE
THEY HAVE
A VALUE
IN WINNING
OVERSEAS CONTRACTS.
Promulgation and adoption by other countries
of civil engineering-related codes and standards based on UK national
equivalents give a clear advantage to UK companies and play an
important part in exporting of civil engineering services, but
this needs to be better understood by industry and government.
Nationally, the UK is neglecting standards development through
a lack of resources even though many UK engineers are still involved
in this work. Many developing countries are preparing their own
standards, despite resistance from the World Bank. The new Eurocodes,
when finalised will also be used increasingly worldwide. The UK
needs to maintain a position of leadership in the formulation
of civil engineering-related codes and standards and be active
in international regulatory bodies such as CEN and ISO.
7. THE ROLE
OF SPECIALISED
TECHNOLOGY COMPANIES
OR GROUPS.
TECHNOLOGICAL ADVANCES
OFTEN ORIGINATE
IN SPECIALIST
COMPANIES OR
SPECIALIST GROUPS
WITHIN LARGE
COMPANIES. SUCH
SPECIALISTS OFTEN
NEED SPECIAL
RESOURCES FOR
THEIR INNOVATION,
RESEARCH, DEVELOPMENT
AND APPLICATION
(IRDA).
UK civil engineering is a large industry led
by a powerful international multi-disciplinary companies. Whatever
their strengths such companies often rely on specialist technology
companies and/or specialist groups within the firm to provide
leading-edge technology for major projects. Such companies and
groups have the ability to work in highly specialised technical
niches and to adapt quickly to changes. The industry needs them
as a source of innovative technology, but such companies and groups
need the financial resources to maintain their technical evolution
by the acquisition of knowledge and its application in engineering
practice. They should not be discriminated against on grounds
of size in the allocation of government research sources. They
need to be able to sell their specialist skills and knowledge
at margins that enable internal investment in technological advances
to continue.
8. MEASURING
SUCCESS. GOVERNMENT
AND INDUSTRY
SHOULD COLLABORATE
TO DEVELOP
A NEW
APPROACH TO
THE MEASUREMENT
OF INDUSTRY
SUCCESS OVERSEAS.
Technology adds value to activities rather than
delivering direct benefits and it is often difficult to establish
its effect on the bottom line of company accounts. In addition,
the trans-national ownership of civil engineering organisations
through mergers, acquisitions and alliances obscures the true
value of overseas business to the UK economy. Analysis of the
published data identifies many apparent peculiarities and distortions.
Measurement of the impact of this project and the implementation
of its recommendations, need a framework for recording value returned
to the UK economy from overseas projects undertaken both by UK-based
companies and by UK companies collaborating with UK or overseas
partners.
1 February 1999
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