Select Committee on Science and Technology Appendices to the Minutes of Evidence


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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