Opportunities bloom in West Midlands

Official Project Partner: West Midlands Combined Authority

Ahead of the UK Infrastructure Show 2018, we speak to the event partners about the importance of infrastructure. In today’s article WMCA HS2 Project Manager, Lisa Hamilton, explains how the West Midlands is responding to the needs of the high-speed rail programme.

The arrival of High Speed Two (HS2) in the West Midlands is expected to create more than 100,000 jobs; to construct the railway, stations and infrastructure requires a vast supply chain to support the main contractors. With the early works already underway, and the main civils work commencing in 2019, there is real pressure on the West Midlands Combined Authority (WMCA) to ensure businesses are ready for HS2.

Lisa Hamilton

The opportunity

HS2 is the largest infrastructure project in Europe. Phase One will run from London to Birmingham, with the first trains operating in 2026. The West Midlands will be home to two HS2 stations in Phase One: the Solihull Interchange, which will be the first stop in the region, and the new Curzon St Station, in Birmingham City Centre.

To deliver HS2, there will be a small number of major packages which cover a number of key areas, including design, enabling works, civil engineering, stations, railway systems, and rolling stock.

Due to the size and capabilities required, these Tier 1 contracts will most likely be awarded to a small number of large companies and joint ventures. However, the vast scale of work required by these contracts will result in tens of thousands of indirect supply chain opportunities, 60% of which are expected to go to SMEs, creating thousands of opportunities for West Midlands businesses.

Our objective

The West Midlands is famous for being the birthplace of the industrial revolution and this heritage of innovation is still very much evident in today’s economy. Our ultimate goal is to strengthen the capabilities of our region’s businesses, in order to provide them with the tools they need to be in the best possible position to capitalise on the delivery of HS2.

We want our region’s businesses to flourish and grow, benefiting from the many opportunities HS2 affords.  The successful delivery of our regional approach will lead to significant economic growth in our local supply chains, creating new job opportunities, up-skilling regional businesses and providing a strong, highly skilled and innovative supply chain fit for the future.

Our approach

In order to ensure our supply chains across the region are ready to capitalise on and effectively support the delivery of HS2, we have put in place a regional HS2 Readiness Programme of support for our local businesses.  The programme is focused on four key areas: Business Engagement & Diagnostics; Access to Finance; Business Upskilling Support; and Procurement Tools.

Business Engagement & Diagnostics – a key part of success in winning new business from HS2 is being ‘HS2 supply chain procurement ready’, which could require improving skills, technology, manufacturing techniques, or understanding HS2’s specific policies, which cover areas such as Health & Safety, and Equality, Diversity & Inclusion (EDI).

To help businesses understand what is needed, we are working in partnership with the three Growth Hubs across the West Midlands Combined Authority, initially to assess current business capabilities against the requirements of the HS2 supply chain, with a view to further supporting these businesses, strengthening areas of weakness and placing them in the strongest position to win new work.

Access to Finance – There exists an extensive range of funding provision available to support our region’s businesses.  This includes funding to support growth aspirations, expansion plans, innovation, advanced technology or processes, and employee training, all of which can help businesses become HS2 supply chain procurement ready. Our Growth Hubs are ideally positioned to work with regional businesses to understand their finance requirements and identify the most suitable support options available, including the HS2 Supply Chain Programme, offering capital & revenue grants of £20,000-£200,000, and the  £20M National Rail Supply Growth Fund initiative, offering finance of between £500k and £2M.

Skills Training, Building Information Modelling (BIM) – With BIM being a key requirement for businesses involved in the construction of HS2 a BIMwm framework has been established in the region. This provides specialist support to accelerate the adoption of BIM throughout the region’s built environment businesses, ensuring our region’s businesses have a tech driven and enabled workforce, enabling them to compete on opportunities such as HS2.

Procurement Tools – All HS2 and Tier One contract opportunities will be made available on the CompeteFor procurement portal.  Building on this, within the region we have launched HVM City, a new online portal covering the West Midlands Combined Authority area allowing suppliers, buyers and investors to market their goods, services and opportunities and providing a forum for supply chains to connect and trade.

As well as all HS2 opportunities, the portal will act as the tool through which any public sector opportunity can be publicised to our local supply base, enhancing the opportunities for business growth in the region.

In addition to the support that we now have in place across the region, the WMCA HS2 Programme Team recognises that the key to our success will be a high level of engagement with businesses across the region. To achieve this will require businesses to be aware of the opportunities, not just in 2018, but throughout the next decade, especially as procurement will really start to accelerate in the coming years.

We will develop ongoing communication and marketing strategies, attend exhibitions/trade shows, such as the UK Infrastructure Show, and reach out directly to business through our Growth Hubs and Chambers of Commerce. We will also be working closely with our colleagues across the combined authority to ensure that our efforts dovetail, with wider WMCA programmes aimed at increasing economic success across the region.

What next?

HS2 is happening, today. We are already seeing West Midlands businesses being awarded contracts as part of the enabling works packages, but in the grand scheme of the project we are just at the beginning. The start of the main works civils contracts, and the construction of the two new stations and the rolling stock and maintenance depot, will see the demands placed on the HS2 supply chain increase dramatically, and with this, an increase in the opportunities available to our businesses.

Our advice to businesses is start thinking about HS2 now, be proactive and find out more about current and future contract opportunities and what will be required from your business in order to be successful in securing a HS2 supply chain contract.  There are many support, training, and funding programmes available for businesses to access today, this is your opportunity to prepare your business and become HS2 ready.

Contact your local Growth Hub, visit hs2.org.uk, register on HVM City, and if you want more advice come and see us at the UK Infrastructure Show.

Don’t forget to visit WMCA at UKIS 2018 to discuss their procurement opportunities: Book now.

To discuss exhibition or sponsorship opportunities please call 0845 270 7066 or email exhibitions@ukinfrastructureshow.co.uk

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