How Embracing Digitisation can Increase Efficiency & Agility

The future of logistics lies in technology. Here, Craig Powell, Managing Director at supply chain technology provider Balloon One, outlines how embracing digitisation could boost efficiency and agility in the construction supply chain.

Over the past year and a half, many sectors have faced disruption, including the construction industry. 2020 saw construction output dip to unprecedented levels as a result of the COVID pandemic.

Now, construction activity has risen to a 24-year high, and the supply chain has struggled to keep up with the surge in demand. 77% of UK construction companies are citing longer lead times as one of the major hurdles facing the industry today, according to data from the IHS Markit / CIPS UK Construction PMI®.

It’s certainly been a rocky year for the construction supply chain, and it’s important to be prepared for any eventuality if you want to keep up. By embracing digitisation, whether that’s by implementing warehouse management systems (WMS) or automating your procurement processes, you can benefit from increased efficiency and agility.

Below, I’ll be explaining how your business can benefit from digitisation.

Improved stock management

In times when supply can’t keep up with demand, prior planning is vital. With WMS and digitally automated stock management, you can gather accurate, up-to-date information regarding stock levels. This allows you to be much more efficient with forward ordering, so you can get ahead of demand and anticipate shortages of products before they occur, reducing lead times and the likelihood of a stockout.

Not only does this mean you have all the data there at the touch of a button, but you no longer need to rely on manual stock management or regular inventory counts. As a result, the whole process can run much more smoothly and efficiently, as there’s less chance of human error, and it frees up staff to work in other areas.

Better communication

What makes the construction supply chain so unique is that one wrong order could prove costly to businesses, suppliers, and projects. This makes accurate communication vital for everything to run smoothly.

With Enterprise Resource Planning (ERP) software, you can link and manage every step of the supply chain, including stock control, sales, and procurement, all from one place. Everyone has access to the same data, meaning communication is more efficient and problems can be addressed quicker.

This is especially important if you rely on third-party providers for areas of your supply chain, such as a third-party logistics or storage company. Increased transparency means you have much more control over the process, meaning you can catch any potential issues early and rectify them if there’s any disruption.

Plus, many versions can be integrated with your current business management software or WMS with minimal disruption, meaning everything can be controlled from one place. As a result, trading with suppliers, partners, and customers is much more seamless.

Improved transport management

Along with WMS, transport management systems (TMS) allow for more efficient route planning, so you can optimise your delivery and collection routes and speed up lead times. Many TMS also allow for real-time vehicle tracking of in-house or third-party logistics providers, so you can see how each order is progressing. This can then improve communication between suppliers and site managers since, if there are any delays, customers can be updated immediately.

All of this can be integrated into your WMS too, meaning you can control every process all from one piece of software, boosting efficiency even more.

Increased flexibility

If the past year has taught us anything, it’s just how vital it is for businesses to be flexible. With WMS, you can streamline your processes by improving communication between departments and seeing which areas of the supply chain are holding things up. This means you can simplify and optimise any areas that need it to improve efficiency. It’s also likely that a more streamlined process is much more flexible, allowing you to adapt to challenges much more quickly.

A good warehouse management system should be able to grow with your business, so investing in scalable technology is a must. This will make it much easier for you to adapt to spikes in demand, such as those we’re seeing now. When demand is low, you’ll also be able to downscale your WMS to save energy and resources — all with very little disruption to the rest of your processes. In turn, this will make the supply chain much more agile and better equipped to deal with any future disruptions like the ones we’ve seen as a result of the pandemic.

In the digital age, it’s vital for construction supply chains to integrate automated technologies. Not only can it help to increase communication and efficiency, but WMS, TMS, and ERP software can make the whole supply chain much more agile — something that’s been vital over the past year.

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Shortages Causing ‘Adversarial Atmosphere’

Materials shortages across the construction industry are leading to contractors and developers becoming ‘increasingly entrenched in their views and adversarial’, lawyers at Womble Bond Dickinson have warned.

The shortage of key materials – especially steel – is proving so damaging that WBD says it could change the way contracts are negotiated in the UK.

It was recently revealed that construction disputes have more than doubled in value in the space of just one year, with three quarters of those surveyed saying that their projects had been affected by the pandemic.

Jessica Tresham, construction partner at Womble Bond Dickinson, said a return to the ‘dark days of the 80s’ could be on the cards if materials shortages aren’t resolved soon.

“Contractors and developers alike are being left in completely untenable positions because the cost of developments is varying so greatly. Steel alone is subject to price fluctuations of up to 30% – and the cost of steel is a major proportion of many modern projects,” she added.

“Delivering a project for the agreed cost is becoming difficult – and in some cases, where materials can’t be sourced, completely impossible. We’ve come a long way since the 80s, when it felt as if everyone was sparring all the time, but this feels like the closest we’ve ever come to returning to that kind of environment.

“We talk about collaboration and flexibility when it comes to contractual negotiations, but we are seeing businesses being forced to dig their heels in, becoming increasingly entrenched and adversarial, because their very existence is being threatened by the complete unpredictability of these market forces.

“At the start of this year we were warning people to prepare for the unexpected, and here we are. I doubt anybody could have predicted the scale of materials shortages we are now faced with.”

Jessica said the shortage was undermining what should be a boom time for the construction sector in the UK.

“It’s especially bittersweet right now, because Government strategy is centred around building our way to an economic recovery. There is real, pent-up ambition to invest in major developments, in housing, in eye-catching capital projects, but that determination is being undermined by the supply crisis,” she commented.

“You can’t rebuild Britain on good intentions alone: the sector needs materials and needs them urgently.”

According to Jessica, a US-style model, in which contracts are agreed with built-in cost flexibility, could be a viable option.

“In the US, projects will be tendered for, and contracts signed, prior to costs being decided based on factors such as market forces. Perhaps this is the way we will need to go in the UK if the market is to get moving again,” she said.

Jessica has also warned that co-operation and flexibility from all parties remains the best way to progress smoothly.

“In January we were recommending that businesses don’t panic, that they attempt to diversify their supply chains, review their subcontractor pool and undertake a thorough assessment of forthcoming work, to include cash flow, project timeframes, quality, profit margins and contracts.”

“All that advice still stands, for now. Risk management will be a major topic of conversation for the foreseeable future.

“Gather as much data as you can to create a supplier dashboard of UK suppliers and imported materials. Continuously watch out for potential disruption and risk and assess how your project controls, risk management and governance processes could handle any changes to suppliers.

“Think about vulnerabilities in your supply chain and how they could impact you financially and legally – consider cashflow, loan repayments, terms and contracts. How would you overcome or mitigate this?

“Work with suppliers to agree fair payment terms to ensure sustainability of UK supply chain and to futureproof needs.”

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Government Launches Hydrogen Economy Plan

Business and Energy Secretary, Kwasi Kwarteng, has set out a plan to unlock tens of thousands of jobs, billions of pounds in investment and new export opportunities through Government plans to create a thriving low-carbon hydrogen sector in the UK over the next decade and beyond.

This is the UK’s first ever Hydrogen Strategy and drives forward the commitments laid out in Prime Minister Boris Johnson’s ambitious 10 Point Plan for a green industrial revolution by setting the foundations for how the Government will work with industry to help meet its ambition for 5GW of low-carbon hydrogen production capacity by 2030.

A UK-wide hydrogen economy could be worth an estimated £900 million, and could create more than 9,000 jobs by 2030 and be worth up to £13 billon by 2050. Hydrogen could play an important role in decarbonising polluting, energy-intensive industries such as chemicals, oil refineries, power and heavy transport such as shipping, HGVs and trains by 2030.

By doing this, it would help these sectors move away from the use of fossil fuels. Low-carbon hydrogen also provides opportunities for UK companies and workers throughout the country’s industrial heartlands.

With Government analysis suggesting that 20-35% of the UK’s energy consumption by 2050 could be hydrogen-based, this new energy source could be critical to meet our targets of net zero emissions by 2050 and cutting emissions by 78% by 2035 – a view shared by the UK’s independent Climate Change Committee. In the UK, a low-carbon hydrogen economy could deliver emissions savings equivalent to the carbon captured by 700 million trees by 2032, and is a key pillar of capitalising on cleaner energy sources as the UK moves away from fossil fuels.

Business and Energy Secretary Kwasi Kwarteng said: “Today marks the start of the UK’s hydrogen revolution. This home-grown clean energy source has the potential to transform the way we power our lives and will be essential to tackling climate change and reaching net zero.

“With the potential to provide a third of the UK’s energy in the future, our strategy positions the UK as first in the global race to ramp up hydrogen technology and seize the thousands of jobs and private investment that come with it.”

Reacting to the publication of the Government’s Hydrogen Strategy, Tom Greatrex, Chief Executive of the Nuclear Industry Association, commented: “The Strategy confirms that nuclear reactors, large, small, current and advanced, have a critical role in producing low-carbon hydrogen. Nuclear is the only source of energy that can produce clean power and clean heat, making it a vital component as we decarbonise sectors beyond electricity. Whether labelled as ‘green’ or ‘low carbon’, it’s only hydrogen from zero emissions sources like nuclear and renewables that can make a meaningful long-term impact on decarbonisation.

“The Government must now swiftly implement a new financing model for nuclear to cut costs, move forward with Sizewell C, and continue to support the development of modular reactors, to ensure nuclear is part of a strong low-carbon hydrogen mix.”

The Government’s approach is based on the UK’s previous success with offshore wind, where early government action coupled with strong private sector backing has earned the UK world-leading status. One of the main tools used by government to support the establishment of offshore wind in the UK is the Contracts for Difference (CfD) scheme, which incentivises investment in renewable energy by providing developers with direct protection from volatile wholesale prices and protects consumers from paying increased support costs when electricity prices are high.

Other measures included in the UK’s first-ever Hydrogen Strategy include:

• outlining a ‘twin track’ approach to supporting multiple technologies including ‘green’ electrolytic and ‘blue’ carbon capture-enabled hydrogen production, and committing to providing further detail in 2022 on the Government’s production strategy
• collaborating with industry to develop a UK standard for low-carbon hydrogen giving certainty to producers and users that the hydrogen the UK produces is consistent with net zero while supporting the deployment of hydrogen across the country
• undertaking a review to support the development of the necessary network and storage infrastructure to underpin a thriving hydrogen sector
• working with industry to assess the safety, technical feasibility and cost-effectiveness of mixing 20% hydrogen into the existing gas supply; doing so could deliver a 7% emissions reduction on natural gas
• launching a hydrogen sector development action plan in early 2022 setting out how the Government will support companies to secure supply chain opportunities, skills and jobs in hydrogen

This comes as the Transport Secretary unveiled the winners of a £2.5 million R&D competition for hydrogen transport pilots in the Tees Valley area, which will lead to supermarkets, emergency services and delivery companies trialling hydrogen-powered transport to move goods and carry out local services.

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Record Year for UK Defence Training Estate

Landmarc Support Services (Landmarc) works in partnership with the Defence Infrastructure Organisation (DIO) to provide the support services that enable our Armed Forces to live, work and train on the MOD’s Defence Training Estate. Here, Allan Fox, Head of Programme Delivery at Landmarc, reflects on a year of significant construction development and investment on the Estate.

In 2020 Landmarc launched its new Business Plan, which identified the successful delivery of the Command Infrastructure Delivery Plan (CIDP) as one of its highest priorities. The CIDP details what infrastructure work is needed across the Training Estate and how Landmarc is jointly expected to deliver on its requirements.

Over 80 per cent of Landmarc’s overall programme of Additional Works is made up of CIDP tasks, which is managed by six regional programme delivery teams, supported by core staff and the wider support functions within the business.

Despite the challenges presented by the global pandemic, Landmarc’s financial year (FY) 20/21 has been a record year for programme delivery, with several standout developments making a positive impact on the Defence Training Estate.

NetCAP

One of the most notable projects over the last year was Phase One of the £45m Net-Zero Carbon Accommodation Project (NetCAP), which has already delivered the Defence Training Estate’s first carbon-negative buildings, making it a significant contributor to the Government target to achieve net-zero carbon emissions by 2050.

In total, the programme will provide 44 new carbon-efficient accommodation blocks, with some 1,900 bed spaces, which will undoubtedly improve the lived experience for our Armed Forces.

Fifteen blocks were delivered during the last financial year at Westdown, Knook, Nesscliff, Brunswick and Castlemartin Camps, providing 650 bed spaces, and even during its early stages, the programme has been recognised by the MOD Sanctuary Awards team, achieving a Highly Commended award for Sustainable Construction.

Infrastructure

Infrastructure enabling works in Kirkcudbright have also commenced to support the trial of the British Army’s new multi-role, fully digitised Armoured Fighting Vehicle (AFV). These works will provide a new 1.5km looped battle-run, combined with a new moving target system, to help rigorously test the versatility of these new fighting vehicles prior to them entering operational use.

Sustainability

On the rural estate, Landmarc has delivered over £1.7m of work through the Conservation Stewardship Fund to improve the natural and historic environment of the Estate.

Landmarc is also keen to support the DIO with its approach to land management following the release of the MOD’s Climate Change and Sustainability Strategic Approach, which has a focus on woodland creation and projects to support carbon sequestration.

The Integrated Rural Management Plans and Long-Term Forest Management Plans, which Landmarc has led from the outset, are now firmly embedded into the management of the rural estate and will play a major role in future sustainable land management initiatives.

Ash Dieback

As the UK went into lockdown in March 2020, Landmarc was completing a very busy few months of felling trees infected with Ash Dieback on Salisbury Plain, an operation which saw the felling of over 100 hectares of ash at Ashdown Copse near to Tidworth in Wiltshire, in extremely challenging weather conditions.

At the same time, Landmarc’s teams were felling ash at Stanford Training Area in Norfolk and Sennybridge in Wales, as well as completing standard harvesting works at Barossa Training Area near Sandhurst.

Perhaps the most ambitious project delivered last year was the felling of 800+ infected ash trees along the A345 in Wiltshire, which involved months of planning, booking road space and traffic management, and was completed with hugely successful results. Work will continue this financial year to ensure the Training Estate continues to lead the way in the management of this destructive fungal disease.

COVID and Real-Life Support (RLS)

No one can dispute that 2020 has been a year like no other, and Landmarc teams across the Estate have stepped up to help the military’s Real-Life Support (RLS) teams to establish essential quarantine facilities (QFACs) at pace at locations including Beckingham, Capel Curig, Crowborough and Swynnerton to support troops preparing for pre and post overseas deployments.

This included essential welfare facilities, such as secure, high-speed broadband internet, initially trail-blazed at Halton Camp near Lancaster, which was deployed and in operation in just 72 hours. In recognition of this resilience and rapid response to the COVID-19 pandemic, Landmarc received a DIO Excellence Award.

Regional highlights

In addition to these headline projects, Landmarc’s regional teams have been working hard to deliver a significant range of improvements, including the opening of two fantastic new kitchen and dining facilities at Nesscliff Camp in Shrewsbury and Cameron Barracks in Scotland, with delivery commenced to replicate these facilities on three further sites at Warcop, Longmoor and Rollestone Camps.

Following a recent shift in direction towards urban fighting, Landmarc have delivered the first phases of significant upgrades to Copehill Down Village on Salisbury Plain to create a more immersive, simulated battlefield environment for training troops, paving the way for the future of urban training. This will now be replicated at Eastmere Village in Norfolk and will be reinforced by the construction of three Urban Fighting Skills Houses at Catterick, Longmoor and Rollestone.

Multiple accommodation and tenanted estate projects have also taken place across several regions and significant work at Stanford Training Area in Norfolk to reinforce the area’s river crossing points has provided access to an additional 800 hectares of ranges and training areas for units using AFVs following an increase in demand.

Furthermore, an almost half a million-pound investment into new troop shelters in the South East will improve operational field facilities for training soldiers. Work has commenced on a new armoury and magazine facility at Ballykinler in Northern Ireland and a new, modern range tower at Castlemartin in Pembrokeshire, which will be critical to providing a live firing facility for Armoured Fighting Vehicles over the coming years.

In the past year, Landmarc’s built estate teams also took on a project to survey some 500 assets to inform a programme of works to ensure all priority-one accommodation facilities remain compliant with fire safety regulations and are safe to use.

Together over the last year, Landmarc teams have delivered projects that represent a 40 per cent increase in value on the previous year, with more than 1,000 individual tasks completed, valued at around £50m.

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Metro Mayor Announces £30m Boost

Steve Rotheram, Metro Mayor of the Liverpool City Region, has announced that up to £30 million in funding is being made available for urban development in the area.

This is thanks to successful investments made by two city region lending funds. Loans which have been repaid by previous successful applicants to both the Chrysalis Fund and the LCR Urban Development Fund are now available to be reinvested in other projects.

Speaking about the funding, Mayor Rotheram said: “Coming out of the pandemic, our local economy still needs all the help and support it can get. Because of the wise investments we’ve made over the last few years, we now have an extra £30 million of funding to help rebuild and recover. That’s on top of the £150 million COVID Recovery Fund that I announced on day one after May’s election.

“I’m committed to making our region fairer, greener and stronger after the pandemic. By continuing to invest our money carefully, and in projects that help improve our region and create good jobs, we are able to create a virtuous circle that keeps generating more for us to invest.”

The Chrysalis Fund is a £35 million revolving fund which has supported over £100 million in development activity in the region since it launched in 2012. It will continue to commit its funds to further projects until at least 2022 by facilitating delivery of new urban development schemes which support the creation of employment as well as economic growth within the Liverpool City Region.

The LCR Urban Development Fund is a £25 million revolving fund which is managed under the LCR Combined Authority’s Strategic Investment Fund framework. The fund supports the development and delivery of an integrated approach throughout the City Region, focusing on meeting identified local needs and opportunities. The fund can also invest in projects which support research and innovation, enhancing SMEs’ growth and competitiveness as well as helping companies and organisations transition to a low carbon economy.

Jim Gill, Chair of the Chrysalis Fund, commented: “After what has been a particularly difficult 18 months, we’re now in a great position to be able to assist property developers and owner occupiers in getting eligible projects that have stalled due to lack of funding options off the ground. Since the Chrysalis Fund launched nine years ago, we have provided loans for some fantastic projects that have brought hundreds of jobs into the area and, in turn, boosted the local economy.

“We’re delighted that those loans are now being repaid, meaning that we have more opportunities to boost regeneration and growth in the Liverpool City Region.”

Projects benefiting from the funds include the Watson Building in Liverpool city centre, the Venus 217 industrial facility in Knowsley, and Duke and Parr in the Ropewalks area.

The LCR Urban Development Fund, which is backed by the 2014-2020 ERDF England Operational Programme, is a new funding route to foster smart, sustainable and inclusive growth for Liverpool City Region.

Both of the funds are now actively inviting developers, along with owner occupiers with new development projects which meet their investment criteria, to come forward and apply for loans.

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New Planning Requirements Come Into Force

New planning requirements on fire safety have come into force, as of the beginning of August 2021. The new requirements, known as Planning Gateway One, will ensure that high-rise developments consider fire safety at the earliest stages of planning.

Developments which involve high-rise residential homes need to demonstrate that they have been designed with fire safety in mind before planning permissions are granted, including through their site layout, with access provided for fire engines.

This information is to be submitted as part of the planning application in a fire statement.

Housing Minister Christopher Pincher said: “This is a key step in our progress towards a new, risk-based building safety regime that will ensure fire safety is prioritised at every stage in the development of high-rise buildings.

“I am pleased to appoint the Health and Safety Executive as the statutory consultee, which will be on-hand to provide their expertise to local planning authorities on these important fire safety elements.

“We are driving up the standards of safety for people’s homes, and our new regulator – to be introduced under the Building Safety Bill – will provide this essential oversight, from a building’s initial design to providing homes in the future.”

Local planning authorities must seek specialist advice on relevant applications from the Health and Safety Executive (HSE) as a statutory consultee on fire safety, before a decision is made on the application.

In future, this role is likely to become part of the new Building Safety Regulator – which, led by HSE, will oversee a new safety regime for high-rise residential homes.

Peter Baker, Chief Inspector of Buildings at the Health and Safety Executive, commented: “The introduction of Planning Gateway One is an important milestone in the journey to radically reform building safety so that residents are safe, and feel safe, in their homes.

“It will ensure that fire safety is considered from the very beginning of a building’s life, and that developments benefit from integrated thinking on fire safety.

“The Health and Safety Executive is now a statutory consultee for planning applications involving relevant high-rise residential buildings and will apply risk-based fire safety knowledge and expertise to evaluate planning applications. This will enable local planning authorities to make sound and informed decisions.”

The changes to planning requirements follow a key recommendation made by Dame Judith Hackitt that fire safety in high-rise buildings should be considered at the earliest possible stage in the planning process, as set out in her panel’s independent Review of Building Regulations and Fire Safety.

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Maintaining a Heritage Site

Victor Chirilas, Director of Mainmark Ground Engineering, UK discusses subsidence in heritage buildings and when to seek professional help.

Caring for the long-term health of any heritage building brings unique challenges.  Buildings that have stood for hundreds of years, have their own cultural and historical significance and, whatever their purpose – a school, a church or a stately home – they have a special place in the communities in which they still stand. However, the methods and the materials used in their original construction, don’t always stand the test of time and issues of subsidence are one of the most common problems.

Keeping historic buildings safe and in use without altering the makeup of the building or damaging other unique features is top priority, and any work undertaken should maximise the life expectancy and sustain its historical significance. Careful preservation using appropriate, non-invasive methods from experienced ground engineering specialists is key.

What are the issues in remediating heritage buildings? 

Heritage buildings differ around the world in design, build and foundation construction. Yet, due to their age, they often suffer from similar problems.

Understanding of subsidence and its causes has grown in the last century and most modern buildings are designed with appropriate foundations and sophisticated drainage systems. Historically this was not the case and heritage buildings often have issues with water ingress into the foundations. This can impact every building differently, depending on the soil type it was built on. For example, sandy soils are easily disrupted by water, as the particles are washed out of the soil leading to sections collapsing. As a result of this, the building above can subside.

Traditionally, these older buildings were constructed with shallow foundations or footings, many just resting on the soil or on layers of loose stones. While this allows the building to change with the seasons, it can leave it vulnerable to subsidence, particularly if there has been any attempt to alter or ‘update’ the building with modern services or alterations. This is because a building with shallow foundations moves with the ground as it sits on the top of it, whereas deeper foundations transfer the load further down where the soil typically doesn’t fluctuate as much.

How do you maintain a heritage building?

Many heritage buildings have legal restrictions in place to help preserve the building’s integrity and history, so before undertaking any work, consultation with the relevant authority is recommended.  However, there are a number of things building owners can do to prevent structural issues occurring before it’s too late.

The first thing to do is assess the drainage. While it may not be possible to make significant changes, it is essential that proper maintenance is conducted. This includes ensuring drains are free-flowing with no blockages that could cause an overflow, as a consistent flow of water leaking into the soil can saturate the ground and wash away part of the foundations.

Assessing the grounds around the building is also crucial, as the roots of trees and shrubs can suck moisture from the ground and cause settlement if they are in close proximity to a building. If there is a tree close to the property, make sure it is managed and maintained so that it does not become a problem and when planting new trees ensure that they are not close to a building.

How do you know when an historic building needs specialist work? 

As stated before, movement in old buildings is normal but professional help should be sought when this movement is ongoing and begins to threaten the use or safety of the structure.

When evaluating a subsidence issue in a building it is good to understand if it is a sudden change or a historic change in the movement. New cracking is good indicator here for example, if there are cracks over 5mm in size that are continuing to grow, then ground engineers can be called upon to help strengthen the foundations and stabilise the structure preventing future movement as well as offer to raise the building and reduce or even close the cracks back up

Can subsidence be repaired under a heritage building? 

To an extent all structures can have their foundation issues remediated. How much work should be undertaken depends on the structure. With heritage sites the aim is to strengthen the ground and preserve the structure whilst avoiding the risk of moving it too much. Depending on the extent of the subsidence the structure can also be re-levelled by lifting it.

There are two options available; traditional concrete underpinning or modern resin injection methods. At Mainmark, our proprietary Teretek^® engineered resin is a two-in-one solution that can improve ground bearing capacity and re-level structures, with minimal intrusion.

The process is likened to key-hole surgery because it is injected through very small tubes into the ground beneath the foundation in a controlled manner, to fill voids and strengthen the ground that has subsided. This can also help raise the building back to level. In cases where more substantial lift and strengthening is required, Mainmark’s JOG Computer Controlled Grouting technology is a reliable and accurate solution.

As subsidence continues to become one of the biggest problems affecting older buildings in Britain today, it is critical that owners are aware of the advanced solutions now available, helping to effectively repair the ground to ensure the property stands on stable foundations for many more years to come.

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