NetWorks Issue 3 by British Irish Trading Alliance

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www.bita.ie • Edition 3 • 2019

LOOKING TO THE FUTURE

THE INVISIBLE FRONTIER Getting to grips with Nanotech

FROM A TO B

VERTICAL FORESTS

Weighing up the beneﬁts of electric cars

The cities of the future will be green and bright

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Helping you build a successful business Evans Mockler are a long established and dynamic firm of Chartered Certified Accountants and Registered Auditors. We specialise in both the construction industry and the property sector. We are business and tax advisors and recognise that our clients require more than just annual compliance. We understand the many challenges that businesses face, particularly within the construction industry. We work closely with our clients to ensure that they overcome these challenges and achieve their goals. Kindly contact us on 020 8449 9632 if you would like to discuss our range of services and to find out how Evans Mockler can help you build your business.

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TEAM

Editor: Diane Birch Sub Editor: Laura Watkins Features Editor: John Reynolds BITA Contributors: Lucy Wickett, Administrator; Susan Pearson, Pearson Consultancy Group; Tiernan Dixon, Board Member Design and Production E jules@stimula.co.uk Printer The Color Company

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WELCOME

elcome to this issue of NetWorks which focuses on the concept of looking to the Future. It is inspiring to see changes that have taken place over the last few decades, and to speculate about the changes in our not-too-distant future. As you can see from page 22 things don’t always advance as swiftly as we would like, but innovations – in transport (pages 18 and 19), architecture (pages 26 and 27) and medicine (pages 42 and 43) can still leave us breathless. When speculating about what the future holds, we must be mindful of the old adage, be careful what you wish for. Sometimes change can come too suddenly, or unexpectedly, and it can cause trepidation. The main reason for this is of course, fear of the unknown. We often fear what we don’t understand, but even periods of great upheaval and change can lead to enlightenment and new prosperity. Change is the new, and newness is inherently unknowable – but if we can harness our curiosity of the world and look forward with a will to create change for the good, and be surrounded by good people, then we should all have a bright future indeed. At BITA, we are here for the change, for the unknown. Our members are experts in fields that cut across industries and are here to offer advice and assistance. By working together and acting positively we can hopefully squash some of the fear and move forward with hope. Nano-tech, hydrogen-powered cars, greener ways of finding fuel…. it’s all ahead of us and I’m excited to find out more.

Terms and conditions NetWorks is published by BITA Ltd. Its entire content is protected by copyright 2019 and all its rights reserved. Reproduction without prior permission is forbidden. Every care has been taken in compiling the content of the magazine, but the publisher assumes no responsibility in the effect arising therefrom. Readers are advised to seek profesional advice before acting on any information which is contained in the magazine. Neither BITA Ltd or NetWorks accept any liability for views expressed, pictures used or claims used by advertisers.

PAUL WHITNELL President

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CONTENTS 6

Message from Shirley McCay

Building the Shard

Facing Future Recruitment Challenges

In Pursuit of a Dream

Growing Businesses

The Regeneration of Liverpool

Gig Economy Side-Effects

Straightforward Car Leasing

Getting from A to Bâ&#x20AC;¦

Signing up to Support Liverpool Based MSDP

Back to the Future

Ambitious Plans for the London Irish Centre

Major VAT Changes

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PEOPLE WHO KNOW PEOPLE THAT HELP PEOPLE Edition 3 • 2019

THANKS TO OUR SPONSORS PLATINUM SPONSORS

Vertical forests

It was Never Going to be Easy

A New Autopia?

Widen Your Horizons with BITAx

Going Electric

Degrees Mean Debt, Right?

The Invisible Frontier

Looking Ahead

Evolution of Care

Skills Shortage

A Year in Review

Bernard Looney’s Journey - From Dairy Farms to Oil Rigs

Keeping Ahead of Employee Expectations

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A MESSAGE FROM

Shirley McCay Director of Trade and Investment, Ireland

HAPPY NEW YEAR TO BITA AND ALL ITS MEMBERS!

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be challenges to face as there are with any changes to the status quo. However, the UK Government is committed to continuing ‘the habit of cooperation’ with Ireland. We, as the Ireland team of the UK’s Department for International Trade, will continue to play our part in supporting businesses access trading opportunities in both markets. Specifically, I want to highlight where I see most potential for 2019 and beyond – Infrastructure and Construction including Smart Cities, Life Sciences Medical Devices and E-health, along with Cyber security, Fintech and Agrifood/ Precision Farming. The fruits of increasing collaboration between largescale corporates, trading bodies and individual SMEs as part of wider supply chains between the UK and Ireland are already evident across these fields. Both countries have competitive advantages in these sectors and a strong pipeline of investment opportunities already exists. We need to look at both our countries to help meet worldwide demand in addition to the opportunities in each other’s markets, through building consortia and partnerships that marry the best of Irish and British expertise, innovation and quality of service. I and my team are focused on helping companies like yours find new export opportunities, expand on your supplier base and access the most innovative technologies to help grow your turnover, footprint and profile. We look forward to meeting you and working alongside you

over this important year as part of our partnership and association with BITA. We regard BITA as a committed partner with a similar mission in reaching out to business professionals like you offering value through knowledge, networks and direct matchmaking. Over 2018 we have enjoyed a truly productive relationship with BITA in discussing how we can meet strategic challenges and focus on deliverables. Of particular note

‘‘

he start of a new year always brings with it an air of renewal. It is an opportunity to refresh relationships and build on commitments that move us closer to whom we want to be and what we want to achieve. Last year in 2018 both Ireland and the UK saw a significant increase on exports. As Director of Trade and Investment, I see tremendous potential to grow trade in both directions much further. As I write, both the UK and the EU are engaged in delivering a Withdrawal Agreement and the Future Partnership document that sets out a shared ambition to deliver an ambitious and wide-ranging trading relationship following the UK’s exit from the EU. Ireland’s impressive growth rates of over 5% makes it now the fastest growing economy in the EU for 4 years and with over €116 billion investment in their National Development Plan Project 2040 the vast range of new business opportunities speak for themselves. The UK’s economy remains the 5th largest in the world and is the number one location for life sciences, financial services and venture capital investment amongst others. It has been voted by Forbes as the best country in the world for business for the second year running. The interdependence of both our economies, our geographical proximity as well as our relative strengths means that whatever the shape of our future relationship post-EU Exit, we will continue to be major trading partners in the years to come. Yes of course there will

As Director of Trade and Investment, I see tremendous potential to grow trade in both directions.

was our partnership in Manchester in April where we brought together over 100 construction and engineering companies to build alliances in support of Ireland’s expansion in public services of roads, housing, ports and airports development. We already have an exciting programme planned for this year but of course we are happy to speak with you as a BITA member at any time of the year where we can share insights and help you find real business growth. Wishing you a Productive and Successful 2019.

Shirley Mc Cay, Director of Trade and Investment, UK Department for International Trade, British Embassy, Dublin

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BUILDING SECTION

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THE SHARD MEET FLAN McNAMARA, THE IRISHMAN WHO BUILT THE SHARD

ROM his 18th floor office window near London’s Oxford Circus, if Flan McNamara looks southeast, he can see the distinct 1,016ft glass and metal skyscraper whose construction he oversaw, The Shard. Looking north-east, the 62-year-old Irishman who was born in Kilrush, Co Clare, can see Archway, where he lives, and nearby Highbury, the old home of his beloved Arsenal FC. He’s telling the story of his work on the £435 million, 95-storey flagship, where the weather was the key variable that threatened to hold up progress on its upper reaches. “At times, the cranes were idle for 60pc of the working week, so there were significant delays. We didn’t have comparable weather records, other than for Canary Wharf, for the height we were working at. “But we built it on time and on budget. It was a flagship project at a time when the workload in London had been

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seriously impacted by the 2008 economic crash. But that also gave us an advantage, because the best people were available whereas today, for instance, if you tried to do it, many of them wouldn’t be. “I’m incredibly proud of the building; it redefined London. I love seeing it when I’m driving around the city. And of course, I can look out my window here and see it, though the skyline is also becoming crowded nearby.” Modest to a fault, McNamara emphasises how much of a team effort completing The Shard (in November 2012) was. “We had the world-leading architect, Renzo Piano. He would come to the site very regularly and engage with those of us working on it. A lot of big-name architects don’t do that, but he was very approachable; someone you could really communicate with. “The building’s developer, the late Irvine Sellar controlled it day to day, and ran a very tight ship. He was very careful

with the budget, in the knowledge that the funder was Qatar’s Sheikh Abdullah al-Thani, who also visited every three months (He stepped in with funding after problems that resulted from the economic crash). They were an amazing duo to work for. Irvine was very driven. They shared a passion for the project and got on together like they were brothers. “The main contractor, Mace, whose chief operating officer (COO) was on-site with us full-time, definitely made an impact too. We had great subcontractors as well. From an Irish perspective, the Byrne group provided the concrete, and their top men shared our commitment. “We all realised this was something special - a landmark that would change the South Bank and the face of the city forever. In many ways, it was technically ahead of its time. “The best leaders in this industry that I’ve been lucky enough to work with over the years have no discernible egos. That

workers. It was essentially a refocus restructure that provided greater flexibility in decision-making, and again, allowed us to deliver the project on-time and on-budget at the end of October 2008. It got it back on track, and without it, there wouldn’t have been a shopping centre. Some years after he completed a fouryear apprenticeship with a colleague of his uncle Dessie who was a chief engineer in London, McNamara worked in the Middle East. His mechanical and electrical engineering qualification took him to Oman, Abu Dhabi, Saudi Arabia and

‘‘ was true of Bernard Ainsworth who I took over from on The Shard after he’d stepped aside. I was fortunate to work with Renzo - and I’ve also worked with Lord (Norman) Foster and his firm. I’ve learned a lot from that, and been inspired by their eye for great design,” McNamara explains. It was not the only huge London landmark that he helped get across the line. Prior to it, he finished a pre-construction report and planning submission for a hospital in Peterborough and was brought in to review the progress of the Westfield shopping centre in West London. He then stayed on as Construction Director. “I had to tear down some fiefdoms and associated entrenched positions there. One of my first major decisions was to take a fresh approach and speed up work on an underground rail siding that was behind schedule and delaying the start of a big section of the shopping centre. “I brought two previously separate teams together and beefed up the rail

CONSTRUCTION

businesses GRDI - which operated in Asia, India and the Middle East, and Vanguard Real Estate’s UK business, has over £1bn of development under way, including £550m worth alone in Glasgow and Belfast, with others in Bootle and Milton Keynes, and an eye out for a future project in London. What’s more, the firm - which specialises in building to suit occupiers who are mainly blue-chip corporates such as banks – aims to grow its development pipeline to £5bn by 2022. Belfast in particular – where they’re building the Waterside development – is likely to see further investment. The firm

We all realised this was something special a landmark that would change the South Bank and the face of the city forever. In many ways, it was technically ahead of its time.

Yemen in the 1980s. “It was probably one of the most formative experiences of my life. It toughened me up, being away from home, and made me very adaptable and resilient. I particularly loved Yemen. I was in Aden, which was so undeveloped at the time, in contrast to the tragic land of war and famine today - and very much enjoyed getting to know people from all these cultures. He then worked on Heathrow’s Terminal Three in 1986, followed by other major projects in London: Broadgate, Canary Wharf, Olympia, and then the refurbishment of the NatWest Tower after its bomb damage, plus a stint in Barcelona, working on its Olympic stadium, along with fellow Irishmen Ray and Des O’Rourke. Today, McNamara is the Design and Construction Director of Osborne and Co, a firm founded by fellow Irishmen, father and son Jim and Conor Osborne, whose roots are in Dundalk, Co Louth. Osborne and Co, formed from the Osborne’s previous

has looked at Dublin too, but not entered the market there yet. It’s only a matter of time before McNamara will be building another stunning building somewhere on these islands; we can’t wait to see it.

John Reynolds

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John Reynolds

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FACING FUTURE

RECRUITMENT CHALLENGES

WHY REMOTE WORKING OPPORTUNITIES ARE KEY TO ATTRACTING THE BRIGHTEST TALENT

ot so long ago, remote employers were compelled to select workers from a shallow local pool of talent. Meanwhile, glamorous city firms would rely on those willing to endure a long commute. Now, thanks to booming technological developments, the talent pool has widened and deepened for almost every employer. It no longer matters whether a company can boast a city address, or are located out in the sticks, when a great many tasks can be assigned and completed without the need for workers to leave the comfort of their homes. While this is a definite gift for employers, it also allows the most skilled workers to wield unprecedented power over their working conditions. Indeed, many employers state that hiring and retaining key workers is their biggest challenge. Urban property prices and rents are soaring, and with rail travel and petrol costs increasingly on the rise – it has recently been reported that rail fares will rise by 3.2% in 2019 – it no longer makes good financial sense for many workers to commute or relocate.

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Tried and tested talent-attracting schemes introduced by many employers include wellbeing initiatives, subsidised travel and Google-style ‘hangout’ spaces. Yet many still do not include a remote working policy. According to the results of surveys completed over the past 18 months, up to 70% of companies do not officially allow their workers to work remotely. In terms of attracting the very best available talent, these employers are likely to fall well behind those who do. With so much to gain, why do so many companies resist the concept of remote working? One oft-quoted reason is communication, with many employers worried about growing armies of isolated, uncontrollable workers. Flying in the face of this common objection, the successful Cork-

WITH SO MUCH TO GAIN, WHY DO SO MANY COMPANIES RESIST THE CONCEPT OF REMOTE WORKING?

headquartered project management, helpdesk and business collaboration software firm Teamwork classifies 23% of its workforce as remote. Teamwork encourages these workers – who are spread across 18 countries – to use video calling technology for face-toface communication. The firm also flies them to head office for planning sessions, team-building meetings and social evenings, as well as covering the cost for them to spend part of the week in their nearest co-working space. Meanwhile, Grow Remote, which began life through a small WhatsApp group, is an exciting new network founded in the west of Ireland. Their aim is to connect businesses and communities with talented IT workers and freelancers in remote areas. Grow Remote’s co-founder, Tracy Keogh, is a community builder and startup and innovation community manager from Galway. She envisages a future dominated by remote working and Grow Remote plans to establish new chapters in remote areas of the UK, joining those recently set up in Spain, Germany, the Czech Republic and Malta. With lower environmental impact and greater access to a deep pool of skilled talent, the future of work could be very bright indeed for those employers who are willing to embrace the concept of remote working. Certainly, it is becoming harder and harder to ignore.

IN PURSUIT OF A

eason Training are construction people who train and develop construction people. They design and deliver a wide variety of apprenticeship programmes, from Level 2 (GCSE level) through to degree level and they operate across the UK. Female roles have always been in the minority in the construction industry, so when Sarah Martin decided to pursue her dream of becoming a woman in construction, it was a milestone for all. Sarah had worked as a cleaner with Interserve but quickly decided she wished to progress so joined the team shadowing the Building Services Engineer in order to learn and understand more about what their daily roles included. Following her time shadowing, Sarah was put on a course with ILE where she

DREAM studied a Level 2 Property Maintenance Officer apprenticeship which was delivered by Geason Training. Sarah was on the programme for 12 months and throughout this time she demonstrated excellent commitment to the course deadlines, regularly completing work above and beyond that expected of learners. Sarah recently completed her End Point Assessment achieving a fantastic, ‘Distinction’ grade as a result of her hard work and dedication. Sarah is keen to build on her success and progress her career by becoming a fully trained Electrician. Sarah said: “Apprenticeships are great! They give you a good insight into

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everything and helped me to choose what I wanted to do in my career. And my Geason Training tutor Dean Price was brilliantso helpful!” Geason Training have helped thousands of people gain the qualifications they need to progress and are the chosen training provider for some of the sectors largest contractors. Contact Greason to discuss your requirements and flexible programme delivery.

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BUSINESS

GROWING BUSINESSES FACING THE CHALLENGE OF FUNDING AND LIQUIDITY

Henry Hathaway, Partner Silver Shemmings Ash LLP

aving spent 12 years working in the construction industry as a civil engineer prior to becoming a solicitor, I spent my years working for designers, developers and contractors. One of the key benefits of acting for such clients now as a solicitor, is that I gain the privilege of having the perspectives of each of these entities when it comes to forming/discharging contracts and especially when it comes to disputes that arise. I am more aware of the many demands and pressures entailed in running a successful business. Solicitors are in a privileged position, in both senses of the word â&#x20AC;&#x201C; not only to have the trust of clients to act in their best interests, but we are also privy to patterns and trends that arise in different industries and can hopefully signpost others and flag potential issues before they come up. It is crucial to remember that most disputes are created during the formation of the agreement, whether regarding ambiguous language, challenges not addressed or something else. Certainly, this is when the seed is sown for a potential dispute down the road. The courts will generally seek to understand

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what the common intention was at the time of contract when attempting to rule in these matters. A regular concern that emerges is the wide gulf between employers and contractors/sub-contractors, specifically how these relationships are viewed internally. Repeatedly, employers or contractors who employ sub-contractors will say that they struggle to find those parties who will deliver a product in time/ cost to the right quality without a threat of insolvency. Small companies still face the threat of delayed and disrupted cash flow and non-paymenti. The quality a small company can deliver becomes irrelevant if they simply cannot meet their own payment obligations, especially when the significant sums of labour are considered. This is when liquidity

becomes an issue; it introduces boundaries and parameters that can threaten the ultimate success of the project. Having acted in several corporate insolvency matters, it is a repeated process that is sadly quite regular. Cash management is a cornerstone for success but managed badly it will cause significant and unwelcome pressures. Inherently, this is an internal conflict that exists within the construction industry and when viewed from the outside in, appears to be counterproductive and resistant to growth. What is clear from the banking sector is that there is an appetite to support small companies who wish to grow, however, such small companies are often seen as high risk to traditional banking with little collateral or leverage to offer. From speaking and working with the banking sector, considerable efforts have been made to address this, but companies still need to present themselves as viable and with the correct procedures and systems in place to make themselves attractive. BITA member Bridgeen Stone of Metrobank, has offered the bankâ&#x20AC;&#x2122;s support to SMEs, providing advice and guidance, and going to far as to assist in developing business plans, as well as financial support. Metrobank want to take a helicopter view of the business, the people behind it, their aspirations, goals and delivery, something we also do at SSA. We became involved with BITA to help businesses; we are committed to nurture and grow SMEs through coaching and targeted advice and support. It is a tough time for smaller businesses, and we want to offer them what they need for a successful future. For the past year we have held free educational seminars and going forward we look to work alongside BITA and the regulated banking sector with a view to making available the required resources to assist smaller companies. Over the course of 2019, there will be back to basics seminars and workshops designed to assist SMEs that will be available at no charge to BITA members.

Despite what the law provides for under the Housing, Grants, Regeneration and Construction Act 1996 (as amended)

Author Henry Hathaway is a Partner with Silver Shemmings Ash and is a graduate of Trinity College Dublin (Civil Engineering) Tel: 00 44 207 167 6602 Email: henryhathaway@silverllp.com More details on our Seminars can be found at www.silverllp.com or by email to seminars@silverllp.com

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COMMENT

THE REGENERATION OF LIVERPOOL A NEW CHAPTER FOR LIVERPOOL

Sarah McCartney, Marketing Consultant at SLMC-Consulting and new Liverpool Chairperson

FOLLOWING THE FANTASTIC STEWARDSHIP OF PAM MOORE AS CHAIRPERSON OF THE LIVERPOOL CHAPTER SEEING EXCEPTIONAL GROWTH IN BITA LIVERPOOL, WE WELCOME SARAH MCCARTNEY AS THE NEW CHAIRPERSON FOR 2019 WHILE PAM TAKES UP THE MANTLE OF NON-EXECUTIVE DIRECTOR.

transparently supporting essential forest conservation projects, allowing individuals, organisations and governments to reverse the impact of climate change every day through their activities.” This sounds like what we need more of in the UK, and I’m proud that Liverpool is leading the way. A raft of new associated projects, from regenerating decrepit docklands and updating old breweries, will be making way for exciting new developments. It’s clear that Liverpool’s regeneration is here to stay. With all of this activity it’s clear that Liverpool is a great place to do business. If you want to find out more about how we can help you take advantage of these opportunities, you should attend our next networking lunch at Anfield on the 29th March.”

“After an amazing 2018 I’m looking forward to starting 2019 as the new chair and member of the board of BITA. The Liverpool Chapter is as diverse as the city itself – with members from across a range of industries attending our monthly meetings and regular lunches. Last year the Centre for Cities ranked Liverpool as 4th in the UK for city centre growth and jobs, which is an incredible achievement, especially when remembering that at the turn of the century the city was in the midst of long-term urban decay. The initiative of our City Council, ‘Liverpool 2020’ is a bid to make Liverpool the world’s first ‘Climate Positive’ city after an agreement with The Poseidon Foundation. Poseidon “offsets the carbon impact of any product or service by

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GIG ECONOMY

SIDE-EFFECTS:

IS YOUR WORKFORCE GETTING JOB SATISFACTION ELSEWHERE?

n some ways, the gig economy has existed well before the likes of Uber, Upwork and Deliveroo came along. The idea of ‘moonlighting’, workers taking on additional shortterm roles, is not new – whether that meant shifts in the local bar at nights and weekends, or shelf-stacking in shops at Christmas. These days, however, an explosion of technology has taken over, bringing with it an unprecedented wealth of short-term self-employment ‘gigs’. People are now able to find their passion, indulge their creativity and hone their skills through easy-to-find, independent opportunities that fit smoothly alongside traditional employment. Millennials have even coined a specific term for this: the ‘side hustle’. They are also far more likely to be indulging, with 36% of gig economy workers aged under 30. Meanwhile, a 10% rise in the number of university graduates, the ever-

35% OF UK EMPLOYEES ARE NOW GRADUATES, COMPARED WITH 25% IN 2008.

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increasing popularity of social media, and stagnating wages means the ‘side hustle’ is a tempting prospect for many. Even after adjusting for inflation, the average earnings of employees are still markedly below pre-recession levels, and people are coming under more financial pressure through debt and rising household inflation (reference: Institute for Fiscal Studies, IFS). Forecasts from the Office for Budget Responsibility suggest that the average person’s earning power will still be lower than at pre-recession levels in 2022. These figures go some way to explaining why our workforce might be tempted to dip into the gig economy. But what does this sea-change mean for employers? A bleary-eyed workforce could be one effect. With a demanding 24-hour society that is constantly online, the temptation for people to keep on working may appear overwhelming, particularly when there are debts to pay. There is also the question of skill devaluation. Sites such as Fiverr and PeoplePerHour offer a variety of opportunities for creative people, such as graphic designers and writers. Yet jobs are frequently assigned to those freelancers who offer the lowest rates, leaving skilled people working for less than the minimum wage. Indeed, while many people assume that gig economy workers must be unskilled, information from Ipsos Mori finds that 28% of gig workers offer professional services including accounting and legal work, 26% creative/IT work and 18% skilled manual work. This means that gig economy workers are likely to be honing valuable skills they

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can then take back into the traditional workplace. Millennials are often described as the most qualified, educated and indebted generation that has ever existed. They are also firmly focused on finding fulfilment through their work. As an employer needing to retain valuable staff, this could translate simply into offering well-paid opportunities that also allow for personal growth and development. While the rise of the gig economy can be described as positive â&#x20AC;&#x201C; it affords many hardworking people precious opportunities to top up their pay, whilst honing particular skills and creative talents. This in turn can help them make themselves more appealing to future employers, and earn higher wages. Employers should perhaps think carefully about its specific effects on their workforce. This could take the form of finding out more about the people they have chosen to employ, then designing flexible routines, policies and practices that take account of the fact that the gig economy is here to stay.

BUSINESS

MILLENNIALS ARE OFTEN DESCRIBED AS THE MOST QUALIFIED, EDUCATED AND INDEBTED GENERATION THAT HAS EVER EXISTED.

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hrough our divisions, Charles Hurst Leasing and Rosedale Leasing, we offer a range of leasing options on a wide choice of vehicles and brands. Whether it’s personal car leasing or business car leasing, with over 50 brands to choose from, we have the perfect car lease deal to suit you. We’re part of the Lookers family, one of the largest and most respected motor retailers in the UK. Our offices are managed locally but connected nationally through our country-wide infrastructure. With Charles Hurst and Rosedale Leasing you can benefit from UK wide delivery and specialist knowledge, while having the reassurance that our offers are underpinned by our parent company, Lookers. We successfully combine national availability of a huge choice of models with regional bases offering a personal

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touch. Unlike expensive company car schemes we offer competitive deals on fleet and business car leasing and provide an attractive alternative to the traditional company car scheme. We know you like to be connected which is why you can browse, book and engage with us online at any time using the device of your choice. Whether you’re having a latte at a coffee shop and want

to view stock or whether you’re on the train and looking for a lease quote, we have it covered. If you would prefer a chat over a cuppa about great deals, maintenance, repairs or finance packages, our enthusiastic teams will be delighted to assist. Indeed it’s the knowledge and experience of our staff that keeps customers coming back to us time and time again.

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GETTING FROM

A TO B…

AND WHY YOUR HYDROGEN CAR WON’T EXPLODE

ELECTRIC VEHICLES (EVS) DON’T EMIT ANY EMISSIONS AND WITH RESIDENTIAL SOLAR PANELS BECOMING MORE POPULAR IT’S POSSIBLE TO CHARGE YOUR CAR WITH GREEN ENERGY TOO.

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im O’Sullivan, chief executive of Highways England, has stated that classic cars could be banned from main roads in 30 years’ time. The reason? Classic cars driven by real people and susceptible to human error, will become “hazardous” to motorists in Artificial Intelligence (AI) driven vehicles that can communicate with each other. But are electric cars really the safe and green ride we’ve been promised, or should we instead be looking to hydrogen vehicles? Many cities and fleet operators are planning a switch to electric. Environmental concerns are key: for instance, London has some of the highest levels of air pollution in the country and is activly engaging with residents and businesses to combat this (see pages 34 and 35). The Corporation of London is rolling out a series of initiatives that include electric vehicle charging infrastructure for residents, restricted access of polluting vehicles to some of its worst-affected streets, and rapid electric charge points for taxis. When we consider that outside pollution contributes to up to 40,000 premature deaths in the UK each yeari, plans such as these can have significant impact upon the health of a city. In the race to ease our collective guilty conscience and embrace new technology, many have been attracted to the clean promise of electric vehicles. Amongst other benefits, we are told that they are efficient and good for the environment. Electric vehicles produce no emissions, and are proving increasingly popular with more sold every year. There are many reasons for this; free road tax, government subsidies, going green, but despite this they are still vastly outnumbered by fossil fuel powered cars. It takes a long time to recharge an electric car, and people are considering how the electric used for recharging has been generated. There are also increasing concerns about how the materials for the batteries were obtained. Mining operations in China and South America where the elements required are most abundant have been beset by accusations of human-rights abuses, and detrimental impact of mining on the environment. Manufacturing businesses

being more aware of these issues and expecting more accountability from their suppliers is improving the situation. Just like their electric cousins, hydrogen vehicles are emission-free. However, unlike electric vehicles, they do not use batteries. Instead, hydrogen is stored in a tank with oxygen and converted into electrical energy, which powers the motor. This means that hydrogen vehicles are free from the environmental and human impact ramifications of battery-equipped electric cars. Around since 2003, hydrogen-powered cars may have been dismissed by the likes of Elon Musk, but they are gaining ground in popularity. Honda and Hyundai have launched hydrogen models, and Mercedes will be releasing theirs next year. Japan has announced plans to put 40,000 hydrogen vehicles on the road by 2023, while Germany aims to provide 400 refuelling stations for hydrogen-powered cars by 2025. There is no need to be concerned about safety in your new hydrogen car, either – tests have shown that the fuel tanks are so secure that they can even survive being shot or set on fire.

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will no doubt become more efficient and more affordable. The range and speed of refuelling a hydrogen car would certainly be more appealing to those with long distances to travel, such as drivers of taxis or freight vehicles. As we might imagine, when it comes to vehicle manufacturing, no option is completely green – though each will surely discover its own niche. In a recent survey by KPMGii, car manufacturers predict that there will be equal interest in hybrid, petrol, electric and hydrogen vehicles by 2040. It will be interesting to note the level of government investment in the infrastructure needed for charging and refuelling points, in order to encourage people to make a switch. In conclusion, we are more considerate of our environment, and technology is catching up with our needs, becoming cheaper and more accessible in the process. With the future of zeroemission cars seeming certain (although perhaps not signalling a total extinction of traditional petrol cars), we can all look forward to a future with cleaner air and healthier cities.

Head to head CAR TYPE

RECHARGING/ REFUELLING TIME

RANGE ON ONE REFUELLING

RUNNING COSTS

VEHICLE COSTS ENTRY MODEL

Petrol/Diesel

4 minutes

400 KM

8 pence per KM

£6,995

Electric

8 hours

300 KM

3 pence per KM

£18,995

Hydrogen

4 minutes

500 KM

13 pence per KM

£53,000

While we note that electric cars are more expensive than traditional vehicles, there are government grants of up to £4,500 that can mitigate some of the burden. Some of the cheapest options cost under £20K, while the cheapest hydrogen fuel cell car comes in at £53K. Another downside is that the process of creating hydrogen fuel is energy-intensive, and the hydrogen itself comes from natural gas – a fossil fuel. However, as the technology catches up, they

NOW, WHERE DID I PARK THAT HOVER-CAR?

Royal College of Physicians, February 2016, Every breath we take: the lifelong impact of air pollution

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SIGNING UP TO SUPPORT LIVERPOOL BASED MSDP MERSEYSIDE SOCIETY FOR DEAF PEOPLE PROVIDE A GUIDING HAND TO SUPPORT AND PROMOTE INDEPENDENT LIVING. THEY ARE AN AMBASSADOR FOR CHANGE THAT WILL ALLOW DEAF, DEAF BLIND AND HARD OF HEARING PEOPLE TO ACCESS THE SERVICES THEY DESIRE, WITHOUT BARRIERS TO HINDER THEIR DEVELOPMENT AND CONTRIBUTION TO SOCIETY.

message of absolute gratitude from Chris Murphy, CEO OF Merseyside Society for Deaf People (MSDP). “It is with indescribable pleasure that I write this letter. Our organisation was invited to a BITA chapter event by Liverpool Chapter vice-chair Deborah Gambell. She said that the people involved were professional, kind hearted and charitable people and thought it would be good for us to engage with them. We did so on Deborah’s recommendation as she is a well-respected member of the business community here in Liverpool, however, on this point she may have made the most understated description of a group of people, ever! We have been to three events now and each time we attend we are met with a warmth so rare in today’s fast paced world. Every single member takes time to speak to us, to offer advice and good

REVOLUTION “As a child I never imagined that Star Trek would become a reality in my life time”

s a child in the 1970s I remember being engrossed by Star Trek on the TV. A fantasy world, where you could converse with someone far away through your watch, or see them on a giant wall-mounted screen. You could zoom around in your personal flying machine, cut steel with a laser beam or, the most amazing of all - “Beam me up, Scotty” - be transported instantly to any destination and interact with the strange people and things there. Well, look around! You can now use mobile phones or smart watches to make calls, conduct video calls on huge colour

screens. Drones fly here by remote control and you can now cut steel with a laser beam. If you have seen the most recent developments in Virtual Reality you know that you can now transport yourself to another location immediately by putting on a VR head set, interacting with faraway worlds through inbuilt sensors. And who knows what developments are just around the corner? The business world is also being revolutionised. The list of companies that are transforming traditional industries is endless at this stage; Netflix (movies); Spotify (music); Airbnb (hotels); Uber

A sign based at MSDP Headquarters reads: ‘The purpose in life is to make a difference’. BITA has made that difference! Chris Murphy, CEO MSDP

practices and generally make us feel part of this wonderful family. We have met so many brilliant people we now call friends. Astonishingly, the members have each time raised funds for us and to date, after only three visits, they have raised close to £3,000! For an organisation whose entire existence relies on donations and local authority funding, this money is invaluable in supporting the community we serve.”

(taxi); Revolute (banking); Amazon (retail); eBay (auctions) etc. Consumers are dictating these retail upheavals. Business processes are also being transformed. My utility installation business needed a solution to the logistics of organising over 350 staff doing thousands of jobs per week. We needed to streamline the movement of thousands of expensive stock items from warehouse, to vans, to consumer’s houses and back again. Technological solutions transformed the way we ran our business. We were able to massively improve our operational efficiencies and control our stock losses. Today we supply the technology that we developed from the ground up to others in the same sector (utilities and facilities), with the same rewards as we have seen for ourselves. Complex workflows require technological innovation. And nowadays it is all out there for you.

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COMMENT

I I T R A P

ack in the 80’s, you would be forgiven for thinking that by 2019 we’d be navigating flying cars and hover boards, and would never have to tie our own shoes again. Back in 1989, Marty McFly visited 2015 (in Back to the future: Part II, in case you don’t know) and whetted the appetite of audiences for the kind of life they would be living by now. It wasn’t just this film – it had been 20 years since the moon landing when Back to the Future came out, and there had already been startling progression in computing and medicine. It was a good bet to think things would carry along in the same vein. To say that we’re disappointed is an understatement. However, today’s technology has managed to realise a few of the futuristic inventions...

GOT RIGHT • High tech specs – we now have Google

GOT WRONG

•

• We DO NOT still use fax machines • We don’t have near to a ‘sleep

• • •

• • • • •

inducing alpha rhythm generator that erases your memory’ which sounds nightmarish We have not gotten rid of all the lawyers Clothes can’t dry themselves We do not have ‘rejuvenation clinics’ to some people’s dismay (although you can get Botox in the hairdressers now) Jaws 19 does not exist, thankfully We are yet to invent pizza dehydrators

• • •

glass as well as virtual reality and AI Video calls – Skype, facetime, oovoo, house party etc… USA today, Nike, Pepsi all still exist Trafﬁc is still awful There is one hover board – but only created using magnets and because of the ﬁlm, so not exactly a commercial product! Hover board users (well, Segway users which is as close as we get) can get arrested – in the UK it is illegal to use them on the pavement TV plasma screens and watching 6 at a time – we have the technology! Drones do exist, just not for walking your dog – yet

Frankly, it’s all rather a let-down. Although in retrospect we are extremely thankful that their ideas on fashion didn’t come to pass either. Most innovations are very small and we fail to see all the ways it can be implemented until it’s already everywhere and we can’t imagine what our lives would be like without it. Small jumps forward in medicine, technology, equality can seem small and insignificant, but when we look back, we can realise how earthupending they have been!

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AMBITIOUS PLANS FOR THE LONDON IRISH CENTRE Creating a world class Community and Cultural Centre in NW1

stablished in 1954 to cater for the needs of Irish emigrants, the charity is now a vibrant, multicultural organisation and a hugely important resource for the Irish and local communities in London, with social groups and satellite offices throughout North and North West London. Their mission is to bring outstanding Irish Care, Culture and Community to London and the organisation is growing rapidly with a projected income for 201819 of £1.6m. The welfare service remains the largest for Irish people outside of Ireland and the award winning culture and arts programme provides entertainment and education for over 20,000 people each year. In total the Centre welcomes over 70,000 attendees yearly for

conferences, weddings, functions, meetings and festivals. Over the past two years the LICC has experienced significant increases in demand for their advice and outreach services, doubling in certain areas, as well as growing interest from major artists and promoters. In 2017 the board of trustees began a strategic review and quickly concluded the 30,000 sqr ft building, built in 1870 and added on over the years had major design flaws, with 28% unproductive space, lack of disability access and an inadequate environmental profile. Working closely with their Patrons Dermot O’ Leary and Ed Sheeran they are in the early stages of a multi-year ambitious strategic plan to reimagine,

redevelop and recreate the current Camden hub as a world class community and cultural centre - a state of the art performance venue, a modern workplace to facilitate their team to deliver the best possible care to the thousands who rely on them, a flexible work base for business and the charity sector, and a welcoming space for new arrivals and visitors to London. This is an exciting time for the charity, and a new chapter in their long history. The LICC is currently concluding the appointment of project architects and will shortly begin the planning and stakeholder consultation process, with an opening date of 6th December 2022, the centenary of the founding of the Irish State “Saorstat Eireann”.

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BUSINESS

MAJOR VAT

CHANGES TO LEAVE SUBCONTRACTORS WITH CASHFLOW PROBLEMS

n recent months, HMRC have published draft legislation which means that from 1st October 2019, Subcontractors in the Construction Industry will no longer be required (or able) to charge VAT on construction services to their contractor clients. The introduction of what is known as ‘VAT domestic reverse charge’ from 1st October 2019, means Subcontractors will only be required to notify their Contractor clients to self-account for the VAT that would otherwise be due for payment on the Subcontractors invoice. The reason for this change is to reduce fraud often referred to as ‘missing

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trader’ and ‘carousel’ VAT fraud. These types of fraud have been steadily growing over the years and result in hundreds of millions of lost revenues to the Exchequer. The cashflow consequences that arise from this new VAT change, however, are likely to have a serious impact upon the businesses of many subcontractors who rely on retaining the ‘temporary use’ of the VAT collected on sales invoices as working capital for their businesses. VAT collected on their sales invoices is only required in many cases to be paid over to HMRC one month + 7 days after the end of each VAT accounting quarter.

Let us look at such an example of a Subcontractor whose supplies are all at standard VAT rate: • All invoices (supplies) are to a Principal Contractor • Average Total Invoices per VAT quarter = £1m Net of VAT (Gross Invoice value £1.2m or £400k pm) • Monthly payments received from Contractor = (Gross Payments of £400k with a VAT Element £66.6k included) In the example below, the Subcontractor will no longer be receiving payment of VAT of £66,667 per month on his invoices. The VAT temporarily retained peaks at £200k in the third month of his VAT quarter. Any funding gap created by this must now be filled elsewhere. Of course, the subcontractor will have some cashflow benefits if some of the work is further subcontracted to a VAT registered Subcontractor, so the true impact will very much depend on the circumstances. Clearly for labour supply type construction businesses with very little input VAT, the cashflow loss is likely to be significant.

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What could you do as a Subcontractor: • Plan early and prepare a proper cashflow forecast to determine the likely additional cash (i.e. working capital) required for your business. • Speak with your Client and negotiate earlier payment terms on your invoices. • Speak with your suppliers and seek longer payment terms on their invoices. • Reduce the company dividend / owners’ salaries outgoings until there is sufficient working capital accrued in the business. • Input the additional required capital into the business. Businesses will have to update their systems and procedures and staff will need to get familiar with how this will affect their business. This VAT reversal will have a serious impact on many businesses and some may inevitably fail. It is all very well to bring in this change but shouldn’t it be closely aligned to legislation leading to better payment terms in the Industry?

Without improved payment terms, many subcontractors will struggle. A Lesson from Ireland Construction businesses in Ireland will already be familiar with Reverse Charging as it has already been operating in Ireland for a number of years. Apart from the complexities and cash-flow difficulties, another downside has been the increased number of VAT reviews initiated. This is mainly down to the fact that many subcontractors now find themselves in a tax refund position. Claiming a

VAT refund tends to lead to a greater likelihood of being subject to a VAT review. We expect the same to happen in the UK once the new legislation takes effect. The final version of the legislation will be published in October 2018 and will come into effect on 1 October 2019. Clients of Ardent Tide can be assured they will be kept up to date on any developments. In the meantime, if you have any queries on this you should contact your accountant in plenty of time to prepare for these significant changes.

The CIS Specialists "Given that I have no hand or part in the process, I can only judge Ardent Tide on the number of times we've had to speak to Dermot about a problem since we started working together; this has yet to happen. I have referred them to my network." -Eamon Lynam, Kylemore Services Ltd Find out why intelligent contractors use Ardent Tide, Google us www.bita.ie

ERTICAL FORESTS INCREASING PRESSURES DRIVE DEVELOPERS AND ARCHITECTS TO CREATE BUILDINGS WITH THE ENVIRONMENT IN MIND

onstruction is one of the top five industries contributing to climate change. Where it sits in this top five varies depending on where you are consulting, but there is no denying that it has a large impact, so developers are now looking to more sustainable practices. There are exciting innovations when it comes to architecture, incorporating new technology and materials in sometimes startling ways to minimise impact on the environment. Although great steps are being taken, it can be a slow process and there are challenges to be addressed. Burdensome implementation, lack of support, resistance to change and the high cost of green options can all cause developers and architects to think twice about using the latest product. Developers can experience a larger outlay with green designs, and often these expenses are only recouped in the long term, and unlikely to benefit them directly. In addition, there is a general lack of information around products and lack of knowledge from clients and developers regarding the benefits of green building. This is all about to change. The EU has set a target for all new buildings to be nearly zero-energy by 2020 and a body to issue guidance and accreditation for green buildings has been created; the Energy Performance of Buildings Directive (EPBD). According to the EPBD website, buildings are responsible for around 40% of energy consumption, and 36% of CO2 emissions in the EU. The benefits of reaching the set targets won’t just be environmental. There are economic benefits in people upskilling, factories producing new products, more jobs and R&D for new materials and innovation. There is also a measurable impact of contact with nature on mental health, as well as more comfort offered by higher tech living spaces. One of the biggest barriers to sustainable environments is the mental barrier to believing that we can make a difference; we need to act with a combined will. In some places this is

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already happening. In 2014, led by its residents, Burlington in Vermont became the first US city to run completely on green energy. The citizens were concerned about the steadily reducing snowfall, and they committed to changing. Closer to home, Liverpool has pledged to become the world’s first ‘carbon-positive’ city by the end of 2020 in an ambitious plan comprising of new technology, developments and changing habits. With the internet disseminating ideas easier, as well as distressing videos of sea-life struggling with plastic, more and more places are moving towards sustainability. Perhaps surprisingly, China is one of the innovators in green planning. The world’s first ‘Forest City’ is currently being developed in Liuzhou, Guangxi Province. Upon its completion it will be home to 30,000 people, around 1 million bio-diverse plants, and absorb around 20 million pounds of CO2 and over 100,000 pounds of pollutants annually. The city will also be self-sufficient and run on renewables; it should be completed in 2020, and the world will be watching to see if it succeeds. It may be a while before we see something similar in the UK or Europe, however BITA member Pierre Saunal, architect and partner at Create Design and Architecture, says that this is already happening in a different form. “China has the luxury of space and has less restrictions, both of which mean that they can be bold and innovative with their new cities. The EU is struggling with much less buildable land, and old housing/building stock. What you see now in the UK and EU, is those older buildings being updated to be more sustainable. It is a slow change, but a

steady one.” This is great news for SMEs as they make up around 70% of businesses involved in upgrading these buildings, meaning more contracts and more jobs. It might be less visually arresting than a forest city, but updating old building stock is still an efficient way of improving our living spaces. Although this is in line with the new EU legislation, it doesn’t help to legislate without providing avenues to combat the difficulties that developers face. Aware that cost is the biggest barrier, the government offers subsidies on some initiatives, and can decide to reduce the tax burden on projects. Depending on circumstances R&D tax credit refunds can be claimed and rebates on some initiatives can offset this cost. In addition, current investors in property are more aware of the environmental impact we have and are willing to pay more for an energy efficient environment. “It’s the same as any other technology” says Pierre; “new innovations always cost a lot, whether insulation 20 years ago, solar panels 10 years ago, or new materials now.” When asked about his thoughts on what developers and architects can do now to create a quick, cost-effective positive environmental impact, Pierre has a surprising answer. “It’s all about adaptability, and ability of buildings to be flexible to multi-use space. An office today can be a block of flats tomorrow. The great heating system you installed could look ancient and inefficient in six years and need updating. The ability of your building to adapt to change is the easiest thing to do.”

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One of the biggest barriers to sustainable environments is the mental barrier to believing that we can make a difference. What is needed is a combined will.

DIGGING UP THE PAST

It’s not all about efficiency and energy saving, city planners are starting to consider ‘daylighting’ rivers (see box ‘Digging up the past’) to improve wellbeing and the environment, and architects should also consider the impact on biodiversity. Could a rooftop garden create a haven for bees, and will butterflies appreciate foliage heavy exterior walls? One innovative building in Europe is the Bosco Verticale in Milan, envisioned by Stefano Borei Architetti, and completed in 2012. This is same team behind the Liuzhou forest city in China, and they are planning similar projects in other cities across Europe. Comprised of two high-rise towers of 26 and 18 floors, they are home to 800 trees, 4,500 shrubs and 15,000 plants. Over 90 species of plants are represented, and it is hoped that this will increase the bio-diversity of

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birds and insects in the area. According to their website, their ‘Vertical Forest helps to build a micro-climate.... The diversity of the plants helps to create humidity and absorbs CO2 and dust, produces oxygen, protects people and houses from harmful sun rays and from acoustic pollution’ (see page 46, issue 2). The extremely noticeable Bosco Verticale notwithstanding, reduced visibility of schemes in the UK and Europe can make it difficult to appreciate how much we are pushing towards a more sustainable future, and images like those from forest cities and vertical forests can certainly grab the eye. But it isn’t one size fits all, we need to decide what works best with what we have, and that will certainly include cost considerations. Governments have their parts to play, increasing subsidies and reducing tax on innovative or efficient buildings are just two things they can do to ensure we all enjoy a green future.

Laura Watkins

enquiries@DRSbonds.co.uk

tepping away from buildings and looking more towards city planning, is the increasingly popular idea of ‘daylighting’ rivers. Years of development in urban areas have pushed many rivers and streams underground. Bringing these forgotten rivers to the surface, or ‘daylighting’ them, can be difficult and expensive. Land owners can no longer build on the areas the rivers now flow over and need to be compensated, and businesses can be against the practice as they think footfall will suffer from the disruption. Despite this, cities across the UK, USA and China and more are increasingly looking into, and implementing the rediscovery of our rivers. There are myriad reasons, it reduces floods and the expense of maintenance of underground culverts, increases bio-diversity, reduces heat in cities and promotes well-being. It creates an area that people want to use – ask the residents of Seoul who have fallen in love again with the Cheonggyecheon stream, transforming the previously crimeridden area due to increased crowds and investment. Closer to home is Sheffield, who have recently daylighted Porter Brook and aim to uncover more. There are so many benefits, Switzerland have even enshrined it in law to daylight rivers. www.bita.ie www.bita.ie

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IT WAS

NEVER GOING TO BE EASY… WE JOIN OUR INTREPID ADVENTURERS SOMEWHERE BETWEEN TENERIFE AND NOWHERE IN PARTICULAR

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he Atlantic Avengers, Ricky Reina and John Williams, were not expecting an easy row across the Atlantic as they followed in the wake of Christopher Columbus. Their journey, which began on the 28th of November, has already suffered the kind of hardships that would make most of us throw our toys, or oars, out of the boat (provided there was a rescue ship nearby!). Their epic journey started out well, but they were beset by difficulties in the second week as the solar powered batteries on their boat failed to recharge. Although they are using their own strength to propel the boat forward, the batteries control the

These monsters have already managed to break one oar, but the boys are still making great headway. Needless to report, they are very strong both mentally and physically and we’re sure that they’ll complete their challenge. This isn’t just to see what they are capable of, they are also raising money for various children’s charities across Kent, including Shepway Trust.

If you want to donate, anything will be gratefully received at http://www.atlanticavengers.com/. From their website you can also download the YB Races APP to track them in real time

SMARTER WORKING

FOR A BRIGHTER FUTURE ‘Innovation’ doesn’t always need to be imagined from scratch to be eﬀective Julie Barry, New Business Manager, RIFT Research and Development

ith an ageing workforce and too few boots on the ground, we’re seeing the building trade looking to new technologies and methods to shoulder the increasing load. Smarter working can mean anything from increasing automation on-site to digitalisation and BIM. 3D printing, modular building and even ‘robot bricklayers’ are starting to catch the imagination of a traditionally hands-on sector, while hard hat head-up displays and survey drones are set to make building sites safer and more efficient workplaces all round. An important thing to remember is that an ‘innovation’ doesn’t always need to be imagined from scratch to be effective,

steering, navigation and countless other functions. Sadly, this meant that for a week, only one person was able to row at a time, with the other having to steer the boat in the right direction. Using high-tech machinery consisting of a bit of string and a fixed compass, they still managed to keep on target. In addition to their technological difficulties, they have also had to deal with mother nature. After scaring them with swarms of luminescing algae under their boat at night, they had to tackle severe weather, with winds at 49.4kn (56 miles per hour), waves as high as 40ft, and nearly a whole day of 30ft waves.

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of course. Innovative use of existing technologies and techniques from other industries can prove just as valuable and we find many of our clients are eligible for claims for this kind of development. What’s more, we’re seeing really interesting examples of construction branching out into high-tech fields that means accessing talent pools that other sectors have been enjoying for years. The more those skills become transferrable to construction, the brighter the future becomes. Construction companies are investing large amounts of time and money into R&D, just by solving everyday problems. Unfortunately, many still don’t realise that these activities are eligible for R&D tax credits so it’s really important to spread the

word. The key to survival for every sector now is to make full use of the financial support available. Innovation can be its own reward – but it’s not its only reward.

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A NEW AUTOPIA? With the rise of AI and an increasingly automated workforce, what does the future hold for employees?

‘‘

Artiﬁcial intelligence will free humans from work. We will be able to move on to a more meaningful existence. Ben Goertzel, Chief Scientist, Hanson Robotics

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ur world is driven by technology, a sentence with an almost literal meaning when referring to the development of automated smart cars. Most of us have continuous connection to the internet, offering unlimited access to instant information. Meanwhile, developments in medicine, manufacturing and computing are all surging forwards. These great advancements in technology are improving our daily lives. The price for this, however, is our jobs – a huge consideration for businesses, and a huge worry for those who might be replaced. The media has been warning of robots and AI replacing jobs for years, but over the past few months the claxons have been ringing more often. A PwC report issued in 2017 stated that up to 30% of UK jobs were particularly susceptible to being taken by robots by 2030, and the Bank of England has estimated that 15 million jobs may be at risk. Will this lead to reduced working hours for all, and employment with jobs that are less repetitive, or mass unemployment? The answer is in how businesses and governments handle the change. There are already predictions available regarding who will be affected. A 2013 report from Oxford University studied 700 professions, to assess how likely they were to become automated. The professions studied ranged from mental health workers and surgeons (0.3% and 0.4% chance

Laura Watkins

TECHNOLOGY

of automation respectively), to data entry clerks and telemarketers (99% likely). Worldwide, as much as 14% of the global workforce could soon be affected by digitisation, automation or other similar advances i. Employers are

We will be able to move on to a more meaningful existence.” While it could be argued that most of those affected workers will enjoy freedom from repetitive tasks, without sufficient investment in upskilling or retraining, many could find their future only holds precarious short-term employment in highly competitive, low-skilled roles. In order to fully realise Goertzel’s prediction, we will need to implement systematic retraining (or universal income) in tandem with automation. This isn’t the first time that our workforce has faced such issues. When they have, despite an initial, brief period of panic and upheaval, more jobs in fact tend to be created. For example, the industrial revolution gave birth to the Luddites, yet it also transformed the economic landscape and created jobs that people wouldn’t have been able to imagine only a decade before. With each year new occupations are created, mostly fuelled by technological development. Companies exist today to sell mobile phones, broadband, manage social media marketing, and handle online accounting – all of which would have been unimaginable 30 years ago. Indeed, concerns are only relevant when we consider the unprecedented speed of modern technological progress.

workforce that will enjoy an industrious working life. Workers will need to be equipped with creative and social skills instead of replacement, we should instead be discussing redeployment. Time and time again, research shows that people want to learn more on the job, and they mostly relish the opportunity to upskill. This benefits workers as they have better earning potential, and a greater likelihood of doing something they enjoy. Redeployment also benefits the employer, who is rewarded with more engaged and loyal staff that are better at their jobs. As long as we are able to offer viable alternative options to those workers at risk of displacement, there is no reason why we can’t welcome a new society that benefits greatly from the technological advancements we have made.

IN THE US, MCKINSEY & COMPANY ESTIMATE THAT THE USE OF PERSONAL COMPUTERS HAS CREATED 15.8 MILLION NEW JOBS SINCE 1980. recognising this fact; 71% of European businesses with over $100million annual revenue have said that retraining staff is the best way for them to handle any skill gaps caused by automation. However, only 59% of these companies see it as their responsibility to provide such retraining ii. Unsurprisingly, it is the low-skilled that will struggle the most against this wave of automation, with PwC predicting that 44% of the demographic will be at risk of replacement. This is compounded by a predicted 15tn potential boost to global GDP from AI. Ben Goertzel, Chief Scientist for Hanson Robotics, has stated, “Artificial intelligence will free humans from work.

The OECD recommends that countries invest heavily in adult training programs, and steer people away from ‘jobs for life’. Meanwhile, investment from companies, apprenticeships without age restrictions and training colleges will help ensure a flexible, adaptive

Oxford research paper: https://www.oxfordmartin.ox.ac.uk/downloads/academic/future-of-employment.pdf i

McKinsey Global Institute Report, November 2017, Jobs lost, jobs gained: What the future of work will mean for jobs, skills, and wages ii McKinsey Global Institute Report, January 2018, Retraining and reskilling workers in the age of automation www.bita.ie

Tiernan Dixon

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SECTION

WIDEN YOUR HORIZONS WITH BITAx The neXtworking generation!

Established to offer opportunity to the under 35’s, BITAx understands how daunting walking into a room full of strangers can be so are determined to make their events friendly and inviting as well as interesting and exciting.

Remember that… A person’s name is to them the sweetest and most important sound in any language. Use different methods to remember them such as repeating their names multiple times in conversation or twinning it with something about them – Barry with the beard, Gary with the glasses etc.

BITAx Chairman, Ryan Dignam, has 6 top tips to break the intimidation barrier!

Face to face is the best way to be remembered for the right reasons… Platforms such as LinkedIn have their place but hiding behind a computer screen isn’t going to ‘sell’ you or your product in the best way. Use social platforms to assist you with your networks, not replace them.

“The currency of real networking is not greed but generosity”... the most successful networkers I have seen are givers, moving around the room bringing people together. It’s this kind of behaviour that speaks a thousand words about who you are. “People that know people that help people” are selfless with their time, expertise and knowledge and reap the rewards through referrals and introductions themselves.

Save the planet… Try not to be the person throwing business cards around the room to everyone and anyone, only passing your card over when you can potentially add value to that person always makes a better impression.

Don’t give up too soon… A common misconception with networking is expecting to get a ‘sale’ or a ‘great lead’ from the first event you go to, this generally takes time and requires you to build trust with others - business is all about relationships, how well you build them will determine how well you do.

And last but not least … be ‘in’ the room - don’t check your phone and show you are interested by not yawning or checking your watch!

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SECTION

www.bita.ie

COMMENT

GOING

ELECTRIC DANGEROUS AIR POLLUTION LEVELS IN OUR CITIES By Vince Dignam City of London Business Performance & Transport Group Manager

f all the local authorities, the City of London Corporation has some of the highest levels of air pollution in the country – down to its location at the heart of London and the density of the buildings and traffic that surround it. Tackling the issue is a key priority and through an informed strategic approach, it has effectively implemented a number of targeted measures. Central to the City of London’s approach is effective engagement with businesses and residents. The City hosts one of London’s five Low Emission Neighbourhoods (LEN) in the Barbican and Smithfield Market area. It also runs air pollution awareness events and works directly with businesses to tackle emissions from deliveries and freight. Within the last year, electric vehicle charging infrastructure has been trialled for residents. Further interventions to be trialled are restricted access of polluting vehicles on City streets, and rapid electric charge points for taxis. Committed to protecting the health of people living and working in the City of London Corporation and with strict restrictions on polluting vehicles on the horizon with the Ultra Low Emission Zone (ULEZ), it has also taken strong steps to transform its own fleet. In 2016 they implemented a Corporation-wide ‘no diesel’ policy. For every new vehicle purchased by the City Corporation they undertake a business case study to make sure they choose the best-suited vehicle

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for the job. Oversight extends beyond their own fleet: any new contractor the City brings on board must have a fleet that meets FORS Grade Silver Requirements and complies with the CLOCS Standard for Construction Logistics. The City of London Corporation have a Transport Co-Ordinating Group that consists of officers from Procurement, Environmental Health, Transport, City of London Police and Cleansing/Waste department. The City have also been involved in consultation regarding the Ultra Low Emission Zone (ULEZ) which will start in April 2019. With all the above legislative changes the City Corporation’s Group transport manager has been consulting with various vehicle manufacturers and suppliers as well as Transport for London, Green Fleet and other organisations on alternative fuels for the future to meet legislative changes. The City Corporation have been operating various electric vehicles for years, mainly cars and light vehicles. One of the main problems was that there are very few alternatives, apart from Compressed Natural Gas (CNG), in the Large goods vehicle (LGV) sector. The City Corporation started talks with various suppliers/manufacturers to see what alternatives could be sourced for 2019 especially in the LGV sector. In 2016 the City Corporation started talking to

the NRG group who specialise in vehicle contract hire and workshop maintenance. Discussion on future developments and trials which included a 26 tonne fully electric refuse collection vehicle were tabled by the NRG Chairman. An exciting concept which was accepted by the City of London Corporation team immediately. The Journey started, and The City Corporation and NRG worked closely together as the vehicle was developed (by Electra). The first showing was in November 2017 at ‘Freight in the City’ Expo at Alexandra Palace, (Chassis and cab only fully electric) generating interest and lots of questions from various business sectors who also wanted to trial the vehicle. In May 2018 the City of London Corporation Cleansing and Waste department started the trial at Smithfield meat

This is the future: fully electric 26 tonne lorry (Electra).

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market collecting all the waste and street cleansing from the market area. Straight away the drivers found the transition from diesel to electric very easy and were impressed with how quiet the vehicle was, no white noise, no vibrating cab. The vehicle performed better than expected, carrying out a whole eight hour shift, 200 plus bin lifts and compactions of bins full of waste, then travelled 20 miles round trip to tip the waste. At the end of this working day the vehicle still had 65% charge left, meaning that it could have carried on for another shift before charging. The vehicle operated for two months and received lots of positive comments from the public, stating no idling issues, very quiet and no emissions. This is the future in the LGV sector especially for Urban/City Environments. The City Corporation are tendering the cleansing and waste contract out at present (November 2017

-April 2019) for a contract start date of April 2019 when the ULEZ also starts. The City Corporation have specified electric vehicles for the future and are expecting these electric refuse collection vehicles in the fleet for the City Corporation. There are other LGV applications also being looked into by NRG/Electra. The City Corporation are leading the way for change and have carried out presentations at various conferences to educate and inform the City Corporationâ&#x20AC;&#x2122;s residents and businesses. They are proud to announce that the 2018 Lord Mayorâ&#x20AC;&#x2122;s show had Autonomous cars represented and a trial of Autonomous sweepers is due for late 2019.

COMMENT

WHAT THE CITY OF LONDON CORPORATION ARE DOING TO TACKLE AIR POLLUTION.

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RIGHT?

Creating engagement and investment from staﬀ through apprenticeships

uture proofing business, retaining good staff, increasing productivity are all things that businesses should want to do to improve their profitability and reputation. One of the best ways to do this is by creating engagement and investment from your staff as embodied by our members Blu-3 and Geason Training. Graduates are leaving university with an average of £50,800 debt for a degree, two thirds of them will never manage to pay this off due to the high interest rates of up to 6.1% and fixed repayment terms. The poorest have even more debt, on average £57,000, as they take out more loans to fund their course and expenses. The option of an apprenticeship is often touted as a valid alternative, however, there are many jobs or organisations that really want that degree, and initiatives long promoted by the government have meant that some young people feel like by not getting a degree this results in failure. There are a host of benefits to your businesses with offering high-quality apprenticeships, including; increasing your productivity and competitiveness, staff retention, plugging skills gaps and costeffective training. Offering apprenticeships to disadvantaged young people can also contribute to your social responsibility and improve communities.

blu-3 is a UK leading infrastructure provider championing the industries next generation of talent with new apprenticeships available across the organisation in conjunction with Geason Training. All the more interesting, some of these apprenticeships lead to a degree, allowing students to access higher education and gain an advantage in the workplace, without incurring debt and benefitting from experience gained on the job. blu-3 started in 2004 as a utilities sub-contractor in London, but their staff-as-family ethos and commitment to staff engagement and training have enabled them to grow into the nationwide fully integrated construction and utility services company they are today. Danny Chaney, Chairman of blu-3, says; “I am a great believer in lifetime learning and improvement, and always make sure that as an organisation we recognise our people’s hard work and success.” Discussing the implications on training for his workforce, he states; “businesses don’t go anywhere without people behind them, pushing them forward. We have found that investing in people’s futures mean that we

THERE HAS BEEN A MASSIVE PUSH FROM THE GOVERNMENT TO ENCOURAGE EMPLOYERS TO OFFER APPRENTICESHIPS, AND TO MAKE THEM AWARE OF THE BENEFITS TO THEIR BUSINESSES. MORE THAN 2 MILLION APPRENTICESHIPS HAVE BEEN CREATED SINCE 2009, ALONGSIDE A GROWTH IN TRAINEESHIPS. 36

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‘‘

DEGREES MEAN DEBT,

I am a great believer in lifetime learning and improvement. Danny Chaney, Executive Chairman - Blu-3

end up with a more invested staff that we retain for longer. Stability in businesses is key, and that applies to our staff as well.” The Apprenticeship Levy was introduced by the government in April 2017 with the aim of funding three million apprenticeships in the UK by 2020. It affects all UK employers with a payroll bill in excess of £3m and they forecast an additional £2,970m contributed to the Exchequer in 2019 as a result of the levy. But it can help employers; According to Robert Kilpatrick of apprenticeships and training provider Geason Training; “Levy funds can be used as a contribution towards the cost of an apprenticeship, and employers who prioritise staff training will be able to get back more than they contribute if they provide a sufficient number of apprenticeships.” It’s not just the government who are recognising the value of on the job training, with high-quality apprenticeships offering paths to a degree, potential first-class employees are seeing it as an attractive alternative. So, is it time to ask whether an apprentice is the way forward for your business?

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THE INVISIBLE

FRONTIER Nanotechnology will provide us with more power in the volume of a sugar cube than exists in the entire world today

Ralph Merkle, computer scientist and inventor

eemingly, nothing exists that cannot be improved with a sprinkling of nanotech. However, it is all too easy to get carried away with the hype, and we know that expectations for new technology travel at light-speed. The big questions are: will nanotech really keep its promises, and when can we expect to see them realised? In October, the Czech Embassy in London played host to a wide variety of nanotech businesses for their Czech Nano Day. Refreshments came in the form of water taken from the Thames that morning, rendered drinkable with the use of nanofiltration systems. Clothes were displayed, made from nanofibres that are antibacterial, stain-resistant, and incorporate UV protection. Meanwhile, the Embassy’s exterior wall had been painted with a special coating developed by FN Advanced Materials, which not only remains white for twenty years, but removes some car-generated pollutants from the atmosphere. The ‘big hitter’ of the day was bedding created from nanofibres so thin and tight, that it is rendered impenetrable to dust mites and allergens. What exactly is nanotechnology? Nano technology (generally accepted) is the study and use of structures between 1 and 100 nanometres (nm) in size. To put

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this into perspective, the diameter of a human hair is around 75,000nm. Although we have been experimenting on a nanoscale for centuries, the true age of nanotech began in 1989, when Don Eigler and Erhard Schweizer manipulated 35 individual xenon atoms to spell out the IBM logo, at the tech giant’s Almaden Research Centre. Although we have seen nanotech increase its presence in our lives (amongst other things, it has been making our golf balls fly straighter since the 1990s), advancements have been mainly in the field of incremental or evolutionary nanotech. While building on previous inventions and improving them is a clear priority, radical nanotechnology is its most exciting – and elusive – field. There are four areas of nanotechnology research that appear particularly interesting: personal sensors, material sensors, self-repair and the environment. Personal sensors These are pieces of technology that read our bio signs in different ways. The most famous of which is probably the Fitbit - increasing in sales from just over 58 thousand in 2010 to over 22 million in 2016. Tattoos and clothing that sense our vital signs are on trial. Meanwhile, nanotech-based medical solutions seek to prevent post-surgical inflammation and infection, along with the creation of organs for transplant patients. What about broader applications; sensors that can be implanted to tell doctors what’s wrong, and even fix the issue? The British pharmaceutical giant GlaxoSmithKline (GSK) is already investing in this area. “If we look 10 years out, we should have a number of tiny devices—we call them bioelectronic medicines, because they are medicines—that will be treating conditions we use molecular medicines

‘‘

While building on previous inventions and improving them is a clear priority, radical nanotechnology is its most exciting and elusive ﬁeld.

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TECHNOLOGY

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for today,” Kris Famm, head of GSK’s bioelectronics research and development unit, has been quoted as saying. Material sensors An earthquake in a populated area destroys buildings and infrastructure. People need shelter, but they don’t know which surviving structures are safe. A bridge carries thousands of cars and lorries each day and is slowly degrading. Structures of the future are likely to include nano-sensors in their building materials as a matter of course, helping to stave off disaster, and to signal whether a building is a refuge or a trap. Self-repair Changing the structure of materials on a nanoscale can have an incredible impact. Water and stain proof coatings already exist, and the applications will only become broader. Self-healing phone screens are already on the horizon, consigning that feeling of dread whenever you drop your phone firmly to the past. The environment The biggest issues facing the planet today are undoubtedly climate change and pollution. Research is already being led into the field of truly biodegradable ‘plastics’ using nanotech, and solar panels are becoming more and more efficient. Batteries will be able to last longer and store more energy, and new methods of harvesting energy from movement and temperature will be possible, as well as advancements in computational power, with reductions in size that will require less energy. What next? Of course, it is impossible to predict with complete accuracy what lies 30 years ahead. Functional hover-boards are still a dream, and GM crops have so far failed to conquer world hunger. However, vital research is taking place in these fields, and they are good bets for the future direction of nanotechnology. While we wait, new developments steaming from research in nanotech will be used increasingly in more common items. However, there are some very real issues looming that apply to health inequalities. For example, it seems likely that the main beneficiaries of bioelectronic medicines, at least in the 40

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NANOTECHNOLOGY IN MEDICINE IS GOING TO HAVE A MAJOR IMPACT ON THE SURVIVAL OF THE HUMAN RACE. BERNARD MARCUS, BILLIONAIRE BUSINESSMAN

beginning, will be those countries rich enough to afford them. It also seems unlikely that developing countries will benefit from the advances in structural engineering and ‘self-healing’ buildings at the same rate as those in the west. As developing countries often bear a disproportionate load from climate change caused by wealthier nations, it is hopeful that they will soon reap benefits from these same nations moving to a more sustainable model. So, while the future is impossible to predict (could it be possible that these materials will be as reviled in 2050 as plastic is now?) one aspect that can at

least be tracked is the governmental control over the research and development of nanotechnology, and whether such controls are flexible enough to change and update with technological progression. With so many possibilities on offer, it is important to avoid a public backlash like that which accompanied GM products. With distrust of governments at a high, an informative approach led by scientists and robust research is crucial. Ultimately, it is the projects that people invest in that will decide whether nanotech will help or hinder humanity. As with all things, it is likely to form a complex mixture of the two.

SECTION

LOOKING AHEAD: IS YOUR MARKETING STRATEGY FUTURE-PROOF? Diane Birch, Marketing Strategist, Vantage

nless you own a coloured headscarf and a crystal ball, it’s likely that you can’t see into the future. It could be that you don’t even want to try. The future often seems a scary place, particularly when we consider the unprecedented changes we’ve experienced over the past few decades. Social media has forever transformed the way businesses interact with their customers, while technology has opened up a whole new world of consumer choice. Put simply, people no longer have to put up with shoddy service, inferior quality or snotty staff, when there is a wealth of other options available at the mere click of a mouse. Companies in search of growth and stability are certainly up against some challenges in these uncertain times. But while you can’t predict exactly what will happen next, you can do some vital planning and preparation to ensure you can withstand whatever lies ahead, and provide vital continuity as you strive for greater success.

Embrace customer-led change Many businesses rave about the quality of their products or services, hoping they will speak for themselves. Unfortunately, this means they often forget to engage their customers in the right way. Taking stock of who your customers are, asking for their feedback and noting changes in their behaviour, will help you predict future trends and make suitable business adjustments. This is a point that is especially worth considering for businesses who work mainly with older generations. Your customer base is likely to transform considerably over time – how could you adapt your business to embrace a whole new age bracket? Protecting your reputation on and oﬀ-line is an imperative Even the best bricks-and-mortar businesses have had to adopt an online presence in recent years, while many customers now expect an immediate response to their enquiries. Meanwhile, millennials engage with

companies on social media as a matter of course. Ensuring a consistently joined-up, knowledgeable and friendly online presence can be difficult to achieve for many businesses, when there are now so many different channels of communication. Yet including this aspect in your marketing strategy is likely to pay dividends when it comes to maintaining a strong reputation. Review your working practices As we have seen, communication is important – but so are quality and consistency. We are an ‘open all hour’s generation’ so making sure your communication practices can live up to this demand is a key element of success, making sure you are able to seamlessly fulfill your business obligations is another. Reviewing your operations can herald some vital improvements that will help you stay on track. For example, if you are still using pen, paper and filing cabinets, you will need to think about whether you are properly prepared for business growth. While it is impossible to fully predict the future (watch out for those who say they can!), it is possible to future-proof your business using simple marketing strategies. Above all else, it is vital to remain ready, open and receptive to change…as there is sure to be much more of that to come. www.bita.ie

WELLBEING

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EVOLUTION OF CARE

With dementia rates soaring and cancer proving diﬃcult to combat, you could be forgiven for thinking it’s all a bit gloomy

here isn’t much that captures the eye more than medical innovations, except perhaps celebrity gossip. Whether it’s hope for dementia, a way to slow MS or a new treatment for cancer, these headlines make us pause and read on; we all know someone with a medical problem that needs treating, and we do love to hope. Many of these attention-grabbing headlines seem to fade to nothing, we

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don’t see any follow ups, and people are still getting sick. But behind the news stories are thousands of people working on medical innovations to banish a myriad of diseases. Sometimes newspapers publish too early to encourage sales while there still needs to be years of medical trials - some treatments can fall at the next hurdle and are never heard about again as they have proved ineffective. From antibiotics to vaccines, modern medicine has saved countless lives, increased longevity, and prevented millions from suffering long-term consequences of childhood illnesses. There are still many challenges facing us and medical science. Our longevity leads to increased cancer and dementia rates; there’s been a rise in obesity and related illnesses across the globe; antibiotic resistance and aging itself. Cancer survival rates vary considerably, but there have been great improvements in many cancers - in 1971 there was a 25% survival rate for prostate cancer which is now at 84%! When people refer to a cure for cancer, it is not very helpful, as there are so many different cancers (200 in fact), and the outcomes are affected not just by medicine,

THE AVERAGE LIFE EXPECTANCY FOR SOMEONE BORN IN 1911 WAS 53 YEARS IN THE UK, AND SOMEONE BORN IN 2011 IS EXPECTED TO SEE THEIR 81ST BIRTHDAY.

but early detection rates and type of cancer. Research is being directed into targeted cancer therapies that ignore healthy cells and just attack cancer cells. Many researchers are looking to immunotherapy, a new class of drugs that use the body’s own immune system to attack cancerous cells. According to Otis Brawley, MD, chief medical officer of the American Cancer Society (ACS), there are currently over 800

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trials on new immunotherapy treatments taking place. MUC1 is an immunotherapy treatment currently on trial that has the potential to treat 80% of cancers, almost the general ‘cure’ that we keep seeing mentioned. Looking further ahead, nanotech and the gene-editing tool ‘CRISPR’, both offer promises of new treatments and cures. These are a long way off, but one treatment with carbon nanotubes is already being tested with mice, and developments by CRISPR are already being used in research i. For dementia the best defence is a good offence. Eating right, keeping fit and active, getting enough sleep and continued learning will all improve your chances of staving off this disease. In many cases though, you can’t beat genetics, and our increased longevity means that there are more of us living to an older age than ever before, increasing our risk of developing a form of dementia. A breakthrough this year has shown that a drug reducing amyloid in the brain slows the reduction of cognitive decline by 30% ii, but this is a way of managing the condition, rather than a cure. An ongoing study is currently taking place on an extended family who have a genetic condition that means they are susceptible to early onset Alzheimer’s, with the goal to prevent the disease from getting started. There are five target areas being

looked at with drugs for them currently undergoing clinical trials, and three studies to prevent dementia iii. Antibiotic resistance is a tough one, and much of it (the saturation of commercial animals, like cattle, with preemptive antibiotics, for one) is outside our individual control. There are some things we can do though, starting with not insisting on antibiotics if your doctor says they will be ineffective, and always finishing a course of prescribed medicine, reducing our need for antibiotics later on. We have already seen great strides this century. The average life expectancy for someone born in 1911 was 53 years in the UK, and someone born in 2011 is expected to live to see their 81st birthday. This was fuelled first by improvements in healthcare for young people, for instance vaccinations and improvements in midwifery, and then by developments for health problems associated with older people, including statins and heart surgery. The next wave of healthcare improvement will be brought about by treatments for

WELLBEING

our modern lifestyles and an improved quality of life in our dotage. Although many of the challenges we face, like dementia and cancer, can seem insurmountable on the surface, new treatments are being developed all the time. In the UK at the beginning of the 20th century, there were 300 deaths per million from measles, and an infection rate in the hundreds of thousands. Reducing these figures must have seemed like an impossible task to many. However, before 2006, the last death from acute measles in the UK was in 1992, and less than 2,000 cases were reported in 2016 iv. Our technology will soon catch up to the diseases and health problems that we face today, as it always has. We just need to remember to do our part – not insisting on antibiotics for colds, taking full doses of medicine given out on prescription, and by donating to research charities or fundraising. And if you want to stave off dementia, remember to try and get enough sleep and you could do worse than learning an instrument!

https://medium.com/what-will-it-take-to-end-cancer/the-technology-changing-cancer-care-fe5cf453f661 https://www.alzheimers.org.uk/news/2018-07-26/potential-new-dementia-treatment-following-research-trial iii https://www.alz.org/alzheimers-dementia/research_progress/treatment-horizon iv https://www.gov.uk/government/publications/measles-deaths-by-age-group-from-1980-to-2013-ons-data/ measles-notiﬁcations-and-deaths-in-england-and-wales-1940-to-2013 ii

BITA SUPPORTING THE MEDTECH INDUSTRY TO THRIVE With medical technology generating information and data that is critical for the prevention, diagnoses, treatment, monitoring and management of health, it’s no wonder it’s the fastest growing technology industry today. We have a thriving Meditech membership with expertise on medical device regulation, funding and European and international industry contacts, who are eager to share their knowledge and link up with others in the same category. If you know or you are a Medtech company, get in touch to find out how we can help.

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SECTION COMMENT

SKILLS

SHORTAGE Will Brexit lead to a skills shortage for the UK?

Martin Mockler, Partner at Evans Mockler Accountants, Auditors, Business and Tax Advisors

he construction industry relies heavily on foreign migrant labour for skilled and non-skilled roles. With the UK outside of the EU, which guarantees the right to free movement, it is possible that the skills shortage could worsen. If immigration is limited, particularly for skilled workers, the UK could witness higher project costs with increasing wages for site labour. This could have a knock-on effect on the capacity of housebuilders to meet the government’s housing targets, with cost increases possible for the housing market and construction companies. This further decline in housebuilding could deepen the housing crisis especially in London. Alternatively, if global investors start to take their money out of the UK property market, this could lead to a reduction in prices and free up investment properties that are currently sitting empty. Updates In October 2018, Mark Reynolds, chief executive of Mace, attacked Prime Minister Theresa May over the government’s plans to focus post-Brexit immigration on high-skilled workers with no priority for those in the EU. May

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said that the free movement of workers between the UK and EU would end “once and for all”. The most high-profile construction industry figure to express views on the issue, Reynolds accused the government of completely ignoring industry worries over access to ‘un-skilled’ labour after March 2019. Office of National Statistics (ONS) figures show that one-third of workers on construction sites in London were from overseas, with 28% coming from the EU. Reynolds said; “The future of the UK’s construction and engineering sectors relies on the availability of both highly skilled specialists and so-called ‘low skilled’ labour. I believe that the policy should be urgently reviewed and business consulted once again; as without access to the right mix of skills we will be unable to deliver sustainable construction growth after Brexit.” Julia Evans, Chief Executive at BSRIA, said;”...members must be able to access skills and talent – at all levels – swiftly and easily when they can demonstrate that they haven’t been able to hire or train the staff they need here in the UK. This

will halt more and more unnecessary and messy red tape and bureaucracy.” Import and export of construction materials As well as the free movement of people, membership allowed for the free movement of goods within the EU, eliminating duties and other restrictions. A 2010 study by the Department for Business Skills and Innovation estimated that 64% of building materials were imported from the EU. The same report estimated that 63% of building materials were exported to the EU. After Brexit, importers and exporters may face duties or limits on quantities, which could potentially lead to a shortage of construction materials or an increase in costs. However, Brexit could allow UK public procurement policy to stipulate the use of ‘UK firms and materials only’, supporting UK-based and enterprises. The UK may also be able to negotiate and develop its own trade agreements with the EU and other large importing companies, such as China and the USA. It is unclear whether Brexit will enable the UK government to impose tariffs on cheap steel imports from China that have led to the decline of the UK’s steel industry. Historically, UK governments have not been in favour of propping up industries in this way, and there is always the potential for retaliation from affected countries, however it is a method by which the government might be able to save a beleaguered industry and jobs.

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A YEAR IN

REVIEW

t has been a wonderful year for the British and Irish Trading Alliance, and our members. We have expanded, creating ties with the Isle of Man, Scotland and the USA, and strengthened our links with Manchester, Cork, Kilkenny and Liverpool. We have grown our membership base and have some incredible sponsors. I’m also very pleased to see that our Construction Networking Lunches are now a sell out event every time – a long way from where we were 5 years ago! The biggest event of the year for us is of course the BITA Ball at the Savoy. Not only is this the biggest in terms of organisation, it’s the biggest for me in terms of meaning. I started volunteering for BITA as I wanted to share my knowledge and help businesses grow.

Being in a position where I can see how far our members have come and the impact they are having on their communities, is incredible. Being able to honour those achievements in front of 300 people whom I like and respect, people who are also leaders in their fields, is a humbling experience. Last year at the awards I was honoured to present the Lifetime Achievement Award to Danny Tim O’Sullivan, of the Danny Sullivan Group. The trials and successes that have studded his amazing journey through the world of business

COMMUNITY

have created a wonderful man with a very successful, socially conscious business. I won’t forget the joy I felt at presenting this, and the other awards on the night. Of course, it’s not all glitz and glamour, and last year as the culmination of months of work, we launched the BITA magazine. We have published three issues now, and covered diverse topics – women in construction, wetland habitats, and nano-tech. I hope that you, our members, enjoy reading it as much as we enjoy creating it. Ultimately BITA is a community, and one that I am very proud to be a part of. But it isn’t self-sustaining. We need our members to get involved, come to events, give us suggestions of what they would like to see, write articles for our magazine, and tell us about their successes. We are invested in you and celebrate with all your achievements. I’m looking forward to seeing many of you at the Savoy again this year, and wish you all the best for a happy, healthy and prosperous 2019! Diane Birch Executive Director

PRECISION

IN AN UNCERTAIN WORLD

DRS Bond Management is an acknowledged leader in surety broking, formed with the single-minded objective of delivering a state of the art approach to bond management and surety advisory services. Precision defines DRS, providing certainty to clients through an exacting, reliable and responsive focus. DRS is the trusted surety advisor to leading names in the construction and engineering sectors, as well as other companies in multiple sectors. 020 7471 8710 enquiries@drsbonds.co.uk @DRSBonds

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BUSINESS BUSINESS

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FROM DAIRY FARM

TO OIL RIGS

Ardilaun Energy founder John McKeon. Mining, diamonds, whiskey and oil tycoon John Teeling and his lieutenant David Horgan have also found him impressive. “This is a company that has given me everything I have in my life. I’ve been with them for 28 years, and it’s a company I love. It’s given me experiences and a life and career that I would not have otherwise had,” says Looney, adding that Dudley isn’t going anywhere just yet, and that Irishman the late Peter Sutherland, a former chairman of BP, was something of a role model. As we talk in Looney’s glass-fronted office in the BP HQ in London’s St James’s Square, the room is dominated by a huge panoramic photo of a BP oil rig, Thunder Horse that operates in the Gulf of Mexico dominates the room. The Irishman shows us a clear plastic cube in which is a small amount of black crude oil. “Thunder Horse is the size of three Croke Parks, sits in a mile of water, and the wells are three or four miles beneath that. It’s a floating rig, processing up to 250,000 barrels of oil and 200 million cubic feet of gas a day - a real feat of engineering,” he enthuses, as he shows us a video - in order to better illustrate the scale of the rig - that he took from a helicopter while visiting it last year. With an accent alternating between mid-Atlantic and Irish – perhaps due to the year he spent getting an MBA at

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oday, the 48 year-old UCD engineering graduate is based in London and spends about half his time travelling the globe for the world’s sixth largest energy company, BP. As CEO of its Upstream division, which finds and produces oil and gas, he’s in charge of 18,000 people – just under a fifth of the entire workforce. Operating in 29 countries, his division spends €7bn to €8bn a year to run it, investing €11bn to €12bn on top of that. Industry watchers have noted the Kerryman’s rise to the top ranks of the $240bn turnover firm, where he started out as a drilling engineer. The business pages of London’s Evening Standard has suggested he’s one of perhaps three contenders for the top job when the current CEO, Bob Dudley steps down. Oilmen in Ireland have also noted his progress. “He’s hugely knowledgeable and very engaging. I’ve met him several times,” said Providence Resources chief Tony O’Reilly junior. “He seems to be on the fast-track to the top,” notes

BP CEO, BERNARD Looney talks to us about his journey from Co Kerry to international oil prospecting

BP has the world’s largest non-military supercomputer, capable of carrying out 9,000 trillion calculations a second.

BP CEO Bernard Looney. 46

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Stanford University – he’s diplomatic and at times understated, at others matter-offactly holding forth to make his case. The week before our interview, Looney was at the UN General Assembly in New York, where he was meeting the President of Angola and its energy minister. He’s been spending a lot of time in Mauritania and Senegal over the last two years too – where Dublin woman Emma Delaney oversees its division. For most of September he was in the US, travelling between half a dozen cities. Places like Iraq, where BP pumps 1.4m barrels of oil a day in the huge Rumaila field, feature among his passport stamps too. Travel takes up about half his time. It’s quite a way from his Kerry roots, on a small dairy farm - “only about eight acres out of the 90 we had were actually arable. We had 14 cows and it was pretty much subsistence farming.” While his sister went into banking, his older brothers - a Guard, an electrician and a telecoms engineer - overhauled Ford tractors and sold them on to make a bit more money. Looney was “the gopher, bringing them whichever tool they needed,” when not helping out with farm duties. He was the only one in the family who went to university, having been encouraged to read everything he could by his mother. “She said if I could read, I could do anything.” Neither of his parents stayed in school beyond the age of 11. Does being Irish help in any way in his role? “Diplomacy does to some extent come with being Irish. There’s no bad baggage, which there can be if you come from other countries. Many of us perhaps have a certain humility, and if you want to develop a relationship, a little bit of humility can go a long way. But after that it’s about the individual.” He continues describing his role. “We’re drilling in Canada, starting projects in the North Sea, trying to get the Mauritania and Senegal project across the line. We’re bidding for new licences in Brazil. “We’ve got a project taking gas from the Caspian Sea, across Azerbaijan, Georgia and Turkey into Europe. It’s nine months early and about 20pc under

budget. It had 26,000 people working on it at its peak. We just finished a project in Oman, with 12,000 people working on it. It’s a 1bn cubic feet a day of gas, going to 1.5bn by 2020 or 2021. “We have to be ultra-competitive, because the cost structure of oil and gas is changing and due to competition from other energy sources. We have to drive down the break-even cost of our business to between $35 and $40 a barrel by 2021. Our response to an uncertain world is to be resilient. We’ve gone through a phase of adjusting and we’re now in a very strong position and in a major growth phase. “At the same time, we’re trying to figure out how to develop our people; how to have more women in the workplace and embrace investments in tech and renewables. Looney demonstrates some of the technology BP is deploying. On a large touchscreen on one of his office walls, live data from all the Upstream division’s activities is streamed in real time, giving a picture of the performance of drilling and production around the globe as well as the related financial numbers.

A video then plays, describing how, in the same way as jet engine maker Rolls-Royce monitors the performance of its engines in real time, BP models “digital twins” of all its oil and gas wells, combining historical and real time data. It can monitor, simulate and optimise production, testing variables in order to both find optimal solutions and deal with and anticipate unforeseen occurrences. sIt makes production more efficient and also allows oil to be produced using less water and

PIPELINES IN ALASKA ARE INSPECTED IN REAL TIME, WITH ROBOTIC CRAWLERS THAT CARRY OUT 1.2 MILLION X-RAYS A YEAR, GEOTAGGING THE EXACT LOCATION OF EACH PIECE OF DATA AND FEEDING IT BACK TO BP STAFF BY SATELLITE.

gas. Just as apps like Spotify or Shazam can distinguish between classical music and hard rock using an algorithm listening for specific sounds or acoustic signatures of specific songs or types of music, BP also lays miles of fibre-optic cable inside its wells, which act like a distributed array of microphones recording sounds deep underground. The microphones listen for sounds such as sand entering a well, or building up, or gas bubbles in oil. It can work out where it’s happening, and can take necessary action early on such as adjusting pressure, clearing out a well, or shutting off part of a well. At its disposal, the company also has the world’s largest non-military supercomputer, capable of carrying out 9,000 trillion calculations a second. Cognitive artificial intelligence and quantum computing are other key areas of interest. Looney - who doesn’t own a car, preferring to take taxis or public transport - adds: “We believe that there is probably more oil in the world than the world will need.”

www.bita.ie

John Reynolds

enquiries@DRSbonds.co.uk

BUSINESS

enquiries@DRSbonds.co.uk

KEEPING AHEAD OF

EMPLOYEE

EXPECTATIONS Susan Pearson consults Mary Portas’ new book to discover future ways of working

hanges in the attitudes of society inevitably impact the attitudes in the workplace. As a result, employers are forced to evolve and provide a more inclusive environment – one that is proven to be diverse. People expect more from their employer these days. As a result, we are slowly moving away from the hierarchical, task-focus methods of working towards a flatter, people-orientated style – an environment where employee input is encouraged. The blame culture where “heads will roll” is being replaced by one of learning and progression, developing both processes and people. Organisations that are behind the curve will need to catch up. Mary Portas discusses the developments in, and the need to go a lot further with, gender equality in her book Work Like a Woman. In the book, Mary attributes the traditional hardened ways of working to the alpha males who have been running the Boardrooms and making the decisions for so many years. While the collaborative, more emotional, intuitive ways that companies should be adopting, are stereotypically female traits. These traits are proving successful for the companies that have started to move towards the collaborative way of working. Although I may not agree that these traits are exclusive to either gender, I do agree with the sentiment of what Mary Portas is saying. Companies should be taking the best qualities of both “male” and “female” traits and we should all work

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together collaboratively, enabling us to adapt to any situation. The book explores deeper the different attitudes of management; looking at those of the traditional ‘Boys club’. Believing that for years women have had to put on a front and conform to the rules created by men in order to survive in the male-dominated workspace, thus forcing women to be more brutal than they would choose to be. Meanwhile, the women who have preferred not to conform have been

forced to settle for positions with less responsibility in the organisation and not progress, thus causing an imbalance. Reading the book forced me to reflect over my own career and whether I had created a persona in the workplace, playing the game, in order to progress my own career. Looking back, there were definitely times where I followed the “influential male leaders” in order to get noticed and get the promotion. In order to get “recognised” I would find myself in a drinking establishment most lunchtimes and evenings just to be accepted as one of the boys. While my female counterparts

who didn’t play the game were left behind, and overlooked when it came to career progression. With these memories, I have to agree with Mary that companies need to change their attitudes and become more inclusive. There is so much talent within the workforce that isn’t being tapped into just because the employers haven’t taken the time to get to know their employees better. The book provides a great example of how a team can progress further when they communicate with each other, rather than when there is a dominant alphamale in play. A team of men working on an oil rig were instructed to report any safety breaches made by their colleagues, the justification being that the company wanted to reduce costs. The process led to the men analysing the mistakes that were made rather than covering them up. As a result, they began to learn from the mistakes and so began to make less. With this culture of openness, the men also began to open up to each other about how they were feeling being away from their families, and the toll of the job on their state of mind. In time, the culture on the rigs changed – those that progressed in the organisation were no longer the ‘biggest, baddest roughnecks’ but instead ‘the men that cared about their fellow workers, were good listeners, and were willing to learn’. Thus, demonstrating that open communication can lead to a motivated workforce, which in turn leads to an increase in productivity. I recall a time when I was at university and representatives from some of the

In the words of Richard Branson:

Millenials are not motivated by power and money, as their predecessors might have been. Instead, they are looking for total reward across every aspect of their life. Whereas previous generations became accustomed to working long hours, sacrificing time with family in the hope that they would get that promotion, Millenials and Globals are asking why would you make such a sacrifice, if in the end – you are still not happy? Instead, they want a career that enhances their life, a more collaborative way of working. Workplaces are now adopting more flexible, creative ways of working. It is no longer about presenteeism; people don’t need to be sat at their desks from 9-5, Monday to Friday, to prove they are doing their job. Instead, the focus is about what the employees

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big banks came to give a presentation with the intention to entice us to join their company. Out of all the companies presenting, there was not a single female representing them – I asked the question of one company, as to why there were no females present – the answer was “women get pregnant”. Although I was shocked by the response at the time, it just put me off that one company rather than acknowledging the true scale of the problem. The rules for how we have traditionally worked were written by men, and favour men in the workplace. Mothers returning from maternity leave are still being disadvantaged, as companies are still wary of flexible working applications, and the associated costs. Shared Parental Leave was introduced to enable women

deliver. If you give your employees trust and flexibility, they will repay you with productivity and loyalty. We still have a long way to go to achieve gender equality and an allinclusive workplace. However, with the gig-economy way of working becoming more popular, and the prediction that there will be an estimated 2 million individuals self-employed in the UK by 2019, it is now more essential than ever that we throw out the traditional ways of working and work more collaboratively and flexibly – we have to adapt in order to progress.

Susan Pearson

enquiries@DRSbonds.co.uk

Clients do not come ﬁrst. Employees come ﬁrst. If you take care of your employees, they will take care of the clients. to return to work sooner, and for men to spend more time with their family. However, according to the Government in a report earlier this year, the uptake has only been around 2%. No matter how much we try and convince ourselves that we encourage gender equality in the workplace, in reality the pre-conceptions and stigmas still exist in the subconscious. These gender expectations are still being drummed into our children today. Society still tells girls that they must settle down and start a family. While boys are still told that they must take on the financial responsibility for the family. Failure to meet these expectations, leads to an increase in stress and a negative impact on the mental health and wellbeing of the individuals. We can’t expect gender equality in the workplace, until we change these stereotypes across all society. The shift towards a collaborative workplace has been given a helping hand by the Millenials joining the workforce.

Acknowledgement to “Work Like a Woman” by Mary Portas www.bita.ie

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NetWorks Issue 3

Articles inside

Gig Economy Side Effects

Degrees Mean Debt, Right?

Major VAT Changes

Growing Businesses

Looking Ahead

Work like a Woman

From Dairy Farm to Oil Rigs

Evolution of Care

The Invisible Frontier

Going Electric

Vertical Forests

Getting from A to B

Building the Shard

A New Autopia?

A Message from Shirley McCay