27 January 2012

Siemens and offshore wind: How Humber firms can benefit from the bonanza

By common agreement, the plan by Siemens to build turbines in Hull for the huge Round 3 wind farms in the North Sea represents the most significant inward investment the city has seen for decades.

The combined investment by Siemens and Associated British Ports in Green Port Hull at Alexandra Dock is in excess of £200m. Siemens will employ 700 directly at the turbine factory, but the real boost for the city and region will come from the thousands employed in the supply chain and other activities as Siemens becomes the catalyst for the Humber to emerge as a major hub for renewable energy industries.

But the key issue is how do businesses in Hull and the Humber claim a slice of the action and ensure a significant proportion of the jobs and economic benefits stay local. The big risk is that, if local firms don’t know how to become part of the supply chain, many of the jobs will go elsewhere - most likely to Europe where  to the German giant has an existing network of suppliers and contractors.

So what do companies in Hull, East Yorkshire or the wider region need to do to ensure this once-in-a-generation opportunity doesn’t pass them by?
Many of the answers will come from a special conference specifically focused on advising companies on how to win business as the offshore wind industry takes off. The conference - Offshore Wind: A Guide for Business - is being staged at the Country Park Inn, Hessle, on Thursday, 16th February, from 8.30am-2.30pm.

The line-up is impressive, including Nicola Yates, Chief Executive of Hull City Council, who will spell out the vision for the Green Port Hull development and the impact it is expected to have on the Humber region. Other speakers include Professor Chee Wong, an expert in logistics and supply chain management from the University of Hull, and Bruce Marbrow, of Alpha Energy, a joint venture based at The Deep in Hull formed to meet the growing demand for contract labour to work on both onshore and offshore turbines.
The conference has been organised by the Renewables Network, a major grouping of businesses operating in the renewable energy market,  and Footprint Renewables, a PR and marketing agency focused specifically on the industry.

I spoke to Sam Pick, of the Renewables Network, and Andrew Morton, of Footprint Renewables, and both were keen to stress that the conference would be specific in its focus  as expectations of the emergence of a major new industry for the region turn to reality.
So the content will address issues such as:

·         What Siemens and other major players want and expect from potential suppliers.

·         What exactly are the opportunities from the offshore wind industry, directly and indirectly.

·         Which accreditations are required from firms looking to tender for work.

·         The guarantees that the sector demands, in terms of quality, safety and delivery.

·         And where to find the vital information on available tenders and contract opportunities.

And Mr Pick emphasises that there will be key messages about the need for local companies to work in different ways to seize the opportunities. Competence and scaleability will be vital and that will often demand joint ventures, such as the British and Danish ownership of Alpha Energy, or looser collaborative partnerships. Those links could be formed as a result of networking at events such as this conference, which will bring together businesses focused on the offshore wind opportunity.
Mr Pick also stressed that it’s not just about building wind turbines - quoting the example of Humberside Airport which has the potential to become the UK’s no.1 heliport as a result of transporting workers to and from the huge North Sea turbine fields. He reels off a diverse range of other sectors which stand to benefit - such as legal, insurance, hotels and business consultancies - but stresses that firms engaged in all these activities will need to understand how to grasp the opportunity.

“Businesses need to prepare over the coming months and consider their offer and even possibly up their game, if they are to stand a chance of being an approved supplier - wherever this may be in the supply chain,” said Mr Pick.
It’s good advice - and it’s vital it’s heeded if the bonanza of jobs and contracts that will come from the Siemens investment is to be fully realised within the Humber region.

Full details of the conference and how to book delegate place are available via this link:
Offshore Wind: A Guide for Businesses


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