Great advice to businesses at Humber renewables conference

Very good advice from Sam Pick of the Renewables Network to companies looking to do business in the renewable energy sectors at the Renewing the Humber conference at the KC Stadium. Sam described doing business in renewables as like bricklaying. Companies should start small and build their business steadily, brick by brick. He also stressed how vital it is that businesses do their preparation and planning before leaping in. Companies should ask where is the contract they can win to get a foothold. Also, I couldn't agree more with Sam's call for the Humber to work together and stay together. Turf wars will only undermine our potential to become the UK's renewable energy capital.

Siemens and the offshore wind bonanza: How can the Humber keep the jobs and wealth

Politicians are not noted for understatement but, in the case of the huge wave of investment on its way to Hull and the Humber, local MPs have played the prospects down.

So says one of them, the West Hull and Hessle MP Alan Johnson, as he puts into perspective how significant the burgeoning renewables sector will be for a city that has lacked a core industry since its fishing fleet was decommissioned after the 1970s Cod Wars.

Hull’s elected representatives have been cautious in celebrating the decision by German giant Siemens to locate a factory manufacturing offshore wind turbines on Hull’s dockside. The caution is understandable. As Mr Johnson says, the city has seen many false economic dawns, but he is in no doubt that this is the real deal. “For once the politicians are underplaying this. It’s astounding what it will do for this area”, says the MP, who compares the impact as “like oil to Aberdeen”.

The Siemens facility will bring 700 new jobs. Many thousands more will come in the supply chain and from other green energy investments along the Humber estuary.

Why the Humber? The key is location. It is just 12 hours “steaming time” from three huge North Sea wind farms where 5,000 turbines will be erected in what has been described as the biggest civil engineering project in the world. It will be a game-changer for an area with high levels of unemployment and reeling from the likely loss of 850 skilled manufacturing jobs at BAE Systems in Brough.

But, while the Humber bids to become the UK’s renewable energy capital, there is a challenge to ensure the resulting jobs and wealth stay in the region. Offshore wind energy is in its infancy in the UK. On the continent there are established supply chains keen to profit as the industry develops in Britain, as companies heard at a conference, Offshore Wind: A Guide for Businesses, staged by industry body the Renewables Network and specialist PR and marketing company Footprint Renewables.

Some local businesses have already grabbed a slice of the action, notably MMS, based in Hull, which will build and operate a fleet of vessels to transfer technicians and equipment to the turbine fields. Others need to get up to speed - and fast.

Renewables Network Business Development Director Sam Pick says Siemens will be “the magnet that drags the rest of the industry on” and says local firms need to find their place in the supply chain. “Think about who you are going to send your invoice to - that’s where you target your products and services”, he urges.

Mr Pick says the big reward for the region is long-term careers, not just jobs. “People can get into these careers and grow with the industry”.

Another speaker, Eric Collis, of the Humberside Engineering Training Association (HETA), said a rapidly-evolving industry required a workforce who could learn and relearn skills. They’ll be well paid, though. He quoted £52,000 as the going rate salary for a technician working offshore.

He also predicted fierce competition for contracts. “It will be like the Klondike. Competition will come in like seagulls,” said Mr Collis. “You’re no longer competing with the guy around the corner. You’re competing with the rest of the world and they’re hungry for the work too”.

Capacity to grow and access to funding were vital, said John Britton of Hull-based consultancy BCG Bridgepoint. He said the UK offshore wind industry would be four times bigger in 2016 than in 2010. By 2030 it is predicted to be eight times larger than in 2016. Tracking that exponential growth would see a SME with turnover of £300,000 today become a £10m business, he explained.

Rob Bell, of skills and logistics consultancy Archomai, highlighted a key difference from the Aberdeen experience: “North Sea oil made money; North Sea wind costs money”. The industry’s subsidies meant pressure to reduce supply chain costs by 30 per cent to ease the taxpayer burden. “We’ve got to understand that this is not shopping at Harrods, it’s shopping at Lidl”, he cautioned. Suppliers would profit by driving down the industry’s costs, he said.

Logistics and supply chain expert Professor Chee Wong, from the University of Hull, said another challenge was compliance with a host of accreditations demanded by the likes of Siemens. The university is one of many organisations focused on developing a local skilled workforce equipped for the new opportunities.

Humber firms will also need to find and forge alliances or joint ventures, such as the British and Danish ownership of Alpha Energy, a company based in Hull supplying contract workers to the onshore and offshore wind industries. “You’ve got to put the air miles in”, says Director Bruce Marbrow.

And now is the time to act, says Mr Pick. He’s tired of hearing talk of “if” offshore wind will take off. “It’s not an if,” he says. “We need to be moving right now. This may be new here, but not in Denmark and Germany and companies here will be competing with existing suppliers there.”

• This article was first published in the Yorkshire Post

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