The domestic market for replacement casements is dwindling - but that's old news, what fabricators want to know now is: ‘Where do we go from here?'. Nick Dutton looks at the opportunities and differences in working in the public sector
There are many opportunities for glazing products outside of the domestic market. Do you want big, long-term contracts? Do you want guaranteed staged payments at a fixed price? Then the commercial sector could be the answer.
Public Sector Opportunities
At a time when retail and office build is slowing, the commercial sector may not be an obvious choice for a potential market, but there is one area where replacement, refurbishment and new build is growing: the public sector.
New funding and ongoing government initiatives like The Decent Homes Standard (public sector housing) and Ðǿմ«Ã½ Schools for the Future (education) offer a plethora of new business opportunities.
In July 2000, the Government announced a significant increase in resources for social housing. A ten-year target was set with the aim of bringing all social housing up to a Decent Standard by 2010.
Unfortunately this work is behind plan, with the education sector equally slow on new funding uptake.
Progress on new build projects for schools is behind schedule. Repairs to existing buildings are even more behind, with an estimated £8 billion backlog of work. As the aim is to rebuild or renew every secondary school in England over the next 10 years, pressure is now on to catch up and meet targets; which means a variety of contracts for outsource companies and sub-contractors.
In fact the leading Wave 2 projects are due to begin procurement early this summer and work on the first Wave 2 schools is due to begin in the second half of 2007.
Learning a new language
For any fabricator used to domestic installations and private sector culture, breaking into a new market may be daunting. For those who know nothing of the dark arts practiced in the public sector, the attitude may be ‘business as usual'. But beware, although public sector opportunities abound, you'll be treading on foreign soil.
Everything about the public sector is different. Public sector priorities, obligations, restrictions and structures are particular to government organisations.
New funding and ongoing government initiatives like The Decent Homes Standard and Ðǿմ«Ã½ Schools for the Future offer a plethora of new business opportunities
Local authorities and schools have targets, initiatives and funding compliance to consider when employing contractors. They also have a range of important stakeholders to satisfy.
This culture may be foreign to most fabricators and just like being in a foreign country you have to learn the language. The ‘language' literally is different. It is full of public sector-speak, littered with jargon and acronyms. For instance, how would you make the most of PPP, PFI and ALMOs? But more than learning the lingo, you will need to understand the underlying culture.
Culture Shock
Having the same strategies and expectations as those employed in the private sector just won't work. This market won't bend, it has inflexible structures and constrictions. Shouting loud in an unknown language won't get you heard; speaking their language just might. Moving into this market means changing your modus operandi.
Speaking the public sector language means understanding the tender process, the criteria for Best Value and the requirements of Eco Homes. Recognising the jargon is one step, understanding the implications for your business is the next.
Some of the systems are very formal, for instance, partnering and partnerships may be a loose term used in the private sector for supply chain management, but in the public sector partnerships are contractual arrangements. On the plus side, most partnerships are long-term; at least five years. On the minus side, because of this, some organisations dislike them.
It is essential to find out what is important when looking at a new culture. Anyone who does business in Japan knows that appropriate manners and the correct introductions according to rank are fundamental to progressing a deal. In Public Sector culture it's important to understand hierarchy and relationships too. You may find your work involves many different relationships, especially when dealing with more than one department or organisation.
You are also likely to be part of a long supply and buying chain, with contractors, sub-contractors and outsource companies all involved in a project. Working out who these people are and where they fit may take time, but finding out what they need, require and expect is part of an important learning curve.
Although the language of sustainability and private finance initiatives may baffle you now, it's worth learning if you're attracted to long-term contracts, certainty of payment, agreed margins at the start of a project and close working relationships. Language is a reflection of being in a different country and the public sector is another country. Remember that and you may find yourself there for much longer than a short break.
Source
Glass Age
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