Government Construction Strategy - My Response

The Cabinet Office issued its Construction Strategy yesterday and I have spent the past 24 hours looking through it trying to understand what it means for the industry.

My overriding thoughts are that this is a really welcome strategy, which is long overdue. This government has clearly given consideration as to how it should spend its capital wisely and has pulled together a report which has included collaboration across a number of high level offices within Whitehall, the efficiency and reform group of the Cabinet Office construction sector unit of BIS, as well as Infrastructure UK.

In the past we have suffered from reports which have set out a vision rather than a strategy and plan. This document is different and has some clear, measurable objectives which enable us to move forward as an industry.

Clearly the issuing of the document is only step one and the critical issue now is whether it is adopted by all government departments and becomes central to what the government does.

The focus of the document seems to be very much on internal government procedures and how the government will procure and manage work, and less so on how the construction industry should respond. I believe it is here that the construction industry comes in, and should be capitalising on statements the government has made about benchmarking energy performance and cost, as well as the delivery of all buildings using BIM (Building Information Modelling).

Essentially, the government is setting out its expectations as a client challenging the construction industry, in the same manner as a potential preferred bidder must do, to set out its best response solution.

Traditionally the industry has been very conservative and has not progressed at a pace. Without a doubt, the expectations from government will be high and their benchmarks will be challenging. The industry therefore will have to invest in research, development and innovation. To achieve the levels of capital and revenue cost expected, the industry will have to think completely differently. I anticipate that a kick back from these proposals and only those who are willing to open their mind and think differently will flourish.

Throughout the document there are some very interesting facts and the one that struck me was that there are 300,000 businesses within the construction industry, of which 99.7% are SMEs with over 2 million workers, so clearly the fragmented nature of the industry will cause a problem in generating a holistic response.

The government is intending to establish a board which will be the centre point of this strategy and will communicate with all government departments. This is a much needed initiative in an industry that is so fragmented and does not yet speak with a single voice, so hopefully this will give clarity and direction to the industry.

It is interesting to see that the government has used the terms ‘standardised’ and ‘mass customised product’ in the report. Many organisations and individuals in the industry have fought against such an approach but the government’s advocacy of it is a clear indication of their intention to encourage the construction industry to move forward in this vein.

Another interesting addition is the fact that there is now a linkage between those who design and construct a facility and those who subsequently occupy and manage. Usually this linkage has not existed in any particular way and hopefully with the adoption of BIM the benefits will easily be demonstrated in the savings to revenue.

Across the action plan there are some very straightforward, yet important aspects which will make a considerable difference to the efficiency of the industry. There is a proposal to look at standardised Pre-Qualification Questionnaires (PQQs), such as PAS 91, as well as the potential of standardised procurement and contracts, something not currently prevalent within the industry.

Whilst BSF has been much maligned for its expensive approach, some of the information gained from the initiative was positive and has helped to inform policy. Clearly the idea of another forward plan of capital expenditure is a positive one, and it will allow organisations to invest long term and demonstrate value to client departments.

There also seems to be a willingness to ensure that the correct skills of procurement and management of projects are in place across the public sector, and as long as the individuals with these skills are sourced properly, their presence will ensure continuous learning and realistic expectations.

The idea of having structured cost targets and value criteria is also to be applauded. By collecting data and benchmarking, league tables can be identified and this in turn will help to develop the industry positively. The Movement for Innovation Programme was a good method of demonstrating the best in industry and provided some excellent benchmark data.

As an early adopter of BIM, _space group is pleased to see it mentioned within the strategy. The government clearly recognises the benefit that it will now receive as a client and will legitimise the approach across the construction industry. It is also interesting to see that integrated project insurance has also been considered and will be researched in greater detail in the future.

Overall I think this document clearly sets out what the government will be expecting from the construction industry over the next four years and will encourage a refreshing approach within the industry.

As the government is the single biggest client to the construction industry, spending around £41billion per annum, the industry has no excuse not to respond and achieve the benchmark targets which the government has set out in this report.

I am encouraged to see the report and it gives me hope for a better industry. However I am very realistic about the reticence that there will be across many organisations to adopt some of the proposals made in the report, and that this continues to be a tough time for the construction industry, one that will see many businesses stand or fall based on their decisions over the coming months and years.

What future for our industry?

What does the future hold for our industry?

On the front page of the Financial Times yesterday was an article about the incredible decline in construction output during 2011. Overall construction workload fell by a staggering 39%. This is the most significant fall for the past 35 years. There were turnover statistics from several of the major construction companies, including Kier and Balfour Beatty, which indicated the considerable reduction in their construction turnover in the period.

The quarterly GEP figures issued for Quarter 1 suggested that construction output was down by nearly 5% in the period. There are no regionally adjusted figures so I would anticipate that the decline in the regions is far greater as the overall figure will be bettered by investment in the South East.

This catastrophic level of change in any industry will inevitably reshape the future considerably. For the construction industry, clearly we will never go back to the past and the type of industry it was over the past 15 years will not be seen again. We are in a period of flux at present where there is little workload or revenue, but at the same time there are improvements in technology which could reshape how we design, deliver and operate buildings for the future.

All businesses are keen to set out a vision of sustainability which looks to provide steady employment and profit for those involved in the businesses, something which is clearly under considerable threat in the construction industry at present.

As I look into the future I believe it is impossible to predict where we will be in 2 or 3 years time. Long term investments are a considerable gamble with the future being so unpredictable. Many firms are shrinking their regional presences and looking to develop opportunities in the South, which will obviously drain talent from the regions. Organisations are consolidating and changing on a regular basis. International markets continue to be the lifeline of most organisations that are able to stay afloat.

This generation has never seen such a dramatic downturn, and construction leaders are drawing on much of their experience to maintain business sustainability. While it may be difficult to predict where any of us will be beyond the next 12 months, all we can hope is that when we do see a light at the end of the tunnel, the future will be different, but secure, as well as exciting and challenging. Hopefully we can all learn lessons from this period and ultimately ensure we all have a better future.

The big housing question

I have been inspired to write this blog entry following a recent episode of Panorama. The programme was all about the need for affordable housing across the UK. There was a shocking contrast of housing in London which was fraudulently being let by landlords at extortionate rates and a family of 9 in Sheffield living in a 3 bedroom house.

There are around 5 million people on the housing waiting list in the UK and it was clear that the majority of people on this waiting list have no chance of being housed. During the show, Portsmouth Council went through their own list contacting most of the people on it, informing them that there was no chance of them ever being housed by the Authority. This meant that they cut their list considerably.

The big question however, is what happens to the people who will never be housed?

We have been developing Spacehus as a potential product for this market and we have managed to get a 3 bedroom house at an all in cost of around £84k on a small development. The running costs of this house would be around £10 per week which also would go some way to address fuel poverty.

A concept image of the £84k Spacehus that could help solve the affordable housing issue

The challenge is however, encouraging RSLs to develop. I have spent the last few months talking to many RSLs, and there is not ability or desire to develop new homes. This therefore means that the market is stagnant, so as no improvement is being made in relation to the waiting list, we face the problem of it getting longer.

It seems the reasons the RSLs are reluctant to develop is that they have been familiar with the grant process and the Government is now encouraging to change models and progress with an affordable rent model, which seems to increase their risk considerably in the longer term. All the details are not clear at present and I hope that I can dig deeper to understand what the problem is and to try and find a way around the challenges and encourage take up.

It does seem however, that there is a standoff between the Government and Social Landlords, meaning that we have a growing housing crisis in the UK.

Land values continue to be unrealistic and planning continues to be challenging. Both of these are preventing private sector involvement, putting the market in stalemate.

I still remain convinced, with my entrepreneurial hat on, that there is a need for housing which is affordable to buy or rent and run. At _space group we will continue to invest in finding a solution to this problem, until we find a way of getting affordable sustainable homes delivered.

For a number of years, we at _space group we have been driven by the purpose of making life better. After watching Panorama, I am sure that if we manage to crack this problem we will definitely make life better for the family in Sheffield who are currently sleeping on the settee.

What a Difference a Year Makes...

Michael Gove was the keynote speaker at The Spectator's "The Schools Revolution One Year On" conference

I recently attended the Spectator Conference in London entitled ‘The Schools Revolution one year on’.

This event was held last year in advance of the General Election, and what was interesting this year was the number of teachers and educationalists at the conference and the lack of architects and construction people, despite the fact that The Spectator is a big advocate of Free Schools and Toby Young is on their payroll…

From the line up at this event, with Michael Gove delivering the keynote address, David Laws bringing the Lib Dems’ point of view to the table and Lord Adonis and Tim Byles attending, it was clear that it was supported by like-minded people who are in general in support of the Free Schools movement.

Michael Gove came across well, and I was surprised that he does have a sense of humour. He focused on three key areas as priorities, these being accountability, independence and teaching. He talked very little about new buildings or IT. It seems he is wedded to the private school model and is hoping to encourage schools to take this approach across the curriculum with the introduction of an English baccalaureate.

It felt like a very one-sided conference, supporting academies and free schools. Many of the arguments were valid, and I was encouraged by the focus on improving teaching and a zero tolerance policy of poorly performing teachers, however I still maintain the big difference between state schools and private schools is the commitment of the parents and not the ability of the children.

It is clear that the Government’s focus is no longer on buildings and the statement from Tim Byles was that buildings had to no longer be inspirational, but fit for purpose. This does seem to be setting the bar fairly low and I think that it is a missed opportunity.

What we have to do in our industry is to deliver inspirational learning spaces within the parameters which we have been set, and which this conference reinforces. Only time will tell if the new approach is a success, but so much has changed in the past year, and I am intrigued to see where the schools agenda will be this time next year.

Holiday Reading - T Dan Smith

T Dan Smith - One of Newcastle's great influences. Image from www.quazen.com

On my recent holiday, I read, as usual, a broad mix of biographies all generally aligned to the built environment or business in one way or another.

One of the most interesting books I read was the story of T Dan Smith, the infamous leader of Newcastle City Council through the 50s and 60s. T Dan Smith won infamy through his connection with the architect John Poulson, who was imprisoned because of his dealings with various public authorities – a fate that Smith shared because of his dealings with Poulson.

While I was aware of his story, I didn’t know the detail, which this book provides, and very much puts the facts onto the rumour, starting with his humble beginnings through to the end of his life in a flat in Shieldfield, Newcastle.

There is no doubt that T Dan Smith was a fantastic visionary and I do believe Newcastle continues to benefit from much of this vision. He was responsible for the design of the Civic Centre, the implementation of the strategy for the metro system, the central motorway and many more major projects across the city. This investment 50 years ago ensures that Newcastle continues to be a major city in the UK today.

This single minded vision is similar to that which Sir Howard Bernstein has delivered at Manchester. He was also an entrepreneur and built a successful business but unfortunately his linkages with Poulson would tarnish his fantastic vision for the city. The book suggests that actually he was innocent and in the end decided to give in to the media and courts and plead guilty.

I have always been a fan of T Dan Smith and his vision for the Newcastle, and whilst I believe he has left a fantastic architectural legacy, I feel that his greatest legacy is the fear within Local Government to take chances in case there are recriminations like the ones he faced. Unfortunately today’s Local Authorities do not have the kind of vision which T Dan Smith had and generally deliver a middle of the road solution to most things.

Many of the disasters in Newcastle’s city centre, such as several of the tower blocks, were not in fact T Dan’s vision but unfortunately he has been tarred with the brush of these over the years. Whilst I believe that he has left a legacy in the built form for the city unfortunately his lasting legacy is the lack of risk and vision in northern Local Authorities.

Wanted - 100,000 School Places

Students will have to work harder in overcrowded classrooms if changes aren't made - image from _space group.

Recent research has revealed that England is facing an acute shortage in the number of school places, with more than 1 in 10 pupils in the country in schools suffering from overcrowding.

The suggestion is that the government will need to build a total of more than 100,000 places at primary and secondary schools, at a cost of up to £2bn. 50,000 of these places are required just to alleviate overcrowding, while the other 50,000 are places that local government officials have estimated will be needed to prevent the spread of overcrowding.

This overcrowding is driven by attempts by Local Authorities to cope with the lack of good schools in their boundaries. Popular schools are being allowed to grow beyond their buildings’ limits, so that as many families as possible get a place at their first choice institution. This means that already full schools will be unable to expand to meet demand as pupil places continue to rise, and larger shares of children will need to take up places at less successful schools.

Not only could a lack of classrooms force schools to increase class sizes, it also threatens to undermine the government’s plans to boost competition in education, which appears to depend on spare capacity for children to move between schools.

Currently, more than ¾ million children, 12% of the total in Local Authority schools, are in buildings that are more than 4% over the capacity for which they were designed. Among these children, more than 250,000 are in schools that are 10% over the limits of their facilities, while over 60,000 are in schools that have 20% more students than their buildings are intended for.

Considering that the amount of four year olds is set to rise by 8% over the next two years, this issue will only get worse, and in order to prevent overcrowding, Local Authorities will need to find another 25,000 new primary school places, with similar numbers for secondary schools required by 2014/15.

These growth numbers will be problem for a new education secretary who is planning wide-ranging reforms. His reforms are intended to increase the competition among schools. However this relies on a margin of spare capacity and new link choices to be made.

Apparently the school places crunch is not evenly distributed with London suffering particularly badly. The previous government had identified indentified investment for Local Authorities facing the shortage of primary school places and Building Schools for the Future was intended to be the long term answer to this issue.

Obviously, there was a bit of political too-ing and fro-ing on this issue, however there can be no doubt that the overcrowding is increasing and that this is likely to be a political timebomb. Clearly, there needs to be a stand back in relation to education building provision and how this aligns with ambitions, policy and performance of schools.

Rob

Thinking differently about housing

I have been disturbed by the number of people, particularly young people, who are unable to find a home of their own. To me, having a place of your own is one of the most important aspects of life, but finding an affordable home in the current market is very tough as land values still remain excessive and construction is expensive and wasteful, which sends the price of a new home soaring.

For the past two years, _space group has been working hard to develop a truly affordable home. We have been working with several organisations from around the world to piece together what we feel may help. This has resulted in the creation of our own affordable home – _spacehus.

Our _spacehus brings together Swedish timber technology, an Italian heating system and Japanese photovoltaics to create structures we believe can be both affordable and low energy. However, there is clearly a sustainability problem here in that, in order to reach our goals, we have scoured the globe for innovation and quality of product! Why? Because the levels of innovation and quality abroad are simply not found in the UK at present.

One of the things we hope _spacehus will do is help to encourage our manufacturers to embrace the opportunities to develop leading edge technology for low energy living. Not only that, but we hope that our timber structures will change the stigma the British attach to pre-fabs and timber framed housing brought on by the cheap construction methods used in the 1960s and 70s. In Northern Europe, thousands of homes are built with a timber base, and as we’re able to use some of the lessons local manufacturers and designers have learnt, we can ensure that our building is made of the highest quality materials, producing an airtight structure.

Although current Government cutbacks, which have affected the HCA to the tune of £230m, make the ways in which homes can be delivered uncertain, there continues to be a housing need and we are confident that a way to deliver affordable homes for those who need them will be found.

_space group has recently submitted Planning Approval for a prototype home on our site in Newcastle. We will be testing the performance criteria of all of the _spacehus systems, as well as using it to demonstrate the power of this idea. We plan to be delivering our first commercial homes at the beginning of 2011.

Watch this _space for more news on this exciting development!

iPad - My Verdict

Steve Jobs unveils his new iPad - but will it be a PC killer?

Image from www.inc.com/hardware/articles/201004/ipad.html

It’s nearly two weeks now since I walked out of the Apple Store with my new iPad, and when it comes to Apple’s latest baby, I find that most people fall into two categories:

1. Those who are Apple geeks, and therefore, love the iPad.

2. Those who think the iPad is a waste of money.

I have carried out a very scientific research project to understand where the truth lies. As _space have a reputation of ‘thinking differently’ and wanting to set the pace, I wanted to get my hands on an iPad to see what all the fuss was all about and to see whether it held any opportunities for our business.

I have been an iPhone user for some time and have become dependant upon several apps such as the grail and the digital clock.

Many people do say that the iPad is just a big iPhone. They are totally correct, however, I think this is the whole point of the device. With the iPhone, I found myself watching presentations or movies on the screen the size of a cigarette packet. Transporting this experience to the iPad is wonderful and makes surfing and watching video so much easier. I now take my iPad everywhere and find it convenient to quickly get access to websites and other information.

The iBook Store is really good and I have already finished my first book on it. I can see huge benefits, particularly on holiday where you end up using half your baggage allowance because of all of the books you have to trail with you. I have also subscribed to the new Times app as well as FT online. Both of these are fantastic and easy to operate. In due course, all magazines will go this way, creating a completely new industry.

I have been trying to get rid of my laptop, however as yet there are things which the iPad cannot do, so at the moment I am carrying two devices, which defeats the purpose of the iPad. Only time will tell if Apple’s newest creation can replace the PC, but at the moment I don’t think it is able to.

Many of the things it does do, such as being a book reader or a film viewer, laptops do not do as well, or with as much flair.

I think the iPad will only get better as more apps are developed and more publications are available.

Rob

The Ultimate Multi-Tasking

Running Man (life123.com)

For this blog entry I am trying out the ultimate in multi-tasking. I am finding that I have less and less time for exercise as I travel around the regions of the UK. I spend the week eating sandwiches and the weekends partaking in too much alcohol and nice meals. All of this is helping me to grow to be twice the man I have ever been before.

It is difficult to survive on salads day in and day out and it is not a delicacy which cross-country trains are renowned for. I am therefore rekindling my efforts in the gym.

My Christmas present last year was a running machine, bike and rowing machine which have had very little impact on my well-being.

It has become apparent, however, that owning these devices is not sufficient to aid your health. After several false starts I am really going to make the effort to use them at least for one week!

I do find the gym incredible boring so I am seeing if it is possible to multi-task. I am currently dictating this as I walk at 3.5 miles per hour on programme 1.

I have not fallen off the treadmill as yet and I will keep you updated as the weight falls off over the weeks ahead.

Living in a recession

Illustration by Claudia McGehee.

We are all in a very strange situation at present. We currently sit in the middle of a recession where all around us budgets are being cut funding is disappearing and businesses are contracting. On top of this we have the added unknown of a potential new Government and changes in policy.

For business all of this presents a new set of challenges. We have to try and second guess what a new Government may do and how we can plan a strategy around this. Many of the plans we are making are based upon how we operate today. However in less than a year the Government could very quickly implement new policies which would affect everything we do. You only have to look at the change of policy by the Learning and Skills Council to see the massive impact that this had on the construction industry in such a short space of time.

A counter to this uncertainty is the amount of opportunity which appears during such times. Companies looking at joint ventures or working together are on the increase. Markets which were previously saturated now provide opportunity. Even recruitment is providing opportunity. Over the last 10 years one of the greatest challenges to our business has been in recruitment for our needs. Now we find incredibly talented people working in warehouses or maintaining gardens.

Recession is just another business challenge where risk and opportunity have to be balanced for long term sustainability.

Photos from the TES Classroom of the Future...

For more images taken at the event, visit the _space life Facebook page by clicking HERE.

Sir Bobby

Sir Bobby Robson / The FA

Monday saw the memorial service for Sir Bobby Robson at Durham Cathedral. The attendance and warmth shown by everyone at both the Cathedral and St James Park was an unbelievable testament to what people thought about this man.

He has always been someone who I have admired and who has provided me with some of my best memories in football. Italia 90 was possibly the highlight for me however he also managed to get Newcastle United on track.

I have never heard anyone say anything bad about Sir Bobby. I did not know him personally, but saw him at several events over the years and he was always very humble and friendly.

How he spent the last few years of his life was an inspiration – raising thousands of pounds for good causes for the North East.

Sir Bobby died without anyone having a bad word to say about him and most successful man I have ever seen.

One of his childhood friends spoke at the service and said he had never changed despite his international success.

He may not have had the big house or the yacht, yet so many people felt so much for him and he left such a legacy it is a great lesson for all of us. It gives us all something to strive for while on this planet.

I think we need to campaign for a statue in the centre of Newcastle to act as inspiration for us all at so many levels not just football.

A Spot of Holiday Reading

After my adventures in Florida at the beginning of the summer, I quickly found myself in need of another holiday.

We have just returned from a trip to Madeira - a beautiful island and the home of Ronaldo!

As ever, my holidays give me the opportunity to catch up on my reading. My taste in reading materials are a little ‘anorak-ish’ but I thought I would try my hand at reviewing some of the books I read whilst I was away, as I don’t have much more to report on because I didn’t get much further than the swimming pool!

Leading from the Front: My Story. Gerald Ronson

The first book I read was the story of Gerald Ronson who heads up the Ronson Group, which was a very successful business in the 70s and 80s. It ran petrol stations whilst more recently the group has become an international property developer.

Gerald Ronson is now aged 74 and is still working a 6-day week! His story is fascinating and takes you through how he grew a business, lost it all, and then grew it back again. He was infamously involved in the Guinness shares trial and ultimately ended up spending time in prison. He gives an interesting account of his life, how he shaped his future and what is important to him.

His family and community are a large part of his life and he has spent much of his time supporting Jewish charities over his 60 years in business. He is so matter of fact about the people he has met, from royalty to celebrities, many of whom became his friends. His company crashed in the last recession and after some poor investments in America, he was forced to sell large parts of his equity.

He continues to run the business on a day-to-day basis and is now the grandfather of property development in the UK - seen it all and done it all.

This was a fantastic read especially with the focus on development and the economy. Clearly, Gerald Ronson puts his family and his community at the top of his priority list and he clearly demonstrates how you can have success yet still share with others.

Common Sense Rules. Deborah Meaden

Out of the current five dragons on Dragons Den, four of them have written autobiographies. I have now read all four after reading the recently published, book by Deborah Meaden.
This is a fairly light business book giving common sense examples of how to run a business, as well as examples of how Deborah Meaden grew her organisation and ultimately sold it to venture capitalists.

Much of the information is common sense but still useful by giving a brief insight to the author who is clearly an effective and focussed business manager. This is a quick read targeted at those who watch Dragons Den.

Investing in Standards During a Recession

Going back to the 80s I was one of the greatest critics of the BS5750 and the Quality Assurance process. I remember wading through huge documents and ticking thousands of boxes just to be able to demonstrate we had carried out everything in accordance with our procedure. The reason for my criticism was that I was not convinced that this delivered any real value to the business.

However, over a number of years the standards have been reviewed and have been changed to ISO 9001 which used the Demming plan, do, check, act model.

We spent a lot of time as a business reviewing ISO 9001 and decided to develop our own continuous improvement wheel based on plan, do, check, act. We used the 9001 standard as a base however. I remember in the past when we had a QA audit there was two weeks of frantic activity before the Auditor arrived to make sure that every box was ticked and every piece of paper was in the right place. Now we look forward to the auditor arriving and make no special arrangements for these particular days. We use the audit as opportunity for continuous improvement.

We have named out internal management system _scils (_space Continuous Improvement and Learning System) and have been able to integrate other standards within it without major change.

We have recently been accredited with ISO 14001 in relation to environmental standards. Far from believing that quality standards are a hindrance I have now moved my thinking to believe that such standards are imperative in time of recession. Particularly with ISO 14001 it has structured our thinking in relation to waste and risk. We now look at every aspect of the business and consider where waste is being produced and how we can minimise it. By measuring what we use in the first place we can monitor resource movements and percentages against others.

We are now aiming to include the ISO 18001 standard within our _scils model to ensure that our Health and Safety achieves the highest standards.

During a recession when process, waste and risk are very important I would recommend any business to invest in these standards to ensure that the organisation is run as efficiently and effectively as possible as I believe they add real value.

The Big Four O

Life begins at 40... / photo

I reached a major milestone at the weekend. On the 11th July I hit the grand old age of 40. Some say life begins at 40 and I look forward to what that may bring. I have to be honest usually birthdays have little impact upon me however, I got to thinking that if 80 is a good innings, by the time you get to 40 you are half way there meaning that its all down hill from here!

My 30ies were an exciting time for me and this period generally coincided with the last 10 years of growth. Whilst growth was very exciting it provided its own challenges and headaches.

It is likely that my 40ies will have a different set of challenges as we steer the business through a difficult period.

For the man who has everything birthday presents were always going to be a challenge. The best present was the party which I had last Saturday night. These are rare occasions where all of your friends are gathered together in one place at the same time. Obviously one is your wedding providing you only have one and the other is likely to be your funeral which you won’t be at.

The one thing that struck me on the evening was that friendships are recession proof and in my case I have been fortunate enough to have a solid bunch of friends through the ups and downs over the years.

Batten Down the Hatches

Wikipedia

Over recent months one of the terms which I keep hearing in our industry and in particular from architects is that they plan to ‘batten down the hatches’ and ‘ride out the storm’. I think in the past this has been the way many architectural businesses have responded to recessions and generally the profession is badly hit by such down turns. Much of this is caused by the fact architects depend upon capital spending and in recessions this is one of the first things to be cut.

Over the past decade our industry has made huge strides forwards in relation to its approach and technology. There is no doubt that there is still further to go but my worry is that much of the hard work we have done in relation to partnering or integrated working will be stopped and potentially be forgotten.

As an industry we need to continue to invest in training and development.. With Building Information Modelling and integrated project delivery we are on the cusp of a revolution. Unfortunately many companies are battening down the hatches and cannot afford to invest.

I also worry that by battening down the hatches the storm will happen around us and when many companies open the hatches there will be no industry left.

At _space we made the decision to think very carefully about how we move forward but do not intend to batten down the hatches or bury our heads in the sand. We will continue to invest in our people and technology and think differently about our industry.

Hopefully this will stand us in good stead for the future and in fact help us weather the storm.

We are always looking at how we can diversify our offer to enable us to sustain our business for the long term.

An Old New Town

Milton Keynes/Wikipedia

I spent sometime in Milton Keynes last week, this was the first time I had had the privilege of visiting this much talked about town.

My first challenge was getting there, as a regular train traveller cutting across country was going to be problematic. The answer was to head into London and back out to Milton Keynes. I was on a secret mission and the first thing that struck me on that particular day was the incredible heat with temperatures reaching 32 degrees.

At _space we talk much about sustainable communities and I am always looking for the collective elements that can make this happen. Clearly, at some point, Milton Keynes was thought to be state of the art. Many years later the masterplan has been developed and the new community created.

What I am not sure about is, if this is an integrated or sustainable community. It has all of the pieces but many of the elements operate in isolation. It has to be economically sustainable in that it is operated for several years and continues to grow. However the roundabouts and road system gave little priority for pedestrians with huge industrial zones being surrounded by forests of trees.

The housing seemed to be remote lacking the usual mix of a buildings and styles developed over many years.

Much of the architecture was of a similar 60ies and 70ies style again with little response to human scale.

It would seem from the outside that commercially Milton Keynes has been successful, possibly due to its good links to London by both road and rail. I would challenge however, whether this is the best place to live if there is the rich mix of uses, ages and architecture which can create a place.

I came away from Milton Keynes believing that it was difficult to force a community to happen on a rigid plan such as this. Communities need to evolve over time and respond to the times in which they develop.

Places also need to be particular to their geography and I did feel that whilst I thought I had not been to Milton Keynes before I had visited the same place in Telford and Washington.

North-South Divide

North-South Divide map/Wikipedia

The recession is starting to have quite a cultural impact on the architectural profession. My view has always been that in architecture there has been a London market and a regional market. Much of what has been delivered in the capital has been commercial responding to the asset boom driven by the banks. This has included offices, hotels and high end housing.

The majority of the construction industry is now driven by Government spending and investment in education and healthcare. This has encouraged many of the businesses in London to look further afield for opportunities.

The concentration of skills in London will help to increase the quality of public buildings being procured across England.

With regards to the upgrading of the of the schools estate, Partnerships for Schools are now very reliant on CABE as the custodian of design quality. Over the last few years the BSF process has been driven by delivery and the procurement itself. CABE’s involvement will undoubtedly raise standards and encourage bid teams to respond to the need for design quality.

This shift will give the opportunity to promote the benefit of the investment in design as part of the huge capital investment being made by the Government. As a northern business we must ensure we are part of the dialogue with bodies such as CABE and the RIBA which are traditionally based in the south.

America, Economics, Apple and the genius of Walt Disney

I haven’t completed my blog for two weeks now, and with good reason. I have been on holiday in Florida spending time at the beach reading books along with Mickey Mouse and friends.

The pattern for my holidays is that I return with lots of new thoughts from the books I have read and what I have seen. This holiday is no exception.

Economics

I have taken an interest in economics after the events of the last few years. The books I have read have been fascinating and enlightening. I am now sure things will never be the same again, and we need to ensure we don’t make the mistakes of the past.

Over the last 10 years we have had unprecedented growth and many of the risks taken by banks have been too high, with no consideration of ‘what if’. The rewards were huge for the banks in the short term however; it is now clear that they didn’t understand the complexity of what they were doing. The fallout is huge and the construction industry is affected more than most.

Disney

You would think that it would be difficult to find much to comment on from a business perspective in a theme park. Nothing could be further from the truth. At Disneyland there are many lessons for all businesses.

Disney is by far the best in class. The service is as high as I have ever experienced and I would guess their customer satisfaction is the highest in the world. They employ 55,000 people in Orlando with the vast majority upholding the Disney values. Maintenance of the facility is of the highest standard despite being operational every day and having thousands of visitors. They also continue to surprise, and since my last visit several years ago there are new attractions with relevance to current culture.

Disney World is the size of a city yet it runs efficiently and effectively. It also generates revenue of over $6 billion per year.

USA 2009

I have also taken onboard many aspects of the American culture while I have been away and will be sharing my thoughts over the next few days on the various aspects which I found interesting.

America on the Environment

America has woken up to the environment however I would say they are between 5 and 10 years behind Europe. They are starting with recycling but have not moved to energy conservation and in particularly Florida there is a huge amount of air conditioning. Car sizes have reduced with fewer SUV’s and 4 wheel drive vehicles on the road.

We stayed in a hotel on the Gulf Coast which claimed to be the first NEEAT hotel in America. All I could see was recycling bins and cartons made from recycled material. However this is a positive start and importantly this is now of interest to the American people.

America and its Car Industry

The American car industry is in a huge mess. General Motors filing for bankruptcy is unbelievable. It would appear that it has made some dreadful decisions over the past 20 years and the issues it faces now are not new. It did not continue to innovate and has been content to continue to manufacture average products. It even invested in Hummer when everyone else was investing in R&D of the electric vehicle.

Toyota has continued to develop its product and now produces the most popular cars in America.

The Global Recession is linked to the downfall of the motor industry in the US. In Detroit there has been a huge drop in manufacturing jobs leaving people with lower incomes or unemployed. These are the communities which have been encouraged to take up sub prime mortgages.

America and Apple

We visited several malls on the trip and by far the busiest and liveliest was the Apple Store.

There were people using the many apple devices from music to computers to phones. Microsoft may have lost its way in innovation and understanding what society wants and needs. Steve Jobs and Apple have great intuition when understanding contemporary cultures.

The Apple revolution is building in the UK and I am sure it will become central to youth culture within the next few years.

America and Steve Jobs

Whilst Disney has managed to remain a leader when it comes to theme parks through its imagineering (imagination and engineering) other parts of the business have fallen behind Walt Disney was an innovator and won more Oscars than anyone else for his work on animated movies. Disney lost its way with movies after the death of Walt and failed to push the boundaries.

I read Steve Jobs biography and he has made a fortune and lost a fortune and then gone on to make another one.

Now Apple and Steve Jobs are such a huge success it is easily forgotten how different it could have been. He invested everything he had and was very nearly bankrupt developing Pixar. He took huge risks but made a huge success with movies such as Finding Nemo and Toy Story.

Disney was left with no choice but to buy Pixar with Jobs becoming a major shareholder in Disney.

I have now read the stories of both Walt Disney and Steve Jobs and there are many parallels. Both of them are entrepreneurs and both are innovators. They are visionaries and single minded. Most of all they have a talent at reading the emerging markets.

Steve Jobs is the Walt Disney of our time.

Steve Jobs/Wikipedia and Walt Disney/Wikipedia

A Brave New World

We have now officially entered the brave new world of social networking. Our new _space Life site is now up and running and we are going through our tests as we build up the content. I believe that social networking is building more and more momentum with increasing numbers of the people that I meet inadvertently mentioning YouTube or images on Facebook.

We are really hoping to bring the site to life and my vision is that it becomes a centre for all of the stories for the communities which we work within.

I spent the last few days in the South looking at several new schools and academies as I am always keen to see what is being done by others. On my travels I can across a very interesting new private school which had open air corridors giving students a good blast of fresh air. With a likely change of Government we are keeping our eyes open as to how a new Government may want to reform the education system. There are models in Scandinavia where education is delivered by the private sector under a voucher system. This has to be a realistic possibility under a conservative Government.

The racing season has started and I attended my first meeting in York last week. One of my favourite things throughout the summer is horse racing. I love the atmosphere and meeting people however, I am not a huge gambler. There are many meeting throughout the year and we hope for a glorious summer. It has to be better than sitting at St James Park.

At the end of the week I am off to Florida to spend some time with Mickey Mouse and my 5 year old daughter. I will be wearing my Mickey Mouse ears and really getting into the spirit of things. A trip to Orlando is far from an architectural pilgrimage but still great fun.

There are unlikely to be any great revelations in my blog upon my return however, I have packed my usual collection of business biographies so who knows how this may influence _space over the months ahead.