Review of the BSRIA Briefing 2013 - Changing Markets, New OpportunitiesNovember 2013

November 2013 saw another brilliant BSRIA Briefing held as always at the fantastic Brewery in London. The event was chaired by John Tebbit, Industry Affairs Director at the Construction Products Association with c400 industry professionals in attendance. The speakers this year were focusing on customer satisfaction, data centre trends, changes in building practice and design decisions, smart technology leading the industry forward and the internet of things.

Download speaker presentations at the bottom of the page.

Chairman John highlighted two key issues facing the industry, the Construction 2025 strategy and the move towards Low Carbon as well as the construction industry being the last industry to go digital despite a demand to do so.

Bukky Bird talked about Tesco as a continuously changing organisation by highlighting some of the company’s historical milestones. From Tesco’s founder Jack Cohen opening a market stall in 1919 to becoming a global company with just over half a million colleagues today.

Bukky also highlighted some current customer expectations and key drivers for this such as the current economic context. She emphasised the need for organisations to understand and respond to changing needs and environments.

Today’s customer is under pressure, struggling with rising costs and dealing with lifestyle changes. The focus is therefore on family and the home, with a real expectation that brands should reduce waste and save money. Responding quickly to these needs is critical for retailers like Tesco and this should therefore drive the focus through the industry supply chain.

A challenge facing our industry is how to develop true partnerships to tackle these problems. Bukky highlighted the need for flexibility, agility and the need for the industry to be willing to change. The customer is changing radically and the building industry needs to be ahead of this curve.

Historically we have been very slow to adapt, and this is an opportunity to buck that trend. Her final point was that the industry are not supplying Tesco, but Tesco’s customers – understanding the customer’s needs and developing innovative solutions to meet these is key to successful partnerships.

Nicola Hayes looked at a rather different sector focusing on data centre trends and energy. Data centres, Nicola argued, are the buildings you do not see, the hidden side of the industry and yet becoming a central part of several industries as people relocate their data to the Cloud. Nicola discussed the fact that data centres may be hidden but they do suffer negative publicity mostly due to the energy usage of such buildings and the accusation from the Press that they are singlehandedly destroying the planet. When viewing the industry as a country, the industry uses a little less energy than the UK as a whole, marked at 332.9TWh which is an exceptional amount and understandably a worry for the industry and a target from the Press.

But it was the trends that Nicola was concentrating on, where the data centre industry has come from and the expectations of it for the future. In three years the industry has grown from $86bn to a staggering $120bn as well a doubling in space used for the buildings, growing from 15million sqm to 31million sqm. The growth of data centres is down to several other key industries, the rate of increase has risen for Professional Services, Energy & Utilities, Industrial & Process and Media & Telecoms. With this growth there has been a change in how data centres are being built and their operations. There has been a 15% increase in outsourcing for the industry since 2007 rising to nearly a quarter of the industry but IT Optimisation still remains a major investment.

For the built environment the biggest change data centres has had for them is the increase in energy monitoring and the storage of millions of data bits. People in the world, particularly the US, UK and Germany are starting to become more conscious of energy efficiency therefore more business is generated for the data centre industry through big data from energy monitoring. Nicola pointed out that this is not done for a purely ‘green’ reason but primarily to monitor costs which are why most universities do not monitor as they are not responsible for the financial side of their energy use.

With there being such a focus on energy efficiency, the way data centres are being built has also been a changing trend with there being 25% increase in the number of retrofits of data centres while there was only a 2.1% increase in the number of new builds. Efficiency measures (to answer to the Press criticism) are also now determined from the outset. However despite the data centre industry growing at a fast rate there are risks involved for the industry from the small scale of compliance to the large scale of terrorist attacks. With these risks comes an important debate that is happening within the industry, cost vs. risk.

Nigel Ingram continued with a discussion about social housing and the consideration of end users when designing buildings. The Joseph Rowntree Housing Trust currently looks after 2,500 homes in Yorkshire and Hartlepool. Nigel discussed one particular project the Housing Trust are involved in, the Derwenthorpe village which looks at the lessons learnt from past projects and how they can improve their buildings. The way the Joseph Rowntree Housing Trust decided on best building practices was through experimentation over four years, they built two prototypes and used 17 different methods and as many M&E components as possible including greywater harvesting and block work systems. The aim of this experimentation was to see what worked to create the best possible building.

As well as all these design considerations Nigel also enforced the importance of the end user and their lifestyles with the Joseph Rowntree Housing Trust looking at how people live in buildings and what changes in lifestyles are expected in the future and how best can the prepare buildings for that. There were three main points that made up their strategic servicing infrastructure, the first being fibre optics. The Trust believes that with the use of technology ever increasing including internet, television packages etc. they needed to invest in a viable cabling network. However none of the big companies were prepared to discuss such a project therefore the Trust developed a joint venture with an investor to set up their own fibre optics for the estate, by doing so they satisfied the customers and set them up for any increase in connectivity in the future.

The second point the Trust considered was Communal Heating, they looked at a variety of different heating techniques for the estate such as low ground source heat pumps. Communal Heating was decided on in 2007 from a carbon footprint point of view as at the time the Code of Sustainable Homes was announced with zero carbon targets by 2016. Communal Heating is notoriously difficult to get working efficiently, just like any heating system however after it was distilled down into the six components that worked for the Trust it was able to provide fuel security and prince control for the future residents which is what users wanted from their buildings. The system now works and is one of the only systems in the country that is successful and has been contracted for 25 yrs to a European Communal Heating group.

However Nigel wanted to point out that the Derwenthorpe village has not been completely successful, the final point in their strategic servicing infrastructure was MVHR Systems. The project has not seen any success with these systems, it has been installed in 64 houses but customer feedback has been negative and there are many issues with it. As an alternative MEV is now being used. Nigel stresses that there is a market for MVHR systems but for it to work there needs to be massive improvements in the industry in terms of commissioning, installation and maintenance. There seems to be a technology focus rather than process and this needs to change if the industry is to satisfy clients and users of buildings.

Nigel’s main focus for the Derwenthorpe project was customer satisfaction, the importance of the end user. Fibre Optics and Communal Heating was installed for the benefit of the residents of that estate as they have certain expectations of the way they live including operational and financial. The Joseph Rowntree Housing Trust has focused on the end user for their design plans rather than what should work from the industry perspective. Rigorous testing and accepting systems aren’t right has gone into making sure buildings are built as best as they can be which is important for our industry, it’s taking into consideration the mistakes made on previous building stock and learning from them and also considering the occupants and their needs.

Jeremy Towler reflected on the “smart” built environment and how we get there. Jeremy highlighted that there is a lot happening and changing in our industry emphasising that we are the last industry to go digital despite there being several opportunities for digital work particularly wirelessly. BEMS will become an increasing component of buildings, modules will be built off site and therefore digital technology needs to be an important investment. Mobility will also become a more important part of the built environment, currently everyone uses a mobile but with geo-location buildings will be able to recognise everyone in buildings and respond dynamically. With this the collective voice of the occupants starts to influence the building which could be quite revolutionary.

Building Analytics are also an important step towards a “smart” built environment, increasingly buildings have sophisticated software that permits building operation and how best to optimise them. With Building Analytics becoming a more common part of our industry there has been a move towards the Cloud which has allowed data mining to reveal relationships and trends we never could have imagined. With these advances also comes the development of Smart Cities, particularly in China where there is a commitment to build at least 30. Jeremy defines smart cities as an incorporation of intelligent buildings, broadband connectivity, innovation, digital inclusion and a knowledge workforce.

But Jeremy states it’s not just smart cities we have to consider, it's smart grids and smart buildings. Smart grids is an advanced power grid for the 21st century, essentially it is a decentralised multi directional model where energy and information can flow from supplier to consumer and vice versa which enables a variety of new applications for homes and businesses. Smart homes on the other hand have reached a critical mass and are due to break into the standard housing market but with this there has been an opportunity seized by the utilities who are now offering connectivity.

With smart homes becomes the internet of things and the ‘ubiquitous homes’ where sophisticated systems learn behaviour and respond accordingly, like our mobile phones that can tell us where we want to go and how we need to get there, such software will be used in our own buildings to provide our homes with the settings that we need. However the current built environment is a long way from becoming a smart industry, currently more than 75% of the building stock has no intelligent controls which is primarily to do with the age of the buildings with over 40% of total stock being built before 1960. With this in mind there is an opportunity for the industry to consider a great deal of retrofit projects but for smart technology to work to its best potential for the built environment the industry needs new skills developed through training in software and hardware analysis.

Michael Beaven continued on this theme of the industry needing to change but instead focused on workflows. Arup has learnt that change is beneficial to the industry, adaption is necessary to meet the needs of the client. Arup have changed what they do and how they do it, learning that doing things the same way over and over again is to no benefit. However despite the need to adapt there are constants within the industry, carbon being the main issue for energy costs and emissions for companies in reputational aspects as well as the bottom line an example being Sky who are very forward looking including reducing the carbon of their set top boxes from 10 to 4 watts saving 20 megawatts to the grid.

Importance of energy and efficiency is paramount but so is what we build it with. Embodied carbon is a key player in how we build our buildings now; decisions are being made on where products come from and their whole life cycle rather than primarily cost efficiency. Buildings are also being tested now, everything is monitored in our buildings so we can learn how to improve them, we are accountable for how buildings perform. From this we can learn how to design buildings that are successful for end users.

Michael also emphasised Jeremy’s point of the internet of things, how the integration of IP controls are making building betters and even the advancement of BMW considering smart transport for smart cities. Building on the interaction between traffic signals and mobile data to develop relationships between them to better control traffic, even where you park will be managed in a smart way. Another important development in terms of smart technology is that people are now connecting and sharing information on what works for a building and how best practices can be established.

One of Michael’s most important arguments was the importance of BIM and the matter that we as an industry really need to get up to speed with it. It’s client driven so we need to be on board as it is not only changing our workflows but also our business, without a grasp we lose projects. There also needs to be an acceptance that BIM is not just about 3D drawings and design but rather it should be a changing of our work streams to digital.

Michael’s final point tied in one of the key themes of the morning, customer satisfaction or rather the importance of the end user. Arup are moving towards an end user focus, designing buildings for people rather than the client or the architect. He used Sky as an example of a company championing a place for people, designing a building that understands what the user wants rather than what is considered the best design. Michael emphasised the feedback loop, empowering people to vocalise what they want in a building, what controls work for them, with that Soft Landings is critical for discovering what works and what doesn’t and resolving these issues before a project is completed.

There were a variety of thoughtful questions throughout the morning ranging from what the industry is doing to combat the UK’s power supply reducing to 2% by 2016, John Tebbit argued that the UK needs to stop investing in the UK and instead build industry abroad and import into the UK. There was also discussion on why there are so many installations problems within the industry, Nigel Ingram suggested there was too much blame placed on the end user, that there needs to be more ownership of mistakes and to learn from them if the industry is to move forward. This was the key theme throughout the morning, for the industry to move forward in any pursuit especially digitally we need to focus on trends and accept change as a good thing. But when accepting change we also need to learn from our past mistakes rather than continue to avoid them.

The morning ended with a spectacular lunch. Following lunch, guests were treated to an afternoon speech from Sir Clive Woodward who continued the theme of change being necessary to move forward and how that worked for the England rugby team and the British Olympic team. Sir Clive’s talk looked at the 3F’s or 6F’s argument and interestingly the importance of an Australian dentist and his impact on working habits. He emphasised the effort of a whole team being behind any win and argued that talent is not enough but learning, calmness and hard work are needed to leverage it.

A special mention also goes to Chris Monson, of main sponsor Trend, who was awarded an Honorary Membership of BSRIA, becoming only the 8th person honoured. Chris accepted the award from BSRIA Chairman Leslie Smith and thanked the company as well as the industry.

A big thank you to all delegates that attended and the speakers who gave their time to the event. Also thanks to Sir Clive Woodward for being our afternoon speaker and rounding up a fantastic Briefing.

Download presentations from the expert industry speakers here:

• Bukky Bird - Programme Director, Tesco Stores Ltd
• Nicola Hayes - Managing Director, DCD Intelligence
• Nigel Ingram - Director of Development and Asset Management, Joseph Rowntree Housing Trust
• Jeremy Towler - Senior Manager Energy & Smart Technologies, BSRIA
• Mike Beaven - Engineering Leader, Arup Associates