SME growth in Midlands expected to accelerate thanks to EMPA scheme

Alan Coole, head of empa, David Bullock, business development director for Firefly and David Ralph, CEO for D2N2

Major employers from the Midlands committed to lessening the widening skills gap in construction at an event held by the East Midlands Property Alliance (empa).

Currently 12,000 vacancies (Source: UK Commission for Employment and Skills) in construction are hard to fill due to a lack of skilled applicants – more than double the number reported in 2013.

In a bid to tackle this more than 120 representatives from public sector organisations and construction SMEs across the region were the first in the country to see the launch of a new system that will help Midlands-based SMEs to grow.

The Local Supply Chain online portal, which has been developed in partnership with empa and the D2N2 Local Enterprise Partnership, was presented at the annual empa Forum held last week (26 Feb). It collates the details of current and future construction projects for supply chain partners, allowing them to budget effectively, train apprentices and secure jobs.

Public sector organisations from the East Midlands were the first in the country to try out the portal which is being rolled out nationwide to link clients, contractors and local supply chain for all public and private sector construction projects across the region.

Alan Coole, head of empa said following a lot of hard work and close co-operation, it was a real coup to be one of the first regions in the country to try out the Local Supply Chain that will have huge benefits economically and socially.

“At the beginning of the year we pledged to help SMEs grow. Local Supply Chain is a simple tool that will help our public sector clients manage their budgets and Local Enterprise Partnerships deliver targets set out in their local growth plans,” he said.

“As well as outlining the current priorities for the year, the empa Forum is also a time for reflection. The past 12 months have seen more than 100 public sector clients use the empa framework to save money on construction projects. Over 400 projects have been completed with savings estimated close to £26million – a fantastic achievement by all involved in helping to make this happen.

“The construction industry is under increasing pressure to deliver but has the ongoing challenge of a lack of skilled workers and a reluctance from SMEs to grow after the recession.

“We’re really excited about the benefits of the Local Supply Chain portal which costs nothing for our clients. By using it, they have the assurance that they are getting the best possible price from the supply chain and are contributing to supporting local economic growth.”

David Ralph, chief executive of the D2N2 Local Enterprise Partnership, said: “D2N2 is working closely with the Local Supply Chain as we believe it could provide significant insight into local procurement, encourage main contractors to look and buy locally and take on local sub-contractors when delivering our key infrastructure projects.

“D2N2 has adopted the principles of the Social Value Act, not least through the D2N2 ‘Procurement Charter’ launched at our 2015 Annual Conference. Where practical, we want to ensure investment is maximised to promote local supply chains, labour agreements, and to raise skills and apprenticeships.”

Richard Ratcliffe, managing director for Firefly, the company which built the software said: “This portal facilitates the sharing of information between clients and the construction supply chain to help stabilise the industry. The empa Forum was the ideal platform to help launch the tool and it has been really well received by organisations all over the wider East Midlands.”

empa is a local authority-led initiative set up in 2008 to streamline the procurement and delivery of building work and property maintenance in the public sector.

Leading empa framework partners include firms such as G F Tomlinson, Ashe Construction, Woodhead Group, Lindum, Interserve, Clegg Construction, Jeakins Weir, Morgan Sindall and Wates Construction.

The alliance operates across a range of sectors, from schools, colleges and universities to housing groups, care homes, leisure facilities and libraries.