Supplying Water for the Future: the UK Water Industry in 2009 and beyond

SBWWIWith over one hundred members drawn from every corner of the water sector, employing over thirty thousand people, and a combined turnover of almost three billion pounds, SBWWI has the necessary collective gravitas to be accepted as the representative voice of the water industry supply chain.

In December 2007, the water companies published their strategic direction statements. These documents seek to identify the principal factors that will drive water company strategies over the coming twenty five years, and detail some of the possible responses. Whilst water quality, supply-demand balance and resilience remain fundamental parameters by which water company performance will be judged, the strategic direction statements are explicit that the context in which strategy is being made is evolving and will include additional drivers such as climate change, sustainability and energy efficiency.

The statements made it clear, in a way that had maybe only previously been implied, that the supply chain had a pivotal role to play in helping the water companies meet their environmental, infrastructure and economic targets. The following comment by Yorkshire Water is emblematic of the general tenor of the strategic direction statements with regard to the water industry supply chain: ‘The promotion of a healthy, vibrant supply chain is critical to the success of our business and the delivery of our vision.’

On 14 July at Water 09, a one day policy conference supported by the All Party Parliamentary Water Group, SBWWI launched ‘Supplying for the Future’: the water industry supply chain’s strategic direction statement. The slogan for Water 09 was ‘The challenge ahead’, and ‘Supplying for the Future’ both identifies these challenges and proposes the actions the supply chain will take, and already is taking, to address them. Ofwat’s draft price determinations issued on 23 July effectively enjoin the water companies to meet their abstraction, treatment, and supply obligations within the framework of a reduction in their income in real terms: challenging times indeed.

‘Supplying for the Future’ is unashamedly aspirational, proactive and forward looking, and adopts the language of partnership and co-operation. It encourages water companies and other industry stakeholders to tap into the knowledge, expertise and enthusiasm of its members. This is particularly true when it comes to innovation which both SBWWI and the water companies believe is the key to future efficiency gains. Innovation requires SBWWI members to invest in research and development, and SBWWI will seek to lobby water companies to ensure the true ‘value’ of innovation is reflected in tender documents and tender evaluation processes. This stance reflects the legitimate concerns of SBWWI members that there is a growing disconnect between procurement and operations functions which lead to innovation being undervalued in comparison to other factors.

The onus is also on SBWWI to innovate. In 2008 it organised the Water Dragons event where members pitched new products and services to a panel of senior water company executives and this initiative will be repeated in 2009. The search is also on to create forums where Society members and other industry stakeholders can discuss the key issues of the day, with the emphasis being on ‘quality of opportunity’. SBWWI has recently established the Private Sewers Forum. An all-encompassing group consisting of representatives from all areas of the industry, the Forum seeks to identify and address the many challenges that the supply chain will face leading up to the transfer in 2011 from the householder to water company ownership. Through these forums, SBWWI seeks to encourage radical thinking and to challenge the status quo. By definition, radical thinkers stand outside the mainstream and have ideas and opinions which cut across and often clash with received wisdom. SBWWI recognises the benefit for all industry parties of being exposed to ideas, techniques and technologies from individuals and organisations operating in the wider commercial and academic community.

The water industry offers a wonderful diversity of challenging and exciting career opportunities and SBWWI is committed to working in partnership with the water companies and other stakeholders to raise its profile. Whilst the current economic climate may have temporarily redressed the demand-supply balance in favour of the employer, the ageing profile of skilled workers in the water industry remains a major cause for concern. This problem is exacerbated by the five year planning cycle which causes the supply chain to shed experienced personnel as it cuts its cloth in line with the wide variations in workload. As it is in everybody’s interest to try and provide greater consistency across the planning cycle – both to retain employees and to create conditions that encourage investment – SBWWI will continue to lobby Ofwat to review current planning arrangements.

You can download a copy of ‘Supplying for the Future’ from www.sbwwi.co.uk where you will also be able to find out about the many advantages and benefits of SBWWI membership.

Contact:
Carol Hickman, Executive Director,
SBWWI,
38 Holly Walk,
Leamington Spa,
Warwickshire,
CV32 4LY.
Tel: 01926 831530
email: hq@sbwwi.co.uk
web: www.sbwwi.co.uk