Social Housing Supply Chains and Brexit

Dr. Wei (Linda) Xu - Research Associate at the University of Sheffield.

Impacts

• Financial

• Materials

• People

• Information

• Infrastructure

• Technology

Uncertainty

Uncertainty

https://staticseekingalpha.a.ssl.fastly.net/uploads/2017/4/14584222_14918563026518_rId9_thumb.jpg

Financial

http://4.bp.blogspot.com/_eHrkCMwR3Qs/TIVRAJ9MUII/AAAAAAAAAFA/Rxd1wygWvas/s1600/The+Efficient+Frontier+of+Risky+Assets+and+Individual+Assets.JPG

Housing Price Shock

https://financialpostcom.files.wordpress.com/2017/12/fp1205_toronto_realestate_prices.pnghttps://www.irn.ru/gd/?class=all&type=1&period=-1&step=week&grnum=1&currency=0&select=period

Financial Issues

• Things are bad, but the economy has not crashed and people are more hopeful

• Currency Shocks

• Credit crunch on developers

• Credit tightening across the supply chain

• Increase in sales/profit targets for continental companies

• Potential tax/investments impact for continental companies

Materials

• Border Issues• Customs clearing• Import-Export• Port• Potential for product rationalization• Potential for new market opportunities• Potential for loss of markets

Border Concerns

http://www.cadcr.com/wp-content/uploads/2016/11/gordie-howe-bridge.jpghttps://cdn4.img.sputniknews.com/images/103508/62/1035086280.jpg

Rotterdam Effect

https://www.portofrotterdam.com/en/downloads/intermodal-map

People

• Dependence on EU labour

• Local trades tend to be nearing retirement

• Increased wage rates and weak pound has already made a difference

• Migrant workforce offers some fundamental benefits

Potential Opportunities

http://gcaptain.com/wp-content/uploads/2016/04/NYK-14000-Container-Verssel.jpghttp://container-mag.com/wp-content/uploads/2016/06/Image-1_-MSC-Nederland-at-Liverpool2.jpg

Permitted/Permitable Workforce

http://cdn.wonderfulengineering.com/wp-content/uploads/2014/07/What-is-Mortar-12.jpghttps://static.domain.com.au/domainblog/uploads/2017/03/20064419/2_gv25hr.png

Wanting the Unwanted – Migrant Underclass

https://www.migrantclinician.org/files/4-IMG_0360.jpghttps://i0.wp.com/seansrussiablog.org/wp-content/uploads/2013/06/migrant1.jpghttps://cdn.thinglink.me/api/image/476502479962374144/1240/10/scaletowidthhttps://static.independent.co.uk/s3fs-public/styles/article_small/public/thumbnails/image/2017/02/24/09/migrant-farm-workers.gif

Information

• Information flow – don’t worry it doesn’t happen – so how can it get worse

• Cooperation – doesn’t happen either

Infrastructure

• Customs Controls from EU

• Delays due to Lack of Facilities

• Reconfiguration of domestic transit infrastructure

• Delays due to lack of customs agents

Technology

https://www.re-allies.com/frameworks/new-build-framework/

Industry VS Government

• Trade agreements

• New trading partners

• Labor Changes

• Policy Changes

Industry wants Stability

Government wants Flexibility

Race From The Bottom Effect

• Low cost will increasingly mean low available

• Expect higher cost and higher time premium

• Greater emphasis on lifecycle; value = f(price, timeliness, quality)

• Changes in supply and demand

• Prepare for Customs Clearing

Reframing

https://image.slidesharecdn.com/viviensungunsw-151119014838-lva1-app6891/95/social-transformation-design-solving-complex-problems-8-638.jpg?cb=1447898322

Supply Chain Disintegration VS Integration

• But is there anything integrated – to disintegrate

• Expect changes in/to suppliers

• Tremendous opportunities for savings through change in practice

• Information sharing – reduce bullwhip effect in supply chain

• Coordination could reduce time/cost

• Searching for Supply – pleasures and perils

Opportunities and Risk Reduction

• Professional Purchasing

• Inventory Decisions to be Revisited

• Rethinking structure of supply chain

• Possible alternative processes

• New technologies

Follow The Leader –Field Needs Leaders

• Sector plan requires clear requests

• Regulation – less please, but not sure what

• Promote housing – going beyond preventing more barriers

New Ways Of Training and New (Different) Jobs

• New training model for sector

• New career model for sector

• Professionalisation with associated skills

http://naveedshan.com/ready/

Social Value and procurement post Brexit

Andrew van Doorn

www.hact.org.uk

What is ‘social value’?

What does Brexit mean?

Efficiency North’s Social Value

£3,885,499

Local Economies

Housing Markets

Employment and Jobs

Poverty

Legislation

Extend Social Value Act

Collaboration

Partnering in procurement

Avoid a race to the bottom

Wellbeing Matters

The future…

www.hact.org.uk

Thank you

Andrew van Doornandrew.vandoorn@hact.org.uk

@AndrewvanDoorn

020 7250 8500 49-51 East Rd, London

THE CASE FOR FRAMEWORKS

(and the rest)

George Paterson

Director of Property Services

Together Housing Group

• Formed in 2011 now has around 37,000 homes mainly in Yorkshire and Lancashire (M62 corridor)

• Was Five registered RSLs (Chevin, Green Vale Homes, Housing Pendle, Pennine Housing 2000, and Twin Valley Homes) – four of which were LSVTs. Now all social housing in one RSL – Together.

• Chosen to deliver the Salford PFI scheme and “Pendleton Together” went live in September 2013

Background - Together Housing

Group

Together Housing Group

• Frameworks• Resources• Apprentices• New Build• Contacts• Expertise

“Skills shortage ‘time bomb’ may affect plans to tackle housing crisis”

The Manpower Group

Government to back construction academies to tackle skills crisis

Fully Inclusive Weekly Fee

PERSONAL MENTORING &

PASTORAL SUPPORT

WEEKLY WAGE PLUS BENEFITS

CSCS, PPE & TRAVEL CONTRIBUTION

HOLIDAYS

COLLEGE & PROVIDER FEES /

ENHANCED INDUSTRY TRAINING

RECRUITMENT COSTS

• Fully vetted & well trained apprentice ready for work through our Academy which provides a structured sector specific training programme.

• Access to comprehensive award winning IAG, pastoral and academic support & mentoring programme in line with industry best practice.

• Additional Academy benefits include pre-apprenticeship programme support and cross sector CPD to enhance sector awareness and link to profession institution core professional standards.

• Each apprentice comes equipped with ‘ready for work’ attitude which includes (where appropriate) PPE, CSCS card, travel allowance, tools, etc.

• Recruitment, employment & support responsibility lies with EN:Able Futures, saving cost and time for ‘host’ employers.

• Easy way to engage with local apprentices & boost business and future workforce planning.

• From 1st April 2018 ‘levy’ paying companies can transfer up to 10% of their ‘levy’ to EN:AbleFutures.

• Option to retain the apprentice at no charge (unlike agencies).

2018/19 (East)

• £3.7m – Core Works• £2.1m – SIG & Active• £6.5m – Demo• £1.4m – Sprinklers• £1.1m – Fire Doors• £0.6m – Electrical Testing• £1.4m – Gas Connections

• THG 5 year journey in improving stores operation & DLO• 285 technicians operating across stock• Technician productivity at centre• Operational Transformation > Delivered service• New contract, 2 Stores > 1 Fulfillment Centre• 2nd 4 year framework contract with Wolseley• Systems & Van stock focus, 92% first time fix rate• Just 40 visits to stores by 140 operatives per week

We aim to:

“thank you for being so co-operative towards church during the demolition work. It was kind and considerate of you to work around our services and I’m glad the whole job went smoothly and you had a “safe site”. From our point of view the disruption was minimal and the communication with us was great.”

Vice Chair PCC Christ Church Sowerby Bridge

• Calderdale Council and Together Housing Group

• 650 homes

• Over £70 million

Contract sum 1,105,105£

Cost/m2 1,363£

Cost/Plot 110,510£

Beechwood

Contract sum 1,070,850£

Cost/m2 1,287£

Cost/Plot 107,085£

Belle Vue

We aim to:

£812k in funding to local communities across the whole of Yorkshire and Humber

170 Apprenticeship/Employment outcomes against our target of 145

Local Employment Groups in the Together stock areas

£9,940 directly to Together endorsed projects – with additional match funding of £32,662

Two employed positions through Newground, one of which was a THG tenant

27 employmentpositions through our Local Employment Groups

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THANK YOUgeorge.paterson@togetherhousing.co.uk

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