Strategic Plan for the Promotion of Professional Services Exports in Barbados – Engineering and Construction-related Services

Sunil SinhaTechnical DirectorEmerging Market EconomicsDecember 2006

Overview

Strong international demand: World market for construction-related,

knowledge-based services (engineering, architecture) worth about US$600 billion

About $300 billion is contestable by specialist firms

Market can be divided into engineering and architectural services

International Trends

Engineering Services Most services supplied domestically due to

qualification requirements But, international trade increasing due to:

Cost differentials, increased specialisation Large projects requiring expertise, experience, scale Engineer shortage in some countries, cheap engineers in

others Offshoring to cheaper in-house locations and outsourcing to

low-cost destinations Outsourcing typically through local sub-contracting

and farming out of low-value added servicesArchitectural Services Lower trade volumes due to more stringent

registration requirements Outsourcing will remain limited to labour-intensive

activities like draughtsmanship

Local Capability

180 corporate members of Barbados Association of Professional Engineers

Estimated 40 chartered engineers About 24 architecture firms, 64 members

of Barbados Institute of Architects, 10-12 professionals constitutes a large firm

Target Markets

CSME for engineering and architecture UK for engineering – shortage of

professionals EPAs likely to remove restrictions on

practicing in EU countries, could open up architecture market

Market Positioning

High quality professionals, long-established large firms provide basis for providing high-quality services for large projects in CSME

Particular skills in environmental management, disaster mitigation, other area?

Labour cost advantage over US, Western Europe?

Marketing Activities – Brand Awareness

Objective: Increase profile of sector internationally

Website: Promote Barbados as source of quality construction-related services; avoids restrictions engineers, architects face in marketing themselves

Marketing Activities – Direct Marketing

Objective: Create export opportunities Marketing Trips: Larger, export-ready firms to

meet with UK firms to offer outsourcing services Partnerships: Larger local firms sub-contract

work to smaller domestic providers; smaller providers associate with each other to increase scale and improve ability to win international work

Marketing Support/Intelligence: Provide training to small providers in preparing competitive tenders, monitor project profiles

Enabling Environment

Objective: Address local factors constraining growth Accreditation: EPA should allow temporary work

in Europe without qualification, should also work towards mutual recognition of qualifications

Free Movement: CSME should alleviate requirements for local accreditation, ensure local content is reduced.

Skills: increase supply of draughtsman Incentives: improve access to export incentives

and finance for SMEs Alliances: forge private-private and private-public

partnerships

Thank you