Heathrow has a unique role to play in driving a jobs led recovery – most obviously in its role as the UK’s hub airport, connecting British businesses directly to the growth export markets around the world and in bringing tourists, increasingly from emerging markets, to spend their yuan and real in British hotels and restaurants. But Heathrow is also a significant employer, not only through the 114,000 local jobs that rely on the airport, but also thousands of jobs across the UK who make up our supply chain.
Over the last 10 years, we have invested £11billion of private money in rebuilding Heathrow as an airport that Britain can be proud of – first with Terminal 5, voted the best airport terminal in the worlds for the last 2 years, and now with the new Terminal 2, which replaces the old Terminals 1 and 2, which opens in June 2014.
Because it is being built in the middle of the world’s busiest international airport, much of Terminal 2 has been constructed off site and assembled at the airport. This has allowed us to use suppliers across the UK, supporting jobs, investment and innovation in off site manufacturing. Involvement in such a high profile project, which will be used by 20 million international passengers every year, also allows British businesses to showcase their expertise around the world. Some also feature in a new report launched today by Heathrow, including Severfield-Watson Structures, based at Thirsk in Yorkshire.
Severfield-Watson Structures, a specialist steel company, won a £50 million contract to design, create and erect approximately 26,400 tonnes of structural steelwork for Terminal 2. The manufacturing was undertaken at the company’s 260 person factory and involved sixteen of the company’s apprentices who are undertaking their Modern Apprenticeship in Plating.
The Terminal 2 project demonstrates both that the UK remains extremely competitive on price and product quality and that there is a wealth of expertise, skill and talent available here. The experience of working with our suppliers on Terminal 2 has also highlighted a number of areas where collaboration between contractors, suppliers and, where applicable, public authorities, can bring about mutually beneficial results:
• Focusing on best value, lowest cost. Unit cost should not be the only determining factor for procurement decisions. Ultimate value for money is also determined by, amongst other things, the quality, reliability and longevity of the product as well as the ability of the supplier to meet deadlines.
• Training, up-skilling and apprenticeships. As highlighted in a number of the case studies, big infrastructure projects provide a valuable opportunity for people to learn new skills and to bring through new talent. All parties involved in construction projects should ensure that these opportunities are maximised.
• Prompt payment. Cash flow problems can hinder the growth of small and medium sized businesses – a number of Terminal 2 suppliers referred to the importance of prompt payment. Large businesses should show leadership by committing to fair and reasonable payment terms and by paying suppliers on time.
Most importantly of all, we believe the experience of building Terminal 2 shows how important investment in national infrastructure is to the whole country. Big infrastructure projects, wherever they are located, have the potential to make a significant contribution to economic growth across the UK and to improve people’s lives. The UK must remain competitive as a destination for this investment if this potential is to be fully realised.