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July 11, 2022

Siemens Congleton on track to hit carbon neutral target in 2022 – eight years ahead of goal

Partnership between Siemens Digital Industries and Smart Infrastructure businesses accelerates factory towards net zero Sustainability milestone paves way for UK manufacturing sector Siemens’ Congleton factory is on track to achieve carbon neutrality this year – eight years ahead of its original target. The operation, which manufactures more than 1.2m controls

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HS2 celebrates success in health & safety advances

HS2 Ltd recently celebrated innovations to improve health and safety at works sites across Britain’s largest construction project. HS2’s health and safety campaign, Safe at Heart 2022 Inspiration Awards, chose three winners after receiving over 100 submissions from across the project, which now supports more than 25,000 jobs. Entries were

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A Quick Guide To Construction Accounting

Accounting is a complicated subject, let alone construction accounting. There are challenges in the construction industry that others don’t have to face. Just imagine what a headache it can be to account for changing construction materials prices, or differences in labor computations according to location. That’s only two of what

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BDC 319 : Aug 2024

July 11, 2022

Siemens Congleton on track to hit carbon neutral target in 2022 – eight years ahead of goal

Partnership between Siemens Digital Industries and Smart Infrastructure businesses accelerates factory towards net zero Sustainability milestone paves way for UK manufacturing sector Siemens’ Congleton factory is on track to achieve carbon neutrality this year – eight years ahead of its original target. The operation, which manufactures more than 1.2m controls and drives each year, is inching its way to the major milestone after deploying a range of sustainable solutions for energy generation and demand with support from Siemens’ energy and performance services business, Smart Infrastructure. These include generating 75kw of renewable energy through a hydro-electric plant at Havannah Weir on the river Dane and using carbon neutral, certified biogas to power its on-site gas engine. These measures alone saved over £250,000 pounds a year and took the 80% power-independent factory off the grid. Beyond these innovations, Siemens Congleton adopted a building management system which automatically adjusts to drive energy efficiency improvements, while modern windows and LED lighting have reduced the total energy bill by 13% and 30% respectively. Combined with reducing waste to landfill to zero and EV charging for staff and visitors, the Cheshire site is eight years ahead of Siemens’ original 2015 commitment to ensure carbon neutral operations by 2030. Commenting on the achievement, Andrew Peters, Managing Director of Siemens Digital Industries Congleton, said: “Siemens believes that sustainability is a force for good and can deliver value for all its stakeholders. We want to help customers achieve sustainable growth and to transform their industries through decarbonisation. The first step of that is for us to achieve these ambitions in our own operations. “I am delighted that by leveraging a culture of continuous improvement and sustainability – the vital components to Siemens’ Congleton’s long-term success – we have achieved carbon neutrality, a major milestone in our ambitions to reach net zero emissions by 2030.” The 50-year-old Siemens Congleton factory began its sustainability journey in 1990 when it began manufacturing drives to meet the demands of industry. In 2018 the factory became fully digital by embracing lean manufacturing methods to achieve continuous improvement and by adopting leading-edge Industry 4.0 processes. Using advanced manufacturing methods include Virtual Reality, Digital Twin, the Industrial Internet of Things (IIoT), Advanced Robotics, Cloud Technology and Additive Manufacturing, it has mastered producing up to 50,000 variations of its products to fulfil the shifting demands of its customers and markets, increased productivity by driving down costs, and improved efficiency. In 1990, 400 workers made 50,000 variable speed drives and controls a year. Today, a similar number of workers produce 1.2 million electrical devices – including 600,000 variable speed drives (VSDs). What is more is that it has been achieved within the same physical footprint. The factory is bounded by industrial units and housing estates, with no room to expand, meaning Congleton has one of the highest productivity rates per m2 of any Siemens’ sites. Faye Bowser, Head of Siemens’ Energy & Performance Services GB&I, said: “The climate emergency puts the demand on businesses of all sizes and sectors to really accelerate their efforts for decarbonisation. But a challenge is that often decarbonisation isn’t their core business. So, at Energy and Performance Services we make it our business to use our skills, our knowledge and our tools to help our customers transition to net zero in a way that contributes to their business priorities. “Despite us being from the Siemens family, we have approached working with Congleton the same we do with any organisation. It has been fantastic. In Andrew Peters you have a leader in a business which has put continuous improvement and sustainability at the heart of their long-term success. Our job was to apply those components to their energy system and their energy strategy. What we ended up with is an engineered roadmaps to net zero that considers timelines, finance, digital services, all there to safeguard business continuity, and to have a method to continuously identify more opportunities to reduce carbon on site.” The Congleton factory is leading the way for Siemens which has committed, as a global organisation, to ensure all its operations are carbon neutral by 2030 and for all production facilities and buildings to achieve net zero-carbon footprint by 2030. In the UK Siemens’ progress has been recognised by The Carbon Trust, an expert partner for supporting organisations to achieve science-based targets. In June it awarded Siemens its Route to Net Zero Standard tier one certification for ‘Taking Action’. Commenting on this milestone achievement, Olivia Whitlam, Head of Sustainability, Siemens Plc said: “Siemens is taking a holistic approach to achieving net zero and we are pleased to be guided by the Carbon Trust who helps us monitor our progress each year. “We have 8,600 people spread across offices and 11 manufacturing sites across the UK and we are creating innovation up and down the country with sustainability at the core of our operations and services. Our Congleton factory is paving the way for sustainability whilst setting a great example on how manufacturers can join this amazing journey to net zero.” Congleton’s trailblazing story will be shared at Siemens’ two-day conference and exhibition, Transform 2022  at Manchester Central on July 12 and 13. The event will bring together hundreds of industry leaders, influencers and regulators from across the UK and Ireland to collaborate and solve some of the most pressing organisational challenges. To register for Transform 2022 visit: https://new.siemens.com/uk/en/company/fairs-events/events/transform-2022.html

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ROCKWOOL partners with Swansea University to explore capturing carbon emissions

ROCKWOOL has entered a research partnership with Swansea University to develop CCUS technology ROCKWOOL has announced it is partnering with the Energy Safety Research Institute (ESRI) at Swansea University to research the capture of carbon dioxide. Researchers are aiming to develop new carbon capture, utilisation, and storage (CCUS) technologies that can assist the UK in achieving net zero carbon emissions by 2050. Researchers at ESRI have been working on a process called Pressure Swing Adsorption to separate carbon dioxide from a mixture of gases. To date, this has been shown to work under laboratory conditions and so the next step is to investigate how it works in a real-life industrial process. Over the next 12 months, researchers will be experimenting with different adsorbent materials and operating conditions to determine the most effective method for removing carbon dioxide. Isolating carbon dioxide from a mixed gas stream is an important step in developing opportunities for use or long-term storage. Darryl Matthews, Managing Director of ROCKWOOL UK, said: “Alongside ROCKWOOL membership of the South Wales Industrial Cluster, I am delighted we’re partnering with Swansea University to pilot new technology designed to capture CO2 emissions and are excited about its potential in supporting the drive to net zero.” The demonstration unit is being developed as part of the £11.5m Reducing Industrial Carbon Emissions (RICE) project which has been part-funded by the European Regional Development Fund through the Welsh Government and is aimed at the deployment of industrial scale demonstrations of new technology. Darryl continued: “Taking these important steps to understand how we can develop CCUS technology further is another important piece of the decarbonisation puzzle for us as a business. ROCKWOOL has long been committed to operating sustainably and, in December 2020, announced commitments to accelerate the decarbonisation of our business, with specific long-term targets verified and approved by the Science Based Targets initiative.” Professor Andrew Barron the Principal Investigator of the RICE project summarised the achievement: “With 2050 arriving fast, the time for research is over, it is imperative to get new technology onto industrial sites in order to demonstrate viability. Partners such as Rockwool are vital in achieving this goal.” In 2020 the ROCKWOOL Group announced ambitious, science based global decarbonisation targets that have been verified and approved by the Science Based Targets initiative (SBTi). The targets, which supplement existing sustainability goals, amount to an ambitious one third reduction of the ROCKWOOL lifecycle (Scope 1, 2 and 3) greenhouse gas emissions by 2034 while at the same time continuing the reduce the carbon intensity of production. These commitments build on the manufacturer’s existing status as a net carbon negative company, in that over the lifetime of its use, the building insulation ROCKWOOL sold in 2021 will save 100 times the carbon emitted in its production.

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HS2 celebrates success in health & safety advances

HS2 Ltd recently celebrated innovations to improve health and safety at works sites across Britain’s largest construction project. HS2’s health and safety campaign, Safe at Heart 2022 Inspiration Awards, chose three winners after receiving over 100 submissions from across the project, which now supports more than 25,000 jobs. Entries were submitted under Safe at Heart’s three categories: I Care; You Count; and We Matter. A simple innovation introduced by the occupational health team of HS2 contractor EKFB won in the I Care category. Ahead of building the 80km central section of Britain’s new high speed railway between London and the West Midlands, main civil works contractor EKFB needed to install a series of batching plants along the route to supply concrete to work sites beside the line. Each of the four plants arrived as giant kits to be assembled on site. Fixing together all the parts of each batching plant involved tightening over 2000 bolts with spanners and powered torque wrenches. Eagle-eyed Tim Callow and Bill Strachan of EKFB’s safety, health & welfare team saw an opportunity to boost the health and safety of workers building the plants by radically reducing their exposure to handheld power-tool vibrations. Insulating the tool with a rubberised sleeve reduced by 95% the vibration transmitted from tool to hand. In a UK-first, HS2’s Chilterns Tunnel contractor, Align, won in the We Matter category by deploying robotic technology that has boosted worker safety, quality and efficiency on the production line making the tunnel’s concrete ring segments. The segment production line’s health and safety has been enhanced through the automation of two stages of manufacture. The first sees a robot deployed to clean and oil the segment moulds before wet concrete is poured into them. By automating this role workers’ exposure to the dust during the cleaning process is eliminated. A second robot smooths the top surface of the mould, boosting product quality and homogeneity as well as freeing up worker time to add the human touch to the finishing process that automation might miss. Elsewhere on the HS2 project, the introduction of innovative hearing protection at London work sites; and creation of HAZID* which gives workers a simple and easy-to-follow framework to create higher-quality risk assessments was recognised in the You Count category. Technical Services Delivery Director, Emma Head said: “We received over 100 entries for our Health & Safety awards, which is impressive and shows how much great work is already happening across HS2 to embed Safe at Heart into everything we do.  “We’ll take the improvement in practices from this year’s entries and winners, and look at how we can implement them elsewhere on the project.  “As a massive and long-term programme that is forecast to support around 34,000 jobs at peak construction, there’s an opportunity not just to see these innovations and initiatives implemented route wide on HS2, but also to affect long term change across the construction industry.”

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Prologis strengthens Capital Deployment and Leasing in London team with two strategic hires

Prologis UK, one of the UK’s leading developers of logistics property, has added two new hires to its Capital Deployment and Leasing team, as it looks to further grow its UK team and drive ambitious growth plans. Jason Pickering has joined as a director in the Capital Deployment and Leasing team, following six years at Cushman & Wakefield. With extensive experience in industrial and logistics capital markets, and a specific focus on South East and national developments, he will be helping Prologis to continue expansion plans in London and development of urban logistics offering. Ryan Gordon also joins the company as a Capital Deployment and Leasing director, after working for Stripe Street for eight years. There, his role as an agent for Aldi Stores UK aided in the supermarket’s expansion, with a particular focus on site acquisitions in London and the South East. Alongside his experience as an agent, Ryan is a chartered surveyor, and has an in-depth knowledge of the land acquisition and property development process from start to finish. In their new roles, both Jason and Ryan will focus on land and investment acquisitions in Prologis’ strategic priority regions within London and the South East, using their complimentary skills and 14 years of combined experience to support the firm’s ambitious growth plans. Paul Weston, Regional Head of Prologis UK, said: “It’s great to have Jason and Ryan join our business, both highly qualified to drive forward our significant growth ambitions for London and the wider South East of the UK. In 2022 we have announced six new hires who will focus on the region and will soon be moving into new London offices to provide the team with an exciting new collaborative hub. “I’m looking forward to working with Jason and Ryan and supporting their career aspirations here at Prologis”. Both Ryan and Jason will be based in Prologis’ London office. RE: IMAGE Left -Right / Jason Pickering, Ryan Gordon. Prologis UK

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£220M OFFICE SPACE IN TOWN BRAND ACQUIRES BRIGHTBAY SHARE TO CLAIM FULL OWNERSHIP OF FLEXIBLE OFFICE PORTFOLIO 

Deal gives OSiT 100% ownership of portfolio and supports ambitions to grow value to £1billion by 2029  Leading London office provider Office Space in Town (OSiT) has today announced that it has successfully acquired Brightbay Real Estate Partners’ 80% share in their London Serviced Office portfolio. The joint venture between Brightbay (previously RDI REIT P.L.C.) and OSiT was established in 2018. The portfolio is now owned fully by OSiT.  The buyout marks a major milestone for the future trajectory of the business, unleashing OSiT’s plans to increase the portfolio value to £500m in the next four years and to £1billion by 2029. OSiT is actively seeking new buildings in prime London locations to purchase to meet rising demand for flexible workspace, as well as partners to support its ambitious growth plans.  The deal follows a period of exponential growth for the sector following the COVID-19 pandemic, which has seen demand for flexible office space up 82% on pre-pandemic levels.[1] In fact, as workers return to offices, 41% of occupiers are expected to increase use of flexible workspace as part of a post-COVID work strategy.[2]  In light of this, defining an industry-wide valuation standard for flexible offices remains a major priority for the company in the next six months, with talks ongoing between OSiT and leading academics Professor Neil Dunse and Professor Michael White.  RDI REIT acquired an 80% stake in the portfolio of four central London OSiT assets in 2018 from Forum Partners, Kailong Group and OSiT. The deal marked a continued move by mainstream institutional investors into the flexible office market.  OSiT was advised by lawyers at leading City law firm RPC, led by Tom Purton.   Giles Fuchs, Chairman of Office Space in Town, said: “This deal marks the beginning of an incredibly exciting chapter in OSiT’s growth. This new phase will enable the OSiT team to deliver on our ambitious vision for the future, including our active search to acquire new buildings and plans to grow the portfolio value to £1billion.  “Our partnership with Brightbay showcased just how much value and potential institutional investors see within our rapidly growing sector and in OSiT as a business. I would like to thank the entire team, including Stephen Oakenfull and Adrian Horsburgh, for such an exciting journey.”  Simon Eastlake, Managing Director of Office Space in Town, commented: “Full ownership of the OSiT portfolio marks an important milestone that now sets us on track for a new phase of exciting growth.  “We are actively seeking new buildings and partners that share our vision and enthusiasm for the sector. We’re incredibly excited about what the future holds next for OSiT.”  Tom Purton, Head of Commercial Team at RPC, commented: “We were delighted to act for OSiT on what is a very significant and transformational deal for them. I have known and acted for OSiT for a number of years, but this was the first deal we have done for them since my move to City law firm, RPC in 2021.  “OSiT is a great business, has a very strong management team, a unique culture which inspires huge loyalty amongst its workforce with market leading serviced offices. I have no doubt this deal will help take the business to the next level”.

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A Quick Guide To Construction Accounting

Accounting is a complicated subject, let alone construction accounting. There are challenges in the construction industry that others don’t have to face. Just imagine what a headache it can be to account for changing construction materials prices, or differences in labor computations according to location. That’s only two of what it covers. If you don’t know some industry secrets to staying organized with your accounting, you may just be setting up your construction business to doom. This statement may sound overly dramatic, but there’s so much truth in it. Big and small businesses depend on a steady and robust financial situation. An efficient accounting system can then run the possibility of having erroneous financial reports, hurting your construction business’ operations. There’s much more to learn about construction accounting, and this article walks you through a quick guide. Hire Professional Tax Preparers To Help You Nobody ever said, ‘Accounting is simple.’ Even the most seasoned entrepreneurs recognize they need the help of those who have spent years studying accounting and tax-related matters. And, in between the busy day-to-day operations of your construction site and the time-consuming demands of taxation and accounting, your construction site’s smooth flow of operations may suffer. This is why you need to leave those highly technical job functions to the experts in the industry, like accountants and tax preparers. The latter are professionals who have to register with the IRS to submit returns using professional tax software. This page gives you more information about this matter. Open A Separate Bank Account For Construction Business Finances This tip goes without saying if you’ve been in business for so long and you’ve grown your construction business quite extensively. However, for newcomers, it’s worth remembering to open a separate bank account for construction-related inflow and outflow and a separate one for your finances. Ideally, never mix the two. No matter how small your business may be at the moment, it’s never worth mixing business and personal funds. Doing so will only make the job of your accountant even more cumbersome. Even seasoned accountants can make mistakes, and you’re simply increasing the likelihood of this happening. It’s easier to track the inflow and outflow of money when you know for sure which belongs to your construction business and which belongs to your funds. Moreover, this practice is what you need for long-term business stability, so you don’t wind up spending business funds for personal purposes. Open Multiple Bank Accounts Now you’ll have a separate account for business and personal purposes. Don’t stop there. You can go even deeper and more specifically by opening multiple bank accounts for your business. This strategy is one of the easiest ways to track revenue and expenses, both of which are the core focus of accounting. For example, you may want to have a separate account for payroll purposes, construction materials’ procurement, and for receiving payments. The account you use to accept payments from clients can also be where you’ll transfer money to the other accounts as needed. Practice The Job Costing Method The job costing method means the cash inflow and outflow are properly attributed to each construction site or job. Even if all income from those construction sites technically still goes to your company’s earnings, it can streamline the accounting process when you know what belongs to this site and what doesn’t. This system is critical, so you can monitor the income earned for each site. Otherwise, if you mix different job projects, you may use the funds from one location site to pay for the labor expenses on another. This considerably misleads your books, as you may have a higher income on another site than it generates.  Practice The Cash Basis Method There are generally two accounting methods that businesses can choose from cash basis or accrual basis of accounting. The most straightforward approach is cash basis, so this is what you should use for your construction business. You’re already operating a complicated business as it is. If there’s any system or process you can use to help simplify those complexities, that would be the better choice. With the cash basis of accounting, you record the income and expenses as you receive and pay cash for them.  Conclusion The construction industry is, by itself, a very complex business. Unlike other types of businesses, there are many variables to account for in construction. And those variables can be regularly changed as to values as well. With that, it’s almost unsurprising to note that construction accounting may not be that straightforward. It’s difficult, but there’s no excuse not to learn it, as every penny counts. Hopefully, the guide above has shed more light on you about construction accounting, so moving forward, you’ll be less confused about how to go about it.

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