CPA Bulletin

www.cpa.uk.net CPA Bulletin > August 2023 45 RAIL PLANT ASSOCIATION: 2 • NR-L3-MTC-RCS0216-MP03 - Risk Control Manual - ON/OFF Cross Tracking Self Propelled OTP, RMMM, Trailers and Attachments issue 02 • NR-L3-MTC-RCS0216-MP14 - Risk Control Manual - Use of OTP Lorry issue 02 COP0038 - Code of Practice for Defective OTP Safety Critical Equipment Issue 3 A link to the full review will be sent to Members in due course. For CPA RPA updates and guidance/good practice visit our website: https://www.cpa.uk.net/special-interest- groups/rail-plant-association-rpa Steve Featherstone Update A recent edition of the New Civil Engineer focussed on the productivity challenge in the construction industry. This is based on data from the Office of National Statistics which shows that construction productivity, in terms of output per hour worked, has not changed much in the last 50 years and has in fact fallen by 7% since 1997. Since around 25% of publicly funded construction takes place in the railway industry, it is worth examining the contribution which railway plant has made, and could make, to improving productivity. I joined the railway industry in 2007 so I have seen at first hand the changes over the last 16 years. I am struggling to think of any game changing improvements which have created a step change in productivity. The plant and machinery used today is fundamentally the same as was used 16 years ago in modern equivalent form. The amount of people on site for different activities is at least the same if not greater than it was in 2007. I accept that we have seen changes such as the widespread introduction of battery operated tools and equipment but, whilst this has changed technology and reduced carbon, it hasn’t really changed output costs or delivery efficiency. It is a sad state of affairs that some of the most game changing machines introduced over the last few years are TRMs which are nearly 50 years old and have been brought out of retirement. I can recall many conversations in the past about possible game changing plant and machinery but very little of this has ever eventually made it into the supply chain. It is important that we understand why this is if we are going to change things in the future. At the recent Rail Live event, I had lots of conversations about new initiatives to improve safety, productivity and efficiency. Our supply chain is certainly not lacking in entrepreneurs and innovators which was great to see. There was one recurring theme, however, which is how hard it is to get things through product approval and how long it takes. Network Rail have looked at streamlining product approval at various times over the last 20 years but each review only seems to make the situation worse. Product approval now appears to be more about overwhelming process adherence than common sense, competent engineers making decisions to get innovative solutions into production in a safe and timely way. Network Rail have started another review of product approval. I have agreed to represent the supply chain as part of this review. There were two key pieces of news which came out over the two days of Rail Live and neither had anything to do with the plant show. On day 1, the latest inflation figures were published and on day 2, the Bank of England raised interest rates. Both of these have significant implications for the plant supply chain. Inflation puts pressure onto all of the input costs of the supply chain such as labour, plant, materials, haulage, travel, subsistence, etc. The increasing interest rates impact on the debt financing of the business and the cost of cash flow between paying their own costs and being paid by their clients. I am concerned that as inflation pressures continue, and interest rates continue to rise in response, then some of the plant supply chain may be unable to survive. In the current economic environment, it is important that suppliers consider any inflation clauses in their contracts. Continued inflationary pressures could put increasing strain on the ongoing financial viability of plant suppliers. On 4th July, we held the latest RPA Leadership meeting. It was great to see such a good attendance. One of the key topics of discussion was the new draft Model Terms and Conditions for Railway Plant Hire. Many thanks to everyone who has contributed to the production of the new version, especially David Smith and Adam Godwin of the CPA/RPA. Once we have taken into account the comments received, we will progress to the final version which will hopefully be published in September.