HS2

Time to move away from ‘famine or feast’ scenario for supply chain

The Industrial Strategy must enable a sustainable rail supply chain, avoiding the famine and feast scenarios of the past, according to a panel of experts at Railtex.

Speaking on the first Platform session on productivity and skills, hosted by RTM, David Clarke, technical director at the Railway Industry Association (RIA), said that the cyclical peak and trough situation of the past means the supply chain has struggled to invest in the areas to drive productivity.

However, the Industrial Strategy and the continued commitment to investing in major infrastructure projects, like HS2 and Crossrail, provide an opportunity to change this.

Gordon Wakeford, chair of the Rail Supply Group (RSG), told RTM that the “we must continue to invest in new infrastructure if we are to overcome the capacity challenges of the future”.

Both Clarke and Wakeford noted that RIA and RSG are working to try and create the right environment for a vibrant supply chain, enabling greater success for SMEs.

“The fundamental point is about making the supply chain sustainable,” said Clarke. “One of the things that has been a problem for the industry in the past, and continues to be the problem, is the feast and famine situation. We see major projects, major train orders coming along and the industry ramping up to deliver that followed by a trough. We have seen swathes of that in the past.

“That cyclical peak and trough situation means the supply chain finds it difficult to invest in the things that drive productivity. There have been situations, in the past, where suppliers have invested on the promise of the next major project – but these have, for whatever reason, been delayed. That is not a sustainable situation for any industry.”

With the RSG recently responding to the Industrial Strategy, both Wakeford and Clarke stated that it was important for the industry to be speaking with one voice in its asks of government.

This was a message that Paul Plummer, CEO of the Rail Delivery Group, reiterated in his opening keynote: “There are multiple companies in the industry and we want them to compete and innovate, but do it in a joined-up way.

“What we are working towards with the 'one railway' concept isn’t about one leader or single identity or reduced competition. What it does mean is more co-ordination and clearer asks of government. It is about one railway, one team, working together and enabling innovation for customers and the economy.”