Productivity.
Doing more with less.
OK, times are tough. Everyone is capital constrained. Jobs are being quietly lost. Sustainability teams took a hit with the early Trump fiasco, only for some firms to at least partly walk back their pessimism, as they realised that this country has decided to stay the course, maintain rule of law and keep going with ESG disclosures.
On top of being constrained, capital is nervous as hell about climate exposed property and things like gas boilers in its property assets. No one wants a big zero NABERS rating when it’s time to go to market.
What we need to back into that scenario is a bit of magic, otherwise known as productivity, which feels a bit like the magic pudding – somehow doing more with less.
This turns out to be the theme underlying our electro-retrofit masterclass on 1 July. Not that we claim credit for it. We built this masterclass on a call for submissions, and that’s the zeitgeist that came back because the people who responded are dealing with the visceral reality of what they have to work with.
Alex Sear of ADP, in fact, says his presentation will show how his team is doing electrification at “prices we couldn’t have imagined five years ago”.
It was the same zeitgeist at play in our conversations with industry stalwarts on Wednesday afternoon.
Unbeknownst to most of us, it turns out that Treasurer Jim Chalmers was that same day spruiking exactly that theme at the National Press Club.
Reading through Chalmers’ speech is a nice tonic if you need your spirits lifted out of the winter doldrums.
You can see our highlights from Chalmers’ NPC address here – or check out the works in full here.
So what’s the deal with Chalmers?
Yes, he said a lot about tax reform, but the exciting thing for us is that it feels like this industry may finally be taking its rightful place on the national political agenda.
Chalmers cited the five pillars from a Productivity Commission report as central to reform, and we claim the first four:
- Creating a more dynamic and resilient economy (by which we take it to mean physical climate resilience in our built environment)
- Investing in the net zero transformation
- Building a skilled and adaptable workforce
- Harnessing data and digital technology
- And delivering quality care more efficiently (actually this one too, under the “s” in ESG)
These are all things that can deliver enormous benefits not just to the planet, this country and its people, but to the economy as well.
What we could be finally heading towards is an alignment of goals – at last.
As one susty leader told us after the speech, Chalmers seems to be calling for a dramatic policy makeover the likes of which we haven’t seen since the golden days of former prime ministers Paul Keating and Bob Hawke, who in so many ways galvanised a national willpower and remade this country.
The Treasurer says this term of government is about delivery and that the ground is set
He wants to kick it off, not with a big noisy summit, but instead just the 25 people or so who can fit into the cabinet room.
It will go over three days, from the 19th to the 21st of August– and its job will include consideration of the five pillars set by the Productivity Commission.
The commission’s talented chair, Danielle Wood, the equally impressive Reserve Bank Governor, Michele Bullock, and the Prime Minister himself will lead the proceedings.
There will be rules and objectives. No advocacy for specific industries or sectors but broad benefits for the nation.
Which, gives us much optimism that the built environment can be recognised as key.
Imagine: cheaper clean energy; better buildings, cities and transport; efficient construction; affordable housing, with people living closer to work; housing that doesn’t make people sick because of shoddy work or that costs a fortune to heat and cool. The list of benefits that can be delivered by better productivity in the built environment is endless.
The industry already on the case
Nicholas Burt, chief executive officer of the Facility Management Association, whose members currently number around 4000 and keep growing apace, says it’s a tough economic market; people have to come up with new solutions for the removal of fossil fuels and do it at a lower cost.
“Everyone has to do more with less. It’s the paradigm we live with.”
But despite the tough environment he notes there’s a lot of activity underway, particularly focused on retrofitting existing buildings and bringing them up to modern standards. Other sources in the office fitout industry report the same.
Burt says work is spread across the industry but geographically the big tranches are in Victoria, thanks to its gas-dependent legacy.
Stan Krpan, CEO of Solar Victoria whose work continues to beat targets with solar, hot water heat pumps and now batteries for households notes that in his state, the resi sector is a bigger gas consumer than commercial and industrial buildings.
What the industry needs urgently, Burt says, is more skills, more professional development and more trades. There’s no particular priority, demand is for everything from electricians to plumbers and gasfitters.
- The Energy Efficiency Council’s Residential Energy Efficiency Workforce Mapping report does a deep dive on the jobs story for resi
Burt also notes the need for more financial mechanisms to unlock potential alongside collaborative work with stakeholders and clients.
And policies.
“It’s time to set policies firmly in place,” Burt says
“This government has recognised that the built environment is one sector that can play a big role in achieving net zero.”
The possibility is it may have to step up and play an even bigger role if other sectors fail to achieve their targets because they are far less prepared.
“Our members are going to play a significant role going forward.”
Built environment. Your time is now.