Transcript Barbados-Engineering_Construction

Strategic Plan for the Promotion of
Professional Services Exports in
Barbados – Engineering and
Construction-related Services
Sunil Sinha
Technical Director
Emerging Market Economics
December 2006
Overview
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Strong international demand:
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World market for construction-related,
knowledge-based services (engineering,
architecture) worth about US$600 billion
About $300 billion is contestable by specialist
firms
Market can be divided into engineering
and architectural services
International Trends
Engineering Services
 Most services supplied domestically due to
qualification requirements
 But, international trade increasing due to:
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Cost differentials, increased specialisation
Large projects requiring expertise, experience, scale
Engineer shortage in some countries, cheap engineers in
others
Offshoring to cheaper in-house locations and outsourcing
to low-cost destinations
Outsourcing typically through local sub-contracting
and farming out of low-value added services
Architectural Services
 Lower trade volumes due to more stringent
registration requirements
 Outsourcing will remain limited to labour-intensive
activities like draughtsmanship
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Local Capability
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180 corporate members of Barbados
Association of Professional Engineers
Estimated 40 chartered engineers
About 24 architecture firms, 64 members
of Barbados Institute of Architects, 10-12
professionals constitutes a large firm
Target Markets
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CSME for engineering and architecture
UK for engineering – shortage of
professionals
EPAs likely to remove restrictions on
practicing in EU countries, could open up
architecture market
Market Positioning
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High quality professionals, longestablished large firms provide basis for
providing high-quality services for large
projects in CSME
Particular skills in environmental
management, disaster mitigation, other
area?
Labour cost advantage over US, Western
Europe?
Marketing Activities – Brand Awareness
Objective: Increase profile of sector
internationally
 Website: Promote Barbados as source of
quality construction-related services;
avoids restrictions engineers, architects
face in marketing themselves
Marketing Activities – Direct Marketing
Objective: Create export opportunities
 Marketing Trips: Larger, export-ready firms to
meet with UK firms to offer outsourcing services
 Partnerships: Larger local firms sub-contract
work to smaller domestic providers; smaller
providers associate with each other to increase
scale and improve ability to win international work
 Marketing Support/Intelligence: Provide
training to small providers in preparing competitive
tenders, monitor project profiles
Enabling Environment
Objective: Address local factors constraining growth
 Accreditation: EPA should allow temporary work
in Europe without qualification, should also work
towards mutual recognition of qualifications
 Free Movement: CSME should alleviate
requirements for local accreditation, ensure local
content is reduced.
 Skills: increase supply of draughtsman
 Incentives: improve access to export incentives
and finance for SMEs
 Alliances: forge private-private and private-public
partnerships
Thank you