The big question

Stuart White

Operations Director at Blaze

Manufacturing Solutions Ltd

The usual considerations of understanding your buying habits, knowing your supply chain and managing risks by having alternative sources and solutions, has become ever more difficult with the shifting risk landscape.

While Blaze is in the fortunate position to be independent and not tied to specific products or suppliers, others aren’t so lucky and need a more in-depth strategy. In these cash-constrained times, building up stocks is not possible for most – especially SMEs. There are also the practicalities of storage, deterioration and obsolescence to consider. And this is not to ignore skills shortages, especially in Western economies where skilled tradespeople and engineers are in short supply.

Managing your supply chain requires considerable effort, and regular review, to maintain awareness of the risks and solutions

Wherever the risks lie, maintaining close relationships with key suppliers is essential, as you will better understand their resilience and contingencies should disruption occur. They can also help to manage disruption for their core clients. However, alternative solutions are often required.

Leaders therefore need to be ever more innovative in building resilience and agility in supply chain management. This includes considering supplies that may be higher priced but more local, building relationships with suppliers in new geographies and even considering product design to accommodate alternative types of component, as well as in-house solutions, where practical.

In short, managing your supply chain requires considerable effort, and regular review, to maintain awareness of the risks and solutions.

Blaze Manufacturing Solutions Ltd provides fire safety protection, detection and loss prevention solutions for the energy sector. Originally set up to serve the oil and gas sector, Blaze has expanded its safety-critical solutions to allow for early intervention and mitigation of a major accident hazard to ‘high asset value’ sites where the result would be catastrophic for both personnel and plant. Blaze has a track record of delivery in the renewable energies, nuclear, mining, commercial and industrial sectors and overseas to markets across the globe.

Shamila Neelakandan

Partner and Head of Construction

Claims & Expert Services Asia

Pacific at HKA

In today’s world, geopolitical risks arise from strained international relations, manifesting in various forms. These include military conflicts (Middle East and Europe), uncertain domestic political landscapes (for countries holding elections this year) and systemic regional polarisation through economic ostracisation of nations such as China and North Korea. All of these cause uncertainty in supply chain management.

Adverse geopolitical environments cause disruption in the supply of natural resources (oil, gas, minerals and so on). It also contributes to material scarcity, workforce shortage, protracted trade routes (and thus increased freight and insurance premiums) and abnormal increases in inflation, compounded by uncertain fiscal regulations on national taxes and policies.

In addressing the complexities of geopolitical risks, sustainability emerges as a pivotal strategy to be considered. Supplier diversification, especially through local production hubs, stands as a potent tool to reduce trade barriers. Empowering suppliers, supported by subsidies and incentives, enables them to offer resilient commercial alternatives, mitigating the adverse impacts of geopolitical disruption.

Embracing non-exclusive framework contracts with suppliers not only ensures stability but also secures better rates while managing uncontrolled risks. And implementing pre-agreed caps on inflation rates serves as a crucial measure to control the rising costs.

Suppliers must adopt prudent and proactive forecasting, incorporating geopolitical challenges

In summary, suppliers are advised to mitigate risks through diversified strategies while adopting prudent and proactive forecasting, incorporating geopolitical challenges into their financial projections.

HKA provides multi-disciplinary expert and specialist services in risk mitigation and dispute resolution within the capital projects and infrastructure sector. It has extensive experience advising clients on the economic impact of commercial and investment treaty disputes and forensic accounting matters across all industry sectors. HKA also supports companies that conduct business with the US federal government, providing them with consulting services on complex government contracting matters. From concept to closeout, HKA’s services deliver incisive interventions that provide clarity and certainty, getting to the bottom of time, technical and cost overruns, and resolving claims and disputes.

Dan Kerr

Managing Director at Samuel

Knight Energy

As the transition to renewable energy continues, companies across the supply chain are increasingly encountering talent challenges. Hiring and retaining the best people within wind, solar, storage, and transmission and distribution is ever more competitive. The challenge now is having the right talent available with all the experience required. We are often trying different initiatives to inject new talent into the industry or bring talent from other markets with transferable skills.

With more than 6,000 renewable energy projects all hiring across development, construction and operations, there is high demand for talented engineers, technicians, project managers, technologists and business leaders. Therefore, a long-term proactive approach to talent attraction, development and retention should be central to the growth strategy of any company operating within renewable energy. We are looking to invest in people and upskill individuals in order to get new talent into the industry.

Directly recruiting replacements for those who leave can be difficult and expensive, so it’s important to take a longer-term approach, attracting and developing entry-level talent. Investing heavily in employee skills, qualifications and experiences can help to increase retention by up to 50%.

The challenge now is having the right talent available with all the experience required

Yes, hire for attitude – but skills are critical in what can be a highly technical career. Companies should be looking for opportunities to hire people with transferable skills from aligned industries such as conventional energy, chemical and pharmaceutical, and automotive.

A proactive, long-term talent strategy should be central to every company operating within renewable energy.

Samuel Knight International is on a mission to build a greener world by working with the global community to achieve zero-carbon emissions by 2050. Through its specialist companies, Samuel Knight Energy, Samuel Knight Projects and Samuel Knight Technology, the company provides global recruitment and manpower solutions for the renewable energy market. Samuel Knight International specialises in enabling its customers to fulfil their project needs by sourcing contract and permanent talent in various sectors, including onshore and offshore wind, solar energy, battery storage, transmission and distribution, power generation, hydrogen and hydroelectricity.

Image credit | Michal Wachucik Abermedia | Scarlet-Butterly-Media | Supplied