Renewable energy supply chain toolkit will help local SMEs
28th May 2014
SMEs (small and medium-sized enterprises) could get a boost to their business with the launch of a toolkit to encourage the use of local supply chains for renewable energy and low carbon retrofitting projects, says Terry McGivern, head of resource efficient buildings at the Institute for Sustainability.
The Institute for Sustainability’s new Local Procurement and Supply Chain Toolkit provides detailed information to help SMEs benefit from the increasing focus of large buyers on local supply chains.
Large organisations are increasingly acknowledging the benefits of utilising local suppliers to deliver renewable and low carbon projects, while recently introduced legislation is also encouraging them down this route.
Local SMEs are often an extremely good fit for opportunities in the renewable and low carbon retrofit market, even for large buyers. The fragmented nature of the work means local, trusted businesses can be an important factor in successful delivery, and have a key role to play in providing the capacity needed to serve this expanding sector.
Although some businesses are already benefitting from this market opportunity, others feel they are too small, cannot compete or simply do not know where to find or how to respond to tender opportunities.
Practical guidance
The renewable energy and low carbon sector is set to increase significantly in the coming years. With total UK sales of low carbon environmental goods and services in 2010/11 estimated to be some £122.2 billion (BIS, 2013), an increase of £5.4 billion over the previous year, this sector is predicted to grow at around four per cent per annum.
The toolkit aims to help SMEs access this opportunity by providing an insight into the investment plans and procurement methods adopted by a range of different large procurer organisations including councils and housing associations. Understanding how these key large buyers procure will enable SMEs to decide which services to offer, how to find opportunities and then what is needed to apply for them.
The Institute’s Local Procurement and Supply Chain Toolkit is part funded by the European Regional Development Fund (ERDF).
Large organisations are increasingly acknowledging the benefits of utilising local suppliers to deliver renewable and low carbon projects, while recently introduced legislation is also encouraging them down this route.
Local SMEs are often an extremely good fit for opportunities in the renewable and low carbon retrofit market, even for large buyers. The fragmented nature of the work means local, trusted businesses can be an important factor in successful delivery, and have a key role to play in providing the capacity needed to serve this expanding sector.
Although some businesses are already benefitting from this market opportunity, others feel they are too small, cannot compete or simply do not know where to find or how to respond to tender opportunities.
Practical guidance
As a result, the Institute’s new Local Procurement and Supply Chain toolkit provides SMEs with practical guidance to increase their chances of winning business from large public and private sector organisations, particularly in the energy efficiency and renewable energy markets.
The renewable energy and low carbon sector is set to increase significantly in the coming years. With total UK sales of low carbon environmental goods and services in 2010/11 estimated to be some £122.2 billion (BIS, 2013), an increase of £5.4 billion over the previous year, this sector is predicted to grow at around four per cent per annum.
The toolkit aims to help SMEs access this opportunity by providing an insight into the investment plans and procurement methods adopted by a range of different large procurer organisations including councils and housing associations. Understanding how these key large buyers procure will enable SMEs to decide which services to offer, how to find opportunities and then what is needed to apply for them.
The Institute’s Local Procurement and Supply Chain Toolkit is part funded by the European Regional Development Fund (ERDF).
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Related links:
procurementtoolkit.instituteforsustainability.org.uk
