Government needs to be realistic about targets

On 7th November, the Construction Plant Hire Association (CPA) held its annual conference entitled ‘Shaping the Future: Insights for the Plant-Hire Sector’, with a range of topics discussed by industry leaders, including skills, decarbonisation and sustainability.

It was also the first time the CPA’s new Chief Executive, Steve Mulholland, appointed in August 2024, had the chance to open the conference and highlight both the challenges and opportunities facing the sector. Peter Haddock took the opportunity to catch up with him to find out more.

Steve: “There is a lot happening in the industry at the moment, and with the new Government now keen to drive forward with ambitious plans to build more homes, there are numerous challenges our members will need to overcome to support the wider sector.

“The first thing we all need to address is how we can find new ways to attract and train young people, particularly as we have an ageing workforce with key skills and knowledge to pass on before they retire.

“For example, I have been speaking to members about behavioural change within their organisations, particularly when it comes to working with young people.

“We have never been brilliant at retaining people in our sector, so as the next generation comes through, we must figure out how to retain them and develop their skills.

“It’s not just about salaries. There are other incentives to consider, and we need to develop clearer career paths, especially as we are competing against other industries for the best talent.

“In addition to the workforce, we are seeing a lot of rapid change when it comes to the use of technology and the transition to Net Zero, which require different skill sets. This is particularly the case when it comes to how we manage the transition from diesel to electric machines and the skills needed to look after these assets.

“With hire rates always being a challenge, the increasing capital costs of electric equipment in particular also have to be considered. This is why we are urging government and regulatory bodies to take a much more pragmatic, commonsense approach to setting targets and mandating policies too quickly.

“For example, the new Governments ambitious targets don’t always align with current industry realities. From recent data, we can see that around 30,000 pieces of Non road mobile machinery were sold in the past year, and only 103 were electric. So there's no way you're going to make up that gulf to meet Net Zero targets.

We also need to be able to deliver solutions to our customers today and tomorrow, so CPA members, end users, hirers and suppliers must be able to continue producing and using fossil-fuel powered equipment, while alternatives are sensibly phased in.

And these alternatives will only be feasible if they genuinely deliver the same performance as diesel equivalents.

So, as a voice for our members, we will be advocating for gradual transitions, emphasising the need for infrastructure that can support the energy transition without sacrificing operational efficiency.

“To do this we will need to take an approach of evolution, not revolution with ridiculous targets that will lead to panic and knee-jerk reactions to meet impossible political targets, which suit government agendas and that of the noisy minorities.

“What we also need to highlight to the Government is that our sector has both large and small member businesses that need to remain sustainable to ensure we can continue to service our wide and diverse customer demands.

“And as an organisation with over 2000 members, we are well placed to support individuals and are committed to supporting their success. Whether that’s through adopting new innovations, becoming more sustainable or developing the future workforce.”