Mitigating industry downturns with more efficient asset management

Mitigating industry downturns with more efficient asset management

I recently attended the launch of the QLD Major Projects Pipeline Report for 2019/20 at the Brisbane Convention and Exhibition Centre. The report, compiled by the Infrastructure Association of Queensland (IAQ) and QLD Major Contractors Association (QMCA), revealed that infrastructure spending in Queensland is expected to drop in 2020.

According to the report, this downturn may come from Public Infrastructure spending – currently at $19.27 billion in funded projects compared with $8.3 billion in Private Infrastructure.  That’s a lot of investment, so why the downturn?

During 2019 and 2020 there are several factors in the public sector which will impact this funding:

  1. A federal government election in 2019 will mean that the government will go into caretaker mode before the election and, once the outcome is resolved, it takes months for the continuing or new government to develop their plans and reengage with the marketplace.
  2. A state government election and local government elections in 2020 will again see governments moving into caretaker mode.

The allocation of funding for major projects in the interests of the public will be delayed 12-24 months or longer depending on the level of government and which party is in power. This puts the onus firmly on the private sector to pick up the pace. However, government uncertainty has always been a frontrunner for inaction.

So with that in mind, the question becomes, “what should critical asset owners focus on during this time of uncertainty?”

Simply put, the owners of assets will be looking to now extend the working life of their assets as long as possible until the financial capability to upgrade is presented; colloquially known as “sweating assets”.

Simple, isn’t it? Well, it’s not as easy as it sounds. The tools to perform these tasks become critical. Field service teams will be performing more routine maintenance alongside preventative maintenance services which will include asset health checks. This information needs to be captured and relayed simply and easily to be reported and collated to help asset and facilities managers understand the state of play with their asset components, and how, if at all, they can mitigate risks associated with potential failures and outages.

This means the accuracy of data and the timely execution of tasks becomes critical. The applications now need to be easily used in the field on mobile devices with the schedulers having the ability to manage tasks in a logical order with the right resource for each task. The data needs to be entered easily on the devices in an intuitive manner that actually reflects your organisation’s processes and the use of media (photos, audio, and video) needs to be embedded and stored. Moreover, the ability to instantly create a new issue onsite without leaving the same system reduces time to repair and reduces licensing costs for multiple systems.

Can your current systems and practices do this?

If you are unsure and would like a consultation to understand how others do it, feel free to start the conversation with me today.

Do NOT follow this link or you will be banned from the site!