Breaking into the Big Time

MEP Middle East talks to two MEP start up companies that have turned into regional success stories, to find out what they did right and what new entrants into the market can learn from them

Speak to almost any analyst or expert about the prospects for the regional MEP industry over the next few years and you’re likely to walk away with a positive impression about the direction in which the Middle East is headed in terms of growth, competition and technological advancement.

In fact, a report by Frost and Sullivan predicts that the regional mechanical, electrical and plumbing industry is likely to be worth $22.44bn by 2013.

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Qatar and Saudi Arabia are the driving factors behind this surge in growth across the GCC’s MEP sector, with both Gulf nations stepping up the pace of their construction industries in order to meet very different goals.

Keeping in mind its burgeoning population, the Kingdom of Saudi Arabia has stepped up investment in a number of social development projects that cover infrastructure, education and healthcare. As part of this drive, the government has spent around $66.5bn on building low cost housing for its population, a move that has seen local and international contractors sit up and take serious of the Kingdom’s intentions.

Meanwhile Qatar, having won the 2022 FIFA World Cup bid, has lost no time in stepping up the development of its infrastructure in preparation for the mega-event. While experts agree that there is probably a lull period before MEP work really takes off, the general consensus is that contractors and consultants are probably best served by getting in early and establishing themselves before the competition for the big jobs becomes really intense.

While the growth of the MEP industry has led to a number of opportunities in the sector, perhaps the biggest development is that the level of competition has also risen significantly, meaning that companies bidding for jobs have to ensure that their work is of the highest standard and that they can match up to the performances of even their biggest rivals.

This is probably the biggest challenge that new MEP companies entering into the market will face. Lured by the promise of work and substantial contracts, a number of national and international contractors and consultants have been looking to break into the GCC market.

However, given the already existing level of competition and the ‘unique’ operating nature of the GCC, there are a number of challenges that a new entrant would face.

Mick Cairns, managing director of Red Engineering, says that there are a number of business practices that a new company can establish right in the beginning that would help it operate better in the market place, and in turn, help it acquire a solid reputation as a reliable MEP consultant or provider.

“We strongly believe in a ‘get it right the first time’ principle. Getting it right the first time means that we spend a lot time and effort during the concept stage, we don’t just do rule of thumb calculations and evaluate a couple of options,” he says.

A company that does a detailed analysis right at the beginning, which can include anything from energy and thermal modelling to CFD analysis of any particular areas of concerns, will soon pick up a reputation amongst architects and engineers as being the go to company for getting things right the first time, an obvious benefit in the long run.

This philosophy is what Cairns believes has turned Red Engineering into a positive growth company within the four years it has been operational in the Middle East.

“Our line with clients in a presentation is that 95% of what we tell them in the first four weeks of the job will be in our build drawings,” he explains.