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ARCHITECTURE AND ENGINEERING
The Architecture & Engineering (A&E) sector is a major part of the Jordanian economy – accounting for 1 percent of total GDP – and one of the most developed service industries. The sector exports services to over thirty countries in the region and globally, and is a major employer of skilled labor. Existing firms range in size from 1,000 to 30 workers and all are experiencing rapid growth in demand for services. According to a recent SABEQ assessment, half the A&E firms surveyed expect a 5-year annual expansion rate of 6-10 percent and nearly a third expect a rate of 10-15 percent. These projections are in the face of increasingly competitive export markets, particularly in the Gulf.
There is strong rationale for SABEQ support to the sector. The A&E sector has the capacity to produce at least twice its current output just expanding on its traditional A&E design and consulting services activities. A&E firms are particularly strong in Infrastructure and A&E Design. If the sector also embraces a comprehensive BPO/KPO outsourcing development strategy – where non-core parts of the engineering design value chain are offshored to Jordan – the potential for employment and export growth can be further magnified. There is a potential to incubate new enterprises that specialize in specific engineering and design activities (like 3D modeling) as well as to attract captive units of international firms operating in the Gulf, capitalizing on the significant labor pool in Jordan (over 78,000 registered engineers) and the annual output of 5,000 engineering graduates per year.
SABEQ’s support and prior assessments have identified a number of key challenges that need to be addressed for the sector to meet its true potential, including:
- Mismatch between university curricula and industry requirements; insufficient university-industry linkages to develop appropriate workforce skills.
- Lack of certification for professionals; relatively low productivity per engineer.
- Weak export marketing and investment promotion support to the sector.
- Lack of a comprehensive BPO/KPO development strategy for the sector.
- Strong competition from the Gulf for skills; high turnover rates.
- Lack of collaboration among A&E companies and with related players in the industry.
- Poor enforcement of building codes; construction companies mainly don’t adopt internationally accepted systems.
- Management and technology weaknesses among enterprises; “family firm” culture.
- Limited regulatory and incentive framework.
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Goal
Improve productivity, efficiency and global competitiveness of the A&E sector to be a primary exporter and destination of services outsourcing for regional and international markets by upgrading Jordanian A&E enterprises in the value chain to provide more specialized and niche services and attracting foreign investment into the sector. |
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Targeted Results by 2010:
· 370 jobs created
· $7 million increase in exports (currently, $35 million)
· $16 million increase in sector revenues (currently, $113 million) |
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Activities |
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1. Market Access & Sector Outsourcing
· Review current and potential A&E sector export markets and opportunities for service outsourcing and develop strategy
· Assist A&E BC to sign recognition agreements with professional bodies in the target markets
· Assist A&E BC to effectively implement and benefit from the developed A&E Directory, its knowledge management system and the marketing intelligence unit
· Assist A&E Business council and the JGBC to participate in Exhibitions, International events and conferences to build capacity in specialized services (green design) and to promote the A/E sector.
· Work with BPO team to develop outsourcing investment promotion effort |
Key Deliverables
· Sector outsourcing development strategy defined as well marketing and promotional plans
· Recognition agreements with professional bodies in the target markets signed
· A&E BC reporting and intelligence function developed
· A&E sector participation in international events to promote the sector in the target and potential markets and in events related to green initiative achieved
· Engineering services BPO/KPO effort launched |
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2. Workforce Skills Development
· Enhance the skills of the A&E workforce to better deliver quality services and manage rapid growth
· Work with universities to revise curriculum that will include new trends like green designs and develop nontechnical skills of the A&E students/ graduates |
Key Deliverables
· Workshops based on the TNA results for the A&E workforce in the technical areas delivered
· Curriculum based on A&E sector needs (green design, green codes…) and work with Maharat Program to target A&E students and graduates developed |
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3. Standard of Excellence and Transformation
· Establish a transformation program and standard of excellence in accordance to best international practices to be adopted by the A&E firms
· Build the institutional capacity of the GBC to fulfill the World GBC requirements
· Establish Guidelines related the adoption and implementation of Green building codes including rating systems for level II and related incentive scheme
· Establish codes enforcement office at NBC |
Key Deliverables
· Code of conduct and ethics
· IPR system/ regulations
· Excellence Model to deliver quality services in accordance to best international practices adopted
· Jordanian Rating System Level III implemented
· Guidelines to implement the green building codes and national rating system for level II and Green Building Incentive Schemes
· Codes enforcement office at NBC |
SABEQ is aiming to enhance the competitiveness of the A/E sector to be a primary exporter and destination of choice for outsourced services in regional and international markets in more specialized, niche areas such as green building related activities, and to address the following:
· A/E sector market development with focus on A/E outsourcing services.
· A/E sector workforce development, focusing on green skills
· Improved quality of services and sectoral transformation
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