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NEWS Last modified on July 6, 2015

Heathrow announces procurement strategy for 'all of Britian'

Just five days after the Airports Commission recommendation that Heathrow gets a new runway, the gateway has unveiled a new procurement strategy which it claims will benefit all of Britain.

In his first speech since the annoucement, Heathrow CEO, John Holland-Kaye, will today state that the debate on where a new runway should be built is now firmly closed, and that Heathrow expansion will enable the government to deliver the UK’s long-term economic plan.

And the airport, he says, is beginning to move swiftly into the delivery phase.

According to Holland-Kaye, expanding Heathrow will create up to £211 billion of economic growth and 190,000 new British jobs across the country – the first wave of which will come from the planning and development of an additional runway and new terminals.

Speaking to delegates at the Runways UK conference, Holland-Kaye will announce that the airport will now begin to develop a comprehensive procurement strategy for the £15.6 billion in private investment that will deliver new hub airport capacity for the UK.

Heathrow view 1 1
The strategy, he says, will focus on developing skills, creating jobs and encouraging growth across the whole of the UK – ensuring that SMEs across the country have the confidence and the support they need to access Heathrow’s supply chain.

He will also announce that work will begin immediately, with the creation of a Procurement Forum with representatives from different sectors and experiences and from across different regions who will work with Heathrow to champion and challenge the procurement strategy of the airport’s expansion.

The objective of the forum will be to make sure Heathrow has the right strategy in place to deliver Heathrow expansion both on time and on budget, whilst also considering the wider implications of other major programmes underway, and the supply chain opportunities for growth across Britain.

In addition he will also announce that Heathrow will add an additional element to its annual business summit – which connects SMEs with the airport’s supply chain – to include an event outside of London for the first time.
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Heathrow currently spends over £1.5 billion annually with over 1,200 suppliers from around the UK.  

The Heathrow Business Summit North taking place in Leeds October 15 will ensure that more and more SMEs have the opportunity to connect with the airport before our detailed delivery strategy for the third runway begins.

Holland-Kaye says: “With expansion, we will create tens of thousands of skilled jobs while we build, as well as when we have built – skills that will leave a legacy of construction excellence in this country that can be sold all round the world. 

"When we built Terminal 2, on time and on budget, we spread our supply chain to all parts of the UK, and we will do the same again, ensuring that all of Britain benefits from Heathrow expansion.”

Heathrow has the support of the Federation of Small Businesses.

Its policy director, Mike Cherry, says: “Airport expansion is a tremendous opportunity for small firms across the UK to grow their businesses and help deliver significant much-needed infrastructure.  

"We’re delighted to be working with the team at Heathrow, and will join its Procurement Forum to ensure that smaller firms get equal opportunity of access in the supply chain to deliver a project of this scale and importance.”

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