THE WATER SECTOR URGENTLY NEEDS A NEW EARNINGS MODEL
NEWS
The Netherlands has an undisputed reputation for 'water expertise'. Even so, it has difficulty cashing in on that image, claims ir. Piet Dircke. The Flood Control chairman argued for the development of a new earnings model, with the Netherlands as the dazzling showcase for the large-scale application of the latest delta technologies. It is precisely this last element that is lacking.
The Dutch water sector is one of the brightest kids on the block but it is not managing to generate much cash. At approximately 1.5 billion euros a year, hydraulic engineering accounts for less than 0.2 per cent of GNP. By comparison: agriculture contributes more than thirteen times as much. Piet Dircke: “With the exception of dredging work, most Dutch sales consist of consultancy time. Countries like China, France and Japan get a much better return from their knowledge. Their 'earnings models' give national companies the opportunity to benefit from their colleagues' foreign successes. The Netherlands hasn't got a centrally managed model of this kind and it clashes with our culture."
The Flood Control chairman thinks that the Netherlands needs to develop its own earnings model based on a free-thinking approach, individuality and teamwork. “That model should target the international arena; that's where the big money is. It should also cover multiple sectors; that's where the opportunities are. Together, the leading sectors have the technological punch to take on the challenges facing the world. In 2050, 70% of the global population will be living in mega-cities, almost all of them in delta areas. The challenges are enormous in the field of energy, sanitation, flood protection, infrastructure and food. In short, everything the Netherlands is good at.”
To sell Dutch expertise better, it's crucial to use the sales arguments that make most impression on the international stage. Flood protection is one example. Piet Dircke argues that the Netherlands itself should return to its position as the showcase for state-of-the-art technological solutions, like New Orleans is at the moment. “For decades, the Delta Works were the standard, but they no longer impress the director of a delta metropolis like Shanghai, Bangkok or Mumbai. These people are looking for integrated high-tech solutions for their hundreds of millions of inhabitants. They are the potential clients in the new business model.”
“Success depends convincing the world that our technology works. It has to be proven technology. And this is the most important challenge facing government. It needs to do much more than it does now in its role as launching customer, the first sheep to leave the fold. The Netherlands has to combine the major national challenges with investments in the application of latest techniques in our high-profile international activities, such as water and delta technology. And if the government does take on this pioneering role, the Netherlands will not only be the safest delta in the world, we will also deliver a boost for the entire Dutch economy.”
Piet Dircke's opinion was published in one of the major Dutch newspapers, "Het Financieel Dagblad". For more information please contact info@floodcontrol2015.com.