In a new series of blogs, we will be reviewing the current and historical work of City-REDI.
In this latest blog, a recent study by Annum Rafique (University of Birmingham) and Pei-Yu Yuan (University of Manchester) delves into how text mining can be harnessed to analyse procurement contracts, offering valuable insights for policymakers and stakeholders.
The Power of Text Mining in Procurement Analysis
The traditional methods of analysing procurement data can be labour-intensive and may not capture nuanced information embedded within contract documents. This research introduces a more accessible approach using text mining techniques, which involve:
- Keyword-Based Filtering: Identifying relevant contracts, using expert knowledge, by searching for specific terms related to social housing retrofitting and net-zero initiatives
- Data Extraction: Utilising spreadsheet tools to extract and organise pertinent information from the filtered contracts.
- Data Analysis: Analysing the procurement contract data to understand the landscape.
This methodology allows for a systematic analysis of procurement contracts without the need for advanced technical expertise in Natural Language Processing (NLP) or Machine Learning (ML).
Key Findings from the West Midlands
Applying this approach to identify and extract the social housing retrofitting procurement contracts data extracted from the Tussell Database, focusing on the West Midlands region in 2022, the study uncovered several notable trends:
- Out-of-Region Suppliers: A significant number of these contracts were awarded to suppliers outside the West Midlands region, indicating potential opportunities in the sector to bolster local supplier engagement.
- SME Participation: Small and Medium-sized Enterprises (SMEs) constituted 65% of the suppliers, highlighting their active role in the retrofitting sector.
- Short-Term Contracts: The prevalence of short-term contracts may pose challenges to the long-term sustainability and planning of retrofitting projects.
Implications for Policy and Practice
The insights derived from this study underscore the importance of strategic procurement practices that align with regional development goals. By leveraging text mining techniques, policymakers can:
- Enhance Local Engagement: Encourage the inclusion of local suppliers in procurement processes to stimulate regional economic growth.
- Support SMES: Recognise and address the needs of SMES to ensure their continued participation and success in public projects.
- Promote Long-Term Planning: Design contracts that facilitate sustained efforts towards net-zero objectives, moving beyond short-term fixes.
Future Directions
The study suggests avenues for further research and application, including:
- Integration of AI: Employing artificial intelligence to enhance contract selection and analysis processes.
- Longitudinal Studies: Conducting long-term analyses to track procurement trends and their long-term impacts.
- Supply Chain Mapping: Understanding contractor networks to identify potential efficiencies and areas for improvement.
- Workforce Development: Assessing skills gaps and training needs within the retrofitting sector to support effective project implementation.
By adopting these strategies, stakeholders can better align procurement practices with sustainability goals, ensuring that public spending effectively contributes to the net-zero transition.
Read the full report.
Disclaimer:
The views expressed in this analysis post are those of the authors and not necessarily those of City-REDI or the University of Birmingham.