Building News is an information portal for all professional building specifiers. Here you can find all of the latest construction news from around the UK and the rest of the world.

What’s changed within engineering and manufacturing? Reflecting on Brexit three months on

With three months having now passed since the outcome of the EU referendum, John Morris, CEO at JAM Recruitment takes a look at how the result has impacted the job market and production within the engineering and manufacturing industries.

Whilst the initial reaction to Brexit was one of concern, three months on, we’re yet to see a change to the market – we certainly haven’t seen the levels of disruption that were predicted. We’ve placed hundred’s of engineers across the likes of BAE Systems and GE over the last three months, and we actually started to see a growth in contract jobs in August – something that can be seen as a real positive for UK employment.

The overall impact

Despite initial warnings of job cuts, leading to increased skills shortages in engineering and manufacturing, the market hasn’t seen a great amount of change. Unemployment is still holding up at an 11-year low of 4.9%, which is incredibly promising. However, it’s too early to draw solid conclusions about the impact Brexit will have on employment rates, especially as Article 50 is yet to be triggered.

What does it mean for engineering and manufacturing?

Contrary to the initial predictions, recent reports have shown that British manufacturers have enjoyed rising output and a steady flow of new orders over the past three months, meaning Brexit didn’t deliver an immediate blow to businesses. Further to that, a recent REC report highlighted that engineering was the second most sought-after job category when it came to permanent staff, showing that any dip in confidence within the sector was short-lived.

What will the future bring?

The recent Engineering and Technology Skills and Demand in Industry report found that while demand for qualified engineers is increasing in the UK, the education system fails this industry by not producing engineers that are fully prepared and experienced enough. As a result, the best option for employment would see the UK Government ensuring that STEM subjects are given more of a push, which will better equip our future workforce.

To ensure that there remains access to skilled engineers in the UK, it’s crucial that the government doesn’t stifle access to the skilled candidates with its immigration policy. Whilst we do have an incredibly strong network of skilled professionals in the UK, the freedom of being able to recruit staff from Europe is still hugely beneficial, especially within the industries where there is a well-recognised skills shortage.

Whilst we wait for the activation of Article 50, it’s essential that we continue to work closely with clients to ensure that we’re taking preventative steps to minimise the impact Brexit may have. This will mean continuing to attract students to the UK industry, whilst also investing in up-skilling those already working within the sector.

Written by John Morris, CEO at JAM Recruitment

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For more information about JAM visit www.jamrecruitment.co.uk.
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What happens to European Standards in a post-Brexit Britain?

Europe has led the world in improving building standards with the UK having played a key role in their development. But after the momentous day that was June 23rd and the UK economy appearing now to have weathered that initial vote-to-leave shock, where does that leave the construction industry in terms of EU regulations?

The British Standards Institution (BSI) is one of 33 voting members of CEN (European Committee for Standardisation). However CEN rules state that you can only join CEN if you are a member of the EU or about to become a member. In the case of non-EU countries including Norway and Switzerland, their membership in the European Free Trade Association (EFTA) qualifies them as well. When the UK finally leaves the EU it will therefore be essential for the UK to rejoin EFTA otherwise the BSI will have to argue for a change in statutes of CEN so that they can continue their membership of this organisation. And in that scenario, there may well be a lot of political pressure to keep us out.

But then what does that mean for the UK and what is the scenario of the UK walking away from the EU standard table? Any product intended for sale in the EU must meet the relevant EU standard. Non-compliance will clearly restrict markets. One of the key things about EU standards is that they do ensure a level playing field and are considerably better than each country having a different standard and system of compliance.

To add to this, the Construction Products Regulation (CPR) has, since 2014, mandated that all products produced for sale in the EU provide a declaration of performance and visible CE mark. In their BREXIT negotiation, the UK Government would be able to ignore the CPR and revert to BS standards instead of BS EN standards. This scenario seems unlikely as this would complicate matters with the possibility of two-tier standards. And that might a have a knock-on effect for manufacturers with variable production runs and increased stock levels.

And how does an EU standard compare to BS? Some BS testing is outdated and not as relevant to real-life scenarios. We tend to cling to some out of ‘habit’ when more representative standards exist. One such example is the adherence/preference of the UK to BS476 testing regimes for curtain wall perimeter fire barriers, when a specific EN test standard EN1364 offers a far more representative test option. The BS 476 standard tests curtain wall perimeter fire barriers in a static assembly, whereas the EN1364 tests simulate the dynamic movement of the curtain wall façade, which we would contend is a far more sensible and robust option. Siderise is amongst a very few suppliers who have opted for the EN1364 test, as we see it as far more representative of “real life”.

At the moment the UK has a vote and we can influence EU standards, and on occasion we could in theory ‘block’ standards that we did not like or at least modify them. One scenario is that we can go to meetings post-BREXIT, provide technical input, but in the end not have a vote – unless of course we negotiate some arrangement whereby we are allowed to vote. But that would appear to be fraught with difficulties. Whatever the outcome, we must not fall out of step with Europe. The costs to industry of totally abandoning EU standards are so vast as to be too horrible to contemplate.

By Chris Hall, Commercial Development Office, Siderise 
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A new Apple campus at Battersea Power Station redevelopment

Battersea Power Station has now confirmed that Apple has agreed to lease office space within the historic Battersea Power Station.

Apple will be the largest office tenant at Battersea Power Station occupying approximately 500,000 sqft., across 6 floors of the central Boiler House inside the historic icon. Apple is expected to move into the Power Station in 2021.

Battersea Power Station will be Apple’s new London campus and its office will account for circa 40% of the total office space in the whole development.

Apple has today said it is looking forward to opening its new London campus at Battersea Power Station in 2021. 1400 Apple employees from existing offices around London will relocate to this magnificent new development at one of London’s best known landmarks. Apple has added, that this is a great opportunity to have its entire team working and collaborating in one location while supporting the renovation of a neighbourhood rich with history.

Dato’ Johan Ariffin, Chairman of Battersea Holding Company Limited, said “We are delighted to welcome Apple, the world’s most valuable brand, to Battersea Power Station, London’s most iconic development. This move by a brand of such calibre will serve to generate even more interest in Battersea with its vibrant mix of commercial, exciting retail and residential offerings in a cultural setting designed to drive innovation and enterprise. Apple can only strengthen this formula for success.”

Rob Tincknell, CEO of Battersea Power Station Development Company added: “We are delighted that Apple has chosen to make Battersea Power Station its home in 2021. It is testament to our fantastic building and the wider regeneration of the 42-acre site which offers a carefully curated mix of homes, businesses and leisure amidst extraordinary open spaces and new transport links. It has always been our clear objective to create one of London’s most thriving new communities and this commitment from Apple will undoubtedly help us achieve our goal.”

Sadiq Khan, Mayor of London commented: “I am delighted that Apple is moving into Battersea Power Station‎, helping to generate new jobs and economic prosperity for Londoners. It is a further sign that London is open to the biggest brands in the world and the leading city for trade and investment.”

Cllr Ravi Govindia, Leader of the London Borough of Wandsworth said: “I’m very pleased to give Apple a warm welcome to the London Borough of Wandsworth. Apple will become the largest employer in the Borough and we are hugely excited that they will play a keen and active role in our local community.”

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Good and bad news for construction last month

After more than two months since the Brexit vote, it’s good news for the residential construction sector, as the value of contracts awarded reached £1.7 billion in August, an increase of 13% compared to the same time last year, based on a three month rolling average.

According to the August edition of the Economic & Construction Market Review from industry analysts Barbour ABI, it was the residential and infrastructure sector that kept the industry on a steady pace last month, delivering £3 billion of the £5.5 billion total construction contracts awarded.

It should also be noted that residential construction across the first two post-Brexit months (July & August) are significantly higher figures than when compared to the same months in 2015.

However even with the strong results from the residential sector, it was not enough to mark an improvement for overall construction new orders as they were down to £5.5 billion in August, a month-on-month drop of £300 million, although this is traditionally a slower summer month.

The commercial & retail sector particularly struggled in August, experiencing a decrease of 43% compared to August 2015, which continues a poor run of performance over the long term for the sector.

Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: “The construction sector is yet to experience the full post-Brexit effects that were forecasted to occur after the result was announced. The mixed results from the residential sector has still been robust enough to keep the industry in a position to potentially grow in the near and long-term future.

“Developers are also keen to keep progressing with major projects, such as the £750 million Galloper offshore wind farm and the £150 million Greenwich Peninsula residential development commissioned this month alone, which in turn is helping to build confidence and provide a well needed boost across the industry.”

Read the full report here.
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Willmott Dixon unveils modular prison suite concept

Bigger ‘all in one’ premises developed following recent custody suites we’ve built in Newcastle, Sheffield, Birmingham and South Wales.

Willmott Dixon is launching a range of pre-designed custodial facilities that give police forces more options as they look to roll out a new generation of larger custody suites to replace outdated facilities.

Police forces are investing millions in moving to larger custody suites to create better working environments for staff and detainees and provide more efficient use of property that will save millions in running costs each year. This includes Willmott Dixon recently delivering 50+ cell custody suites for police forces in South Yorkshire, South Wales, Newcastle and West Midlands.
In the case of South Yorkshire, the police force expects its new purpose-built 50 cell centre in Sheffield to replace inefficient custody suites in Rotherham and Sheffield and save £1.2 million a year in running costs. Likewise, West Midlands Police expects its new 60 cell Central Custody Suite in Perry Bar to save the force £1.3 million per year.

To support the move to a new generation of modern, energy efficient custody suites, Willmott Dixon has developed a standardised offering called CODE with a range of pre-designed custody suites to suit different police force budgets and requirements. CODE models have been designed in partnership with NORR Architects, our supply chain partners, the Home Office and over 20 different police forces to tackle issues such as minimising the risk of detainee injury, increasing security of evidence and providing a better working environment that is more efficient and sustainable.

CODE has three models; Alpha providing up to 28 cells, Bravo up to 36 cells and Charlie for forces that require more than 36 cells; police forces can also completely customise their suite to ensure it meets their individual needs. All CODE projects are delivered with a fixed cost, timescale, quality and minimum risk; they also provide significant social value and community engagement commitments, a defining factor of Willmott Dixon projects.

It follows the success of the Sunesis standardised school concept developed with Scape Group that has seen over 25 primary schools built in three years across the country providing over 9,000 new places for a fixed cost and time scale.

CODE custody suites can also be procured through the Scape National Major Works framework, an OJEU-compliant procurement route that allows customers to engage directly with Willmott Dixon and reduce the time and resources spent on a lengthy tender process.

Anthony Dillon, managing director at Willmott Dixon Construction: “CODE has been developed with expert partners NORR architects, the UKs most experienced custody design practice and also in conjunction with the Home Office to produce standardised designs we are truly proud of. There are many pressures facing our police forces today and we are delighted to be able to play our part in supporting them by providing the most advanced modern facilities that are also economically efficient.”

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Housebuilders say Government New Housing Figures are unrealistic

74 per cent of housebuilders think the government’s aim of building a million homes during the current parliament is unachievable – so the latest survey run by the Build Show, as part of UK Construction Week, and Housebuilder magazine reveals.

Targeted solely at housebuilders, the survey has highlighted a number of strong opinions, concerns and predictions held within the industry about the future of this critical sector. Following the question on the government’s targets, housebuilders were asked what they thought were the main constraints to increasing the UK housing supply – the top two answers given were problems with the planning system and the availability of enough skilled labour.

As one of the first canvases of the sector since the EU referendum, the survey has provided a valuable insight into how the industry feels about the affects it might have. Over half of those surveyed said that Brexit would make meeting the UK’s new housing needs more difficult and only 11 per cent saying it would make it easier.

Equally, those surveyed were cynical of government initiatives such as the Starter Home scheme with two thirds saying it will not boost supply or that they’re unsure. Similarly, only 40 per cent believed that government initiatives would increase the number of affordable homes being built.

When asked about the possible solutions to the UK’s housing needs, 64 per cent of housebuilders felt that SMEs were the key. Also identified was offsite construction with over two thirds of respondents saying it would play a major role in new home supply as was new investment models with over 75 per cent highlighting the contribution they could make.

Nathan Garnett, Event Director for the Build Show, commented: “The survey has provided valuable honest insight into the housebuilding sector and clearly indicates that there is a lot of uncertainty. In this regard, the show in October will offer a much needed opportunity to develop strategy and build stronger business relationships with key customers, peers and associations. Excitingly, the sector also sees a lot of potential in SME builders and we do too. There will be a wide variety of content suited to both national and SME housebuilders at the show to help them overcome the hurdles they currently face.”

Some of the other notable findings from the survey include:

  • One third of housebuilders believe the government should do more to encourage more people into the industry
  • More than 60 per cent of those surveyed do not believe the private sector is capable of building enough homes to tackle the lack of UK supply
  • According to housebuilders, access to finance is the biggest barrier for SMEs, followed by the planning system
  • Almost two thirds of housebuilders believe that manufacturer innovation will play a key role in new home supply
  • When asked what would be the one thing that would help them build more houses, the top five answers from those surveyed were: improvements to the planning system, more investment and access to funding, more skilled labour, increase in land supply and innovation such as offsite construction methods

Taking place at the Birmingham NEC from 18 – 20 October, UK Construction Week combines nine shows in one location. With over 24,000 trade visitors last year – a figure expected to double at this year’s event – the show boasts over 650 exhibitors. Visitors are able to attend Timber Expo, the Build Show, Civils Expo, the Surface and Materials Show, Energy 2016, Plant & Machinery Live, HVAC 2016, Smart Buildings 2016 and Grand Designs Live.

For more information, booking enquiries or to register for free to attend, please visit www.buildshow.co.uk or follow @BuildShow on Twitter.
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Without skilled migrant workers the UK faces construction crisis, warns experts

Secure post-Brexit access to a skilled workforce or risk a construction crisis, professional bodies warn Government Brexit Minister, David Davis has been warned that the UK’s construction skills crisis could severely worsen, if the Government does not take steps to ensure access to a skilled workforce during its post-referendum negotiations.

The warning comes from a coalition of professional bodies representing the construction and built environment sectors. The Royal Institution of Chartered Surveyors (RICS), the Royal Institute of British Architects (RIBA), the Chartered Institute of Building (CIOB) and the Royal Town Planning Institute (RTPI) have written to the Secretary of State for Exiting the European Union, outlining their concerns around skills, as well as five other priorities that the UK Government should focus on in light of the UK’s Brexit vote.

The six priorities are:

Access to skills

The greatest strength of our sector is the skill of our workforce. The free movement of labour within the EU has been vital to the growth and flexibility)of the construction sector. Access to a skilled workforce of the highest quality and a focus on developing the next generation of home-grown talent are critical to ensure we can build the homes businesses and infrastructure we need to compete globally. We therefore urge the Government to explore options and approaches to ensure that this access is not impeded to the detriment of the built environment.

Common standards

We believe that the UK has much to gain from pursuing an approach that makes it easier to do business with trading partners new and old. Access to markets in the EU and around the world has transformed the UK construction sector. The mutual recognition of qualifications and the development of common technical standards have reduced the barriers our members face working abroad. Reducing tariffs and harmonising standards have helped UK firms of all sizes expand to Europe and beyond. These common approaches have also meant that UK businesses can support best-practice in environmental and product standards, supporting efforts on global issues such as climate change. It is imperative that governments in the UK protect and promote the UK’s role as a leader in environmental and consumer protection standards.

Research excellence

Our members have benefitted from the collaborative research that the EU has enabled and promoted. Our future success depends on maintaining these relationships, while forging new ties with research organisations around the world. In addition the continued success of our world class university courses training our young people in the built environment is essential to the underpinning of research and the continued supply of labour for construction and allied activities.

Infrastructure investment

The UK’s global competitiveness will be hampered unless we do more to tackle the major infrastructure challenges we face. With a housing crisis, and growing concerns around energy, telecoms, road, rail and airport capacity, the Governments in the UK must seek and entice prospective investors to consider infrastructure of all kinds. Providing confidence to the construction industry through infrastructure funding and development will provide stability during a period of uncertainty and ensure that the UK is well-placed to take advantage of growth opportunities in the future.

Devolution commitment

The referendum has brought divide between the different parts of the UK into sharp focus. Our organisations welcome the recent commitment to continuing the Northern Powerhouse and we believe that further devolution from Whitehall should be a key priority for the UK government as powers move from the European Commission. Devolution will enable a rebalancing of the economy so that all parts of the UK can benefit from any new opportunities arising from the UK’s new relationship with the European Union, and is an effective way of ensuring infrastructure spending is efficient, timely, coordinated and accountable.

Community development

Through the extensive skills and experience of our members we are best-placed to advise on how the built environment can unlock new opportunities and combat existing challenges, as well as provide places for people to live, work and play. Leaving the EU could present a great opportunity for the UK, but it should not be associated with a drive to the bottom in the environmental and building standards which future generations will live with.

RICS President, Amanda Clack FRICS, said “Recent RICS figures have shown that we are in the grip of our worst construction skills crisis in almost 20 years. There is a real concern within our industry that if access to a skilled workforce is further restricted, Britain could stop building. My colleagues and I would urge Government to keep this at the front of their minds when they come to negotiate our withdrawal from the EU.

“We know that infrastructure and construction investment is key to Britain’s economic growth. The uncertainty that immediately followed the referendum outcome led to decline in economic growth, increased market volatility and a reduction in UK infrastructure investment.

“While the initial post-Brexit slump appears to have stabilised, it is important that the Government focuses on maintaining infrastructure and construction investment leading up to and after Brexit, ensuring the right conditions are in place to attract infrastructure investors in all sectors across the UK.

“As we approach an unprecedented period of uncertainty, it is fundamental the government prioritises infrastructure and it remains at the forefront of maintaining a strong economy.”

RIBA President Jane Duncan commented “UK architecture, surveying, town planning and construction are flexible and innovative professions. I’m confident our members can help deliver strong economic growth in the UK, providing the buildings and infrastructure that meet the needs of our communities.

“With the right actions taken from the Government to address our industries joint priorities, we can tackle the challenges and exploit the opportunities that Brexit will bring. But unless we fix the housing crisis and address the economic imbalances in our economy, the UK won’t be in a position to compete internationally.”

Stephen Wilkinson, Vice President of the Royal Town Planning Institute, concluded “The UK is a world leader in environmental and building standards and in the professions which are involved in them. UK’s town planning expertise and university courses are among the most sought after in the world. Leaving the EU could present a great opportunity for the UK, but it should not be associated with a drive to the bottom in the environmental and building standards which future generations will live with.”

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Government gives final confirmation on Hinkley Point C

Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the Government has decided to proceed with the first new nuclear power station for a generation.

However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.

The agreement in principle with EDF means that the Government will be able to prevent the sale of EDF’s controlling stake prior to the completion of construction, without the prior notification and agreement of ministers. This agreement will be confirmed in an exchange of letters between the Government and EDF. Existing legal powers, and the new legal framework, will mean that the Government is able to intervene in the sale of EDF’s stake once Hinkley is operational.

According to the government website, Hinkley Point C will provide seven per cent of Britain’s electricity needs for sixty years. UK-based businesses will benefit from more than 60% of the £18 billion value of the project, and 26,000 jobs and apprenticeships will be created.

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, said “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the Government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation.”

A project with little support

This news will undoubtedly come as a shock to the many people in support of the Stop Hinkley campaign, who announced yesterday that they would be joining Greenpeace at 11am on Thursday 15th September to hand in a petition containing over 300,000 names at No.10 Downing Street (at 100,000 signatures a petition can be debated in Parliament).

A recent public opinion poll commissioned by Greenpeace which showed that support amongst the general public for Hinkley Point C has fallen to a new low of only 25%, whilst nearly half (44%) oppose it.

Stop Hinkley spokesperson Sue Aubrey said: “Virtually all major national newspapers and commentators have been calling for Hinkley to be cancelled for months. This petition and recent opinion polls show that the public agrees with them and supports Stop Hinkley’s view that there is no widespread support for new nuclear, particularly at Hinkley Point. Consumers can tell that the project may be unconstructable, requires vast subsidies and would generate electricity too expensive to use.”

One argument for the building of Hinkley is job generation within the county of Somerset. However, calculations suggest that the 900 direct permanent jobs which could be created at Hinkley Point C would cost electricity consumers an extra £800,000 per job per year compared to jobs in renewables in terms of increased costs of electricity. Renewable energy is a far better job-creator than nuclear, and already employs three times more people, according to Dr Ian Fairlie writing on The Ecologist website.

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How your 5p Tesco bag could help young people into a career in construction

The Construction Youth Trust is calling out for votes to take a share of Tesco’s £12.5M Bags of Help initiative.

Construction Youth Trust, a charity working with young people who are interested in a career in construction, is in the bidding to bag a significant cash boost from the Tesco Bags of Help initiative, which from the 5p bag levy, has raised grants of £12,000, £10,000 and £8,000.

Tesco have teamed up with Groundwork on the initiative, selecting three groups in each of its 416 regions. Shoppers are being encouraged to vote instore for who they think should take the top grant.

Construction Youth Trust works with young people ages 14-30, to help them overcome barriers and access employment opportunities within the construction industry. The trust works with individuals who may have challenging backgrounds such as care leavers, those who have been out of employment for a long time, and those who may not be aware of the opportunities available in the industry. It allows people to find out more information, meet employers in the industry and take part in informative and practical courses.

Jemma Bridgeman, Wales Manager at Construction Youth Trust commented: “We are so grateful to Tesco’s Bags of Help for funding our project – we are planning to build a sensory garden. Not only will young people learn construction to help them gain employment, they will learn about the disabilities some people face and how design can help people with disabilities such as sight loss enjoy a beautiful garden”.

This is the second round of the Bags of Help initiative, with the first round seeing eight million shoppers vote in stores all across the country.

Lindsey Crompton, Head of Community at Tesco, said: “The first round of the Bags of Help initiative was a fantastic success.

“In total 1,170 community groups were awarded £8,000, £10,000 or £12,000 – that’s a massive £11.7 million being invested into local projects.

“We are already seeing some great results from groups transforming their own environmental and greenspace areas.

“We are absolutely delighted to open the voting for round two. There are some fantastic projects on the shortlists and we can’t wait to see them come to life in hundreds of communities.”

Voting is open from 26 September – 9 October, with customers voting with a token given to them at the check-out in store each time they purchase a bag.

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Bringing stress to work can be fatal

A powerful new film launched by the British Safety Council shows how stress can lead to injury and fatalities at work. In any activity where concentration is vital for safety, such as working in construction, driving, or in health and social care, stress can be fatal.

Stress is often discussed in relation to sickness absence. However, it’s less reported how it can endanger lives. Some research shows that up to 80% of accidents are related to stress at work. Whether it is work-related stress or stress that people bring to work, stress can put at risk the safety of both employees and members of the public.

Matthew Holder, Head of Campaigns and Engagement at the British Safety Council, commented: “It is well documented that stress is a significant cause of sickness absence, undermining both productivity and profitability. What is less discussed is how stress can endanger lives. Evidence shows that stress significantly contributes to injuries in sectors such as construction, transport and agriculture. In the medical profession, stress is a major predictor of work-related accidents and there are strong links between fatigue and sharps injuries.

“We made ‘The Last Word’ to warn people that being tired, distracted and unable to fully concentrate can make simple tasks like climbing a ladder more dangerous. Aimed at employees, it contains a warning that being stressed can endanger their lives. However, the film is also directed at employers, showing how important it is that managers and supervisors identify the symptoms of stress and help their staff to deal with it. As the film says, life can be stressful but people need to be aware of the danger signs.”

Information accompanying the film reinforces this message. It describes common symptoms of stress and actions that employees can take to reduce stress. The film is part of the British Safety Council campaign Speak Up, Stay Safe, targeted at younger employees to raise their awareness of risks at work. It’s the first time the campaign has tackled stress.

There is a lot of statistical evidence demonstrating the consequences of stress at work:

  • In 2014/15, 440,000 people in the UK reported work-related stress at a level they believed was making them ill. That’s 40% of all work-related illness (source: HSE).
  • Stress is believed to be a major cause of accidents in the workplace, with evidence showing that 60-80% of accidents are related to workplace stress.
  • A survey of 2,500 doctors found that job stress was a major predictor of work-related accidents.
  • Fatigue, in particular, is associated with a threefold increased risk of sharps injuries in medical trainees compared with other healthcare workers.
Watch the film below:
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