Buildingspecifier found this blog from The Business Rescue Expert thought provoking.  We present it to our readers and ask the question, ‘Has the Bounce Back Loans Scheme (BBLS) succeeded in preserving the vibrancy of commerce and in particular the construction sector?’. We would welcome your comments.

Construction industry could cost the Treasury £4.2bn in BBLS defaults

We found several official projections indicating that billions of pounds lent under the scheme would ultimately not be repaid, with the losses equal to the cost of building between 6 and 23 Wembley Stadiums from new.

In this blog, we’ll be focusing more closely on how small businesses in their individual industry sectors have embraced the scheme – how much has been borrowed, by whom and what the recipients have done with the funds.

The data sources used to compile the various best and worst-case scenarios used in the projections are taken from the Office of Budget Responsibility’s Fiscal Sustainability Report; the latest BEIS annual report and the National Audit Office (NAO)’s regularly updated COVID-19 cost tracker.

The industry lending breakdowns were compiled and published by the British Business Bank.

Using this public data as our benchmark, we projected three different scenarios for defaults as outlined within them.

The scenarios set out a best-case (with a 15% BBL default rate); a median case (40% default rate) and a worst-case scenario (60% default rate).

We’ve taken a look at the total amount each sector has collectively borrowed under the bounce back loan scheme, the overall number of loans taken out, the average amount borrowed by a company in that sector and the default projections based on our analysis.

 

BBLS borrowing by sector

 

Source: British Business Bank

 

We can see that retail businesses – which include high street shops, shopping mall tenants and independent stores – borrowed a collective £7.7 billion which is higher than any other comparable sector.  Not unexpected as non-essential retail stores have only been allowed to reopen in the past week so have had less opportunity to trade offline, if they’ve traded at all.

If businesses in this sector fail at the rate officially expected then we can see bounce back loan default losses ranging from £1.16 billion up to a high estimate of £4.6 billion.

Builders, fitters and other construction industry businesses are the next highest borrowing sector obtaining a collective £7 billion through the BBLS although this sector also saw the most individual loans taken out with over 238,000 bounce back loans being supplied to the various businesses.

The professional sector which also includes scientific and technical activities had the next largest borrowing requirement with a collective £4.5 billion lent to it and also saw the second-largest amount of individual bounce back loans granted with nearly 160,000 being granted.

Three sectors stand out above the rest when it comes to how much each individual business has borrowed on average.

Shops and stores in the retail sector had the highest individual average figure with £35,530 borrowed.

It’s hoped that April’s grand reopening and expected uptake in sales will help retailers be more successful in 2021 and insulate them from the negative effects when economic support measures are withdrawn later in the year.

This was followed by the restaurants, hotels, cafes, pubs and bars that make up the hospitality sector. It’s arguable that these businesses have had the toughest 12 months under coronavirus trading restrictions so it’s no surprise that their average individual borrowing is as high as £35,503.

The third highest might be more surprising as it’s real estate companies. They borrowed an average of £35,080 per loan and while a large amount of their trade has moved online – a lot still has to be done in person whether it’s viewing properties, meeting agents to sign witnessed documents, financial and legal issues or being present but socially distanced when an agent conducts a tour of their property.

At the other end of the borrowing scale, businesses in the education sector borrowed the least on average with £23,238 per loan granted.

The next lowest were Arts and Entertainment companies borrowing £24,906 each and Transportation businesses borrowing £25,667 per loan.

As the original and any topped-up bounce back loans start to come due for payment, we’ll have some idea in the coming weeks and months which sectors are best able to start paying off their support and which are still struggling to avoid liquidation.

Chris Horner, Insolvency Director with Business Rescue Expert, said: “The bounce back loans and other government backed support schemes have seen an unprecedented demand and take-up from small businesses, who may have had no other recourse to commercial finance.

“The early signs we are seeing in our own figures for small-company liquidations so far in 2021 are that already over 41% of companies entering liquidation have bounce back loans with an average balance outstanding of £37,350.

“We expected that the worst affected sectors such as retail, hospitality and construction would have had the most need for these funds and they will be the ones hoping for the quickest turnaround in fortunes now they can begin reopening and trading again.

“But there are no guarantees of success or even survival for any business right now.

“We’ve seen the corporate insolvency numbers start to rise again after being at historic lows and once support measures are withdrawn we can predict that they will rise even more as a result.

“As the economy opens up, there is light at the end of the tunnel for those businesses in difficulty that have utilised bounce back loans.

“The coming months liquidation figures are likely to give the clearest indication yet as to just how well small businesses will recover.

“No matter which sector a business operates in, they have options if they’ve taken out a bounce back loan and think they’ll have trouble repaying it.  By getting professional insolvency advice quickly, possibly before any potential problems appear, they will be in the best position to react and respond.”

 

Royal Town Planning Institute (RTPI) Chief Executive Victoria Hills said:  “Planning reform will impact communities across the country. This must be a positive process, to ensure that planners have the required support to plan the world we need. Planners are uniquely skilled to bring together communities, developers, infrastructure providers and local government to ensure new homes are built in the right place and accompanied by the services they need.

“We strongly welcome the greater certainty for development in ‘Growth’ zones, which will ensure homes can be built in areas where they are badly needed. Zoning for growth must be combined with active support to see projects through, with masterplanning and specialist proactive teams. Government has a chance to be truly ambitious here and deliver beautiful, healthy and well-connected green development.

“We suggest that further nuance would be required, to differentiate areas needing radical new masterplanning from industrial areas ripe for redevelopment and from suburbs.

“We need qualified planners installed within all local authorities as Chief Placemakers. Leadership is essential to ensuring local plans are in place and to ‘level up’. Community Planners must play a crucial role ensuring local people have their voices heard in the process, alongside investment in digital infrastructure to expand engagement.

“Finally, funding must match ambitions. A well-designed and well-funded system is an efficient one. Developers and communities will both benefit from a visionary and well-resourced system that harnesses the best of planning. We will work constructively with government to ensure planning delivers.”


Jamie Johnson, CEO of FJP Investment, said: “Today’s Queen’s Speech confirms that the Conservatives are pushing ahead with their plans to significantly reform the UK planning system. While the focus of the initiative is to accelerate the “levelling-up” process, ensuring more new homes are built, we should still expect plenty of opposition to the Bill.

“People will understandably be wary that if they live in one of the soon-to-be-designated “growth” zones, they could see green spaces built on and have their daily lives disrupted by major construction works. Yet at the same time, few would deny that the Government must take action if the UK’s housing shortage is to be effectively addressed; making it quicker and easier for housing projects to get the green light is an important part of that.

“It’s clearly a careful balancing act. For me, however, there must also be a keen focus on the quality of the new-build projects. Evidence has shown in the past that many prospective homebuyers are put off buying newly-built homes, either because they dislike the style and character of the property, they do not trust the quality of the work, or the surrounding area and infrastructure do not appeal. Simply constructing more houses will not necessarily help; they must be the right houses within the right ecosystems. As ever, the devil will be in the detail as the Bill takes shape.”


Paresh Raja, CEO of Market Financial Solutions said: “The shortage of affordable housing across the UK is one of the biggest issues facing society today. Countless successive governments have laid out ambitious targets for the construction of new homes, and then missed them. That is why I believe it is positive to see a more fundamental shift in policy – tackling the issues within the underlying planning system.

“From what we know so far, it’s set to be the most significant overhaul of the UK’s planning process for more than 70 years. Naturally, proper judgement must be reserved until the Bill is officially put forward and then duly debated. However, it is a move that could light the touch paper for the construction and housing sectors, spurring on a huge amount of investment in the real estate industry in the years ahead. And crucially, the end result ought to be many, many more affordable properties for would-be homebuyers.”

Ritchie Clapson CEng MIStructE, co-founder of propertyCEO: “We’re a nation of entrepreneurs; we have many individuals who are willing, able and committed to get started in business and who can make a difference. And we also have a housing crisis in this country for one key reason; because over the years, we just haven’t built enough homes.

 “So, let’s put politics to one side for a moment and consider what the people in this country really need; the answer, quite simply, is more new homes.

 “Over the last year we’ve seen the government take huge strides towards making the delivery of new homes not only easier but substantially quicker, with the introduction of new permitted development rights. Not only have these been focused on recycling our redundant brownfield sites, they have also enabled many entrepreneurs to transition into small scale property development and start to deliver some of these much-needed homes.

 “The government’s commitment to easing the planning rules and bureaucracy that have frustrated the delivery of new homes historically can only be positive.

 “Let’s cut out the red tape that’s slowed us in the past. Let’s build a dynamic and flexible planning system that embraces technology while ensuring our local planning authorities have the resources and scope to prevent a development free-for-all.

 “And then let’s get out there and build, build, build!”


Tim Wood, Acting Chief Executive at Transport for the North, said: “Today’s Queen’s Speech opened with a statement on levelling up and the need to transform connectivity by rail and bus as part of the agenda. That this is high on the list of priorities is welcome news and must now be met with action as we focus on rebalancing our economy and improving transport links.

“We now need to see commitment to these aims in the upcoming Integrated Rail Plan, including backing the full HS2 and Northern Powerhouse Rail networks. Alongside a sustained pipeline of investment in our roads and active travel provision, this will support the cross-cutting themes of economic recovery and growth out of the Covid-19 pandemic, as well as increasing skills and opportunities for the North’s communities.

“Clear targets on climate change are also to be welcomed. Green growth is a big challenge, and one that is a key area of focus for Transport for the North. Our upcoming Decarbonisation Strategy provides a strong evidence base and clear plan for how cutting carbon emissions can be achieved, and offers a vision for future transport networks that will tackle the climate emergency.”


Jonathan Carr-West, Chief Executive, LGIU said:  “This will not be a particularly encouraging Queen’s Speech for local government.  Everyone agrees that we need to build many, many more houses in this country. It’s less clear that planning is what is preventing us from doing so. These proposals leave local government with the political liability on planning whilst depriving them, and by extension the communities they represent, of the powers to manage it effectively.  Are major planning changes on permitted development totally compatible with rejuvenating town centres?

And, if we truly want places to be levelled up and to stay levelled up, we need to empower them through genuine devolution not through sporadic government patronage. Governments outside of Westminster have to deliver every day. Westminster politicians love to talk about how they will get on and deliver, but it is councils and mayors that actually do that.The shift of power away from Westminster is already happening, our politics has to catch up somehow.

However, the glaring hole in the middle of this Queen’s Speech is a plan for social care reform.  Every year that this is kicked into the distance, the care sector moves closer to complete collapse. No-one pretends there’s an easy solution here but it will never get any easier and there will never be a better time. The Government must act now.

As arguments rage about the principle of voter ID, we would simply note that just last week local government delivered a double set of elections under the most trying of circumstances with, as always, a minimum of problems and negligible fraud. Maybe the Government should let councils do what they do best without making things more complicated than they need to be.”


Comment from Dominick Veasey, Director at Nexus Planning: “Confirmation of the Planning Bill within today’s Queen’s Speech is welcomed, following the publication of the White Paper back in August 2020. Although the Government has sought to encourage local councils to continue to put plans in place to deliver much-needed housing, we are finding an increasing number are delaying plan-making to possibly avoid costly and abortive work, given a fundamental system change was on the horizon.   

 

“As with all planning system reforms that have gone before, clearly the devil will be in the detail, and we look forward to scrutinising the Bill once it is laid in the House. With an ever-worsening housing crisis, we hope, subject to its content, the Bill progresses swiftly through the Houses and receives timely Royal Assent. If not, the reforms and the Bill could ultimately have wholly the reverse effect on what the Government is trying to achieve – effectively, planning system gridlock and housing delivery hiatus!   

“Since the 2011 reforms were introduced, which similarly focused on housing delivery, the Government has increased housing completions year-on-year. Whilst last year’s figure of 243k net additional dwellings across England is still someway short of the magical 300k figure, let us not forget the 137k figure we started with back in 2011, or even the 223k figure achieved in 2008/09 just before the global economic crash. With the 2011 reforms now bedded in and the fruits beginning to be properly born, is ‘the most radical reforms since the 1947 Act was first introduced’ really needed? With a post-Covid-19 ‘Build, Build, Build’ commitment, could embarking on a comprehensive programme of radical legislative system reforms prove to be a thorn in the Government’s side? Time will tell.” 


Harriet Lamb, CEO of climate solutions charity, responds to the Queen’s Speech announcements on training and green jobs:  “We welcome the promised legislation on environmental targets – and promises on green jobs and lifetime skills. But the green dots need to be joined.

“We should invest in the green skills and training that will enable people to find the jobs of the future. For example, low carbon heating and home upgrades can create the local green jobs the government has promised. Without sustained investment in training for those skills, Johnson’s plans will break down quicker than a rusty old boiler.

“Pledges on lifetime skills are welcome, but the loans inevitably exclude too many and the training must be accessible to all so that neglected communities do not lose out in our transition to a low carbon economy.

“The fact is, we face a chronic shortage of construction workers and low-carbon heat engineers. For years, stop-start government schemes have discouraged businesses, colleges and potential trainees from investing time and resources in this area. The collapse of the Green Homes Grant in March was just the latest example. Now the Government must keep its promises.

“Local authorities should also play a much larger role in delivering green skills. They’re ideally placed to engage young people and small businesses, grow local economies, create a diverse workforce and tackle fuel poverty. Let’s give councils the powers and funding to create the well-paid jobs and better homes their communities want.”

 

Natalie Butler, Learning and Development Business Partner Polypipe Building Services

 

Polypipe shows commitment to employees’ mental health during Mental Health Awareness Week 2021

Polypipe Building Services has announced its commitment to taking care of the mental health of its employees by recently adding four more Mental Health First Aiders.

Kent-based building services specialist Polypipe now has 16 Mental Health First Aiders across their sites and also aims to have 100% of managers trained in mental health awareness by June 2021.

Mental Health First Aiders are volunteers who are trained in practical skills to spot the triggers and signs of mental health issues and are given an in-depth understanding of the factors that can affect wellbeing.

They gain the knowledge to help someone recover their health by guiding them to further support. The Polypipe volunteers were trained by West Kent Mind.

One of the volunteers, Kirsty Mitchell, said: “I found it really interesting and it has given me some valuable tools. I think it will make me much more proactive looking after my own mental health and that of my colleagues.”

Natalie Butler, Learning and Development Business Partner Polypipe Building Services, said: “Mental Health First Aiders are a point of contact if you, or someone  you know is experiencing a mental health issue. They are not therapists or psychiatrists but they offer support to find the appropriate help.

“This initiative forms part of Polypipe Building Services Total Wellbeing Strategy whereby we want to raise awareness and start talking about mental health to reduce the stigma, encourage open discussion and communication about mental health illness.

“Polypipe is committed to creating a healthy and safe working environment for all our colleagues.”

Mental Health Awareness Week runs from 10th to 16th of May 2021. For details see https://www.mentalhealth.org.uk/campaigns/mental-health-awareness-week

 

The Health and Safety Executive reported that 1.4m people in Great Britain were suffering from work-related illness. This had an estimated cost to the economy of £15bn. Sickness absence in the UK is estimated to cost employers more than £29bn a year.

 

 

 

Work begins on restoration of UK’s oldest lido

Materials and plant to be shipped by barge as access to Cleveland Pools is by river

The Cleveland Pools Trust is delighted to announce the start of works to restore the historic pools in Bath, following a 17-year community campaign to save the Grade II* listed site.

Bristol-based Beard is leading the work on the restoration of Cleveland Pools, the oldest surviving outdoor public swimming pool in the UK, which was built in 1815 and is now regarded as a nationally significant site.

The project has the support of hundreds of people in Bath, many of whom have recorded their happy memories of summers spent poolside, of learning to swim, early romance and just how cold the water was.

However, the £6.2m project poses some significant engineering challenges for Beard, which will bring its extensive experience in the heritage sector to the development, as the site is only accessible for vehicles by river.

Machinery, building materials and equipment required to carry out the major refurbishment work on-site will have to be loaded up at the nearby Avon Rugby Club, which is being used as a base, and carried up-river on a pontoon pushed by a barge fitted out for the purpose.

Anna Baker, project director for Cleveland Pools Trust said: “After 17 years of community action, starting construction work is a hugely significant moment which we’re all so happy to see.

“We’ve had fantastic support to get us this far, particularly from our main funder, the National Lottery Heritage Fund, but still have some way to go with £400,000 still to raise. We are looking forward now to seeing the restoration take shape, to be complete by summer 2022, when the community that enjoyed the benefits of this wonderful facility in the past, will be able to once again.

“Beard has brought a great deal of expertise to the project and a real appreciation of what the facility will be used for once it’s complete, which is very important for us in a construction partner.”

WATCH THE VIDEO

 

Among the work to be carried out is the restoration of two pools – the crescent-shaped main pool for adults and a smaller, shallower pool for children. There will also be refurbishment of the largely unaltered Grade II* listed buildings, the central cottage upgraded to be used as a main entrance and pay point, with the first floor to become a caretaker’s flat.

Work is due to be completed in time for swimmers to return next summer, for the first time since 1984 and will be accessible for all, both physically and financially.

Mark Tregelles, Beard project manager said there have been some unusual logistical challenges in terms of accessing the site and starting the job.

He said: “We recognise how culturally significant this development is for the community, and wider region, not only as a Grade II* listed building but also as a space for the community to use and enjoy when it’s complete. We are working closely with the Cleveland Pools Trust to realise their vision to make it an accessible and fun place to be for all users, and also to reflect the rich history behind the nationally important site.

“But it is certainly a different prospect for Beard as we’ve had to do a lot of work in preparation to establish a base down river at Avon Rugby Club, which we will use as a loading site to get everything we need onto the barge and sailed up to the site.

“There can’t be many building projects today which require access by boat. So, we’re pleased to be starting after months of planning, and to draw on years of experience working on culturally important buildings to ensure delivery on time for the community.”

The project was set to start in March last year when the covid pandemic struck and led to delays and increased costs. In recent months the Pools has enjoyed exceptional national support with additional funding being provided by the National Lottery Heritage Fund, the DCMS Capital Kickstart Fund, and emergency grant aid from Historic England.

The project includes a community engagement and volunteering programme with dedicated resources to deliver the Activity Plan, which aims to engage a wide and diverse section of the local community in meaningful projects. So far this has included delivering a tailored employability programme to give students the experience of working on a real project, running intergenerational activities about the history of the pools and engaging volunteers to create a walking trail to site as part of the green travel plan.

The overall project costs for the period 2019 to 2025 are now just over the £8 million mark with the Trust needing to raise a further £400,000 over the next 18 months to deliver all outcomes.

Plans for the refurbishment of the site include:

  • Restoration of two pools – the crescent shaped main pool for adults and competent swimmers and a smaller, shallower pool for children
  • Restoration of the largely unaltered Grade II listed buildings. Central cottage restored for the main entrance and pay point, first floor to become a caretaker’s flat
  • Terrace seating area with shelter from sun or rain
  • New toilets and showers
  • Refreshment kiosk
  • New river pontoon for access via boat services to Pulteney Bridge
  • Improved disabled access including an electric buggy to manage the steep entry slope
  • Heritage exhibition & learning space within the site

Cleveland Pools (circa 1960)

About the Cleveland Pools

 The Cleveland Pools are the UK’s oldest surviving public outdoor swimming pool. First opened in 1817 as a river fed pool, followed by a colourful history through the Victorian era to its heyday in the 1970s, until competition from the newly opened indoor Bath Sports and Leisure Centre saw the Cleveland Pools close to swimming in 1984. To survive, it was for a short time used as a trout farm, but was threatened with demolition as an alternative to repair. In 2003 Bath and North East Somerset council, who owns the site, put it up for sale, and it was added to the English Heritage Buildings at Risk Register.

Thanks to the determination of local people, the Cleveland Pools Trust (CPT) was formed in 2004 to rescue the pools from dilapidation. In 2006 its listed building status was raised from II to II* as The Pools were considered of ‘particularly important… of more than special interest.’

Thousands of supporters from far and wide, many of whom have happy memories of swimming here before closure, joined the campaign and today the CPT has many highly valued volunteers who give their time to support the project. The Pools are now being restored for the community of Bath and beyond to enjoy.

Image – Amsterdam, April 2020. Schoonschip Neighborhood with wooden houses, floating on the water

 

Digital Twin floating home designs could help coastal cities cope with rising sea levels

Climate Change may force some city dwellers to take to the water, according to the C40 Cities Climate Leadership Group.

It estimates that some 800 million people and 570 cities could be at risk by 2050 if sea levels rise half a metre, as forecast by some experts, but C40 Cities – 97 cities representing a twelfth of the global population and a quarter of its economy – believes a floating neighborhood in Amsterdam, Netherlands, shows a way to cope.

Known as the ‘Schoonschip’ – literally ‘clean ship’ in Dutch but translating more as green or environmental ship – it houses more than 100 people in 46 sustainable homes across 30 water plots. The area was designed to be mainly self-sufficient, with a minimal impact on nature while adapting to the rising water.

Space&Matter, the Amsterdam architects’ practice behind the water village, said: “Since urban areas struggle with high density, we should make better use of the space on the water.

“With Schoonschip, we want to set the example and show how living on water can be a great and better alternative for people and our planet.”

Schoonschip also utilizes clean energy sources: solar panels and heat pumps provide heating, and the architects plan to convert wastewater from toilets and showers back into energy. All buildings also have a green roof – part vegetation and geared to rainwater collection.

With almost 70% of the world’s population expected to be living in cities by 2050, the Schoonschip concept could help places like the Indonesian capital Jakarta (pop: 10.5 million) where evacuation currently appears to be the only answer to rising sea levels.

US cities are also at risk; news organization Climate Central listed 22 in Florida in a Top 25 US cities most vulnerable to coastal flooding.

And that’s where 3D Digital Twin modelling steps in, according to Cityzenith CEO Michael Jansen, by enabling the Schoonschip concept to be adapted for large scale use:

“As many have pointed out, including world-renowned philanthropist Bill Gates, Climate Change threatens the existence of coastal cities, but Digital Twin software can ensure infrastructure efficiency, minimize emissions, and most importantly, simulate cities on the water to ensure they can survive and thrive in adverse conditions.”

Cityzenith’s tech already features in key projects worldwide, such as the Orlando SED smart district, the Lamina Tower luxury property apartment project in Saudi Arabia, and the smart city of Amaravati, India.

 

Find out more at www.cityzenith.com

The timber supply chain in took a massive hit in 2020, thanks to the coronavirus pandemic and a continuously shifting market. Unfortunately, shortages seem set to continue into 2021, exacerbated by high levels of demand for timber and wood products globally. Building Specifier Editor Joe Bradbury investigates:

Short term

In the early days of the pandemic, sawmills throughout Europe had no choice but to shut, albeit temporarily. The subsequent lockdowns throughout the UK and Europe resulted in a massive surge in demand for timber for DIY and garden projects, which in turn began to impact supplies through to Britain’s construction sector. Additional high demand for structural timbers, particularly CLS and carcassing, from across Europe and especially from the USA, has also affected the amount of material available in traditionally well-stocked markets such as the British builders’ merchant sector.

With demand continuing at a high level into 2021, there has been no ‘quiet season’ in Britain’s building trade, and thus little opportunity for sawmillers and importers to replenish stocks on the ground here in the UK to their previously-plentiful levels. COVID-19 is still producing spikes in cases, such as that recently seen in the UK’s largest timber-supplying partner, Sweden, where an increase in cases has resulted in a tightening of operating conditions and delays where vessel crews are required to self-isolate. Import logistics, especially with the end of the Brexit transition period and the new arrangements with the Republic of Ireland and Northern Ireland, may add further pressures on supplies, as the timber sector will need to compete with many other industries in obtaining road haulage capacity within the UK.

Speaking on the subject, David Hopkins, Chief Executive of the Timber Trade Federation said “Pre-COVID, timber buyers were used to there being plentiful landed stocks available to meet immediate demand. Suppliers were also used to having time over traditionally quiet periods in the trade to re-build stocks for the following season. This situation has now been turned on its head. It is understandable that many customers should be surprised by, and angry about, the new reality we are facing together. The reported price inflation has also made it difficult for some manufacturers to accurately price projects for customers.”

Long term

Timber is a renewable resource. However, that doesn’t make it completely sustainable. If forests are being harvested quicker than they are being replenished, then there’s a real possibility that we could run out.

A recent report commissioned by WWF finds that UK businesses must invest in sustainable forest management if they are to guarantee access to timber that their businesses rely on in the near future. Leading countries that supply timber to the UK are either at the point of expiry or running at a deficit as forest resources are used without adequate provision for sustainable timber supply.

As the international market for timber will change in its dynamics in the next decades, without urgent action UK businesses who have failed to adequately plan for continuity of their timber resource could be left exposed with fewer commercial options.

The implications are far reaching with WWF’s Living Forests report series concluding that global demand for timber is expected to triple by 2050 due to an increase in demand of wood and paper products from growing economies and populations. At the same time this report’s analysis indicates that:

 

  • Brazil has only 16 years of timber forests remaining, South Africa 7 years, Colombia 12 years, Mexico 9 years, Nigeria 11 years, Thailand 9 years and Pakistan 10 years.
  • Primary forest is being depleted at an alarming rate in many forested countries, the most extreme examples being Nigeria, losing 99% of primary forest, and Vietnam 80% since 1990 – a loss of almost 2 million hectares in these two countries alone. This has a huge impact on the biodiversity and other important forest ecosystem functions.
  • In the UK by 2050 less than 22% of the timber will originate from Britain.
  • All the UK foresters interviewed for the report expressed grave concerns over the future of domestic softwood supply.

 

 

Julia Young, Global Forest and Trade Network Manager for WWF-UK said “committing to sustainable timber sourcing isn’t just an added bonus, but is something that any timber dependent business must be investing in if they want a healthy and resilient business that will survive. We can no longer rely on our usual sources of timber as unsustainable practices are having devastating consequences on forests, and we face a real danger of not having enough timber to satisfy our growing population needs.

“Businesses need to review how their timber is sourced if they want to secure supply for the future, and in keep timber prices stable. This will have tangible business benefits of sustainable practices including advantages in regulatory positioning, easier raising of finance, brand value and an engaged workforce. It also gives manufacturers maximum scope for product development and provides retailers with a full range of tradable goods. These business benefits can increase performance and ultimately aid the bottom line.”

“The UK Government must lead by example and address sustainable forest use in the urgently upcoming 25 year plan for nature.”

Illegal logging

A recent government study also highlighted that 9 out of 13 samples (69.2%) of plywood made in China and imported into the UK contained unauthorised species of timber – including African hardwoods – and only one supplier out of 16 was compliant with the EU Timber Regulations.

The Chinese Plywood Enforcement Project was carried out by the National Measurement Office, and found a catalogue of failures on a worrying scale.

It found that large volumes of tropical wood are imported into China from high risk areas in Africa and Papua New Guinea, and in 9 cases, microscopic testing showed that there was a mismatch between the species found, and the product declaration.

What’s the problem?

The rainforests of West and Central Africa (where a large portion of this ‘dirty’ wood is coming from) are home to an astonishing number of animal and plant species. They are critical to the survival of three of our closest animal relatives, the gorilla, the chimpanzee and the bonobo, all of which are endangered.

Sadly illegal logging is rampant in these regions and corruption is widespread. Protection of forest areas by national and international law is largely inadequate and poorly implemented.

The potential to cause loss of life, misplacement and suffering is not just limited to the animal and plant kingdom in the illicit trade of illegal wood – many of these species detected by the government study are part of the trade in ‘conflict timber’ – timber traded by armed groups or administrations to perpetuate conflict or take advantage of conflict situations. Groups notorious for human rights abuses have been funded by the timber trade in Liberia and Democratic Republic of Congo.

The rainforest in Papua New Guinea covers over 100,000 square miles of the landmass. It provides the habitat for about 200 species of mammals, 20,000 species of plants, 1,500 species of trees and 750 species of birds. In fact, Papua New Guinea is so rich in biodiversity that it estimated that 5-7% of all known species in the world live in this rainforest.

The forests are also the home to indigenous peoples, the Maisin. For the Maisin, forests provide everything from food and medicinal plants, to materials for houses, canoes and tools. Under the Papua New Guinea constitution, the Maisin are actually the legal owners of their traditional lands.

Unfortunately, these are under threat from large-scale illegal logging activities; almost all of which is export-oriented, with unprocessed logs exported to China for processing.

How UK construction can help

Environmental consultant Charlie Law, co-chair of the construction group at pro-UK timber organisation Grown in Britain said that the NMO undertook the study following suspicions in the timber and construction industries that imported Chinese plywood was being mislabelled.

“It’s unlikely to have been incorporated into buildings on major sites, but you will find it on smaller sites because it’s cheaper, or it might be used for temporary, protective uses.”

“It’s something we knew was a risk, we’d seen Chinese plywood and had conversations in the timber industry. There were also concerns about health and safety as it wasn’t always CE marked. There were rumours about they put this stuff together in China. So in the end NMO was asked either to allay everyone’s fears, or to prove that there’s a problem.”

Charlie Law said that site managers nationwide should actively check their timber supplies on site. “Subcontractors should be aware of the need to only supply FSC or PEFC-certified timber, but sub-contractors need to check it, and sites are busy places.”

“It’s one of those things that confirms why we do what we do in terms of checking chain of custody certificates – it’s always good to have these reminders that there are unscrupulous operations that are trying to break the law.”

It is vitally important that the UK construction sector doesn’t sleepwalk into this harmful, illegal supply chain. Be it intentionally or unintentionally, participating in the illegal wood trade perpetuates an issue that should be of worldwide concern.”

In summary

Timber in construction, whilst innovative, is nothing new. Trees, and their derivative products, have been used by societies around the world for thousands of years. It’s clear to see why – there is ample global supply for the foreseeable future, making it a sustainable and responsible product to build with. These days timber has been honed and crafted and divided into many areas to offer a multitude of options for the budding specifier.

Timber offers a host of economic and logistical benefits for the offsite and modular construction sectors, as modern timber is largely factory prepared and brought to site for rapid assembly. But only if we are we and make sure we are using it ethically; otherwise we can only expect shortages to get worse and longer lasting.

IWS Group, The Industrial Workspace Specialists, has acquired The Rack Group, a leading provider of pallet racking safety, inspection, repair and maintenance solutions.

The move will see The Rack Group become part of a growing family of specialist, market-leading businesses that currently includes impact protection solutions provider, Brandsafe, and visual communication solutions supplier, Beaverswood.

IWS Group provides essential services and supplies to the logistics, warehousing and material handling sectors in the UK, across Europe and beyond. The acquisition will further strengthen its position in core markets, extend the scope of the existing offering and open up opportunities to provide customers with additional product solutions and services.

Established for over 40 years and based in Barnsley, The Rack Group supplies its innovative racking protection products, such as Rack Armour, and its racking inspection, repair and maintenance services to some of the largest brands in retail, warehousing, logistics and material handling.

Management of both businesses believe that there is a uniquely complementary fit between the companies in terms of product ranges, services, people and expertise. Under the terms of the deal, The Rack Group will continue to trade as usual under its existing brand.

Jeroen van den Berge, CEO of IWS Group, said: “We are excited to welcome The Rack Group to the IWS family. We have known The Rack Group for some time and, as a business that has built a market-leading reputation for quality and expertise in racking safety, with a long-standing, multi-site customer base, it represents a strong and natural strategic fit for IWS Group.

“The warehousing, logistics and materials handling sectors have seen unprecedented growth due to new shopping behaviours and IWS Group is bringing together businesses built on specialist expertise and customer centricity to serve these sectors with essential products and services.

“The addition of The Rack Group provides further opportunity to broaden the scope of services and solutions each of the IWS Group companies can offer their customers. We look forward to a bright, prosperous and successful future together.”

Jenny Charlton, director at The Rack Group, said: “This is an extremely positive development for both organisations, bringing new opportunities to add greater value to customers in terms of product solutions, technical capabilities and enhanced customer service.

“Our market presence will remain as strong as it has always been. Indeed, an attraction of linking up with IWS Group means that we can benefit from the additional resources, infrastructure, and product offering that it brings, without loss of brand identity or the core values that have contributed to our success over four decades.”

 

iws.group

By Ellen Huelin, Associate Director at Whitecode

 

Creating more thermally efficient building envelopes is key to achieving energy efficiency and better performing buildings. Thermal bridging is a key focus point of the update to Part L of the Building Regulations; itself a stepping stone to the Future Homes Standard which aims to have new homes zero carbon ready by 2025. But with the amendments to Part L and the revision of SAP10 bringing thermal bridging into the limelight, what changes do we have to make as an industry?

Even though thermal bridging is far from a new concept, the update to Part L – in which thermal bridging features prominently – will certainly change things for construction clients. Here at Whitecode we have been assessing thermal bridging separately as part of an SAP assessment for many years, working to SAP 2012 which is recognised as the government standard for measuring a dwelling’s energy rating.

 There are a variety of ways to understand thermal bridging, but it can be basically summarised as the heat loss that occurs when two elements join. Thermal bridging happens when a wall meets a window, where there is a break in the insulation that consequently causes a cold bridge, resulting in higher heat loss. When completing a SAP assessment, we account for all those little bridges that feature in a house’s structural layers. To measure the rate of heat loss we calculate a Psi value. These are then added up to create the Ψ value for the entire dwelling. Considering thermal bridges account for around 30% of heat loss in a building, it’s vitally important to cover this area as it significantly impacts a SAP assessment.

A key change to the new Part L when it comes into force later on this year is the absence of accredited construction details (ACD) in the calculation of Psi values. Developed in 2002 by BRE, ACDs are a set of standardised junction details that are designed to prevent thermal bridging points in compliance with Part L. ACDs were used by many of us when completing a SAP assessment.

This major revision of SAP10 – the methodology which is part of Part L – is being made as ACDs are now considered an outdated, unreliable mode. Completing ACDs was almost a tick box exercise in the SAP assessment, where nobody actually looked at the finer detail. Furthermore, as ACDs were developed nearly 20 years ago this methodology doesn’t account for all the modern methods of construction, not to mention the big changes that were made post-Grenfell. Some of the new methods of insulation can exacerbate thermal bridging including the use of metal framing. These new technologies are not listed in the ACD and don’t always perform well compared to more solid pieces of insulation.

What are the alternatives?

With the absence of ACDs, a potential option is for manufacturers to create their own methodology to calculate Psi values. Many manufacturers have done so already, mostly because the incentive is there for them to create products that have good thermal bridging.

The caveat here however, is that there is little in the way of responsibility when it comes to ensuring these Psi values are delivered onsite. How do we know the SAP deliverables are actually achieved in real life? At the moment, no party is tasked with the duty of checking continuity of insulation onsite, which is worsening the performance gap. We need more than simple sign-off sheets.

Things are changing with the advent of technology. The industry is moving towards developing another stage in calculating Psi values, where someone will request photo evidence throughout the build which shows the insulation has been installed properly. The key thing here however, is that the responsibility needs to be defined. Is it the role of the SAP assessor or site manager to take photos? To assure quality, there needs to be verification so that appropriate images are uploaded. It may be that this becomes a digitised process with a clear audit trail, where documentation can be uploaded to the cloud securely and shared easily.

A camera could be mounted onto a hard hat to capture the work in real time. One of the credits in BREEAM is doing a thermographic survey on completion, where a thermal imaging camera is used to locate cold spots. Maybe we can develop this technology to quantify and measure process and quality onsite?

Whitecode uses thermal modelling software to complete bespoke Psi values. This is particularly suited to the current construction method using Metsec frame which bridges the insulation layer.

At Whitecode, we would encourage developers to start building up a portfolio of Psi values for their projects in anticipation of Part L 2021. It comes into force in June 2022, meaning the time to get prepared is now. These can be used across different sites and provides the opportunity to improve on these junctions where required.

Thermal bridging is a real hotspot in the construction industry right now. For many years it is been an afterthought or part of a tick-box exercise when it really should have ranked higher on the agenda. But with SAP10 and Part L on the horizon – and with new UK homes needing to be zero carbon ready by 2025 – the time for accurate thermal bridging is without question, now.

In a long-running saga of development proposals for a flattened Wigan industrial estate, dating back to 2014, proposal three promises 100% affordable housing.

All 155 homes planned for a former industrial estate near Wigan would be affordable, according to the latest proposals in a long-running saga.

The plans for affordable housing on part of the Bradley Hall Trading Estate in Standish which was ‘flattened’ four years ago is the third proposal for the site.

It comes after plans for 148 homes were approved by Wigan council in 2014, followed by a second application for 163 homes on the site approved in 2018.

But these outline planning applications – which were never acted upon – only committed to making up to 25 pc of the new housing development affordable.

The latest proposal for the site by Torus Developments, one of the largest housing associations in the North West, would see 155 affordable homes built.

Standish Voice, the village’s neighbourhood forum which objected to previous plans for the site, is supportive of the scheme, according to the developer.

A spokesman for the community group said members will be studying the full planning application first before offering its views to the local authority.

He said: “When planning permission was first granted by Wigan council for this site more than five years ago, it was a huge blow to the economy of the village.

“Half of its industrial estate was flattened and businesses lost.

“We would have wanted employment use to return to this site but, if that is not possible, the provision of 100 pc affordable homes is much better than the market priced ones that have been proposed in the past.

“Some people are being priced out of Standish, despite the large number of homes being built here, and a development such as this will mitigate that.”

Around half of the new homes would be three-bedroom terraced or semi-detached dwellings with 31 four-bedroom properties of the same type.

A further 40 two-bedroom homes are also proposed with a mix of apartments, bungalows, terraced and semi-detached dwellings, according to the plans.

There would also be 10 one-bedroom apartments built in the development.

Nearly half of the homes would be available for affordable rent, but most of the properties would be offered as part of shared ownership or rent to buy schemes.

 

Source: Manchester Evening News

 

Fears are growing in the Irish construction sector that the flow of builders across the sea to the UK will become a permanent skills drain and will damage the industry long after it is permitted to reopen fully according to a number of sources in the sector.

Many commercial and industrial construction sites remain closed, even after house-builders were given the go-ahead to return to work earlier this month. A number of UK-based construction recruitment firms are now actively seeking Irish-based workers, it is understood.

This has led to a growing number of builders taking jobs elsewhere, particularly those who originally came to Ireland from eastern Europe.

Mick Flynn of Flynn Construction, which focuses on commercial projects such as data centres and healthcare facilities, said that he was directly aware of a growing number of firms who had lost skilled tradespeople that would be difficult to replace.

“It’s been going on for the past ten weeks,” he said. “We’ve been been losing skilled workers, especially carpenters, dryliners and facade specialists. I’m aware of one mechanical and electrical firm that has just lost a whole team of electricians.”

Of the 145,000 usually employed in construction, 80,000 are “hard hat” workers on sites. 40,000 of those were effectively put out of work when 782 of Ireland’s 1,500 sites were closed by the lockdown. Industry sources estimate that as many as 20,000 still have not returned to work and that many of these are foreign workers. A large proportion of these travelled to their home countries for Christmas but did not return to Ireland since because of the shutdown.
Flynn said he could not blame workers for leaving, as they had to make a living.

“We’re the only country in Europe that shut down construction,” he said. A serious concern has emerged amongst building workers that, even if the industry is fully reopened in the weeks to come, it could be shut down again in the autumn if Covid cases increase again.

“It’s extremely frustrating, as we’re going to really struggle to complete our projects whenever we get to open, due to the shortage of skilled workers,” said Flynn.

A spokesman for the Construction Industry Federation (CIF) said the organisation was concerned about the potential impact on the industry’s capacity.

“Just last week, the Government’s review of the National Development Plan highlighted concerns about the industry’s capacity in terms of delivering critical projects.

“There will be an impact on numbers in the industry in the coming months, as many employees have left those companies still affected by the unnecessary lockdown in the commercial sector.

“In addition, thousands of foreign workers have not returned to the industry after Christmas, due to the lockdown which began in January,” he said.

Skills shortages – combined with increases in material input prices due to Covid and Brexit – will put upward pressure on costs and dampen the impact of construction on the Irish economic recovery in the coming months, he said.

“Ireland is the only country in the world to have locked down its construction industry. What’s deeply frustrating is that this lockdown is an economic own-goal that’s lasted since January 4.

“The HSE’s evidence shows that the industry is safe and doesn’t contribute to the spread of Covid, due to its safety protocols. The Government has seen these data and must have accepted our safety record when deciding to reopen housing last month.”

“It defies logic – and many international clients whose projects have stalled are perplexed as to why all global manufacturing, all public sector projects, and all housing can continue… while their office and plants cannot,” he said.

 

Source: Independent.ei