Construction is underway on the extensions to ScottishPower Renewables’ Arecleoch and Kilgallioch windfarms, enhancing the energy capacity and environmental enrichment of both sites.

The approved extensions will add 13 additional turbines to South Ayrshire’s Arecleoch Windfarm, and Kilgallioch Windfarm in Dumfries and Galloway will see an additional 9 turbines, boosting capacity to almost 485MW – enough to power the equivalent of over 300,000 homes – and supercharging the community benefit funding provided by both sites.

To date, the local communities have benefited from almost £16 million in funding contributions, with this anticipated to increase to up to £31.4m across the lifespan of both windfarms.

Ross Galbraith, Onshore Construction & Operations Director at ScottishPower Renewables said,

“Both Arecleoch and Kilgallioch windfarms have been integral to the renewable energy landscape in Scotland generating enough electricity to power over 300,000 homes while delivering long-term community benefits.

“We’re proud to have invested around £200m across both projects to contribute to the UK Government’s Clean Power 2030 plan, support local communities, jobs and supply chain opportunities, and enhance the environment and biodiversity at these sites.”

Arecleoch’s extension includes 34 hectares of peatland restoration on a previously forested site and 25 hectares of peatland have been restored at Kilgallioch, which will undergo significant restoration within the Kirkcowan Flow Special Area of Conservation improving habitat resilience and restoring natural hydrology.

Construction is led by Farrans, principal contractor for both sites.

Patrick Murray, Regional Director of Scotland for Farrans, said:

“We are pleased to be back on site at Kilgallioch and Arecleoch; two wind farms that Farrans has had a long history of working on with our client ScottishPower Renewables.

“These extensions will support Scotland to grow its renewable energy provision in line with its targets. We are looking forward to working alongside our local supply chain, the neighbouring community and our client to deliver this project safely and on programme.”

 

The Automatic Door Suppliers Association (ADSA) is launching a new Directors’ Awareness Course to help business leaders understand their legal responsibilities within the powered pedestrian door industry.

 

Designed specifically for company directors and business owners – from sole traders to multinationals – the FREE course tackles a critical knowledge gap around compliance with standards and legislation, including the Machinery Directive.

 

It’s aimed at those in senior positions who might not otherwise attend technical training but still hold legal accountability for safety and performance in the field.

 

Said ADSA Managing Director Ken Price:

“There was a disconnect – technicians were being enrolled on our two-day training course which brought them up to speed with the latest requirements but we found that their company directors were reluctant or didn’t have the time to attend the same courses. This led to a knowledge gap of the legal framework their teams were working within. This course closes that gap – not by teaching people how to run a business but by highlighting what their duty of care really looks like in this industry.”

 

Delivered online through the ADSA Academy, the interactive course includes video content featuring members of the ADSA team, knowledge checks and a final assessment. It covers the legal landscape, relevant standards and regulations, building compliance, risk assessment and maintenance obligations.

 

The course is available to all ADSA members and is now live (June 2025), following internal testing by the ADSA executive team. Registration is required to undertake the course to ensure proper allocation and monitoring of participation.

 

He added:

“This isn’t just CPD. It’s about raising the bar across the industry and making sure every director is speaking the same language as their technicians – legally, safely and competently.”


To register for the course, phone: 01827 216136

 

WEBSITE


 

Power On urges developers to consider ground source heat pumps for cooling

 

With a heatwave forecast and overheating a significant issue in data centres, Power On is urging developers to consider the merits of networked ground source heat pumps in not only providing low-carbon community heating and hot water but also providing effective cooling for buildings too.

Networked ground source heat pumps (NGSHPs) extract naturally stored thermal energy from the ground, which is transferred to a discreet heat pump unit within each dwelling. Remarkably, NGSHPs are also able to provide environmentally friendly and extremely low-cost cooling systems.

Neil Fitzsimons, Managing Director of Power On, explains:

“With networked ground source heat pumps still being relatively new in this country, many people may not be aware that they can provide cooling too. Developers are in the perfect position to introduce this very ecologically sound and inexpensive way of providing cooling for data centres.”

 

The positives of passive cooling

NGSHPs are able to provide heat in the winter as the ambient ground temperature is warmer than the air temperature and therefore can provide warmth when passed through a heat pump. With the ambient ground temperature in the summer being cooler than the temperature in the building, the same system can, therefore, be used for cooling by simply bypassing the heat pump in the warmer months. Known as passive cooling, all that is required is a small circulation pump and fan to distribute the cool air around the property, which can be achieved at a fraction of the cost compared to traditional air conditioning. During the summer, any waste heat from the building can be transferred back into the network for higher heat pump operating efficiency in the winter.

David Broom, New Build Partnerships Director at ground source heat pump manufacturer Kensa, says:

“Passive cooling is a highly effective feature that’s entirely unique to ground source heat pumps. It provides much-needed comfort in the summer, uses very little energy, and does so without a bulky outdoor air conditioning unit. As UK summers become longer and hotter, this capability offers a sustainable way to cool homes that are increasingly at risk of overheating.”

 

Active cooling is also possible with NGSHPs, where the heat pump operates like a refrigerator, absorbing the heat from the building and releasing it to the ground. While this is more energy-intensive than passive cooling, it is still more efficient than traditional air conditioning.

More than meeting regulatory requirements

NGSHPs extract naturally stored thermal energy from the ground and meet the requirements of the Future Homes Standard by offering a 75-80% reduction on emissions. With cooling also an option, they can support the Part O Building regulations too, which focus on mitigating overheating in new residential buildings.

The issue of overheating in data centres 

Data centres are particularly susceptible to overheating for several reasons. These include the significant amounts of appliances contributing to the overall temperature within the building.

Not only do NGSHPs provide cooling, they also do not contribute unwanted heat to the building. Unlike combustion-based heating systems (like gas boilers), NGSHPs do not burn fuel to produce heat. They are designed to transfer heat, not generate it, extracting heat from the ground and moving it to the building’s heating system.

 

Neil Fitzsimons concludes:

“Networked ground source heat pumps are a low-carbon, low-cost innovation, ideal for data centres. Their cooling capabilities are almost a by-product of the heating and hot water solution, making them a win-win option for the developer and the homeowner alike.”

Visit www.poweron-uk.co.uk

Trade body SELECT says apprentice funding gap is unacceptable and ‘two-tier system’  could lead to reduction in recruitment

 

Scotland’s largest construction association says latest increase in England to £23,000 per apprentice dwarfs the current funding for Scottish learners

Scotland could suffer the loss of a generation of highly skilled electrical workers because of a growing discrepancy in apprenticeship funding, the country’s largest construction trade body SELECT has warned.

The electrotechnical association has reacted to the announcement of a 15% grant funding increase for English electrical apprenticeships which brings funding south of the border to £23,000 per apprentice – almost three times the current Scottish figure of just under £8,000.

SELECT Managing Director Alan Wilson said: “Funding for apprenticeships in Scotland hasn’t increased in more than seven years and has actually reduced by more than 30% in real terms as a result of inflation.

“We cannot begin to have a renewables future in Scotland without electricians, so the Scottish Government must find the cash. A two-tier system is entirely unacceptable.”

 

Skills England, a government agency of the UK’s Department for Education, confirmed the funding rise earlier this month to The Electrotechnical Skills Partnership (TESP), which delivers skills projects and careers information for the electrotechnical industry.

TESP said: “Skills England has advised us that the Secretary of State has accepted its funding recommendation of £23,000 for the Installation & Maintenance Electrician apprenticeship. This represents an increase of £3,000 on the current funding band.”

It added that this was “a very good result in the current climate” and thanked employers and providers who worked with TESP to develop the evidence base to secure the increase.

In Scotland, electrical apprenticeships are offered through Skills Development Scotland’s Modern Apprenticeship programmes, which provide paid, on-the-job training programmes that combine work with industry-recognised qualifications.

And Mr Wilson added: “Scotland absolutely must not be left behind when it comes to apprenticeship funding.

“There is the clear danger of a two-tier system, with Scottish industry losing out to England’s, as well as a very real risk that we will lose a generation of skilled electrical talent when we can least afford it.”

 

SELECT’s warning comes after it recently described the UK government’s tough new immigration proposals as a “ticking time bomb” for Scottish construction, with the risk of skilled contractors heading south to replace foreign workers.

The association – which is currently celebrating its 125th anniversary – said the proposals to raise the qualification standards for foreign workers could see a significant number abandoning the UK and returning home, with Scottish construction workers flooding south to fill the resulting shortage south of the Border.

Mr Wilson said: “The construction sector is a vital pillar of the Scottish economy, supporting infrastructure development, housing delivery and the green transition, yet it is experiencing a persistent and growing skills shortage already.”

 

SELECT

by Tim Heston, Senior Editor The Fabricator

 

Visit a typical structural metal fabricator, and you might see a beam line with cutting and drilling automation, perhaps even a robotic plasma system for coping. The farther you walk down the value stream, though, the more manual the operation becomes.

These days, intelligent robotic welding systems can program themselves and even automate the fitting process, attaching plates to beams in a variety of configurations. But get to the final stages, and structural fabrication remains mostly manual. Trusses have weld sequences that account precisely for distortion associated with weld shrinkage; connection designs, bolted or welded, leverage a fab shop’s core strengths; cambered and rolled sections each have their own springback idiosyncrasies. Demands in structural steel are just too various.

Except when they’re not. Walk through the Chandler, Ariz., plant run by Z Modular, and you witness a very different kind of operation. Robots are everywhere. Some form of automation touches nearly every stage of metal fabrication. Welcome to the world of modular steel construction.

About Time

“I’ve been doing [modular construction] for 36 years. The whole idea is to compress timing and bring traditional on-site construction tasks under roof, in a controlled environment.” Said  Ky Ghosh, Z Modular’s vice president of operations.

The company is a subsidiary of Zekelman Industries, which also owns Atlas Tube, the largest independent steel pipe and tube manufacturer in North America and a major supplier of hollow structural sections (HSS).

Ghosh joined Z Modular in 2019, back when it was a much smaller startup operating out of a rented space in Birmingham, Ala. The idea came from the top of the organization—Barry Zekelman himself. After his father’s sudden passing in 1986, Zekelman took over as CEO and grew the organization from $2 million to more than $1.2 billion in 2007. Zekelman Industries’ annual sales today exceed $2.7 billion.

Zekelman sees Z Modular as part of a long-term strategy, promoting a construction method that makes good use of HSS and, most importantly, could help solve the country’s housing shortage. The organization aims to shorten the construction cycle dramatically. Timelines for traditional construction can take two years or more. Z Modular’s goal for constructing a typical apartment complex, from start to finish, is just nine months. “We’re at 12 months now, and we’re getting closer to our goal with each development,” Ghosh said.

In 2019, Z Modular was touting the modular construction concept for a wide variety of developers, from hotels and hospitals to college dormitories.

“Since then, we gradually narrowed our focus,” Ghosh said. “We did this by asking, ‘What are we really good at? What makes sense for us to make a serious investment?’ That’s how we landed on three-story walk-up apartments.”

The narrower approach has helped Z Modular focus its efforts with a powerful message about tackling the nation’s housing shortage. From a fabrication perspective, the focus helped streamline operations and standardize processes.

Unlike other structural fabricators, Z Modular produces a standard product. The final look of the developments might change, but the individual modules at their core do not. The approach to modular construction helps standardize a fabrication’s product mix, opening the door to a host of manufacturing efficiencies.

The Z Block, a precision-cast component, acts as the cornerstone of Z Modular’s chassis design

Making the entire module design possible started with the engineering that went into perhaps the most critical component: the Z Block, a precision-cast component with a tapered section that slides into the HSS inside diameter. They’re placed at the corners of each module chassis (the framing without the decking and drywall). Considering the tolerances and structural integrity requirements, a tube-to-tube weld at these critical connection points just wasn’t practical. From the start, engineers knew a precision casting was the way to go.

The Z Block’s latest iteration has extremely tight tolerances, allowing for a repeatable weld joint at the connection point, with no excessive gap between the tube wall and casting. This innovation, Ghosh said, set the stage for Z Modular’s ambitious production plans—including a deep dive into welding automation.

 

A Welding Automation Journey

Z Modular launched more than eight years ago as a manual operation out its Birmingham location. Early on, however, company leaders knew that to really scale the operation, they needed to automate.

Because most fabrication and assembly occur under roof, protected from the elements, the schedule becomes much more predictable. But there remained one challenge: the shortage of skilled labor, especially welders. If Z Modular didn’t automate, leaders knew that scaling up would be difficult. Moreover, modular construction offered a level of standardization that, again, opened the door to more automation.

Walk into a conventional heavy or large-workpiece fabrication facility with welding robots, and you’ll likely see some impressively large systems, some with articulating arms traveling on gantries to access all joint locations. Before welding, though, you’ll also see an extensive area for fitting and tacking—a manual process. The automation frees welders from spending their days laying down meters-long welds, but they still spend plenty of time measuring, fitting, and tack-welding assemblies before robots strike an arc.

Z Modular’s approach to welding automation is far more comprehensive. To start, custom racks, each configured to hold a specific type of precut HSS, present the material to robots. These have long grippers that place a range of HSS in a fixture comprising of two parallel, adjustable rails. Material handling and welding robots work together to build the frame, placing and welding the HSS cross members, then the vertical members of the chassis. The corner members of each module mate precisely to Z Blocks.

The automation is even more impressive when you consider just how tight a module’s dimensional tolerances are. The module chassis has a unilateral tolerance so tight, you would never guess you’re in a structural fabrication operation.

“You’re not going to believe this when I tell you, but it’s true,” Ghosh said. “Our tolerance is 0, +0, -1/64 in.—that’s across sections 60 ft. long and 15 ft., 6 in. wide. That’s dead-nuts tight. The tolerances we need for the modules to connect correctly are nominally zero.

“I’ll be honest,” Ghosh continued, “it was slow-going [ramping up the welding robotics]. But we had some very talented control engineers who programmed each step of both the material handling robots and the welding robots. It took time, but within the past four or five years, we’ve perfected the process. We’ve overcome the challenges, and now the process is really dialed in.”

The company’s first automated welding cell opened in Killeen, Texas, a plant where engineers gradually worked through the proof of concept, developing and perfecting programs for each “product family” of modules. The company now operates a second facility in Chandler, Ariz.—where the welding automation initiative ramped up quickly. Control engineers had already perfected the process; moving it elsewhere involved replicating the fixturing and programming, then dialing in the process.

Still, “dialing in” wasn’t simple, especially considering the tight dimensional tolerances control engineers needed to hold for each module chassis. Metal behaves differently depending on the environment. “The environment in Texas is completely different from Arizona,” Ghosh said. “We factor that in when we start every weld.”

He added that the company collects data on expansion, shrinkage, and deflection. And even in this controlled environment, variation outside the tolerance can still happen. “If we’re varying by 3/8 in., we need to stop. That’s major for us. When we stop, we forward that information to the structural engineer in-house. We hold until we get a report from our engineer.”

The process might take several hours or days, depending on the problem. During this time, the chassis is moved to a staging area while the robotic welding cell continues with the next module. Once the review is made, the engineer either tells the operation it can move forward or works with the fabrication team to make the necessary adjustments. The staging area is small enough to handle the occasional issue but not so large as to allow a number of module chassis to accumulate. At this point, Ghosh said, such issues are a rarity.

About Reach

In conventional construction, structural fabricators have little control over design. They might have some sway over certain aspects—the connection design, for instance (whether they’re welded or bolted)—but for the most part, they build based on the drawings given to them.

Z Modular operates very differently. Prefabricated modules are the company’s “products,” and a lot of collaborative engineering goes into designing them. Most welds within each module are in a butt-joint configuration, and engineers designed procedures to accommodate gap tolerances and weld shrinkage.

But all these need to be put in context of robotic welding: How exactly can these gas metal arc welding robots reach the mating HSS? These large modules are assembled in a single cell. Rotating the work on a positioner simply isn’t an option.

“We talked about welding robot reach every day,” Ghosh said. “For instance, is that reach going to be enough for proper welding from the floor joist to the perimeter edge?”

In a sense, the modules were designed both for structural integrity and manufacturability. If a welding robot couldn’t reach a specific joint, changes were made. Module design changes worked in concert with the weld fixture design and the entire joining process, from fitting to final welding.

Each module “product” is tailored for the apartment building Z Modular aims to produce, including the number of stories, the soil conditions at the foundation, and the loads the modules are designed to endure. Taller structures demand thicker-walled HSS.

The thickness ranges from 0.125 to 0.5 in. Perimeter HSS members hold the greatest loads and, hence, have the thickest walls. Floor joints can be 0.25 in. or less.

A New Approach to Construction

After welding is complete, modules are transferred to bays for final assembly, including decking (wood or concrete), fireproofing, mechanical, and even drywall, trades that would traditionally do most of their work on-site. In fact, modules leave the factory more than 90% complete, and this percentage continues to increase. Most of these downstream processes aren’t automated, but the fact that workers finish so much on-site work under roof, in a controlled environment, helps streamline the process tremendously.

“We might have three modules to one apartment,” Ghosh explained. “You’ve got a bedroom, a kitchen and living room module, and another module that handles all the utilities. All those boxes are 100% complete when it comes to electrical, plumbing, and any mechanical work. Once they’re shipped, all that’s left is to make the connections between the boxes.”

The framework Z Modular works under to fabricate and build a structure mirrors that of conventional construction, but with a few key differences. Every project has an owner, general contractor, an engineer of record, a designer, a detailer, a fabricator, and erector—but every one of them is under the Zekelman Industries umbrella. The only significant outsourcing occurs with licensed subcontractors that prepare the building site and create the foundation. The permitting process for all this occurs as normal as well.

“After the site is prepared, Hayes Modular, one of our sister companies, sets all of our boxes,” Ghosh said. “They also do exactly the same thing as anything a contractor would normally do building multilevel, multifamily housing.”

A Testbed for a New World in Construction

Z Modular today has three plants, the original one in Birmingham, one in Texas, and another in Arizona. The Birmingham operation, still largely manual, produces certain parts that feed the automated production at the other two plants.

Today, the company operates as a kind of proof of concept for the construction industry—and it’s vertically integrated. Zekelman Industries owns the properties and rents or leases the units once they’re complete and occupied.

Ghosh added that, at some point, the company will work with outside owners, developers, and investors. The overarching idea is bold: A streamlined construction method could help chip away at the country’s worsening housing shortage.

The concept changes the traditional roles of architects and designers. Modules do have some variety, but architects can’t work from a blank slate. They need to meet the specifications of Z Modular’s process. Call it “Building for manufacturability.”

Barry Zekelman summed up his aspirations in a 2024 interview with Forbes. “Hopefully, I can be that pied piper and everyone will believe in my story and want to be part of it. I’ve done it before, and I want to do it again. I think this is a bigger opportunity than my steel tubing business ever could be.”

 

Source: The Fabricator

 

Police and Crime Commissioner Katy Bourne visited Boutique Modern, a local contractor and modular manufacturer (Image: Sussex PCC)

A new project will see prisoners in Sussex build new homes within the county.

Police and Crime Commissioner  Katy Bourne has provided funding to support the cross-government programme.

Inmates of Ford Prison in Arundel are being given the opportunity to apply for jobs building the homes.

As part of the scheme, they will be employed and supported by established housing providers in the county.

Last week Police and Crime Commissioner Katy Bourne visited Boutique Modern, a local contractor and modular manufacturer, which will be one of the providers of the employment opportunities. (Image: Sussex PCC) The homes built will be affordable and will be offered to people on the local authority housing register, key workers or vulnerable people such as women and children who are fleeing domestic abuse.

Last week, Police and Crime Commissioner Katy Bourne visited Boutique Modern – a local contractor and modular manufacturer.

The organisation is one of the providers in Sussex which is employing and supporting prisoners to build the sustainable houses.

The components of the homes are built within the factory and shipped to the construction site for assembly.

Boutique Modern has recently employed its first two inmates and their work is set to start in the near future.

Police and Crime Commissioner Katy Bourne said:

“It was a great day visiting Boutique Modern to understand more about modular construction and why they have chosen to become a partner for this brilliant programme.

“Providing funding to the Prisoners Building Homes programme presents us with a ‘win-win scenario’.

“By offering prisoners and ex-offenders employment, research shows that we can reduce re-offending and successfully rehabilitate people back into society.

“This programme will also help to address the housing shortages and high rent prices.

“I’m delighted that Sussex are the first county in the South East to support this forward-thinking, innovative programme – one that provides long-term sustainable solutions with so many benefits.”

 

Lucas Shone, projects director for Boutique Modern, said:

“We’re proud to be supporting the Prisoners Building Homes initiative in partnership with HMP Ford.

“It’s exactly the kind of collaborative, purposeful work that reflects our values as a business. Giving inmates the opportunity to develop real skills in a real working environment not only supports rehabilitation but also strengthens our industry at its core.

“If this pilot proves successful, we’re excited to expand the programme across our factory, sites, and wider business, creating pathways into long-term employment and a more inclusive workforce.”

 

Source: MSN

 

 

 

The 10 Year Infrastructure Strategy is core to delivering the government’s growth mission to boost living standards in every part of the UK, by creating and connecting people to good jobs, supporting new housing and neighbourhoods, ensuring people can depend on vital public services and providing resilience in response to a changing world.

Infrastructure investment has been too erratic and too low in the UK, hampering productivity and wages and making delivery slow and costly. Across policy and delivery, there has been insufficient coordination, across sectors and between government and industry. Delivering this requires a new approach.

In the 10 Year Infrastructure Strategy, the government is doing things differently to fix the failures of the past, prioritising long-term outcomes over short-term announcements, providing the certainty and stability needed to attract investment, boosting British supply chains and jobs, and taking a joined-up view to improve planning and delivery across all types of infrastructure.

 

 

 

 

CLICK HERE TO DOWNLOAD THE DOCUMENT

 

 

 

COMMENTS:

 

 Rob Pearson, Executive Director of Nexus Analytics & Research: 

“It is clear that the Infrastructure Plan is taking the issue of investment in road and other transport infrastructure very seriously and is tacitly acknowledging that the aim of 1.5 million new homes simply won’t be achieved unless the Treasury acknowledges the need to fund projects which local councils and developers simply cannot afford. This is an issue which has, and still is, holding up a number of Local Plan examinations and major development proposals.

“There is also a clear message to local authorities about the need to plan properly for social infrastructure. This gets its own section in the Infrastructure Plan, demonstrating the importance of providing social infrastructure with Local and Strategic planning documents”.


Kelly Boorman, National Head of Construction at RSM UK

“Delays to planning reform, labour shortages and uncertainty over pipelines have been key challenges for the construction industry, with mandatory housing targets adding another layer of pressure. The government’s pledge to catalyse investment in construction skills and technology to increase productivity is a step in the right direction, as on-site labour productivity and workforce deficits have been a major barrier to achieving housing targets, as outlined in RSM’s Real Estate 360 survey.

“The Infrastructure Pipeline will give businesses more visibility on future projects in the next 10 years, enabling them to plan, forecast, and identify the right people with the right skillsets to deliver. Given the pipeline has been designed based on supply chain input, this should stop previous tensions from continuing and foster much-needed collaboration in the industry. The added focus on investment in new technologies will also attract new people with different skillsets to the industry, creating new job opportunities and bringing new ways of thinking towards building.”

She added: “However, the strategy reveals the government is taking a spatial approach to planning infrastructure, which aside from housing, will present new opportunities for construction businesses across education, health and transport. Previously, the industry has struggled with forecasting and committing to projects due to mobilisation delays, so the National Infrastructure and Service Transformation Authority (NISTA), will play a key role in reforming public procurement, assessing viability of contracts, and maximising growth opportunities. It’s therefore critical that NISTA deploys the right expertise, removes barriers and streamlines processes to ensure the successful delivery of major contracts.”


Nathan Emerson, CEO at Propertymark

“With the UK Government setting itself an ambitious target of constructing 1.5 million new homes in England, any potential measures to help this ambition become a reality are likely to be welcome news for stakeholders. Propertymark has always stated that overly complicated planning systems can hinder much-needed development.

“However, it is vital that other factors slowing down housebuilding in England are tackled head on, such as ensuring a skilled workforce and a robust supply chain are fully in place.

“There must also be an infrastructure-first approach and a sensible degree of local flexibility regarding planning decisions, which is why it is positive to see the Industrial Strategy refer to the need to improve the country’s infrastructure and it mentioned the UK Government’s aim to establish a new National Housing Bank that will help develop financial support to mayors and local leaders responsible for delivering local housing.”

 

Construction intelligence monitor Glenigan has given its forecast for 2025 to 2027 – and it predicts the sector will experience a much-needed resurgence.

Glenigan says that with growth predicted for 2025 (+3%), 2026 (+10%) and 2027 (+11%), these positive figures, spurred on by greater consumer and business confidence, will be welcomed following a disappointingly stagnant second half of 2024.

 

The monitor says the outlook for housebuilding is extremely positive.

Private housing starts have already shown marked improvement during the first four months of 2025, bolstered by more favourable market conditions. While a brief retrenchment is anticipated in Q2, this is expected to be temporary.

Encouragingly, the housing market is forecast to strengthen considerably during the latter half of 2025 and throughout 2026, driven by rising household incomes, reduced mortgage rates and improving economic conditions.

The chief catalyst for growth in this vertical registered at the start of the year, with the stamp duty increases (introduced in April) providing significant momentum to Q1 housing market activity as purchasers expedited completions ahead of the tax rise.

The sector’s growth trajectory is expected to continue as consumer confidence strengthens in response to increasing real incomes and further interest rate reductions.

Additionally, forthcoming planning reforms are projected to release additional development sites, providing further support to sector growth in the later stages of the forecast period.

 

Private Non-Residential Verticals: A slow, yet steady, recovery

The Forecast presents a mixed bag across non-residential verticals, which have experienced a more measured recovery.

The industrial construction sector is one of the stronger performers, projected to resume growth from 2025, primarily driven by increasing demand for logistics space as rising consumer spending boosts requirements from online retailers and third-party carriers.

Meanwhile, retail construction faces a more gradual recovery path, with near-term challenges from National Insurance increases and minimum wage rises creating cost pressures for retailers.

While an excess of vacant retail premises will likely constrain new developments, opportunities exist in repurposing existing spaces into mixed-use locations, with discount supermarkets Aldi and Lidl remaining notable expansion bright spots.

Hotel and leisure construction, which rebounded in 2024, faces similar labour cost challenges to retail. However, improving household finances are expected to increase discretionary consumer spending, strengthening investor confidence and driving sector growth through 2026-2027.

The office sector is forecast to return to growth as financing conditions improve.

This follows a 16% decline in starts last year, amid higher borrowing costs and surplus floorspace. This has been prompted by increasing office refurbishment work, as premises are remodelled for hybrid working.

Likewise, environmental performance requirements will generate demand for retrofit and new build projects throughout the forecast period.

Public Sector Verticals: Renewed Growth Across Key Areas

Following initial disruption from the general election and subsequent capital programme reviews, public sector construction is now positioned for sustained growth.

Recent Budget commitments and the Spring Statement have established both near-term funding support and a longer-term investment framework through 2026-2027.

Education construction has demonstrated particular strength, with school building projects surging 41% in 2023 and continuing to grow through 2024, bolstered by increased Department of Education capital funding and RAAC remediation programmes.

The current financial year anticipates 100 new school rebuilding projects alongside additional further education investments, though university construction faces constraints from financial pressures.

Healthcare construction has recovered from 2023 disruptions, with increased NHS capital funding for 2025/26 targeting RAAC issues and estate repair backlogs alongside technology investments.

The Spending Review’s longer-term funding commitments are expected to drive renewed growth in 2026-2027.

Social housing development has benefited from greater cost stability and increased government funding, with further growth anticipated from mid-2025.

On the civils front, a raft of infrastructure projects are forecast for sustained growth over the next three years, supported by increased funding for road repairs and longer-term investment in transportation networks.

The utilities sector shows particular promise, with water industry investment nearly doubling to £104 billion over five years for pollution reduction and infrastructure improvements, while renewable energy and grid enhancement projects advance under net-zero policies.

 

Source: Property Investor Today

ICAEW (The Institute of Chartered Accountants in England and Wales) member Pete Duff, the former CFO of construction company Osborne, which collapsed in April last year, reflects on the lessons from its demise and what others in the sector can learn from the experience.

Economic forecasts for the year ahead suggest that 2025 will likely be another difficult year for the construction sector, with analyst BCIS warning that a reduction in the cost of borrowing is doing little to increase investment in built assets. Add to that increases in both input costs and tender prices due to the National Insurance uplift, and construction firms are bracing themselves for a bumpy ride.

For ICAEW member Pete Duff, the outlook comes as no surprise. With an impressive track record across the construction sector including seven years at Laing O’Rourke as finance director for its Europe hub, Duff was recruited as CFO at Osborne, a construction business with a near 60-year heritage, in September 2022.

The company was in need of transition following a difficult few years not helped by the pandemic which, Duff says, exacerbated existing problems. Duff, along with Chief Executive Dave Smith, was brought in to work with the Osborne family and existing management to try to turn the business around.

High-profile failures

Although Duff believed the firm was salvageable when he joined, and despite a robust business plan to drive the construction business forward, attempts to raise money were hampered by nervousness towards the sector fuelled by a series of high-profile failures.

They included the June 2023 collapse of Henry Construction, a £400m residential building specialist; the collapse of Buckingham in September that year made headlines as the contractor behind rebuilds of football stadiums at Fulham and Liverpool. Then in November 2023, the UK’s biggest private contractor Laing O’Rourke posted a £228m pre-tax loss – the biggest in its history.

“As far as lenders and credit rating agencies are concerned, the construction market is always regarded as high risk, and that certainly doesn’t do it any favours,” Duff says. “We had former clients wanting to give us jobs. They wanted us because they liked working with us and liked our principles and outputs, but the risk metrics were saying no.

“You need to win work to generate cash and trade yourself out of the situation you’re in. But people don’t want to give you a job because, historically, your numbers look rubbish. The whole thing is a massive vicious circle,” Duff adds.

Backward-looking financial information

Credit scores are influenced by credit rating agencies’ risk perception of the entire sector.

“Anyone looking to invest in you – banks, bond issuers, the supply chain – are looking at these credit ratings, and they’re looking at your financial information, and all of it is backward looking.”

Osborne closed down in April 2024. Its last audited set of accounts showed the firm had an income of £337m, made a net profit of £4.8m and before the sale of its infrastructure business employed 950 people. By the time it went into administration, it had a turnover of around £150m and employed 100 staff.

A report issued by administrator RSM said: “Towards the latter part of 2023, the construction business had succeeded in completing its legacy projects, reducing its overheads and was now trading profitably on its current work. It was continuing to win new projects and it had been selected as preferred bidder on a number of public sector projects.”

Banks’ reluctance to lend

Reflecting on the experience, Duff says a reluctance among commercial banks to lend to construction, particularly smaller companies in the sector, means the industry needs to find itself a better funding model. He says the National Wealth Fund (NWF), launched by the government in July last year to boost investment in national infrastructure projects, could help but better visibility of the projects in the pipeline is needed.

“The NWF could afford to take on a different risk profile to that of a commercial bank. Government talks endlessly about the lack of housing, the need for new schools, the need to upgrade the NHS and the prison sector.

“And yet I don’t see a long-term pipeline. I see jobs that pop up, and everyone rushes off and bids for them including companies who don’t have enough in the current pipeline so are willing to take a risk on either margin or a sector that’s not their expertise. That’s not really helping anyone.” Allowing construction firms to bid for longer-term frameworks with fair and clear allocation of future work would give lenders and other stakeholders more confidence to invest, he adds.

Rigid financial metrics

At the same time, the rigid financial metrics used by the public sector to allow firms to bid for and win jobs are entirely understandable, he says. “It’s absolutely right that as far as the public purse is concerned, they’re trying to make sure that those bidding for jobs are financially stable and secure for the time it’s going to take to deliver those jobs. However, these metrics are all rear facing and based on a historical profit and loss and balance sheet and take little account of future projections.

“One or two bad jobs in the past can damage a company’s ability to secure work for many years in the future. There has to be a better balance of understanding of how this repeat work can keep coming through without bumps in the road derailing it all.”

Grown-up conversations about margins

Meanwhile, grown-up conversations about margins are needed to prevent a race to the bottom on price in a desperate attempt to secure contracts. The fragmented nature of the industry and low barriers to entry mean there’s always someone prepared to take a bit of pain just to stay in the game, Duff says.

“If your average net margin on a job is 3% or 4% if you’re lucky, how are you going to absorb the one-off shocker. It kills you. I don’t understand why, in our industry, which is so valuable and imperative to the globe, margins of 8% or 9% are considered unreasonably high.”

Pain/gain share model

Construction works well when clients and contractors embrace a proper pain/gain share model that embraces a whole life concept of projects. “If there’s a more comfortable margin, it means we can put enough risk and contingency in that job to make sure it is exactly what the client wants, there’s no issue with defects, and it allows the client to enjoy the full lifespan of this building, as opposed to focusing on getting a good deal on the two years it took to build.”

“Part of the problem you have is the limited engagement between the people designing a building and the people who are building it. You need a three-dimensional understanding of how the whole thing comes together up front – it’s bonkers that you commit to a price before design stage four.”

Duff says he won’t do single-stage lump-sum tenders anymore. “Everything should be renegotiable until design stage four. In terms of managing risk – design risk and general build risk and inflation – there’s no point just shoving it all down the chain to the subcontractors because they’ve got even less ability to absorb it than you have.”

Streamlining planning to increase certainty

Streamlining the planning system would also go a long way to removing risk from the construction process, Duff adds. It takes so long for planning approval. In an environment that’s been carrying high inflation, key trade resource scarcity and 4% margins, you’re in trouble before you even start. It’s very difficult to operate with that degree of uncertainty.”

The salvage efforts for Osborne meant it continued to trade – and profitably – long after it might have ceased to do so. And the gradual sale of parts of the business preserved many more jobs than could otherwise have been lost. But the Osborne story – ultimately leading to the demise of a famous name in construction – is a sad one, Duff says.

“It illustrates sector-wide problems will only be resolved with bigger solutions than any one company can provide. It would be nice to imagine that Osborne would be the last famous name to go – but unfortunately until more changes in how the world views and supports construction, that’s unlikely to be the case.”

Source: ICAEW

   

Just one in five planning departments in England is currently fully staffed, according to Freedom of Information (FoI) data collected by UNISON.

Such a shortage of planning officers could “derail” efforts to tackle the housing crisis and hit the government’s target to deliver 1.5 million homes this Parliament, the union warned, with planning approval delays meaning that many families, first-time buyers, and low-paid public sector workers are struggling to find a home.

When it took office in July 2024, the Labour government pledged to recruit 300 planning officers for councils across England, but the research suggests that an additional 600 workers will be needed on top of this. This is despite commitments to use artificial intelligence.

Last week , prime minister Keir Starmer announced that a new AI tool – Extract – will be available to local planning authorities to reduce the amount of time officers spend manually checking documents.

Figures compiled by UNISON over the past few months suggest there were 884 vacancies nationally, and one in nine (11 per cent) planning posts were unfilled. The union noted councils’ reliance on temporary or agency workers to fill roles.

A separate survey by UNISON of planning officers found:

  • 76 per cent said the Treasury’s hiring plan won’t “get Britain building again”.
  • 70 per cent said understaffing is one of the main barriers to local development.
  • 81 per cent said low staffing is resulting in delays to new homes, shops, schools, roads and other projects.
  • 76 per cent said their council has reduced the number of officers over the past five years.

UNISON general secretary Christina McAnea said: “Councils must be able to recruit more planning staff if communities are to get the homes, schools and services they need.

“Local planning teams have been hollowed out by a decade and a half of cuts by successive Conservative governments, yet staff still handle around 350,000 planning applications each year.

“The Treasury’s pledge to recruit more planning workers is a boost, but won’t be enough to ease the pressure, clear backlogs or support the country’s future growth.”

If the government is to hit its housing target, she added, it “must provide the extra resources to recruit and retain staff”.

“Authorities need long-term, sustainable funding if communities are to get the homes they need and the economy is to thrive,” said McAnea.

The research by UNISON comes after the 2025 Planner Jobs Career Survey  found that recruitment of suitably experienced and qualified staff is among the biggest challenges facing planners.

Resourcing of planning teams was cited as the top professional challenge (74 per cent, up from 48 per cent in our 2023 survey), with the recruitment of qualified and capable planners cited by 60 per cent, up from 57.6 per cent previously.

Like UNISON, the RTPI has highlighted that planning officer shortages in local authorities could derail housing delivery and economic growth.

According to analysis by the RTPI , 25 per cent of planners left the public sector between 2013 and 2020, with local authorities struggling to recruit and retain staff.

Further, in May , the RTPI expressed “deep concern” about the government’s decision to restrict funding for level 7 apprenticeships to those aged 16 to 21. This includes the level 7 chartered town planner apprenticeships.

The institute warns that as a result, the future pipeline of planners is at serious risk even though it is “crucial” to meeting the government target to deliver 1.5 million homes during this Parliament and meet its growth agenda.

RTPI chief executive Dr Victoria Hills wrote  that the policy risks doing “real damage to an already struggling planning system” and that it undermines the government’s ambition to inject 300 additional planners into local planning authorities.

Having met with officials at the UK Government’s education and housing departments recently, Hills said that although “communication lines remain open, with no skills strategy coming in the foreseeable future, it’s not clear to us how the government is going to reach their 300 planners target anytime soon”.

 

Source: The Planner