Scottish MD Calls on Election Candidates to Focus on Construction

MD of Dougall Baillie Associates calls on election candidates to focus on construction industry for innovation, sustainability and economic prosperity

 

As the UK General Election looms closer, the boss of one of the largest independent engineering consultancy firms in Scotland has made an urgent appeal to candidates of all parties to prioritise a number of key areas vital to the construction industry.

 

The plea by Fergus Adams, Managing Director of East Kilbride-based Dougall Baillie Associates (DBA), comes as the UK construction sector faces a wealth of challenges and remains impacted by rising costs of both materials and labour.

 

And, though longer-term prospects show some grounds for optimism, construction output fell again at the start of the year, according to the Office for National Statistics, with eight out of the nine components of the industry decreasing. Private commercial new work was down by 4%.

 

The sector’s importance was emphasised when it proved to be a rare success story throughout the pandemic, when many other sectors closed down. Figures from 2022 show that it contributed 7% of GDP and employed 9% of the entire UK workforce, according to the RICS.

 

Mr Adams said that infrastructure investment was one of the most important keys to a brighter future for the sector. He urged politicians to commit to sustained and strategic investment in UK-wide infrastructure projects, enhancing transport, energy, and digital networks to drive economic growth.

The National Infrastructure and Construction Pipeline, which relates to primarily to England, includes £379 billion of planned investment, £164 billion of which is planned for 2024/25, according to Government figures.

He added that it was vital to enhance funding for training programmes and apprenticeships to address the skills shortage. He said:

“As well as a pipeline of work, we need a pipeline of people coming through with the necessary skills to take us through an era of unprecedented transition.”

On sustainability, Mr Adams said that client demand and environmental regulation had already driven a revolution in the ways of working in the sector, although affordability was still a challenge for firms keen to adopt sustainable practices.

He said:

“Our next political leaders must promote green building practices and renewable energy integration, as well as incentivising sustainable construction methods to meet climate goals and reduce carbon footprints.”

He pointed out that regulatory stability was a core requirement for a successful industry and said that politicians should aim to provide a stable and clear regulatory framework to facilitate long-term planning and investment, rather than introducing short-term measures to suit parliamentary timescales.

With rising populations and an ageing housing stock across many parts of the UK, Mr Adams said that it was hardly surprising that many local authorities were declaring housing emergencies

He said:

“It is incumbent on whichever party comes into power after the 4th of July to address the housing crisis by supporting policies that accelerate the delivery of affordable homes and streamline planning processes. Builders are ready to build if the conditions prevail that allow them to.”

 

Mr Adams, whose firm employs 41 people and works on major projects, said that focusing on these priorities would bolster the construction industry and foster innovation, sustainability, and economic prosperity.

 

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RENOVATIONS: Insuring Against the Risks

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University of Tokyo Develops new Device for measuring CO2

A new device can measure carbon dioxide captured in concrete more simply and in a third of the time of current methods. Researchers at the University of Tokyo worked with engineers in industry to create the boxlike device called the concrete thermal gravimetry and gas analyzer. The device heats concrete samples to almost 1,000 degrees Celsius, causing the CO2 within to be released so it can be measured. Compared to the current technique, which involves a time-consuming and complicated process of crushing concrete samples into powder for sampling, this new method is simpler, more accurate and user-friendly. The researchers hope it will contribute to CO2 trading in the future, as the concrete and cement industry work towards offsetting their emissions as part of global targets to manage greenhouse gases.

Concrete is everywhere. We live in it, walk on it, even make movies and write songs about it. Ubiquitous in modern life and even way back in ancient Rome, this sturdy and durable material is a staple for construction projects around the world. But, it is a mixed bag. On the one hand, the process of making concrete and one of its key ingredients, cement, emits a considerable amount of greenhouse gases. It is estimated that 5-8% of all CO2 emissions from human activities to date are from cement production alone. However, concrete can now be used to store CO2, through methods of carbon capture, utilization and storage.

Achieving “net zero,” whereby the amount of CO2 taken out of the atmosphere is equal to the amount released, has become a cornerstone of international policies to tackle global warming. But to do this, we need to know what creates greenhouse gases and at what levels, and how much can be removed through different techniques.

Until now, finding out how much CO2 has been successfully captured in concrete was an extensive process. A cylinder block, about 10 centimeters in diameter and 20 cm high, would be taken and crushed in a way that it couldn’t react with the air (which would affect the results). Then a complicated and long process followed to turn it into a fine, uniform powder from which a small sample was taken for chemical analysis.

A new device, developed by researchers at the University of Tokyo with engineers in industry, can skip this time-consuming process. “We developed a new machine which can measure how much CO2 is fixed in concrete or cementitious material without having to crush it,” said Professor Ippei Maruyama from the Department of Architecture at the University of Tokyo Graduate School of Engineering. “Until now, there wasn’t a simple method to measure the amount of CO2 fixed in concrete, but with this device, we can shorten the time it takes to measure CO2 and increase the accuracy of the measurement.”

A specimen block is placed inside the device and then heated to 980 degrees Celsius. As the block heats up, gases including CO2 are released from the block, which can then be measured. This new process takes about one-third of the time of current methods, limiting the time the concrete can react with the air. Results showed that an accurate measurement could be taken even when CO2 was not uniformly distributed within the block.

Researchers at the University of Tokyo envisioned the concept and parts required for the device, while engineers at Rigaku Corp. then developed it. It was then verified by researchers at the University of Tokyo and Taiheiyo Consultants Co., Ltd.

“This device requires a suitably large space and special safety considerations, so for now, there are some limitations to its application,” said Maruyama. “However, after further tests, we hope to make this device commercially available, so that it can contribute to sound emissions trading in the concrete sector and support global efforts to reach carbon neutrality.”

Reference: Maruyama I, Noritake K, Hosoi Y, Takahashi H. Development of a large-scale thermogravimetry and gas analyzer for determining carbon in concrete. ACT.

 

Source: Technology Networks

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Offsite Construction: An International Perspective from the U.S.

Building wall panels on an assemblyline speeds construction.

Photo credit: Jegruti Rekhi

 

The United States is grappling with a housing crisis driven partially by rising construction costs, including higher costs for labor and materials and a growing disparity between housing supply and demand. To keep housing affordable, the nation needs to increase its supply of homes to meet the current demand. One approach to building new homes rapidly is to build them offsite. HUD historically has sought to resolve obstacles preventing large-scale housing production, including its 1969 demonstration Operation Breakthrough (OB), an ambitious program aimed at increasing the production of quality housing for all income groups.

Operation Breakthrough’s core mission was to pave the way for innovative systems of housing production, financing, marketing, management, and land use. Although the program ended prematurely, it contributed to the development of the HUD Code for manufactured homes. It also succeeded in demonstrating methods that could increase production of quality affordable units, serving as a model for housing production in other countries for decades. Three nations in particular — the United Kingdom (U.K.), Sweden, and Japan — have successfully implemented offsite construction methods similar to those envisioned through Operation Breakthrough. In 2023, HUD sponsored a comparative study of these countries to understand how the federal government and other stakeholders can facilitate the more efficient offsite production of homes.

During the study, a team of industry stakeholders, researchers, and HUD representatives visited each country to engage with industry and government representatives. Jagruti Rekhi (Japan and U.K.) and Mark Reardon (Sweden) represented the Affordable Housing Research and Technology Division in HUD’s Office of Policy Development and Research. All three countries needed to rely on innovation to address the rising demand for housing. Although labor shortages, regulatory hurdles, and housing deficits have significantly affected the housing industry in these nations, each country has leveraged the efficiency of factory-built housing to increase the number of homes built while also improving safety and reducing the environmental impact of home construction.

In 1964, Sweden introduced the Million Homes Programme, which aimed to construct 1 million high-quality homes within 10 years, a goal it accomplished in 1974 by relying heavily on prefabricated construction. In 2016, Sweden invested more than 11.1 billion SEK, or roughly US$1 billion, into constructing and renovating public housing. Complementing this investment was the Swedish parliament’s adoption of the Policy for Designed Living Environment in 2018, which set national objectives for using architecture and design to create a sustainable, equitable, and less segregated society in which everyone has the opportunity to influence the shared environment.

During the group visit to Sweden, the delegation traveled to Skellefteå and Bygdsiljum to learn about Sweden’s commitment to minimizing environmental disruption through adaptive reuse and innovation as well as sustainable forestry through a forest-to-city value chain, including the use of mass timber, or engineered wood — a lightweight and strong material that can support buildings of nine or more stories. At Piteå, the delegation viewed Swedish factories that employ panelized, volumetric modular systems to construct affordable units at scale. In Stockholm, the group learned how mass timber allows developers to expand existing buildings by adding wood structures on top of them, such as the Trikåfabriken project, which involved constructing a five-story addition to the roof of a 1920s textile factory. This wood-on-top approach allows builders to customize designs to user preferences and revise these designs to meet changing needs. The delegation also met with companies such as MoKo, Martinsons, Lindbäcks, and BoKlok and visited sites demonstrating innovative construction practices that increase productivity by 10 percent over traditional methods. In meetings with Swedish government officials at the U.S. embassy in Stockholm, the officials detailed plans to rely on industrialized housing delivery to build more affordable and environmentally sustainable housing units over the next 25 years through sustained and continuous collaboration among government, industry, and universities.

In the United Kingdom after World War II, the housing industry faced a crisis – a labor and material shortage coupled with an urgent need for new homes. Resolving this crisis required quick and efficient construction methods, which led government and industry stakeholders to explore prefabricated housing solutions. Because the demand for housing was so urgent, the government prioritized quantity over quality. In 2017, the U.K. government created an industry working group to help the mortgage finance, insurance, and pricing industries better understand modern methods of construction. The U.K. has advanced its homebuilding industry by shifting to performance-based construction standards rather than prescriptive methods.

During its visit, the delegation learned that the U.K. government has adopted Modern Methods of Construction (MMC): a set of alternative off- and onsite construction practices intended to improve the nation’s housing productivity and quality, such as incorporating robotics and electronic inspections into the construction process. The U.K. government detailed how it incentivizes homebuilders to adopt MMC practices to reduce waste and increase speed and efficiency regardless of the construction method used. U.K. officials also discussed how the government has used its influence to increase buy-in from lenders and insurance companies, ensuring that homes built using MMC practices can secure both mortgage loans and insurance coverage. During the site visit, the delegation traveled to Built Environment – Smarter Transformation’s labs in Scotland to learn about how the organization is testing new building materials.

The delegation also visited factories using wood building products such as cross-laminated timber at Legal & General and closed panel timber frames at Conceptual Construction Group. During travel south towards London, the delegation visited several factories that incorporate robotics and assembly-line building into their manufacturing processes. These visits also helped the delegation understand one notable benefit of fostering MMC practices: the increased use of robotics in U.K. factories to lift and hold panels. The use of robotics not only reduces worker injuries but also broadens the hiring pool by allowing nontraditional construction workers, including less-skilled workers and parents with young children who need flexible schedules, access to stable factory jobs.

Japan has been heralded as a global leader in providing affordable housing, having both an increasing supply and decreasing demand. Japan’s factory-built housing industry is well capitalized and vertically integrated, meaning that the developers themselves provide financing as well as build and site the homes. The delegation observed how involved Japan’s homebuilders are in the home purchasing process by visiting housing parks, where homebuilders educate potential customers about their homes, including the source of the homes’ raw materials, the homes’ safety and resiliency features, and the manufacturing process. As a result, unlike homebuyers in the United States, who hold many misconceptions about the quality of factory-built homes, Japanese homebuyers are willing to pay more for factory-built homes, which they consider to be safe, dependable, and of high quality.

One of the common elements found in the three countries is a shift away from adopting prescriptive codes and toward performance-based codes. Prescriptive codes specify the materials and methods developers must use, whereas performance-based codes specify the standards and thresholds required, allowing the industry to develop and employ materials and methods that meet or exceed current standards. Sweden’s embrace of performance-based codes has made the nation a global leader in sustainability in home construction, with housing-related carbon dioxide emissions at only 0.36 tons per capita compared with 1.64 tons per capita in Japan and 2.7 tons per capita in the United States. Inspection practices in Sweden, the U.K., and Japan were particularly efficient because inspections occur at the factory, where mistakes can be more easily corrected. The Japanese homebuilding industry has invested in technology and skilled laborers outside of the traditional building trades while making homes constructed offsite eligible for lower-interest mortgages. By contrast, inspections of all U.S. factory-built homes (other than HUD Code homes) take place onsite. Furthermore, apart from the HUD Code, the United States lacks a single, standard housing code for factory-built homes; instead, state agencies impose varying building codes, which complicates efforts to ship factory-built homes across state lines and scale growth.

The final report of the comparative study is scheduled for completion in 2024. For more discussion of performance-based codes, regulatory barriers and zoning issues, and case studies, please visit the Regulatory Barriers Clearinghouse. Forthcoming research regarding similar issues will also be made available as the result of awards from the 2023 Increasing the Supply of Affordable Housing through Off-Site Construction and Pro-Housing Notice of Funding Opportunity (NOFO).

Jagruti Rekhi, Social Science Analyst,

Affordable Housing Research & Technology Division, PD&R

Mark Reardon, Social Science Analyst,

Affordable Housing Research & Technology Division, PD&R

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Scottish Construction Industry ‘A Tipping Point’

A “tipping point” for Scotland’s construction industry as it faces aggregates crisis within 15 years

Less than 15 years’ worth of sands and aggregates left to quarry in Scotland’s current permitted reserves, warn Cumbernauld firm Brewster Brothers.

An award-winning Scottish company that’s already diverted almost one and a half million tonnes of construction waste from landfill says it’s imperative for the sector to move toward a more circular model, as the current permitted reserves in Scotland’s quarries will run out by the mid 2030s.

The most recent Aggregates and Minerals Survey done by the Scottish Government suggested that in 2019, there was only 18 years’ worth of sand and gravel left in Scotland’s quarries. The amount of recycled sand and aggregates supplied is on the rise, but can still grow enormously. The most recent report into how widespread the use of recycled aggregates is in Great Britain comes from the Mineral Products Association, which is the association for all aggregates producers, both virgin and recycled. Their report can be found here, but in essence says that in 2022, only 30% of the aggregates used were recycled. Below is a graph from the report detailing the amount of aggregates supplied in Great Britain over the last 70 years, and how much of that was recycled and secondary aggregates.

Any move toward the construction, demolition and excavation industries recycling more would be significant for Scotland’s net zero targets and circular economy ambitions. The sector generates 50% of Scotland’s waste, 40% of Scotland’s carbon emissions and is responsible for 50% of Scotland’s natural resource consumption.

Brewster Brothers, whose wash plants transform 100% of the excavated soils and rubble they process from the construction industry into high-value aggregates for reuse, believes there’s two mechanisms that could soon tip the balance in the right direction.

Firstly, SEPA recently consulted on its draft Integrated Authorisation Framework, which aims to provide a standardised, simplified, common framework for environmental authorisations in Scotland. This  represents a huge opportunity to drive more excavation waste up the waste hierarchy towards recycling, creating an increase in the supply of recycled aggregates

Secondly, the newly devolved Scottish Aggregates Tax could be set at a rate that incentivises everyone in construction to choose recycled sands and aggregates over their virgin equivalents. The devolved Scottish Aggregates Tax (SAT) is at Stage 3 of its journey through parliament in Holyrood, and will replace the UK Aggregates Levy. In a similar way to the UK Levy, SAT will put a small charge on the purchase of virgin sands and gravels. The current UK Levy is set at a rate that only makes virgin sands and gravels the same price as their recycled equivalents, whereas Brewster Brothers hopes that the new Scottish Tax will be set at a higher rate, giving a financial incentive to designers, procurers and contractors to choose recycled aggregates. The Aggregates Tax and Devolved Taxes Administration (Scotland) Bill is a framework bill, which means that the actual rate at which SAT will be set will be determined during a future Scottish Government Budget process.

Managing Director of Brewster Brothers Scott Brewster said:

“With less than fifteen years’ worth of sands and gravels left in Scotland’s quarries’ permitted reserves, this is a tipping point for Scotland. Either we can choose to open up more of the country to quarrying, or we can encourage the construction sector to recycle more of the waste products from excavation, and to buy recycled sands and aggregates to build with. At the moment, the waste hierarchy and duty of care is far too optional, and rather than recycling being mandatory, it is requested ‘where possible’ in planning and building regulations.

“The country also needs to use the Scottish Aggregates Tax as a springboard to incentivise further use of recycled aggregates and make them more competitive than their virgin equivalents. We have a huge opportunity here. According to SEPA, just 28% of UK aggregate demand is currently met with recycled aggregates. In Scotland, that number is 20%.”

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Planning Granted but Homes Unbuilt

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More than a million homes with planning permission left unbuilt since 2015

The inaugural Planning Portal Market Index has found that more than a million homes granted planning permission since 2015 have not yet been built, equating to around a third of the total given the green light over the period. The figures cast doubt on the near-exclusive focus of the major parties on boosting housebuilding numbers by tweaking the planning system.

At the same time, planning applications over the first five months of 2024 are at the lowest level since 2020, calling into question the scope for housebuilding numbers to recover in the coming years to meet ambitious manifesto targets.

The Planning Portal Market Index report offers the most up to date statistics on planning applications in England and Wales, with data reflecting the state of play as recently as 31 May – two months later than the period covered by the most recent official statistics. The statistics are drawn from planning applications submitted to local authorities in England and Wales – more than 90% of which are made through the Planning Portal.

Had all homes granted planning permission ultimately been built, the government’s target of building 300,000 new homes a year would have been achieved in eight of the last 10 years.

Geoff Keal, CEO at TerraQuest, the operator of Planning Portal, said: “These figures suggest that the near-exclusive focus on the planning system in the political debate around housing is misplaced. Until recently, planning permission was being granted for enough new homes to meet the government’s targets.

“While the planning system is by no means perfect, and those homes granted permission could be in the wrong places, this data strongly suggests that policymakers need to look more widely at the factors stifling the completion of homes for which planning permission has been granted.”

The Planning Portal Market Index report highlighted the impact of high interest rates, skills shortages in the construction industry and materials shortages as possible culprits.

Geoff added: “High interest rates have a double impact on the completion of new homes. By dampening the housing market in the short term, they limit the potential commercial rewards available to housebuilders for proceeding with projects. At the same time, the high cost of borrowing to finance projects in the first place pushes up costs and eats into developer profits.

“This is compounded by the well-publicised challenges facing the construction sector in overcoming skills shortages that have left its headcount more than a quarter of million short of the number needed to meet projected demand. Meanwhile, the supply of fundamental construction supplies of bricks and blocks are down by 4.3% and 9.8% over the year to April, according to official statistics.

“Our analysis shows just how profound the challenges are for policymakers in ensuring enough new homes are built to meet the needs of a growing population.

Rosalind Andrews, Partner, Head of Planning, Highways and Environment at HCR Law, added: “The findings from the Planning Portal Application Index June 2024 report highlight the multifaceted challenges faced by the housebuilding sector. Increasing the delivery of much-needed homes across the UK is incredibly complex, with the number of residential planning permissions granted being only one aspect of the issue.

“Project viability is also a concern, given the increases in material costs and lending rates, as well as the new expenses associated with BNG requirements. Housebuilders are eager to commence construction and break ground.

“To meet the ambitious target of delivering 300,000 homes a year, it is crucial to address the industry’s capacity in terms of skilled labour. With the right support and training initiatives, the housebuilding sector can rise to this challenge and achieve these goals.”

 

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Construction Forecast: Gloomy, Getting Brighter, but No Heatwave

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Disruption stifles short-term growth

Construction starts have remained sluggish during the first six months of 2024, as high interest rates and a weak economic outlook dented investor and consumer confidence.

The General Election has also affected the pipeline of public-sector construction projects. The purdah period has disrupted the progress of public-funded projects, while decisions will also be delayed post-election as the new government reviews existing programmes such as the Lower Thames Crossing.

Starts on the up

However, an easing in borrowing costs and improved economic conditions – with the UK economy forecast to grow around 0.8% in 2024 – together with greater political certainty, should help to lift investor confidence from the second half of 2024 and into next year.

Despite a tough start, renewed growth in project-starts is forecast for H2 2024. The gradual easing of interest rates is also expected to feed through to lift housing market activity from the second half of this year.

Further, the Spending Review will set out the new government’s funding commitments and priorities and is expected to strengthen public sector construction activity during the second half of the forecast period.

Commenting on the Forecast, Glenigan’s Economic Director Allan Wilen says, “The UK construction sector is still facing significant headwinds as the economy struggles to pick back up. However, there are signs of growth in several key areas, particularly in the private verticals, signalling a gradual recovery from mid-2024. In the private housing sector, for example, we anticipate starts will pick up in the latter half of this year, driven by improved affordability and brighter economic prospects.

“Similarly, we’re forecasting improved activity in consumer-related verticals such as retail and hotel & leisure, as a gradual easing in price inflation is set to provide a boost to households’ spending power. Elsewhere, structural changes are expected to create new opportunities in office refurb and fit-out, while logistics is poised for renewed investment fuelled by online retail growth.

However, he acknowledges the upcoming General Election will have a significant upfront impact on industry performance, particularly in the public sector, “Public-funded investment is expected to stagnate in the near term. The election has disrupted the progress of many projects, with the purdah period leading up to the 4th of July preventing civil servants from making any announcements that could influence voting intentions. As a result, decisions will be delayed until post-election. For example, the Department for Transport has already announced that ministerial decisions on several major projects, including the Lower Thames Crossing, have been pushed back by six months. This means we’ll have to wait until the new Government’s Spending Review for further clarity on budget allocation, and this might not be until Q.4 2024.”

Taking a deeper dive into sector verticals…

Private housing set to rebound

Housing market activity fell sharply in 2023, with the value of project-starts dipping 11% as housebuilders reacted to weakening market conditions and more stringent building regulations.

Private housing starts are predicted to experience slow growth over the forecast period, with Glenigan predicting a 2% rise in 2024 as the market environment gradually picks up. An increase in mortgage approvals in March 2024 (the highest in 18 months) points to a strengthening in house sales in the coming months.

Renewed project-starts recovery is also anticipated in the second half of the forecast period, rising 14% in 2025 and 6% in 2026, as interest rates dip and consumer confidence improves.

Social housing stabilises

The forecast for social housing is mixed, with starts predicted to experience modest growth over the next three years, with a slight dip in 2025.

Greater stabilisation to previously eye-watering construction materials costs in 2024 is expected to boost the sector, with a 4% rise forecast for 2024.

Student accommodation starts are expected to stagnate significantly over the forecast period, due to the government’s visa restrictions on graduate schemes which will likely weaken demand for purpose-built student accommodation. Having been a key driver of sector growth in 2023, this is anticipated to slow down sector recovery.

Glenigan is forecasting a slight decline (-1%) in 2025, however, increased government funding for social housing provision, a major political priority, is expected to lift starts by 7% in 2026.

Slightly brighter outlook for industrial

The industrial sector is experiencing a period of consolidation following a boom post-pandemic, largely driven by significant growth in warehousing and light industrial projects. Looking forward, industrial project-starts are expected to remain weak for the rest of the year, before returning to growth in 2025.

A decline in consumer spending caused the online retail market to lose momentum, tempering the demand for logistics space. Meanwhile, manufacturing output has also been subdued, limiting investment in facilities.

Nevertheless, as the economic outlook and household finances improve, the sector should see renewed growth fuelled by the demand for warehousing and logistics. Consequently, Glenigan is forecasting a 3% growth in 2025, and 4% in 2026.

Utilities to boost civil engineering

A sustained rise in civil engineering starts is anticipated over the next three years, driven by an increase in utilities projects as energy and water companies roll out planned investments. Overall, civil engineering starts are forecast to grow 12% in 2024, with further growth in 2025 (+6%) and 2026 (+4%).

The delivery of existing and planned major capital projects will also drive sector growth from 2025, including HS2 Phase 1.

Retail recovery

Weak consumer spending and the growth in online sales’ market share have constrained retail construction starts over the past year.

Despite this, improving consumer spending is expected to support a recovery in starts from 2024 as retailers and developers move forward with planned projects, with Glenigan forecasting 3% growth in 2025, and 19% in 2026.

Investment by the deep discount supermarkets, Aldi and Lidl, is set to be a relative bright spot within the sector over the forecast period, boosting growth.

Refurb opportunities for offices

Office starts have rebounded since 2023, after weakening economic growth and high interest rates dampened investor confidence and project-starts.

The sector is predicted to benefit over the forecast period from a rise in refurbishment projects, as landlords adapt premises to further accommodate for the rise in hybrid working.

Furthermore, demand for premium ‘green’ office space, is set to support a rise in new build starts during the forecast period.

These opportunities for the sector are predicted to drive growth over the next two years, 12% in 2025, and 4% in 2026.

Hospitality bounces back

The sector was slow to recover post-pandemic, experiencing a period of financial pressure thanks to sharp cost inflation, labour shortages, and weak sales.

However, the hotel & leisure sector is poised for a comeback, with rising disposable incomes and a projected surge in UK tourism expected to fuel investment and propel project-starts over the next three years.

The sector is forecast to see a growth of 6% in 2025, and 7% in 2026.

School projects in danger

A modest rise of 9% in school project-starts is forecast for 2024, building on the momentum from the previous year. Increases to the Department of Education’s capital funding and committed work to tackling RAAC deficiencies saw the sector enjoy significant growth.

However, the general election and the subsequent review period by the incoming government and a decline in higher education projects could dampen overall education project-starts during 2024 (-5%) and 2025 (-5%).

Despite the temporary disruption, Labour’s commitment to increased education funding could lead to a surge in demand for school building projects, driving 6% project-starts recovery in 2026.

NHS investment fuels health growth

Although the post-election spending review may moderate project-starts in 2025, the long-term outlook for the health sector remains positive.

14% growth is forecast for 2024 as delayed projects from 2023 progress to site.

Longer term, NHS capital funding is set to support a rise in starts from 2026, when the sector is forecast to see 4% growth.

These forecasts are built upon the analysis of Glenigan’s database of current and planned construction projects, which have been examined alongside other market and economic variables. To request a copy of Glenigan’s UK Construction Industry Forecast 2024-2026, click here.

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UK’s largest new film & TV studio

UK’s largest new film & TV studio completes construction

 

Shinfield Studios, the largest new film and television studio in the UK, has completed construction. The state-of-the-art site is now fully operational with 18 soundstages, including two of the biggest in the UK at 43,000 sq.ft.

Based to the east of Reading with links to the M4 and Crossrail, Shinfield Studios has opened in phases over the last two years. In that time, it has already welcomed productions including the recently released Ghostbusters: Frozen Empire.

Nick Smith, joint managing director, Shinfield Studios said:

“Shinfield Studios is complete. We have built from the ground-up one of the world’s most state-of-the art studio facilities – designed to attract the most ambitious and high budget productions. We’ve already welcomed to Berkshire some truly impressive feature films and high-end television series and, with Shinfield Studios now fully operational, there will be many more to come.”

Shinfield Studios offers the most modern, production-friendly film and television studio facilities available in the UK today. The 18 sound stages range from 17,000 to 43,000 sq. ft., and include the two largest, fully climate-controlled soundstages available at 43,000 sq. ft. each. The site also encompasses 38 workshops, substantial and contemporary office space, and a nine-acre filming backlot.

Accessibility and sustainability have been at the heart of the design.  Accessible facilities have been incorporated into every stage and office floor. Sustainable infrastructure such as the use of air source heat pumps, solar panels and electric vehicle charging points are also featured throughout the facility.

Ian Johnson, joint managing director, Shinfield Studios added:

“Our vision was to build a studio which fulfilled every need of today’s productions, including supporting industry efforts to improve sustainability and facilitate accessibility for all. It is fantastic to have brought that vision to reality and we are enormously grateful for the support from Wokingham Borough Council, The University of Reading and the local community.”

Johnson continued: “It was also important to all of us at Shinfield Studios to contribute to developing the next generation of production talent. We’re proud to be founding members of Screen Berkshire whose aim is to connect local crew with jobs, through training, upskilling and supporting new entrants to the workforce.”

Shinfield Studios is owned by US-based Shadowbox Studios (“Shadowbox”), an industry leading independent film and television studio platform. Shadowbox develops, owns, and operates purpose-built, soundstage facilities and provides a range of on-site support services for its clients. In Atlanta, U.S., Shadowbox owns and operates a 9-stage, 850,000 sq. ft. state-of-the-art studio complex that has been home to blockbusters such as Jumanji: The Next Level, Jungle Cruise and Godzilla: King of the Monsters, and which is currently being expanded to exceed 2 million sq. ft. and feature up to 31 soundstages. In addition, Shadowbox is developing a large-scale soundstage campus in the LA metro area. Shadowbox is owned and controlled by affiliates of Commonwealth Asset Management and Silver Lake.

 

Source: Cinematography World

 

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Building with Moon Dust

Turning moon soil and space debris into building materials

ByEric Ralls Earth.com staff writer

Imagine the moon as a center for soil manufacturing, construction, and even building human habitation. This concept, once relegated to science fiction, is now becoming a reality thanks to increased interest and investment in space exploration.

Researchers are working tirelessly to develop the necessary technologies to make the moon a viable home for humans.

Innovative solutions with moon soil

One significant challenge in developing lunar infrastructure on the moon is the need for building materials.

Transporting materials from Earth is costly and inefficient. This has led to research into utilizing raw materials found on the moon’s surface. However, processing these lunar resources requires a substantial amount of power.

A team of researchers from the University of Waterloo’s Laboratory for Emerging Energy Research (LEER) is tackling this issue.

They are exploring how to process lunar regolith, the moon’s top layer of soil and dust, into usable materials for life support, energy generation, and construction.

This includes using defunct satellite material as a fuel source when mixed with lunar regolith.

Harnessing the power of moon soil

“Lunar regolith contains lots of metallic dust embedded with oxygen,” explained Connor MacRobbie, a Ph.D. candidate supervised by professors Dr. John Wen and Dr. Jean-Pierre Hickey in Waterloo’s Department of Mechanical and Mechatronics Engineering.

“Because it already contains oxygen, we can utilize it, without the need for atmospheric oxygen, to produce thermal energy through a thermite reaction, which is particularly useful in space where oxygen is not readily available,” MacRobbie continued.

The LEER team conducted experiments using simulant “lunar” regolith synthesized and supplied by NASA.

They tested various fuel and oxidizer compositions and particle sizes to control the energy release rate of a space-based thermite reaction for heating or manufacturing purposes.

“The results demonstrate the viability of the moon’s topsoil to power lunar development, enabling humans to explore and inhabit the moon’s surface,” said Dr. John Wen, the director of LEER.

The team is now focused on improving the extraction of metals and other useful materials from the regolith and designing automated processes to support in-situ resource utilization and the circular space economy.

Addressing space debris on the Moon

Another significant threat to humanity’s future in space is the millions of bits of fast-moving debris between Earth and the moon’s orbits.

The European Space Agency (ESA) compares a collision with a one-centimeter particle of space debris traveling at 10km/s to a small car crashing at 40 km/h.

The LEER research team is addressing this problem by recycling defunct satellite material into a fuel source for space development.

“Defunct satellites have enormous potential value,” said MacRobbie. “They’re made up of many useful materials, including aluminum, which, when added to lunar regolith, can produce a thermite reaction and generate heat.”

Using the thermite reaction to repurpose salvaged space debris also provides materials for maintaining and developing solar satellite systems in space, ensuring power for further space exploration.

Turning science fiction into reality

“Our research is turning science fiction into reality,” said MacRobbie. “Our goal is to help build the infrastructure and technology that will allow sustainable human settlement on the moon—and beyond.”

This important work by the LEER team represents a significant step toward making the moon a sustainable hub for human life and industry.

Through innovative use of lunar resources and recycling space debris, they are paving the way for humanity’s future in space.

More about moon soil (lunar regolith)

Beyond the current research, lunar regolith offers several exciting possibilities for advancing space exploration.

For instance, its use in 3D printing technology could revolutionize construction on the moon. By using regolith as a raw material for 3D printers, astronauts could fabricate complex structures and components on-site, drastically reducing reliance on Earth-supplied resources.

Moreover, lunar soil might play a crucial role in future Mars missions. Techniques developed for processing regolith on the moon could be adapted for similar applications on Mars, aiding in building infrastructure and supporting life on the Red Planet.

Lunar regolith could also contribute to scientific research, providing insights into the moon’s history and the broader solar system. Its unique composition might reveal clues about the early solar system’s formation and evolution.

Lastly, leveraging lunar resources could drive international cooperation in space exploration, uniting countries and space agencies in joint missions to harness and utilize extraterrestrial materials effectively.

 

Source: Earth.com

 

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Housing, Promises and Realities

All the major parties are promising more homes at this election. Labour has promised 300,000 a year for England, while the Conservatives have pledged 320,000 a year. The Liberal Democrats committed to 380,000 a year over the whole of the UK. While the ambition is clearly high, whether it is actually feasible is a different story altogether.

Housing targets are an unusual tradition in British politics. You rarely see Biden or Trump one-upping each other based on how many millions of homes they can build, as responsibility for housing is spread across various branches of government. Yet in the UK’s centralised system these stump-speech bidding wars are commonplace. They can be traced at least as far back as 1951, when Churchill outflanked Atlee by promising to build 300,000 homes per year, seen as inconceivable at the time. Rab Butler, who would soon become chancellor, was hesitantly asked “Could we do it?”

The Tories not only hit that number but surpassed it, reaching 350,000 per year before the end of their first term. For most of the next 25 years, Westminster parties kept annual construction above 300,000 a year, with a whopping 426,000 homes in a single year in 1968.

What was their secret? Council housing. During the 1951 parliament, 74 per cent of homes were built by local authorities. Less than a quarter were made by the private sector, with the rest made by housing associations. Local authorities continued to play a deciding role throughout Britain’s housebuilding boom years from 1950 to 1980. Since then, private sector building has ranged from 100,000 to 200,000 per year, and local authority construction has been near zero. While private sector construction has fallen relative to population, the loss in local authority construction was by far the largest factor.

UK permanent dwellings completed by sector

Source: ONS

On council housing, we are going in the wrong direction. As highlighted in a recent SMF report funded by the Nuffield Foundation, stock lost through sales and demolition is not being replaced at an equivalent rate, continuously shrinking what little is available. All the while, the waiting list for social housing has grown to 1.2m households.

Cumulative sales, demolitions and completions of social housing since 1980

Source: ONS

Politicians seem to have forgotten past successes. Of the three major parties, only the Lib Dems have actually set a target for social housing construction which, if private sector building remained stable, would be sufficient to reach their target. Labour and the Tories remain committed to providing “more” social housing, but without a specific measurable pledge, instead relying on planning reform to boost their numbers. This would cut red tape for the private sector to (supposedly) unleash a wave of new homebuilding.

While planning reform is welcome, it is unlikely that it can alone meet the parties’ lofty ambitions. Even in the 1930s, when homebuilders benefited from advances in transport technology, unchecked urban sprawl, government stimulus packages, and weak investment alternatives, the private sector alone couldn’t crack 300,000. And since the Second World War, the UK’s businesses have never built more than 226,100 homes in a single year. Nevertheless, policymakers are claiming that red tape is all that restrains private sector construction.

In fact, the sector faces challenges well beyond planning bottlenecks. Inflation has increased the cost of housing materials 34 per cent since 2020. Labour shortages, meanwhile, are challenging construction trades, with the Construction Skills Network estimating a shortfall of 250,000 by 2028. Building homes has become more expensive and takes longer.

Competition is also a problem. The market share controlled by large developers reached 60 per cent in 2015, and a House of Lords report concluded that the UK housebuilding industry now displays “all characteristics of an oligopoly” while a Housing Minister likened the sector to a ‘cartel.’ A CMA report this Spring found that “Private developers produce houses at a rate which they can be sold without needing to reduce their prices, rather than diversifying the types and numbers of homes they build to meet the needs of different communities.” The monetary principles of supply and demand inevitably create perverse incentives for builders to limit construction rather than increase it.

As a result, the private sector has never built more than 226,070 UK homes in a single year – 200,000 less than the UK’s record in a year. Last year, this number was just 144,000.

The private sector has delivered inadequate levels of housing since 1945, yet Labour and the Conservatives are continuing to pitch businesses as the key agents capable of meeting abstract targets and boosting construction. The parties do not want to admit it but the reality is that ambitious targets for housebuilding cannot be met by the private sector alone: council housing must be part of the solution.

Neither major party has a credible plan to meet housing demand. Ask Rab Butler today if government can reach its target, and you’d likely get a different answer.

By Gideon Salutin, senior researcher and Niamh O Regan is researcher at the Social Market Foundation

 

Source: City A.M.

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