Archive for category: General News

You are here: / / General News

What the Tariffs Mean for Canadian Construction

 

U.S. President Donald Trump has threatened a variety of tariffs on products coming into the U.S. from Canada, including steel and aluminum, which has led Canada to devise a list of counter-tariffs. (Andrew Caballero-Reynolds/AFP/Getty Images)

The cost of many construction-related products now seen as vulnerable to higher prices include everything from windows to shingles; cement; certain types of flooring; even bathroom and kitchen appliances coming from the U.S.

All are listed in the Canadian government’s proposed tariff list from early February.

Experts say threats of retaliatory tariffs are complicating the national promise to build more homes.

“With material costs now increasing, a lot of projects may just be shelved. I’ve already heard about projects for new housing being shelved just because of the uncertainty,” said Michael Brooks, CEO of the Real Property Association of Canada (Realpac).

“We’re already behind in catching up on supply. This will make it worse.”

‘We see greater uncertainty because of the tariffs’

Canadian Housing Minister Nathaniel Erskine-Smith echoed this fear last week.

“Building more homes and retaliating with tariffs are at odds with one another, because as we see greater uncertainty because of the tariffs, as we see cost increases on certain materials, prices of homebuilding are going to go up. And we need the exact opposite to happen,” Erskine-Smith said.

“I’m alive to the concern. The government is alive to the concern. The list of retaliatory measures is alive to that concern,” he said.

Brooks, who represents some of Canada’s largest landlords and developers, says there is concern and hesitation across the industry.

“It is fear of the unknown,” Brooks said.

He says you can’t plan a project without a budget, which is usually done down to “the last nut and bolt.” It’s an impossible task at the moment.

 

“We have no idea where [items being listed for tariffs] would stop, anything that is in high demand going into home construction — cement, rebar, things like that. If there are tariffs that are hitting those, it’s just going to continue to drive the costs up,” said Scott Andison, CEO of the Ontario Home Builders’ Association.

Andison says if this threat goes on for too long, builders will have to stop projects until costs become more certain.

Tariffed twice, or more

Another concern from industry is the fear of layered tariffs. Canada and the U.S. supply chains are so integrated that many supplies — including products made with steel and aluminum — will go back and forth between the two countries several times before becoming a finished product.

According to a recent RBC report, Canada imported $7.5 billion US in steel and $9.4 billion in aluminum products in 2024. Canada accounts for about a fifth of U.S. imports of steel and 50 per cent of aluminum imports.

Loomis likened construction material to the automobile industry’s cross-border workflow.

“We hear about how a part will cross the border, you know, eight times before it ends up in a finished product,” he said.

“That’s fairly similar when it comes to the structural steel industry as well. We have a lot of fabricators that do work in the United States. They will source their wide flange, or I-beam, from the United States, then fabricate it here in Canada, and then ship it back to the U.S.,”  Loomis said.

Brooks said something like an HVAC unit or an appliance might have Canadian steel, but could be assembled in the U.S. and then brought back to Canada. These are just two examples of products with the potential to skyrocket in cost.

These issues have a wider effect in a country where investors play such a key role in development.

“That loss of confidence, that last of foreseeability [is challenging],” said Brooks. “And it’s possibly going to drive investment capital elsewhere — elsewhere being outside of Canada.”

Why not just buy Canadian?

Loomis says buying Canadian isn’t always easy.

“We’ve been part of a trade regime for many years, and we all have our niche. Canada doesn’t make everything we need and the U.S is in the exact same situation,” Loomis said.

He said it would take “several years and billions of dollars” in investment to rejig manufacturing plants to build all that we need.

Brooks believes there is a lot the government could do to keep Canadian developers building, including “getting rid of interprovincial trade barriers, lowering development charges [and] removing GST on purpose-built rental.”

He argues the government can get rid of some of these added costs if it wants to calm investors during this time.

Even so, the uncertainty with what might happen between Canada and the U.S. will remain a deterrent for home builders.

“It’s really hard to have confidence with anything that comes from south of the border right now,” Brooks said.

Source: Yahoo News

/0 Comments/by

Ancient Modular Construction

The construction industry is increasingly turning to modular and offsite construction as solutions for efficiency, sustainability, and cost-effectiveness. While these methods are often seen as modern innovations, their roots trace back thousands of years. In this article, MMC Magazine Editor Joe Bradbury explores some of the oldest known examples of offsite and modular construction, demonstrating that prefabrication and assembly techniques have long been integral to human ingenuity in building.

Ancient Egypt: The Pyramids

The Great Pyramids of Giza, constructed around 4,500 years ago, are often cited as one of the earliest large-scale examples of offsite construction. The massive limestone blocks used in the pyramids were quarried offsite, some from as far as Tura, and transported to the construction site. Recent archaeological findings suggest that dedicated worker villages were established near quarry sites, where blocks were prepared and then shipped via the Nile River. The logistics involved in managing resources, labour, and materials highlight an early form of supply chain management, akin to modern offsite construction practices.

The precise engineering techniques used by the Egyptians have fascinated historians and architects alike. Blocks weighing up to 80 tonnes were cut with astonishing accuracy, then transported and placed with meticulous alignment. The organisational skills required to manage such large-scale projects are comparable to contemporary modular construction projects, where each component must fit perfectly to ensure structural integrity.

Ancient Greece and Rome: Prefabricated columns and temples

The ancient Greeks and Romans utilised prefabrication extensively, particularly in the construction of columns and architectural elements. Greek temples often featured columns made of multiple stone drums, carved offsite and assembled on location. The Parthenon in Athens is a prime example, where precision-cut marble pieces were assembled with minimal margin for error.

Similarly, Roman engineers prefabricated concrete blocks and other components for aqueducts, amphitheatres, and roads. Notably, the Roman Pantheon’s dome was constructed using lightweight pumice stone, sourced from distant quarries, exemplifying early modular construction. The Romans also pioneered the use of pozzolanic concrete, which remains durable to this day, further underscoring their advanced construction techniques.

The Great Wall of China

Constructed over several dynasties, beginning as early as the 7th century BC, the Great Wall of China is another historical example of offsite construction. Workers produced bricks, tamped earth, and stone blocks offsite, transporting them to remote locations along the wall’s vast expanse for assembly. Innovations such as using glutinous rice mortar for durability demonstrate an advanced understanding of materials science.

 

The logistical challenges of building the Great Wall across rugged landscapes necessitated meticulous planning and prefabrication. Materials were often sourced from local regions to reduce transportation burdens, a strategy still employed in modern modular construction to enhance sustainability and reduce costs.

Medieval Europe: Timber-framed buildings

In medieval Europe, timber framing became a popular construction method, particularly in regions such as England and Germany. Craftsmen would prepare timber frames in workshops, then transport them to the building site for assembly. This practice, which dates back to the 12th century, closely resembles modern modular construction techniques. Notable examples include the iconic Tudor-style buildings, where timber frames were pre-cut and assembled with precision.

Timber-framed structures offered flexibility and efficiency, allowing for quicker construction times and lower costs. The use of mortise and tenon joints, crafted offsite, ensured strong and durable buildings, many of which still stand today.

The Industrial Revolution: Prefabricated iron structures

The Industrial Revolution brought significant advancements in offsite construction. One notable example is the Crystal Palace, designed by Joseph Paxton for the Great Exhibition of 1851 in London. Composed of prefabricated iron and glass components manufactured offsite, the Crystal Palace was assembled in a remarkably short time, showcasing the potential of modular construction. Additionally, prefabricated cast-iron bridges and railway stations further highlighted the era’s technological progress.

Industrial advancements also saw the rise of prefabricated housing for workers, particularly in burgeoning industrial towns. These structures, often assembled from pre-cut timber and iron components, provided affordable and quickly deployable housing solutions.

The Sears Modern Home Kits

In the early 20th century, Sears, Roebuck and Co. revolutionised housing with their mail-order Modern Home kits. Between 1908 and 1940, Sears sold over 70,000 prefabricated homes in the United States. These kits included pre-cut materials and detailed instructions, allowing homeowners to assemble their own houses. This concept laid the groundwork for contemporary modular housing.

The success of Sears kits was due in part to their affordability and ease of assembly, making homeownership accessible to many. The precision-cut components reduced waste and construction time, principles that remain central to modern modular construction.

Prefabricated military barracks

During both World Wars, prefabrication played a crucial role in constructing military barracks, hospitals, and other facilities. The Nissen hut, designed in 1916 by Major Peter Nissen, was a semicircular prefabricated structure that could be quickly assembled. This design was later adapted into the Quonset hut during World War II, reflecting the importance of offsite construction in wartime logistics.

 

The rapid deployment of prefabricated military structures demonstrated the versatility and efficiency of modular construction, influencing post-war building practices.

Post-War prefabrication

Following World War II, the need for rapid housing solutions led to the widespread adoption of prefabricated homes. In the UK, the government introduced prefabs to address the post-war housing shortage. These single-storey homes were manufactured offsite and assembled quickly, providing affordable housing to thousands of families. Prefabs of this era, though temporary by design, have become cherished parts of Britain’s architectural heritage.

The evolution into modern modular marvels

Today, modular and offsite construction continues to evolve, driven by technological advancements and a growing emphasis on sustainability. 3D printing, Building Information Modelling (BIM), and digital twins are transforming the industry, allowing for precise prefabrication and seamless assembly. However, the historical examples highlighted here demonstrate that the principles of offsite construction are far from new. From ancient pyramids to modern skyscrapers, the concept of building components offsite and assembling them on location has stood the test of time.

The adoption of modern modular construction in sectors such as healthcare, education, and residential housing highlights its growing importance. High-profile projects like the Modular Tower in Singapore and the offsite-constructed CitizenM hotels illustrate the efficiency and versatility of contemporary modular construction.

Lessons from history

The history of offsite and modular construction offers valuable lessons for modern practitioners. Ancient builders mastered logistics, material optimisation, and labour management without the technological tools available today. As the construction industry faces challenges such as climate change, resource scarcity, and housing crises, revisiting historical practices can inspire innovative solutions.

In summary

The history of offsite and modular construction is rich and diverse, spanning millennia and cultures. As the construction industry embraces these methods for their efficiency and environmental benefits, it is worth acknowledging that they are part of a long tradition of innovation and craftsmanship. Understanding this history not only enriches our appreciation of modern construction but also inspires future advancements in the field.

/0 Comments/by

Partnership Developer chosen for Cardiff and Vale Housing Programme

  

Partnership housing specialist and one of the leading providers of residential construction, regeneration and retrofit solutions, Lovell Partnerships, has been appointed as preferred bidder to deliver the Cardiff and Vale Housing Partnership.

 

The partnership is Cardiff Council’s second housing programme following the success of its award-winning Cardiff Living scheme, and forms part of its wider development plans – the largest council-led development programme in Wales, that has the capacity to deliver more than 4,000 new homes in the city, including at least 2,800 new council homes.

 

The Vale of Glamorgan Council has also embarked on an ambitious house-building programme to provide quality, accessible and affordable homes, committing £920m to the development of new Council homes over the next 30 years, with the intention of delivering at least 880 new homes through the partnership with Lovell.

 

The collaboration is the result of the two authorities’ commitment and vision to create exemplary homes and communities across the region to help tackle current housing pressures by delivering at least 2,260 new homes over the next 10 years.

 

Lovell has been selected through a process run jointly by the Savills Housing Development & Regeneration and Cardiff Development teams, to build the new homes, at least half of which will be affordable properties to be retained by the Councils for social rent or shared ownership schemes. The rest will be sold on the open market.

 

Cabinet Member for Housing and Communities, Cllr Lynda Thorne, said:

“We’re very pleased to announce that we’ll be working with Lovell on our second housing partnership and are looking forward to creating more high quality, energy-efficient homes across the region together, to help tackle the very high demand we’re experiencing.”

 

Cllr Sandra Perkes, Vale of Glamorgan Council Cabinet Member for Public Sector Housing and Tenant Engagement, said:

“The Vale of Glamorgan Council is delighted to be working in partnership with Lovell and Cardiff Council to deliver these much-needed homes.

“This represents the latest initiative in this area, part of our extensive council house-building programme that has seen a host of developments completed over the last few years, with others on the way.

“It is vitally important work as we look to meet the soaring demand for affordable housing being experienced right across the UK. We are committed to providing modern, comfortable, accessible, energy efficient accommodation for residents on our housing waiting list, homes they can be proud of.

“This is a significant milestone in that regard, one we are very excited to be involved in.”

 

James Duffett, Lovell Managing Director for South Wales said:

“Lovell’s regional team have been based in Cardiff for over 40 years.  It is our home, and we can see that the need for more homes, and more affordable homes, for local people is growing all the time.  That is why we are delighted to be selected by Cardiff and Vale of Glamorgan Councils as their partner for this ambitious and transformational programme.  This is not only the chance to deliver those homes, but also for employment and skills, economic investment and opportunities for young people – and we can’t wait to get started.”

 

Robert Pert, Head of Housing Development & Regeneration team at Savills said:

“We are delighted to have supported the Councils through this process which has resulted in Lovell being selected to deliver this hugely significant partnership for Cardiff and the Vale of Glamorgan Councils.  We are excited to commence work with Lovell and the Councils to establish the partnership and look forward to seeing the first homes come forward.”  

/0 Comments/by

Sustainable cement: An electrochemical process

 The potential integration of the new electrochemical approach with cement manufacturing as well as carbon capture,

utilization and storage (CCUS).  The electro-geochemical cell powered by renewable electricity converts industrial wastes and rocks into

calcium carbonate (CaCO3) and silica to make Portland cement. The captured CO2 can transform into dissolved bicarbonate to help

mitigate ocean acidification. Water electrolysis creates hydrogen gas (H2) for green energy and oxygen gas (O2)

which can help carbon sequestration from flue gas.

Credit: Lu et al., 2024

Sustainable cement: An electrochemical process to help neutralize cement industry CO₂ emissions

Cement production is the second-largest industrial contributor to global greenhouse gas emissions, but its carbon footprint could be dramatically reduced with a new low-cost, scalable approach demonstrated at the University of Michigan.

The approach could neutralize the most carbon-heavy step in cement production without changing the manufacturing process, according to a study recently published in Energy & Environmental Science.

While traditional cement production gets its necessary calcium carbonate from limestone that releases carbon dioxide when heated in a kiln, the U-M researchers can make the calcium carbonate through an electrochemical process that captures CO2 from the air and binds it with abundant minerals or recycled concrete.

“Our newly developed electrochemical material manufacturing approach opens a new area in cement production and waste upcycling at scale,” said Jiaqi Li, a University of Michigan assistant professor of civil and environmental engineering, staff scientist at the Lawrence Livermore National Laboratory and corresponding author of the study.

Production of cement—the world’s most used commodity behind water—currently produces 8% of global CO2 emissions. Demand for the versatile building material, used to make concrete and mortar, is projected to increase by 50% as the world continues to urbanize.

Ordinary Portland cement, the most common form, is made by heating crushed limestone and clay together in a large rotary kiln. Heating the kilns using fossil fuels contributes 40% of the process’s CO2 emissions. The other 60% is the result of heat breaking down the limestone—a sedimentary rock mostly made of calcium carbonate (CaCO3)—into calcium oxide (CaO) and CO2.

The proposed approach, which replaces naturally occurring limestone with electrochemically produced calcium carbonate, neutralizes the CO2 released during kiln processing with the CO2 taken up from the air during the electrochemical production.

If implemented at full capacity, the new strategy could reduce global CO2 emissions by at least three billion metric tons—also known as three gigatons—a year. For scale, 37.4 gigatons of energy-related, global CO2 emissions were reported in 2023. The 8% of global CO2 emissions that cement production contributes today could be reduced to 3% or even further, to net-zero with carbon capture.

“The strategy can change the cement industry from a gigaton CO2 emitter to a gigaton-scale enabler for clean energy and carbon management technologies,” said Wenxin Zhang, a doctoral student at the California Institute of Technology, graduate research intern at Lawrence Livermore National Laboratory and contributing author of the study.

The process works by applying an electric potential across water containing a neutral electrolyte salt in an electrolyzer—a device with a positive electrode (anode) placed at one end and a negative electrode (cathode) at the other and a cation exchange membrane in the middle.

As electricity flows, water at the anode splits into oxygen gas (O2) and positively charged protons (H+), while water at the cathode produces hydrogen gas (H2), releasing negatively charged hydroxide ions (OH–). This process creates increasingly acidic anodic electrolyte and alkaline cathodic electrolyte that is harnessed to process calcium silicates.

Protons break apart the calcium silicate to form solid silica (SiO2) and calcium ions (Ca2+). The calcium ions react with CO2 from the air and hydroxide ions in the water to form into solid, carbon-negative calcium carbonate.

While the calcium carbonate is the main product that will feed cement kilns, the solid silica can be blended into cement as a supplementary material to improve concrete or mortar strength and durability. The gases can even be put to use, with hydrogen gas as a green fuel and oxy-fuel for facilitating carbon capture and storage from flue gas.

Going a step further, the researchers assessed whether the technology is economically viable, taking carbon credit savings into account. The electrochemical approach proved lower-cost and more efficient compared to existing techniques.

“As the present strategy requires minimal or no modification to the business-as-usual cement plants, it has low entry barriers to be adopted by the large cement businesses,” said Xiao Kun Lu, a doctoral student of chemical engineering at Northwestern University and lead author of the study.

This research was a collaborative effort between University of Michigan, Lawrence Livermore National Laboratory, Northwestern University and the California Institute of Technology.

 

Source: TechXplore

/0 Comments/by

The UK’s Energy Mix Under Labour

With increasingly ambitious renewable targets, all eyes are on Keir Starmer’s new government to see how the UK will pivot away from oil and gas.

The Labour government is just over six months into its first administrative term in 14 years, and has already doubled down on its clean energy commitments: closing the UK’s last coal power plant in September, promising a halt of new North Sea drilling licences and increasing windfall tax on offshore operators as it targets a goal of net zero by 2050.

Yet the plans have received criticism from various quarters, with some saying progress towards renewable integration has been too slow, while offshore unions have sounded the alarm over workers being left jobless by a rushed transition.

With electrification on the rise across industries, (the government estimates a 40%-60% rise in demand for electricity by 2035) the need to adapt and modify the UK’s energy mix is becoming increasingly pressing, and though exact next steps remain uncertain, the general consensus is that rapid action is needed if climate commitment deadlines are to be met.

The UK’s current energy mix

As it stands, oil and gas remain significant sources of energy in the UK. Figures from the Department for Energy Security and Net Zero (DESNZ) show that in 2022 (the most recent full year with available data), 78% of the nation’s primary consumed energy came from fossil fuels – with 39% and 36% of this coming from gas and oil, respectively.

Source: GlobalData

 

“As of the start of 2024, 83% of total domestic energy production and imports were fossil fuels,” said Paul Hasselbrinck, senior energy analyst at GlobalData.

“Moreover, 50% was oil, used in transport, in refineries and (re)exported; 31.5% was gas, of which less than a third of primary demand goes through power generation, with the rest going to households for heating, industrial use and other final consumers,” he added.

 

But there has been significant progress towards using large amounts of renewable power, with the DESNZ report finding around one-fifth (20.7%) of the UK’s primary energy consumption was from “low-carbon” sources in 2022, substantially up from 12% in 2012.

The UK, along with many other developed nations, is hoping for an energy mix that includes a gradually increasing amount of wind and solar power production, and a slow reduction in oil and gas usage, with natural gas and nuclear power plugging the gaps when clean or low-carbon power sources suffer intermittency issues.

 

“As gas comes off the system, we need to look at different ways of balancing it,” said Naomi Baker, senior policy manager at energy trade association Energy UK. “Key ways of doing this will be flexible demand and increasing battery storage.”

“The former means adapting charging times during cheaper hours – for example a lot of EV charging can be done overnight during a time of reduced demand. This is still in its early stages, but in the meantime, battery storage is able to step in and do a lot of the heavy lifting.”

 

Barriers to battery rollout have dropped significantly in recent years, with costs declining 90% over the past decade, and demand rising from 1GW to 4GW in the last four years. However, Baker said this still needs to increase by four to five times by 2030. This paints a picture of a nation with great potential for renewable power, yet with a long road of infrastructure building ahead.

“The current targets for renewables in power generation are ambitious,” said Hasselbrinck. “Though the expected increase in the share of solar and wind are promising, if we look at the energy consumption from the whole economy and its sources, the transition seems a lot further away.”

This roadmap is made even more ambitious by Prime Minister Keir Starmer’s announcement at COP29 that the UK has a new aim of slashing its emissions by 81% by 2035, up from the 78% pledged by the previous Conservative government.

A wind down of oil and gas offshore projects is a cornerstone of Labour’s pursuit of these clean targets, imposing a halt on all new oil and gas exploration licences and increasing the windfall tax on North Sea operators from 35% from 38%. However, the moves have received criticism from both sides, targeted by some as too lenient, and by others as leaving offshore workers in the lurch.

The future of oil and gas

Even with Labour’s offshore clampdown, there are still numerous projects underway, with the North Sea Transition Authority estimating current opportunities could allow a potential 545 million barrels of oil equivalent (boe) to be developed in the North Sea by 2050.

Yet despite assurances that these projects will not be impacted by new government policies, the sudden turnaround could still create instability. The UK’s biggest union, Unite, has been particularly vocal about the potential dangers of banning new oil and gas projects – citing possible job losses and warning against offshore workers becoming the ‘coal miners of net zero’.

The group’s campaign, ‘No Ban Without a Plan’ calls for a halt on the ban until guaranteed jobs are secured for the approximate 150,000-200,000 workers currently employed in North Sea operations.

However, environmental groups are calling for harsher government action against offshore projects. A prime example of the debate can be seen with Rosebank, the UK’s largest undeveloped oil and gas field that’s set to start production in 2026. While oil companies claim it provide vital power (not to mention revenue), environmental groups Uplift and Greenpeace UK took the matter to court in November 2024, saying the project never should have been approved.

“The costs of continuing to drill are now vast and the benefits far too few,” said Tessa Khan, executive director of Uplift. “Rosebank is a terrible deal for Britain. It’s mostly oil for export, which would do nothing to lower fuel costs or boost our energy security.”

Instead, Khan said the renewable energy industry could provide the job opportunities needed for a stable transition.

“Even with new fields being approved, jobs supported by the industry have more than halved in the past decade. Workers need clean energy jobs that have a long-term future,” she added.

Regardless of the UK’s decision the North Sea is facing the issue of declining production – with Offshore Energies UK reporting last year that production was down 13%. As such, calls for the government to ramp up renewable power have taken on greater momentum.

The need for renewables

While current renewable targets are challenging, they’re not impossible, and there are a few avenues the government could take to make it a reality. Mark Williams, head of analysis at Energy UK, said the main challenge is in building a lot of new equipment in a relatively short period of time.

According to the UK’s National Energy System Operator, previously owned by National Grid, nearly 1,000km of onshore and over 4,500km of offshore wind networks need to be built by 2030, as well as more than three times the amount of solar capacity (rising from 15GW to 47GW).

While investment opportunities are there, Williams said government action is needed to turn them into tangible outcomes. “Recent advice has estimated the cost of establishing this infrastructure and network capacity will be £40bn per year to 2030,” Williams said.

“That’s a lot of capital to mobilise. As almost all this funding will be delivered by private companies, and the role that the government will play is setting up the mechanisms to allow that to happen.”

Other challenges to be addressed, according to Williams, are establishing the grid infrastructure to connect assets, as well as improving regulatory processes to get these elements approved faster.

While the transition requires some smart manoeuvring on the government’s part, once set up it has significant potential to provide not only the much-needed emission reductions, but also the job opportunities that some fear will be lost in the transition.

Offshore wind provides particular potential, with the Offshore Wind Industry Council estimating over 31,000 people across the UK are currently employed in the sector – a figure set to rise to 97,000 by 2030.

“Accessing the right skills is going to be an increasing challenge with the need to build new equipment, but there are lots of opportunities in the energy transition for that sort of re-skilling,” said Williams.

“Ultimately, whatever policy the government pursues, the North Sea is a depleting basin,” he added. “Jobs are going to fall off whatever happens, and it is the duty of the government and other public bodies to support those workers in a way that we have manifestly failed to do for other transitions.

“Scaling back offshore at the same time that we’re ramping up renewable technologies provides a real opportunity, because there is a sector to move these people into it in a way that there just wasn’t for something like coal,” he added.

While the path to net zero is not clear cut, the potential of the renewables industry to take over not only most power generation but also job creation is there. With the Labour government showing decisive action on net zero, many industry members seem optimistic as to the transition’s future – with the proviso that offshore workers are handed a just transition.

“What we’ve seen with this new government is faster decision making, which is crucial to provide the stability to attract these much-needed investors,” said Baker. “If we can keep seeing this, creating a clearer vision for investors, it will be good news for the industry.”

Source: Offshore Technology

/0 Comments/by

Construction Sector 17% of all 2024 Insolvencies

Latest data from the insolvency showed that the construction industry experienced the highest number of insolvencies in the 12 months to December 2024 at 4,032, making up 17% of all industry cases.

Kelly Boorman, National Head of Construction at RSM UK, said

“The latest rise in construction insolvencies shows the extent of the debt burden and distress in the supply chain. We’ve seen the volume of M&A transactions jump sharply in the industry, reflecting the challenges of an aging workforce and a lack of investment in technology to fill the labour gap. Much of this M&A activity is to consolidate existing workforces, but businesses also need support to raise working capital and attract skilled labour to ensure long-term growth.

“Government has recently announced its plans to slash red tape to accelerate the training of workers in key industries like construction to boost economic growth and realise its target of 1.5million homes. However, there are concerns that even with government intervention, this isn’t enough to enhance the industry’s skilled workforce and address the 250,000-person labour gap.”

“We’re also seeing a lag in mobilisation of large infrastructure projects, with businesses sitting on their hands waiting for the green light from government as well as being held back by procurement. The pace of project starts is therefore causing some frustration, making it difficult for businesses to commit. Although there’s plenty of large infrastructure projects to tender and carry out, this could prove difficult to manage as consolidation and an aging workforce will put strain on delivery. Industry urgently needs incentivisation to invest in technology, improved access to working capital, and acceleration of skilled workers to ensure targets are realised.”

Source: Credit Connect

/0 Comments/by

SCHOOL BUILT 9 YEARS AGO FORCED TO CLOSE

 

Prudhoe High School in Northumberland forced to close after cracks appear in the building

 

A Northumberland high school has been forced to close after several cracks were identified in the school building.

Prudhoe Community High School was closed for at least a week on Sunday, with a letter to parents citing “structural issues” for the precautionary measure.

The Cheviot Learning Trust, the academy chain that runs the school, has now confirmed that “a number of cracks” appeared in the structure of the school.

It means pupils are unlikely to return before the end of the week ahead of the half-term holidays, which run from February 21st until March 3rd.

With staff and pupils unable to enter the site, the school has now confirmed pupils will have live lessons delivered online for the remainder of the week.

A statement issued by the school read:

“Firstly can we thank you for bearing with us during an unprecedented time at school and for the messages of support we have received. You should have received an email today outlining our plans for students’ learning for the remainder of this week. Starting from Tuesday 18th February, lessons will be delivered ‘live’ and online. This means that students will need to follow their timetable for the day starting as normal at 8.30 am. Students will need to access the Google Meet link via their subject classrooms on Google Classroom. Registers will be taken in each lesson. If students do not have their own device to access Google Classroom then they can loan chromebooks from us, but should contact us urgently to arrange to pick this up.”

Further updates for parents and carers will be provided by email.

The closure has come just as the school production of Les Miserables was due to have its premiere on Tuesday as part of a three-night run. Pupils of all ages have been rehearsing since September ahead of the production.

One parent, who asked not to be named, said:

“I still don’t know what the structural issues are as no one has been told, but the school are keeping us informed of how teaching is going to be delivered.  My only concern is if this is for an extended period but as yet we don’t know if that’s going to be the case. It is shame about the work the kids have put in for the show but that’ll be rescheduled.”

Northumberland County Council’s cabinet member for education, Coun Guy Renner-Thompson, said that the council was ready to provide support to the school.

He said:

“We stand ready and willing to help them. We have provided space for the senior leadership team at the council’s Fuse Media Centre, which is one the same site. Cracks have appeared in the building. We are just waiting to see what comes back, but fingers crossed they will be able to get the children back in after half term. We are liasing with the school and we stand ready to help with whatever they need.”

Coun Gordon Stewart, who represents the Prudhoe South ward on the county council, added:

“I am aware of this issue and liaising with appropriate teams and offering advice and support if and when needed. The official school channels of communication are the best and most appropriate means for interested parties, including ie families, to be kept up to date. I am pleased that concerns were picked up quickly and I am hopeful that the school will be back to normal soon.”

A number of schools in the North East have been forced to close in recent years due to the presence of RAAC concrete. However the material was phased out of use in 1990, while Prudhoe High School was built in 2016.

Source: Northumberland Gazette

/0 Comments/by

Trump’s Tricky Questions for Architects

Since retaking office, Donald Trump has been wielding his favoured weapon of disruption – tariffs. Whether they are imposed or not, the potential impacts for UK architects and construction firms are wide-ranging and unpredictable

 

In a press briefing on April 23, 2020, Donald Trump floated the idea that injecting disinfectant might help in the fight against the Covid virus. He claimed afterwards that it was a sarcastic question aimed at journalists in the room.

Debating whether he was being a joker or just a fool misses the key point. What is relevant is that the question, serious or sarcastic, was unsettling.

Key to Trump’s political power are his capacity to throw people off balance, and his willingness to break conventions. Importantly too, his approach taps into the fad for disrupting organisations and practices deemed resistant to change.

Within days of retaking office this January, he was brandishing his favoured weapon of disruption, tariffs. In doing, so he threatens to reshape the established supply chains that have been formed over decades by steady economic globalisation.

Given the political and economic reach of the United States, this approach has serious implications for us all, whether Trump imposes tariffs or not. The impacts will stretch to construction firms and architects in the UK, whether they work within the UK or are among the growing numbers working on projects abroad.

The scale of possible disruption is unknowable, but the potential impacts are wide ranging as well as unpredictable. The key concerns for the wider construction sector are weaker economic growth, inflation in the price of construction materials, and potentially significant and wide-ranging challenges for architects and other professionals working on overseas projects, if Trump turns his attention to international trade in services.

Just the threat of trade tariffs has costs

Even if tariffs are not enforced, the uncertainty he is creating comes with an economic cost – a lower appetite for investment, reduced consumer spending, greater volatility in financial markets, slower economic growth, higher interest rates, and delayed decision making. None of these help the construction sector.

The effects are already being felt. On 5 February, the Bank of England Monetary Policy Committee discussed the announcements on trade tariffs. The minutes noted that ‘the ultimate impact would depend on the final composition of policies’, adding that ‘nevertheless, there had already been an increase in economic uncertainty globally and a pickup in financial market volatility’.

Clearly, there is too little detail as yet to measure the likely impacts of Trump’s actions. But even the disquiet already generated by his threats will change how firms behave. Many will be encouraged to onshore or reorganise their supply chains to reduce potential risks.

If this sabre-rattling approach to global diplomacy and trade escalates, it could severely impact most world economies. That would dampen growth in the UK and in turn reduce investment in the built environment, particularly speculative developments.

Market volatility and uncertainty creates inflationary pressure as the risks they pose are priced into the cost of borrowing and into transactions. This puts upward pressure on interest rates. A weaker economy and higher underlying interest rates than otherwise expected would create a noxious cocktail dulling the enthusiasm of developers, and to some extent governments, to press the start button on construction projects.

Furthermore, there are likely to be direct impacts of any tariffs and trade restrictions imposed by the US. These could create market turbulence within the global supply chains for the construction sector.

This would likely lead to supply challenges and price rises for materials, the most immediate concern. The impact of spikes in prices for construction materials created by the Covid pandemic is still being felt by construction firms in the UK and abroad. Many firms are still counting their losses, particularly smaller companies unable to shelter themselves through hedging or contractual arrangements that take account of price hikes.

For architects in their day-to-day work, disruption in supply chains could become troublesome and time consuming, for instance with an increased likelihood of specification changes cause by erratic availability or pricing of products.

Chart 1: the UK is highly dependent on imported construction materials.

The UK is highly dependent on imorted constrcution materials

The supply of construction materials used in the UK is very exposed to changes in international markets, because so much – about a third – is imported. In cash terms materials account for about 30% of GB construction output, with imports accounting for about 10%.

GB construction output was about £220 billion in 2023, with the UK importing about £22.7 billion of construction materials. We exported just £8.5 billion of construction materials, so are net importers with an annual trade deficit of £14 billion.

This means we not only need overseas materials for choice and variety, but also in large quantities because we don’t produce enough to meet our needs. Chart 1 highlights how dependent the UK is on imports and how the trade deficit has grown over recent decades as home production has fallen relative to the demand.

Even if Trump goes light on the UK with threats of tariffs, UK construction remains exposed to what happens in overseas markets. Volatility and uncertainty over prices and availability in the global markets, particularly in Europe, has significant implications for the UK supply of construction materials.

How things will play out is unknowable. This is to be expected. Trump’s approach, deliberately or not, leaves everyone guessing.

But, as the Bank of England MPC statement above shows, substantive change isn’t needed to create market turbulence. This can quickly lead to inflationary pressures as potential risks are priced in.

Moreover, turbulence in construction materials supply chains, which are highly integrated, particularly across Europe, adds doubt and therefore risks to the process of specification and product selection. This in turn adds friction and ultimately reduces productivity within design and construction teams as decision making becomes more complicated.

Architectural services’ trade surplus carries risks

That Trump has so far paid less attention to trade in services is a relief for the UK. It relies heavily on exporting services to help balance its large trade deficit in goods. But the threat remains that he might seek to rebalance global trade in services in favour of the US.

Services trade is significantly more complex than trade in goods. Services don’t cross borders as physical items, so are harder to measure and assess. This is particularly true in a digital age where multinational firms shift information, which has value, across borders every day, within their own company and with others.

Furthermore, there are various modes of services exports and imports. For instance, foreign students studying in the UK generate an export. Services might be supplied by a local offshoot of a UK company, or by a person working abroad. These are on top of the more obvious mode of providing a service directly from one nation to another.

Global businesses often realise their profits in low tax nations rather than in the high tax nations in a way that doesn’t reflect which nation benefits from their services. This distorts the underlying picture of international trade in services. It also creates discontent and international organisations, such as OECD, argue for fairer solutions.

Trump has a history of seizing upon discontent and seeking to suggest solutions, normally in a form that satisfies his interest or political base. His attention may drift towards international trade in services. There is no telling whether this might be helpful or harmful to the UK. But it could be exceptionally impactful.

If the effects were negative this could have huge implications for the architectural community in the UK. London, in particular, has become a global hub and home to many multinational firms of professionals that advise on and help create and maintain the built environment. From a relatively low base two decades ago, architectural services exports reached £1.3 billion in 2023. The US is, according to UK trade statistics, a big buyer of UK architectural talent, as are the Middle East and China.

The large trade surplus in architectural services, as in many other related sectors, provides large numbers of jobs in the UK that would not otherwise be here. London has become a powerhouse for built environment professionals operating across the globe. Chart 2 illustrates the extraordinary growth of UK exports of architectural services over the past two decades.

Chart 2: UK exports of architectural services have exploded this century.

UK exports of architectural services have exploded this century

Given his unpredictability and capriciousness, it remains unanswered whether Trump will turn his attention more aggressively towards trade in services. What’s more, it is not certain if he did that it would be with serious intent or simply as a power play to extract other concessions from the UK or other nations.

Understandably, there is little sign yet of any panic within the construction sector over the possible outcomes. But recent moves on tariffs are clearly on the industry’s radar.

‘At this early stage, we don’t know whether they will just be used as a negotiating tactic to get a few quick wins or whether they will be something more permanent,’ says Professor Noble Francis, economics director at the Construction Products Association.

‘However, clearly, the spectre of tariffs is enough to push the issue higher on firms’ risk registers,’ he adds. ‘Initially, the US moves on tariffs are likely to focus on Mexico and Canada, then China and the EU, before it directly affects the UK, but the indirect impacts could have a significant effect on global supply chains and economic growth.’

This comment from Francis was made before Trump’s threat, on 9 February, of 25 per cent tariffs on steel and aluminium. If imposed and sustained, these tariffs would significantly disrupt the global market for steel and aluminium. Both are key materials for construction.

Trump’s latest comments might stoke the fire surrounding tariffs, but they fit the general pattern of his approach. It is worth noting that he imposed similar tariffs on steel and aluminium coming from Canada and Mexico during his first administration. This led to a deal that saw them lifted.

Given the inbuilt ambiguity in Trump’s approach to politics, the best advice for architects and construction more widely is probably to stay alert and avoid being distracted. As the cliché widely used by football managers goes: ‘Focus on the things you can control.’ This doesn’t mean turning a deaf ear to the noise, bluster, and rumour that now surrounds much global politics.

One thing is clear, we are in living through a period of significant volatility and growing uncertainty. There is an increasing need for heightened vigilance and keeping a close eye on potential threats as they emerge. The wider problem for construction activity is that this will encourage derisking. This is not necessarily helpful for the sector, which by its nature involves risk.

Source: The Riba Journal

/0 Comments/by

Solar and Poultry: Natural Bedfellows

When I think of the East of England, I immediately think rich peaty soil ideal for growing a range of crops from salads to sugar beet, brassicas to potatoes.

One of the first impacts the UK along with many European countries felt from the Russian invasion of Ukraine was a jump in the price in the energy. Quite naturally the previous and current Governments both immediately started to raise the importance of UK energy security and when added to the climate change agenda, the push for net zero from renewable sources. Unsurprisingly then that solar developments have started to be fast tracked through planning.

Near to my home on the Rutland Lincolnshire border a solar farm called Mallard Pass has received planning permission. This behemoth of a development covers 2,238 acres of farmland. It is 4.2 miles long with a perimeter of over 25 miles making it equivalent to the size of almost 1,400 football pitches.

Solar grazing or as it is sometimes known, agrivoltaics, has been around for well over a decade. In the US for example, it is commonplace for poultry be they broilers or layers to range freely in among large solar developments.

The benefits are obvious. Energy security and food security, two harvests from one land mass and no need to keep the grass mowed.

In 2014, the NFU’s chief adviser renewable energy and climate change, Dr Jonathan Scurlock authored the BRE (2014) Agricultural Good Practice Guidance for Solar Farms in which he noted:

“Smaller solar parks can provide a light/shade environment for free-ranging poultry… Broiler chickens, laying hens and geese will all keep the grass down… Stocking density of up to 2000 birds per hectare is allowed…”

This would mean that at Mallard Pass Solar Farm, 838,000 birds could co-habit the site.

Birds and eggs whose production ‘impacts’ could surely be offset against the energy that the land is generating to provide a marketing narrative of net zero or better free range poultry meat and eggs.

Suddenly agriculture would stop looking like the ‘bad boy’ of climate impact and instead gain a halo effect that other industries would envy.

So, look out for solar farm developments. There are a lot planned on farmland. Seek out the owners and see if there are opportunities to grow your poultry and egg businesses within the scope of agrivoltaics.

by Chloe Ryan

Source: Poultry Business

/0 Comments/by

The Next Generation of New Towns

Government unveils plans for next generation of new towns

Hundreds of thousands of working people and families will reap the rewards new towns across Britain, as the Prime Minister paves the way for the largest housebuilding programme since the post-war era.

  • Over 100 sites across England have come forward to be considered for next generation of new towns
  • Government on track to create beautiful communities, provide affordable homes, and deliver much needed infrastructure, including schools and nurseries, GP surgeries, and bus routes
  • By taking on the blockers, 20,000 homes, along with new schools and health facilities, will move forward following government action, and we will now turn to unblock the remaining 700,000 homes across 350 sites
  • Comes as government rolls out major planning reforms to sweep away the blockers and push through its housebuilding agenda as part of the Plan for Change

Hundreds of thousands of working people and families will reap the rewards new towns across Britain, as the Prime Minister paves the way for the largest housebuilding programme since the post-war era.

Visiting a housing development today, the Prime Minister will unveil the government’s plans for the next generation of new towns – well-designed, beautiful communities with affordable housing, GP surgeries, schools and public transport where people will want to live.

Over 100 proposals from across every region in England were submitted, showing local areas and housebuilders’ ambition to get on board to build the next generation of new towns – playing their part in getting Britain building and tackling the worst housing crisis in living memory. Every new town will have the potential to deliver 10,000 homes or more.

Delivering security is central to this government’s Plan for Change, because the least working people deserve when they graft hard is a secure home. That’s why the government is providing much-needed housing in the right places with the right infrastructure, and the New Towns Taskforce has today set clear principles on what the next generation of new towns will deliver: affordable housing, vital infrastructure and access to open green spaces and nature, to transform the lives of working people.

Prime Minister Keir Starmer said:

For so many families, homeownership is a distant dream. After a decade of decline in housebuilding, the impact is a disconnect between working hard and getting on.

This is about more than just bricks and mortar. It’s about the security and stability that owning your own home brings. I know what this means for working people – the roof above our head was everything for our family growing up.

We’ve already made progress in just seven months, unblocking 20,000 stuck homes. But there’s more to do.

We’re urgently using all levers available to build the homes we need so more families can get on the housing ladder. We’re sweeping aside the blockers to get houses built, no longer accepting no as the default answer, and paving the way for the next generation of new towns.

As part of the largest housebuilding programme since the post-war era, our ambitious Plan for Change will transform the lives of working people, once again connecting the basic principle that if you work hard, you should get on.

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said:

Time and again we are seeing too many new homes stuck or stalled that not only act as a barrier to growth but also has real-world consequences for working people and families who see homeownership as nothing more than a distant dream.

I will not run away from the tough choices to fix the housing crisis we inherited that has left thousands of families on housing waiting lists, allowed homelessness to spiral out of control, and stopped an entire generation from picking up the keys to their first home.

While our vision for the next generation of new towns is setting the stage for a housebuilding revolution in the years to come, urgent action is needed now to build the homes and infrastructure that our local communities are crying out for. That’s why our New Homes Accelerator is working at pace to find solutions and remove blockages in the system, executing long-lasting solutions to get spades in the ground.

Today we are embarking on the next chapter in our Plan for Change to build 1.5 million new homes, deliver the biggest boost in social and affordable housing in a generation, and raise living standards for working people and families across the country.

For far too long, working people have been let down by a decline in housebuilding. That’s why the government is rolling up its sleeves and is taking on the blockers with major reforms to planning regulation to get Britain building.

That work is already underway, with a staggering 20,000 new homes now successfully unblocked by the government’s novel ‘New Homes Accelerator’ programme, which deploys planning expertise to speed up the delivery of housing sites held by unnecessary delays.

Areas that have already benefitted from direct government action include:

  • Over 1,000 homes unlocked at Cowley Hill in Liverpool, where an agreement has been reached with the Environment Agency who withdrew its previous objections on both flood risk and biodiversity grounds, subject to planning.
  • And at Wolborough in Devon, the Accelerator has worked with Natural England to help accelerate this development, whilst ensuring environmental improvements are secured. On top of the 1,100 homes the site is injecting £1.75 million towards off-site pedestrian and cycle improvements, playing pitches, bus services and a local travel plan.

Housebuilders and local councils have put forward over 350 housing development sites stuck in the system under the previous government – that together could unlock around 700,000 new homes.

Around a quarter of sites submitted are already receiving government attention since the call for evidence closed in October – demonstrating success of the programme, and local ambition to support the government’s 1.5 million homes target.

This goes hand-in-hand with government action to overhaul the planning system, supporting the builders and not the blockers, taking the brakes off economic growth, raising living standards, and making the tough decisions to deliver for working people and families.

This includes:

  • Publishing a new growth-focused National Planning Policy Framework, which introduced new mandatory for councils to deliver the right homes in the right places, with a combined total of 370,000 homes a year.
  • Introducing the Planning and Infrastructure Bill next month. The Bill will overhaul environmental regulations to no longer accept the failed status quo where bats are more important than trains or newts more important than homes, and remove blockers to fast-track delivery of the homes and infrastructure that local communities need.

To get Britain building now – the government today announces plans to fast stream planning through brokering disagreements between the agencies and expert bodies, which by law must be consulted within the planning process. Bodies including National Highways, Natural England and the Environment Agency will need to bring planners and housebuilders to the table and iron out concerns that have been holding back development.

Responding to sector concerns on pinch points, work stepping up with the Building Safety Regulator to ensure greater timeliness and efficiency when new tall buildings are signed off – to provide more homes for more people.

This work will be bolstered by extra government funding announced today, including:

  • £1 million for government agencies, including National Highways, Natural England and the Environment Agency, to speed up the planning approval of new homes and improve feedback to local authorities and industry where required.
  • £2 million to support the Building Safety Regulator to continue improving the processing for new-build applications.
  • Over £3 million of grants for local councils to bolster planning capacity, alongside direct advice and navigate through some of the more complex issues holding up new development.

Alongside the Accelerator, the government is also supporting local partners through a clearing service to help accelerate the sale of uncontracted and unsold affordable homes, with nearly 300 housebuilders, local councils and registered providers signing up in the first 50 days of its launch.

In December, the government set a clear hierarchy of brownfield first, grey belt second and green belt third. Today, further funding is being injected to drive regeneration and brownfield deliver in the following areas:

  • £20 million to help transform neglected small-scale council-owned sites into new homes, for areas most in need.
  • Nearly £30 million from the Brownfield Infrastructure and Land Fund in Bradford to transform derelict brownfield sites into a vibrant residential area with 1,000 new homes, three community parks, shops, cafés, restaurants, and offices.
  • £1.5 million to support a regeneration programme at Manchester Victoria North, delivering a new district of 15,000 homes with transport links and green spaces.

Getting homes built for working people is a priority and is backed by investment in housing which is increasing to £5 billion for this year, including a top-up of £800 million being injected into the existing Affordable Homes Programme to help deliver tens of thousands of new affordable and social homes across the country.

This is in addition to an extra £100 million of cash to bolster local resources with increased planning fees to cover costs and funding to recruit 300 planning officers, making sure councils have the capacity they need to rubberstamp new homes and infrastructure.

/0 Comments/by