Following the ONS announcement that construction output had fallen by 1.9% in February, the Federation of Master Builders (FMB) has given its reaction to the data.

 

The organisation said the statistics were a warning that ‘the construction sector was still battling in a difficult economic climate.’

Brian Berry, CEO at the FMB said:

“It is concerning to see another decline in construction output of 1.9% this month, and this is compounded by the overall decrease of 1.0% in the three months to February.

“While growth had been seen in January, these figures underline the challenging winter period that UK construction has faced — it is particularly concerning that this decline was in part led by a drop in repair and maintenance work, a sector that had been doing well last year, comparatively to other sub-sectors.Bottom of Form

“Survey responses from the ONS research suggest that this was down to poor weather conditions, with heavy rainfall hindering many projects, and we’ll have to see if warmer spring weather brings a welcome boost for builders.”

“Despite overall GDP being up slightly this month for the wider UK economy, the decline in construction output is holding back substantial improvement.

“As we head into the drier months, the government needs to take this opportunity to help boost that construction activity, which could take the form of helping to step up house building and measures to help owner owners make their homes more energy efficient — these two measures would help drive economic growth.”

 

Source: Development Finance Today

 

 

James Hardie, the world leader in the manufacture of high-performance fibre cement and fibre gypsum building solutions, has appointed Edward Dunn as Channel Manager to further support trade partners in the North.

Ed has nearly 10 years account management experience working for large national accounts and independent wholesalers.  In his most recent role he worked for Glen Dimplex Flame Europe where he was responsible for sales in the North & Scotland.

As Channel Manager Ed will identify and drive future growth opportunities for James Hardie products, fostering relationships with key stakeholders at distributors, installers, and contractors in the region.

Ed commented:

“I wanted to join a fast-paced company where there was scope to develop my role and make a real difference. James Hardie has a great product portfolio and clear strategy for aggressive business growth.  Since I started with the company I’ve been inspired by my colleagues’ attitudes and the support from the senior management team.  I look forward to contributing to the company’s success in the future.”

 

“The creation of this role underscores our commitment to delivering excellent customer service for our clients and partners,” said Lee Bucknall, UK Sales Manager at James Hardie.  “Ed’s account management experience in the Northern region will help us to develop relationships with the channel, and grow our market share in the area.”

 

www.jameshardie.co.uk

 

 

 

Construction sector hammered by wet weather and high interest rates – holding back UK economic growth

Construction output slumped in February, weighing on overall economic growth, as wet weather and high interest rates hammered activity.

The construction industry’s output for the month fell 1.9 per cent in volume terms, holding GDP growth back to just 0.1 per cent after every other sector showed growth, figures from the Office for National Statistics showed on Friday.

The fall, which marks a 1 per cent contraction in the three months to February, was driven by a slump in activity in eight out of nine sub sectors – with private housing repair and maintenance the only area of growth, adding 0.2 per cent.

Project delayed: Construction sector output weighed down by poor February weather

Non-housing repair and maintenance, and private commercial new work were the worst affected, contracting by 2.5 and 4 per cent, respectively.

Experts pinned the decline on particularly poor weather for the month holding up construction projects after more than double the usual amount of rainfall this February, according to the Met Office.

The rise in the Bank of England’s base rate to its current level of 5.25 per cent has driven mortgage rates higher, leading to a drop in new home purchases and a slowdown in house price growth.

Repair and maintenance work has led construction since 2020 amid weak output in the rest of the sector

Shares in the housing, building materials and merchants sector are down roughly 1 per cent over the last month, led by a 5 per cent drop for housebuilders, as investor fret the potential for interest rates to remain higher for longer.

Nicholas Hyett, investment analyst at Wealth Club, said the construction sector ‘is in the doldrums’ and ‘an interest rate cut could be quite helpful’.

Generally improved economic output globally combined with higher-than-expected US consumer price inflation this week has driven back forecasts for the BoE’s first rate cut and the scale at which base rate will fall this year.

UK GDP grew by 0.1% in February, while January’s growth was upgraded to 0.3%

Current market pricing now suggests that the first BoE cut won’t come until August, while the forecasted scale of 2024 cuts is less than 50 basis points – meaning the current base rate of 5.25 per cent will not fall below 4.75 per cent by year-end.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: ‘Falls in construction activity also indicate a broader malaise the UK is yet to shake off.

‘We’ve known for some time that major housebuilders have been building fewer homes, as people wait for finances to improve before making large financial decisions.

‘All-in-all, the rate of economic growth has slowed, and there’s still a lot of extra coals needed to stoke the UK’s engines.’

 

Source: This Is Money

 

 


Despite some developers withdrawing from a recent contract round, prospects still look good for landowners looking to cash in

Several renewable companies have terminated fixed price contracts awarded by the UK Government relating to onshore energy projects output prices, sparking concern that renewables development has peaked.

This is not the case, renewables developers are hungry for more sites across Scotland and they are also prospecting for onshore wind sites in England.

Developers withdrew from over 600MW of Contracts for Difference (CfD), citing inflation and increasing costs of raw materials.

Cancelling these contracts amount to bumps in the road, because the UK Government’s commitment to reach net zero emissions by 2050 requires a quantum shift in the way we generate power. Green energy production remains a growth sector and will be for many years to come.

With this in mind, for the next round of CfD, the government is likely to offer more attractive rates that will incentivise investors to develop.

Developers are also now seeking to lease land for at least 35 years, some 50 years. Tens of megawatts of generation on pieces of unused land can lead to hundreds of thousands of pounds of annual rent for businesses.

Rental income paid by third-party developers and operators for onshore wind farms, solar parks and battery energy storage systems of reasonable scale will alter the financial landscape of most landowners – and it will span more than a generation.

To date, the majority of onshore wind farm development has been in Scotland and Wales, however, I am aware that several developers are prospecting for sites in England.

There is optimism amongst some developers that either a change in Westminster and subsequent government policy, will enable large-scale onshore wind development down south. This could create significant opportunities for English landowners, most likely in the north and west, where the land is less densely populated and there is better wind resource.

Renewables and energy developments can only be achieved if developers can get a connection to the national electricity grid network.

The grid is undergoing a massive overhaul and expansion with the electricity licence holders – National Grid, ScottishPower, Northern PowerGrid, etc – under a great deal of pressure to reinforce and upgrade the electricity network. It means more landowners will be affected by the drive for green energy, with the installation of electricity infrastructure across their land.

Anyone faced with the opportunity to lease land for energy development, or facing compulsory electrical infrastructure works, should seek professional advice as soon as possible to maximise opportunities or compensation.

Source: Insider.co.uk

 

 

 

ROBERTSON Construction Northern has successfully completed the build of Peterhead House at RAF Lossiemouth.

The completion marks a ‘significant improvement’ to accommodation for hundreds of personal at the Moray base, with it being the seventh and final of a series of new single living accommodation blocks at RAF Lossiemouth.

The seven blocks and accommodation hub, which provides 24-hour social areas for personnel living in the blocks as well as office space for accommodation staff, were delivered by the contractor for Defence Infrastructure Organisation (DIO), on behalf of the Royal Air Force (RAF).

Robertson Construction Northern, which has a local office in Elgin about six miles from the Moray base, was supported by Tetra Tech as technical service provider for the project.

In total, the seven blocks contain 426 ensuite bedrooms, with each block including laundry and kitchenette facilities while providing comfortable accommodation for RAF personnel. As well as construction, the project included demolition of existing buildings on the site, design, diversion of services and landscaping. Pedestrian access routes and 300 new car parking spaces were built and a number of EV charging points were installed.

All buildings were constructed using modern methods of construction, which sees the blocks being built off-site in sections which are then transported and assembled on site. Robertson explained that this improves the quality of the final product, minimises disruption on what is a busy operational air base, and speeds up the completion of the work. For the final five blocks, even the internal fit out was done off-site – meaning that when the modules were delivered, only minor internal works were needed.

Darren Keddie, project manager at Defence Infrastructure Organisation, said,

 “It’s fantastic to see the conclusion of several years of close work with our contractors and RAF colleagues on this element of the Lossiemouth Development Programme. We want to ensure that our dedicated RAF personnel have suitable and comfortable accommodation to go back to when the working day is done, and I hope and believe they will be happy with what we’ve provided here.”

Ian Phillips, regional MD at Robertson Construction Northern, added,

“We have enjoyed a close working relationship with the DIO and RAF Lossiemouth over the last 25 years and during that time have delivered several strategic projects including married quarters, The Atlantic Building, and this new modern single living accommodation.

“Together with Defence Infrastructure Organisation, we ensured that the accommodation and facilities meet user needs and priorities, whilst ensuring that any disruption to day-to-day activities at the base were kept to a minimum.

“Robertson is incredibly proud to play its part in supporting the defence sector and serving personnel.”

Gp Capt Pete Beckett, Lossiemouth development programme director, said,

“This handover represents a significant milestone on the LDP journey, it is the final project to be delivered in support of P8 and Typhoon growth. Of all the works we have delivered this one, perhaps, means the most as it is directly focused on our people and making RAF Lossiemouth a better place to both live and work.

“My congratulations must go to Robertson Construction Group, DIO Major Programmes and Projects, and Tetra Tech for the successful delivery of this key product; they should all be rightly proud of this quality product.”

Gp Capt Jim Lee, RAF Lossiemouth Station Commander, said:

“The handover of the final single living accommodation block to RAF Lossiemouth represents a huge moment. It signals the end of a long, collaborative journey between the station, defence infrastructure organisation, Tetra Tech and, of course, our local contractor Robertson, to improve the accommodation offer for our people.”

Source: Project Scotland

New Centre for Doctoral Training to drive UK’s green industrial revolution

A major new Centre for Doctoral Training in Green Industrial Futures (CDT-GIF) has launched to help secure the UK’s position at the forefront of the green industrial revolution. The Centre builds upon the pioneering work of the £20 million UK Research & Innovation (UKRI) Industrial Decarbonisation Research and Innovation Centre (IDRIC).

According to European Investment Bank research, over 80% of companies consider skills shortages to be a barrier to their net zero projects.

The CDT-GIF will play a key role in training the next generation of innovators and leaders to deliver the technologies, systems and solutions required to transition UK industry to net zero emissions by 2050.

With a comprehensive research programme spanning carbon capture, utilisation and storage (CCUS), green hydrogen, CO 2 removal, energy integration and whole systems design, the CDT’s graduates will develop the expertise and skills to tackle the biggest decarbonisation challenges facing industry.

Alongside a four-year research project, the CDT-GIF students will undertake advanced training in the social, environmental, economic and regulatory aspects of the net zero transition in industry, as well as professional development in areas like business strategy, commercialisation, responsible innovation and policy engagement. Students will also have the unrivalled opportunity to visit some of the world’s leading pilot and demonstration facilities.

Delivered by a consortium of four of the UK’s leading research universities – Heriot-Watt University, Imperial College London, University of Bath and University of Sheffield – the CDT-GIF represents a £18 million investment from UKRI through the Engineering and Physical Sciences Research Council (EPSRC).

Professor Mercedes Maroto-Valer, director of the CDT-GIF and UK industrial decarbonisation champion, said:`
“The outstanding research and cross-sector partnerships cultivated through IDRIC have paved the way for this ambitious CDT. By building directly on IDRIC’s foundations, we can hit the ground running to produce the doctoral talent and innovation pipeline that UK industry urgently needs to lead the global energy transition.”

This holistic approach will produce graduates with vital cross-disciplinary skills in systems thinking, industrial literacy, and the ability to contextualise and deploy decarbonisation technologies within the wider global system.

Professor Maroto-Valer added: “Our CDT graduates will emerge as true energy transition leaders, not only technical experts, but also multidisciplinary professionals who understand the complex societal implications of decarbonisation and can effectively engage with industry, policymakers and the public.

“Our program will also emphasise the importance of a just transition which accounts for the impacts on workers and communities affected by industrial decarbonisation. Ensuring fairness and creating high-quality employment opportunities will be key social considerations.

“With these future-focused capabilities, our graduates will be ideally positioned to drive the innovation and public acceptance needed for UK industry to remain competitive in a net zero world.”

Exciting research opportunities are available now for prospective students across the CDT’s core themes through a range of funded positions offered through the CDT’s extensive industry partner network.

Ambitious candidates interested in shaping solutions for the UK’s green industrial future should visit the CDT-GIF website or get in touch to explore projects and apply.

CDT-GIF is also seeking industry partners to co-create research projects and develop talent. If this programme aligns with your research and talent development priorities, please contact cdtgreenindustrialfutures@hw.ac.uk or visit https://greenindustrialfutures.site.hw.ac.uk/

  • Awards see slight fall on the previous month but the residential sector bounces back from poor February.
  • A continued positive trend in contract awards in Q1 suggests the sector is looking to emerge from doldrums of 2023.
  • Lack of new applications suggests the crossroads have not yet been passed.

Construction contract rewards remained stable in March following a quarter which had showed a significant increase since the beginning of the year. The value of new contracts was 3% down in February and 1% down on the previous year but remained significantly above the last quarter of 2023, according to analysis from Barbour ABI.

 

Notably, residential contracts were up 60% in February, returning to heights seen in January and were up 62% over the first quarter of the year. Meanwhile, infrastructure fell back to more normal levels following a stellar February but remained 38% up on the same month last year.

 

A new student accommodation facility on Medlock Steet, Manchester will cost £200 million, whilst a new National Grid convertor station at Eastern Green will be built at a cost of £700 million. A new prison at HMP Gartree was also awarded at a cost of £300million. Wates will carry out the work which will commence July 2024.

 

 

 

Barbour ABI head of business and client analytics, Ed Griffiths commented:

“When looking across the first quarter of 2024 it has become clear that both the infrastructure and residential sectors have had strong starts to the year as businesses attempt to get projects off the ground, which is a positive signal the construction sector is attempting to emerge from the doldrums of last year.

“Interestingly in March, we saw Residential and Infrastructure swapping positions in terms of leading overall contract awards value with £2.4bn and £2bn respectively. Together they are pushing the industry awards upwards.”

Elsewhere Healthcare projects were subdued in March following two strong months and Economic conditions continue to stagnate the Hotel and Leisure Sector

Applications continue to confound recovery.

Planning applications have improved in February after a weak start to the year in January but activity levels in most sectors remain low, highlighting that nervousness remains in the sector to commit to future projects ahead of potential rates cuts and upcoming elections.

Infrastructure has increased 33% since last month and remains strong against its long-term average. However, it has not returned to the highs of the end of last year. Residential applications fell once again from £3.1bn in January to £2.9bn in February.

Griffiths continued:

“The enduring story of 2024 so far has been the contradiction between a rise in contracts awarded, sometimes even for projects which have not yet been fully approved, and the continued lack of confidence shown in both in new applications and approvals – which have been contracting since last November. The industry stands at a crossroads where financial and political decisions made at a national level could tip the balance in either direction.”

The challenges this and other councils’ building control departments face in Wales

Changes are being implemented after a damning report last year

Reassurances about how Swansea Council inspects buildings and enforces breaches in regulations have been sought after a report which one councillor described as a “damning indictment” of building control services in Wales and England. Cllr Lynda James was responding to an Audit Wales report last year which didn’t single out Swansea but concluded that councils and fire services were unable to effectively ensure buildings were safe in Wales.

The auditor’s report followed an inquiry into the Grenfell Tower fire tragedy in London in 2017, which led to the deaths of 72 people, and the subsequent passing of new legislation – the Building Safety Act – parts of which apply to Wales. Audit Wales painted a picture of an ageing building control workforce which faced budget challenges and competition from peers who worked in the private sector. It said there were 133 full-time building surveyors and managers working for Wales’s 22 councils in March 2022 – the equivalent of one for every 23,361 residents.

A council scrutiny meeting heard that Swansea’s building control team – excluding admin staff – currently stood at nine, including one apprentice and two newly-qualified technicians. There are three levels of competency for surveyors and only one of the nine has this highest level. The council is currently advertising two senior building control posts with a salary of £42,403 plus a 15% “market supplement”.

Tom Price, senior building control officer, said recommendations made by Audit Wales, such as a requirement for all building surveyors to become registered this month and prove their competency by sitting an exam, were being implemented. A new pay structure, he said, has also been put in place. “Long-term succession planning is key,” he said.

Councillors were told the authority would look to train apprentice surveyors in-house if they couldn’t be recruited from the open market. “There is a long road for us to go, but we are planning for it,” said Mr Price, who added that a meeting was taking place next month between local authority building control services in Wales and the Welsh Government about this and other issues.

Councils are required to set and review fees they charge for building control work, and also consider ring-fencing and reinvesting income into the service by creating an earmarked reserve. Audit Wales said nine of the 12 councils which responded to its questions about fees did not comply with the regulations, with one local authority not changing their fees at all in the previous 10 years. “This is extremely concerning and poses significant risks to achieving value for money from the service,” said its report. Mr Price said the auditor was satisfied with Swansea’s fee-setting arrangements.

Another Audit Wales finding was that only a third of councils ring-fenced building control income, while half of all building control services in Wales operated at a deficit. Asked at the meeting if Swansea Council ring-fenced building control income, Mr Price said: “That’s one we are working on.” He said he’d provide a fuller response in writing.

Cllr James said of the Audit Wales report: “It’s a very damning indictment of building development and building control right across Wales, but England as well.” She said it seemed that Swansea Council was acting on the recommendations.

The Welsh Government said it had developed a phased timetable for the implementation of the Building Safety Act provisions which applied to Wales. These focus mainly on the reform of the building control system.

 

Source: Wales Online

National body has crucial role in delivering the government’s housing, regeneration and levelling up priorities and provides value for money, working in partnership to drive forward national, regional and local ambitions.

 

The review reaffirms the crucial role the Agency plays as a national public body of scale in place-making across the country, supporting local leaders, affordable housing providers and the private sector to turn housing and regeneration plans from a vision into reality for the benefit of communities.

In the past five years this has included:

  • supporting development of more than 186,400 new homes
  • unlocking land that could deliver close to 400,000 additional new homes
  • helping more than 252,500 households into home ownership.

The review also recognises the unique expertise, capability and capacity Homes England is already putting to good use in driving delivery and outlines the potential to further expand its master development role in urban and new settlement areas.

Published by the Department for Levelling Up, Homes and Communities (DLUHC), the review is part of the government’s Public Bodies Review Programme, which routinely assesses the effectiveness and efficiency of all arm’s length bodies (ALBs).

Michael Gove, Secretary of State for Levelling Up, Homes and Communities said:

Today’s independent report shows Homes England is the right vehicle to deliver more affordable homes and support our plans to regenerate towns and cities across the country.

I welcome the report and its recommendations and we will work closely with Homes England to finalise an implementation plan. This builds on our long-term plan for housing to further strengthen Homes England’s record of delivery so we can deliver more homes that are affordable, beautiful, and built in the right places.

Peter Freeman, Homes England Chair said:

I  welcome such positive endorsement of the Agency’s efficiency and governance alongside recommendations for both improvement and for developing our mandate and structure.

Much of this work is already happening. Other recommendations will require changes in partnership with the DLUHC and Treasury, but if progressed could be transformational in how we deliver new homes and create thriving places.

While there is much to celebrate, we are steadfast in our resolve to always improve, ensuring that we are effective and efficient in driving forward the country’s housing and regeneration ambitions.

Peter Denton, Homes England Chief Executive said:

I’m proud the review acknowledges the hard work, talent and passion of our staff and partners throughout a challenging time for the market and sector.

The report makes clear we have a crucial role to play in catalysing local regeneration and housing delivery by using our land, powers, funding and expertise – reducing risk to drive investment and harnessing the potential of private and public sector skills, capital and partnerships. Bringing all of these elements together means we are greater than the sum of our parts as a collective force to deliver effective change.

Place-based work is central to this mission and well underway in numerous places, from Bradford, Bristol and Birmingham to Newcastle, Liverpool and Plymouth. By 2025 we expect to have entered into six strategic place partnerships with combined authorities, serving a combined population of more than 13million people.

SGS Local Hero Awards 2024: Hunt for ‘hero’ tradesperson launches for 4th year 

 

SGS Engineering the leading UK gas struts manufacturer and tool retailer is launching its annual Local Hero Awards, asking the country to nominate a generous tradesperson.

Entering its fourth edition of the Local Hero Awards have been launched by SGS Engineering to shine a light on the most thoughtful plumbers, builders, mechanics, electricians, joiners, gardeners, and tradespeople, who have put others first with their kindness and generosity.

2023’s winner, Chris Griffiths, from Neston on the Wirral, received a nomination for offering half-price work for OAPs and for offering free some small jobs to help people in his local area. Chris even donated his cash prize to fund good work in his local community – proving himself to be a worthy local hero.

One national winner will be awarded a £1,000 cash prize, while up to five regional winners will each take home cash prizes worth £250. 

Discussing the awards Neil Sansom, CEO at SGS Engineering said:

“Previous years of the awards have shone a light on some of the wonderful tradespeople across the UK who are going above and beyond for their customers and the public.

“We heard about so many acts of kindness by others. Graham Nash of Pinnacle Builders in Leeds was voted the winner in 2021 for his work repairing the damage done by cowboy builders, and James Anderson of D.E.P.H.E.R. in Burnley won in 2022 for offering community plumbing work for vulnerable and elderly individuals.

“We believe that these selfless people and their acts of kindness should be celebrated, and that’s why we’re excited to launch the fourth edition of the ‘Local Hero Awards’.

“If you know of a worthy tradesperson who has gone above and beyond to make the world a better place then let us know – a £1,000 cash prize could be the perfect way to thank them for their kindness.”

 

People can nominate a local hero here – it’s free and easy to do via the entry form. Complete each entry with as much information as possible on the tradesperson and how they have helped others.

 

Key dates to remember: 

    • Entries open from Tuesday 2nd April 2024 and close on Tuesday 30th April 2024.
    • The SGS team will review all entries and a shortlist of finalists will be announced on Friday 3rd May 2024.
    • A poll will then be opened on Friday 3rd May 2024, allowing the public to vote for an overall national winner and up to a further five regional winners, which will be crowned on Friday 10th May. 

Prizes include:

    • Overall national winner: £1,000 cash prize
    • Regional winner (Scotland): £250 cash prize
    • Regional winner (Northern England): £250 cash prize
    • Regional winner (Midlands & Southern England): £250 cash prize
    • Regional winner (Wales): £250 cash prize
    • Regional winner (Northern Ireland): £250 cash prize

 

CLICK. HERE for further information about the Local Hero Awards