In the wake of the UK Regions Economic Summit, where ICAEW launched the findings of its Q4 Business Confidence Monitor, one of the event’s Regional Chairs Neil Coupe shares his upbeat take on the economic climate.

The biggest fear for business is fear itself, according to Schwing Stetter Finance Director Neil Coupe. “My major concern at the company I work for is that people are talking themselves into a catastrophe,” he says. “Yet we’ve had a very positive year and the order backlog for next year is looking strong. People are still investing in the products we sell because there are still projects taking place.”

Far from riding the wave of doom and gloom surrounding the cost-of-living crisis, Coupe takes the approach that downturns have happened before, will happen again and they’ll get through it.

Coupe accepts that Schwing Stetter – which sells concrete placement and production equipment to the concrete industry – may be shielded from the worst of the UK’s current money woes as it provides specialist products with long lead times. But he believes that while the government must look after the vulnerable facing hardship during this downturn, there’s no reason why businesses offering great service and value for money can’t thrive.

The construction industry’s biggest challenges

The most significant concerns facing his industry right now, says Coupe, are:

  1. Staff retention and recruitment
    “There’s lots of demand for labour in the construction sector, so businesses are finding they need to pay their people more to keep them. But if people are treated properly, the strongest companies will keep the best people.”
  2. Inflation
    “It has not been too difficult to pass the price increases on in the sector, but that’s not sustainable in the longer term. The Bank of England thinks that inflation should decline in the second half of 2023, so hopefully the current rate is just a blip.”
  3. Interest rates increasing
    “Many people buy our machines on finance and there’s a world of difference in funding something at 4% interest to funding something at 7%. Hopefully, from what the Bank of England is saying now, things won’t be quite as catastrophic as we were led to believe a few months ago.”
What can the government do to support businesses?

For Coupe it comes down to two things: cutting post-Brexit import/export red tape and sticking to house-building targets. “At the moment, every time we import goods from Germany and deal with Customs’ formalities, it’s like death by Excel.” 

He also has concerns that the government’s target to build 300,000 new homes a year is coming in woefully short year on year. “Where will young people live? How will they get on in life if there’s nowhere affordable to live? I think that’s a huge issue in terms of social cohesion and fairness.”

Looking forward

Coupe is positive about the future. “I think people will moan and groan and say how difficult things are, but then we’ll all just get on with things. Hopefully unemployment will stay low and businesses will continue to thrive.”

Source: ICAEW Insights

Miller has launched a new product for the UK construction sector, known as D&O Construct, designed exclusively with DUAL.

Miller said that it partnered with DUAL to create a product that offers companies broader directors and officers coverage and plugs the gaps in the standard coverage being offered. This is amidst mounting regulatory pressures in the UK construction sector.

D&O Construct offers nil deductibles throughout the policy, which, according to Miller, ensures that companies are not financially impacted when faced with covered claims that can amount to substantial legal and defence costs. The product also provides coverage for claims arising out of company insolvency, corporate manslaughter claims and environmental claims.

The directors and officers liability product is applicable to various occupations across the construction sector, including architects, developers, building contractors and surveyors.

“As the UK construction sector continues to face increasing regulatory and legal pressures, I’m delighted to announce the launch of this new product which plugs the gaps left by the market’s more standard coverage,” said Scott Taylor, Miller’s head of financial institutions and D&O (international). “Led by our dedicated and growing D&O team, this offering further highlights Miller’s commitment to providing specialised, tailored insurance policies and working in partnership with like-minded underwriters to provide the best solution for our clients.”

Source: Insurance Business UK

Strand Hardware has developed leaner assembly, dispatch and warehousing processes – saving hundreds of staff hours each year – in a joint project with a crack team from Warwick University.

The project with WMG (Warwick Manufacturing Group) has optimised warehouse layout and movement for the efficient flow of picking, assembly and packing operations across key ranges.

It involved measuring processes via time study and motion analysis through site visits, video capture and process flow assessment. Findings outlined cycle times and mapped the movement of people.

The resulting report outlined a series of recommendations to improve process capacity, including quick wins and minor modifications to warehouse and workstations layout to introduce time savings.

This has led to the introduction of mobile Kanban shelving within the assembly area to allow components to be picked and assembled more efficiently. The double-sided racks allow bins to be restocked by a dedicated person who conveys stock between Strand’s warehouse and its head office on another part of the site.

 

Steve Marshall, Managing Director of Strand Hardware, said that the project had been “thorough and exacting”.

“Strand Hardware has grown over 30 years. Like most companies, while scaling up, we have focused on customer requirements and day-to-day business operations. We felt that the time had come to review what we were doing and whether we could be doing it more efficiently, which led to the opportunity to work with WMG.

“Having experts come into the business with fresh pairs of eyes, ask the right questions and with the knowledge to assess and analyse our operations has been invaluable. It was important for us not to disrupt warehouse activity, so recommendations had to incorporate improvements that would be easy to apply. In the long term, this will make our business leaner and more efficient – the ideal foundation for future growth,” he said.

 

The project was undertaken with funding from the Digital Innovation for Manufacturing programme.

 

Strand Warehouse and Production Manager Andy Michel said that it had been fascinating to work with the University Team: “The results will make the job easier for many of the team and help Strand Hardware in its continuous improvement.”

 

Chris Wang, of WMG SME Group added: “WMG and Strand Hardware have worked collaboratively to analyse their current assembly area in readiness for optimising their production facility. Across the three recommendations put forward, a maximum 50% reduction in cycle times per unit has been predicted which allows for a 5.105% capacity increase.”


CLICK HERE For more information on Strand Hardware’s range of products

or call: 01922 639111

www.strandhardware.co.uk

 


 

Zentia’s new Fission range will incorporate the former Tatra, Cortega and Fine Fissured tiles.

Leading UK ceiling manufacturers Zentia are bringing together and renaming three of their most popular mineral tiles.

The new Fission range will comprise Fission (formerly Tatra), Fission ND (formerly Cortega) and Fission FT (formerly Fine Fissured) which are all fire rated to Euroclass A2-s1, d0.

Despite the renaming, there are no changes to the products or their technical performance, and they are still warrantied for up to 30 years (when fitted with the Zentia grid system). Alongside this, they are manufactured with up to 51% recycled content and remain 100% recyclable.

Fission and Fission ND are white tiles available in two different edge details – Board (600 x 600mm and 1200 x 600mm), and Tegular (600 x 600mm) for greater design flexibility. The Board edges fully expose the suspended ceiling grid, while the Tegular tiles are rebated, creating a semi-bevelled visual.

Featuring directional and non-directional fissured patterns, they balance the need for sound absorption and sound attenuation in open plan spaces such as atriums, libraries, storage facilities and warehouses.

The premium product in the Fission range is Fission FT which is available in black as well as white and in three different edge details (Board, Tegular and MicroLook). The MicroLook edge is designed for use with Zentia’s 15mm grid range, with a vertical edge creating crisp shadowed effects. Its ultra-fine non-directional fissured pattern offers an optimum balance between sound absorption and sound attenuation.

All three ceiling tiles are suitable for new-build and refurbishment projects in the commercial, industrial and retail sectors.

 

Zentia’s sales and marketing director Graham Taylor said: “In 2020, we began our journey transitioning from Armstrong to Zentia. It is an exciting time that will deliver opportunities for us and our customers. As part of this process, we’re renaming our products and reshaping our ranges. But there’s no need for our customers to worry, their favourite ceiling solutions won’t disappear, and they can still rely on us to manufacture and deliver the same quality suspended ceilings we always have.”


CLICK HERE TO VISIT THE ZENTIA WEBSITE

 


 

Teal Scaffold have joined forces this festive season with charity, HiS Church to provide Christmas donations.The duo collaboratively provided hundreds of advent Christmas to the much-loved, Grange Youth Community Hub.

North West based Teal Scaffold were delighted to support the local community they’ve been working in this Christmas through the support of their latest donation.

The donation has provided much needed Christmas cheer as families this winter face the looming cost-of-living crisis.

Teal Scaffold will continue to provide high-quality services over the coming weeks for their clients at Blackpool Victoria Hospital.

Head of Operations at Teal Scaffold, Dan McGregor shared: “We are committed to creating opportunities and changing lives in the communities we serve. While not a huge expense to some, an advent calendar may be considered a luxury item for families in financial difficulty and struggling to pay their bills. As prices continue to rise, households across the North West are unfortunately preparing for a challenging festive period. It’s my hope that by our donation and working with local charities in Blackpool, we are able to restore some festive cheer.”

Groundwork CLM Development Manager, Cath Powell MBE adds: “We are absolutely delighted to receive these wonderful Advent Calendars which will be distributed to the families of Grange Park by Father Christmas at our special Christmas Event where every child gets to visit Father Christmas in his beautiful grotto for free. This added gift for the families will make their visit very special”.

The scaffolding firm, proudly part of The Sovini Group, made all this festive cheer possible thanks to donations from HiS Chuch Charity and The Grange Youth Community Hub.

For more information about The Grange Youth Community Hub visit their Facebook page or call 01253 478301

To find out more about Teal Scaffold click here.

The impressive final phase of apartments has been announced by Liverpool-based property developer Integritas Property Group (IPG), as part of its £41.5 million city-centre development Bastion and Central Point.

Central Point Encore is the final phase to be announced by the ethical developer – 52 apartments across seven floors – and will offer a mix of studio, one and two-bedroomed residences at the stylish Naylor Street site.

Designed by Snow Architects, the building boasts riverside living with its proximity to the River Mersey, the convenience of city centre amenities and sits just a short walk from the World Heritage Albert Dock Conversation area.

Each apartment will be tastefully decorated with the best in modern and sustainable fixtures, including high specification bathroom and ensuite shower room fittings, flooring and light and electrical fittings.

Investors will have the optional benefit of furniture packs starting at just £3,500, selected and matched by IPG’s interior design consultant.

In addition to the luxury apartments, residents of Central Point Encore will also be able to enjoy a communal residents’ garden, concierge, bike storage and residential parking spaces.

Mitchell Walsh, managing director of IPG, said: “The launch of our final phase at this exciting site is a tremendous milestone for us and we are offering investors and renters alike the chance to enjoy a slice of one of the most vibrant, and fastest growing, places in the UK.

“It comes at a great time for the North West property market, with house prices predicted to grow by 24 per cent in the next five years – more than 40m people visit Liverpool each year, there is around £1.6bn year-on-year economic growth here, and we’re giving people the opportunity to join us in being a part of this city’s success.

“As an ethical property developer, IPG is committed to injecting money back into the communities surrounding our project sites, and we are proud to be working with such a fantastic pool of local talent within our supply chain, offering jobs to local people.”

 

Construction is expected to begin on Central Point Encore in July 2023, with work set to complete in Q4 2024.

 

For more information or to book a viewing, visit:  Central Point Encore, Liverpool – Integritas Property Group (integritaspg.com)

 

S&P Global / SIPS UK Construction PMI®

Growth slips to a three-month low. Business expectations weakest since May 2020.

UK construction companies signalled a renewed slowdown in business activity growth during November, reflecting subdued demand and reduced risk appetite among clients. A number of survey respondents noted that higher borrowing costs and worries about the economic outlook had curtailed construction activity.

Moreover, expectations for business activity growth during the year ahead continued to slide in November, with optimism the lowest for two-and-a-half years. Aside from the levels seen at the start of the pandemic, the degree of positive sentiment was the joint-weakest since December 2008.

At 50.4 in November, the headline seasonally adjusted S&P Global / CIPS UK Construction Purchasing Managers’ Index®(PMI®) – which measures month-on-month changes in total industry activity – registered above the 50.0 no-change mark for the third month running. However, the index was down from 53.2 in October and pointed to the weakest performance since August.

Commercial work was the only segment to register an overall rise in business activity in November (index at 51.1). House building activity meanwhile stalled (index at 50.0), which ended at three-month period of marginal expansion. Construction companies often noted higher mortgage rates and falling consumer confidence as factors that had held back residential activity.

Civil engineering activity (46.7) declined for the fifth consecutive month. The latest reduction was the sharpest since August. Lower volumes of output were mainly linked to a lack of new work to replace completed projects.

November data pointed to modest increase in total new orders across the construction sector, which contrasted with a slight decline in October. However, the rise in new business intakes was much weaker than seen on average in the first half of 2022. Survey respondents often noted that weaker domestic economic conditions had acted as a headwind to client spending.

Employment numbers continued to increase in November, but the rate of job creation eased to its slowest since February 2021. Construction companies suggested that concerns about rising costs and weaker growth had led to more cautious hiring policies.

In contrast to the slowdown in staff recruitment, latest data signalled the fastest increase in input buying since July. Higher levels of purchasing activity were linked to rising workloads and improved raw material availability, although some cited efforts to place orders ahead of supplier prices hikes.

Average cost burdens increased sharply in November, which was linked to rising energy prices, tight supply conditions and general inflationary pressures. However, the overall rate of input cost inflation eased to its least marked since January 2021, partly due to softer commodity prices. Meanwhile, suppliers’ delivery times lengthened to the greatest extent since July. Survey respondents suggested that transport and logistics delays had led to longer wait times for the receipt of construction products and materials.

Looking ahead, around 29% of the survey panel anticipates a rise in business activity in 12 months’ time, while 26% forecast a decline. The resulting index signalled the lowest degree of confidence since May 2020. Anecdotal evidence suggested that recession worries, higher interest rates and a subdued housing market outlook had all weighed on optimism.

 

 

Comment

Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey said: “Stalling house building activity contributed to the weakest UK construction sector performance for three months in November. Survey respondents noted that new residential building projects had been curtailed in response to rising interest rates, cancelled sales and worries about the economic outlook.

“Construction growth was largely confined to the commercial segment, but even here the speed of expansion slowed considerably since October as client confidence weakened in response to heightened business uncertainty. At the same time, a lack of new work to replace completed projects resulted in another fall in civil engineering activity.

“The number of construction firms anticipating a rise in overall business activity during the year ahead exceeded those forecasting a decline by only a very fine margin during November. Moreover, disregarding a three-month period of negative sentiment at the start of the pandemic, our survey measure of business expectations across the construction sector was the joint-weakest since December 2008.”

 

Dr John Glen, Chief Economist at the Chartered Institute of Procurement & Supply, said:”The small uplift in activity in November did little to dispel builders’ fears about the future as optimism fell to the same level as December 2008 during the last recession and to one of the same lows seen during the pandemic.

“This gloomy view was fuelled in part by continuing shortages of key materials such as steel and timber along with skilled labour, affecting job hires which rose at the slowest pace since February 2021. As new order growth remained below the 2022 average to date, builders were becoming hesitant about hiring too many labourers and there was some mention of shedding jobs over fears of the strength of the economy in 2023.

“Overall, it was civil engineering that remained steadfastly stuck in the mud, with the fastest fall in activity since August. Client hesitancy, concerns around the cost of materials and doing business weighed heavily on the sector which recorded the fifth consecutive monthly fall in activity. Residential building also appears to have run out of steam as greater borrowing costs continue to dampen demand.

“Purchasing activity remained buoyant as businesses concerned about higher costs and potential delays reportedly ordered more than they needed, with delivery times increasing for the fourth consecutive month. Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment until the road is clear for sustainable building opportunities ahead.”

Skills shortages and the cost-of-living crisis have driven salaries up across construction, despite the demand for staff beginning to slow. That’s according to the latest report from the Association of Professional Staffing Companies (APSCo).

The data, provided by the world’s largest network of job boards, Broadbean Technology, revealed that despite vacancies dropping 6% between January and October 2022, the number of applicants per vacancy has fallen at a far greater pace, down 44% for the same period.
While this is indicative of an ongoing skills shortage across the sector, the report suggests that the cost-of-living crisis and a general reluctance to move roles during economic uncertainty could also be impacting application numbers, with salary inflation being used to lure recruits. According to the analysis, average pay across construction increased 4% between January and October, with salaries increasing 1% between September and October when signs of economic instability began to show.

Ann Swain, Global CEO of APSCo commented:

“While the construction sector has been on a roller coaster ride in terms of jobs throughout 2022, it is the sustained fall in application numbers that presents the greatest challenge to recruiters across the sector. This latest data does show that the economic uncertainty since the beginning of September has hampered hiring, something we don’t expect to see a reverse in the immediate future. It’s crucial that the government enacts policies that will bring stability for workers, including announcing the long-awaited Employment Bill and revising policies to better recognise and support the unique needs of the highly skilled contractor labour market.”

Respiratory illness and buildings: Five design principles for future risk mitigation

The spread of a virus like we haven’t seen before changed the way we live and work forever. In the wake of a global crisis, the conversation surrounding health was amplified, making one thing clear: health and wellbeing are the foundation for a quality life.

As professionals in this industry, we have seen the rise of the health and wellbeing movement and how not that long ago this was still considered as going above and beyond, rather than a design-defining factor.

Today, research suggests that in monetary terms the global health and wellness industry is expected to reach $7.0 trillion (over £5.0 trillion) in 2025 (Global Wellness Institute). For comparison, the construction industry globally is set to reach $13.3 trillion (almost £10 trillion) in 2025 (Oxford Economics). The message sent by the people and organisations is clear – wellness is moving to the top of the list of factors that shape building design.

The rise in health-oriented design did not come without its fair share of criticism. Over the years, we watched the idea of healthy buildings being misconstrued, with the primary criticism being that health-oriented design will come at a higher cost of environmental degradation. History and our work, however, show that sustainability and wellbeing can operate in perfect harmony supplementing each other. In fact, the correlation between higher levels of reported subjective wellbeing and pro-ecological, altruistic behaviours is well documented in behavioural science. With the pandemic fading out and following the events of COP27, amplifying this message has never been more important.

The ultimate goal of our buildings, communities & organizations: to create a positive human experience

International Well Building Institute

The aim of this article is to provide some of the key guidance and principles for building design and operation as it relates to the spread of respiratory illnesses in buildings. The guidance in this article is intended for both existing buildings and new build projects.

Principle 1: Understand your ventilation system

Image: John Linden

There are three elements that influence the risk of airborne infection (BCO, 2021) – ventilation rate, airflow direction and airflow pattern. A well-designed ventilation system will have an established strategy for each element. Ask the following questions in the development of your ventilation design:

  • What are the spaces/areas in buildings that traditionally are likely to be poorly ventilated?
  • Where are the spaces/areas in the building where enhanced aerosol generation is likely?
  • Does the system allow for a 100% outdoor air supply?
  • Is the system capable of maintaining relative humidity between 40% and 60% at all times?
  • Can any form of air recirculation be avoided?

The design should be cautious of air-cleaning solutions as research on the impact of air-cleaning devices on the survival of viruses and bacteria is still limited. REHVA (Federation of European Heating, Ventilation and Air Conditioning Associations) can be referred to for further guidance on air-cleaning devices.

Principle 2: Promote clean contact

cleaning of surfaces in offices covid advice
Image: Getty

Consider the following three strategies to promote clean contact in buildings:

  • Mindful bathroom design. Includes provision of non-refillable liquid soap, hand dryers with HEPA filters (or paper towels) and large sinks to prevent the risk of recontamination.
  • Hands-free operation. This applies to light switches, elevator buttons, trash receptacles, doors (especially bathroom exits), faucets, hand sanitiser stations and other high-touch points as identified by the project.
  • Antiviral surfaces and coatings. Includes but is not limited to nanostructured surfaces, mineral nanocrystals, and metallic nanoparticles (Rakowska et al., 2021).

Principle 3: Design for future

The design should strive towards the value spaces concept – the project team should consider the value of the offer that the space(s) will provide. The following questions can be used as a starting point:

  • Is the space responding to the occupants’ needs? Does it go beyond?
  • Can the space provide a safe environment without compromising the quality of the space in times of increased risk for respiratory illness?
  • What are the key characteristics of the space that make it a valuable space? Consider design features that support physical health, productivity, multiple ways of working, mental health, and an opportunity to connect with others

Principle 4: Ensure Safe Travel

Image: John Linden

The way people access, leave and move around the building is pivotal in times of increased risk for respiratory illness transmission. In conversation with the end user or client, consider the following interventions:

  • Identify queue and waiting area control
  • Clearly mark standing positions to maintain social distance
  • Provide anti-microbial handrails for escalators
  • Reduce the time doors stay open
  • Install touchless call devices where possible
  • Provide sanitiser on entry and exit
  • Reduce the average lift capacity from 16 to four people

Principle 5: Safety for all

Car-Park-Safety-For-All-Adobe-Stock

Consider how the design and management of buildings could be improved to address the needs of the most vulnerable. The universal design professional should be consulted at the early design stage. The following can be referred to as a starting point:

  • Safe drop-off zones. Consider higher parking capacity to allow for greater segregation of spaces in times of emergency (e.g., creating safe “drop-off” zones for people who are at higher risk).
  • Circulation routes. Consider how creating new, one-way, or split routes around workplaces may affect wheelchair and other mobility aid users i.e., what impact will the space/distancing requirements have on travel times from A to B?
  • Bathroom facilities. Determine which toilet facilities could be dedicated to people at high risk in times of emergency i.e., consider location, accommodations, access.
  • Safe access/exit routes. Identify alternative access/exit routes that may be used in times of increased risk for respiratory illness transmission. Any alternative routes (even if used only in times of crisis) should be designed with security in mind.

Source: Buro Happold

More SME builders at risk of folding if forced to pay to clean up England’s rivers

Housebuilders have hit out at plans to buy ‘nutrient credits’ for building on protected wildlife sites where pollutants such as nitrogen and phosphorus have leached into rivers.

They claim many smaller developers will go out of business when the new nutrient mitigation scheme goes live early next year.

National Federation of Builders, NFB, housing and planning head Rico Wojtulewicz said: “It’s farcical. We are paying for someone else’s mistake.”

The building industry claims intensive farming is the real culprit with fertilisers and animal excrement from pig and poultry farms the main cause of river pollution.

Home Builders Federation, HBF, said described the £30m government scheme as a ‘wholly inadequate’ solution.

Communications director Steve Turner said: “We have over 100,000 desperately needed new homes on hold despite the fact that all parties accept their construction would barely contribute to the nutrients issue.”

The Natural England is inviting developers in the Tees region to apply next March to buy credits to build in the area with additional mitigation projects identified over the next three years.

Housebuilders maintain the government’s requirement for water companies to improve their waste treatment works to remove nutrients by April 2030 is too long to wait.

“Far more decisive and proportionate action is needed to prevent businesses going bust, jobs being lost and further delaying homes for young people and families,” said Mr Turner.

Currently, there is a planning moratorium on housebuilding in large swathes of England including parts of the Northeast, Cumbria, Devon, Dorset, Somerset, Herefordshire and southern Hampshire.

 

Over one in five councils are affected

Property agents Savills calculated back in 2021 that 33,000 new homes a year weren’t being built due to nutrient neutrality rules. It’s estimated this figure has probably doubled as the number of local authorities affected by nutrient neutrality rules has increased from 32 to 74.

Property finance intermediary Hank Zarihs Associates said development finance lenders were concerned that SME builders were already grappling with extensive overheads without being lumbered with a new tax burden.

Nutrient neutrality rules are a result of an EU court of justice decision in late 2018 on the interpretation of the habitats directive.

The new nutrient mitigation scheme is an amendment to the levelling up and regeneration bill that went through its third reading in parliament this week.