RINNAI AND H3 OFF-GRID

Creating a healthier way of living with RINNAI

Rinnai’s innovative new product portfolio of H3 products – hydrogen biofuels, heat pump and hybrid technologies will deliver heating and hot water solutions for off-grid commercial and domestic properties. Operations Director Chris Goggin explains how the range is designed specifically to lower carbon, encourage greater cost efficiencies whilst producing enhanced product performance and system durability.

Personal preference of decarbonising commercial & home heating and hot water options will depend upon location and condition of domicile. It is likely that the proximity and densely packed urban populations will require clean gas dispersal, whereas rural locations not connected to the UK gas grid will necessitate a separate decarbonizing response. Heat pumps are the technically practical and economically feasible solution for home heating and hot water delivery to properties not connected to the UK grid.

Purchasing a heat pump is currently incentivized by the UK government which will provide a £5,000 grant through the national Boiler Upgrade Scheme. Heat pumps offer immediate decarbonisation and provide comfortable property heat as well as hot water. Heat pumps will become a vital part of UK carbon neutral domestic energy options in the near future.

Around 16% of UK properties are off grid and not connected to the national gas supply. Many of these properties are found in rural locations. Rural residences often retain large internal and external spaces that encourage effective heat pump installation.

A heat pump works by extracting heat from air outside and elevating its temperature using a compressor. Compressed heat is then dispersed indoors through radiators and underfloor heating. Residual heat is stored in a hot water cylinder used for showers and baths. Heat pumps ensure that all home heating will be carbon neutral.
Both the compressor and pump mechanism accept electricity. If installed correctly on to an appropriate property a heat pump will prove to be an energy efficient, effective tool of decarbonisation that delivers satisfying levels of comfort to the end-user.

Off-grid properties not connected to the main UK gas grid may also prefer alternative cylinder gasses. Renewable DME (rDME) is a molecule-based fuel that can be produced through a wide range of renewable feedstocks which allows for a quick and long-term sustainable production. rDME contains a similar chemical composition to both Butane and propane. rDME can be mixed with LPG in existing appliances for continuation in product operations.

rDME combusts cleanly and releases no “soot” emissions. Renewable Dimethyl Ether (rDME) has many fuel properties that make it easily used in sites and appliances using diesel as a fuel. It has a very high cetane number, which is a measure of the fuel’s ignitibility in compression ignition engines.

rDME reduces greenhouse gas emissions by up to 85%, better improving local air quality. NOx, SOx and PM readings are all heavily reduced through the implementation of rDME. Clean alternative fuels that can be sourced without problem, such as rDME, will be steadily introduced in the near future.

Future capacity of rDME is set to rise sharply: a demonstration plant is to be opened later this year, whist the first operational commercial site manufacturing rDME will be on-line during 2024 and located in Teesside.
Rinnai hot water heating units and systems which are off-grid can also be powered by BioLPG – a lower carbon intensive alternative source of fuel.

 

 

 

 

 

 

 

 

 

rDME and BioLPG will become increasingly accessible and easy to use making both fuels ideal for off-grid locations. Rinnai continuous flow water heaters are compatible with BioLPG and blended rDME so do not require adapting in order to access or accept either fuel source for off-grid energy demands making Rinnai continuous flow hot water units well suited to off-grid properties regarding high power outlet and designed hot water needs.

Europe and the wider world have entered a new age in terms of energy provision and security. Importation feasibility and morality have become serious issues: BioLPG and other fuels like rDME successfully navigate these ethical issues and deliver all suited power requirements for off-grid properties.

Biofuels such as rDME and BioLPG perform identically to commonly used carbon emitting fuels and end product produced by the UK gas transmission network. All off-grid carbon reducing energy demands can be met by Rinnai’s H3 range, BioLPG, rDME, heat pump, hybrid heat pump or solar power products.

 
Rinnai are also offering free CPD sessions on biofuels and hybrid solutions to all UK property owners.

CLICK HERE to email us today

or call 01928 531870 to book.

RINNAI H3 PRODUCT ROADMAP TO LOWER CARBON

AND NET ZERO DE-CARBONISATION

Rinnai’s product and service offering is based on H3- Hydrogen, Heating and Heat Pumps – which allows any site in either residential or commercial sites to maximise the energy efficiency and performance in striving for NetZero and Decarbonisation. Additionally, Rinnai is developing and introducing electrical formats to all existing product ranges within the next few months. Rinnai’s new “H3” range of products includes a wide selection of commercial heat pumps as well as hydrogen blends-ready and hybrid hot water heating systems.

Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year. The company operates on each of the five continents and the brand has gained an established reputation for high performance, robust cost efficiency and extended working lives.

Rinnai’s commercial and domestic hot water products offer a limitless supply of instantaneous temperature controlled hot water and all units are designed to align with present and future energy sources and accept either natural gas or hydrogen gas blends. Rinnai units are also suited for off-grid customers who require LPG and BioLPG or rDME.

Rinnai units are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours. System design services are available if needed and cost comparison services are accessible to all customers who require further cost detail.

Rinnai’s Innovation Manifesto clearly outlines the path to carbon neutrality and maintains a pledge to fully decarbonize company operations by 2050. Rinnai will further support the global clean energy transition by introducing a wide variety of domestic heating options across multiple energy vectors.

Rinnai is committed to decarbonisation. Rinnai’s water heating products are all hydrogen-blends ready NOW including the world’s first 100% hydrogen powered water heater. Rinnai products also accept BioLPG capable of delivering NetZero carbon emissions. Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry. More information can be found on Rinnai’s website and its “Help Me Choose” webpage.

For more information on the RINNAI product range

CLICK HERE

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NEW WEBINAR SERIES

KEYSTONE GOES LIVE WITH NEW WEBINAR SERIES

Keystone Group is delighted to launch Keystone Live this autumn with a series of free webinar debates featuring expert industry speakers. Introducing four separate webinars, the series covers a range of topics and issues including the delivery of net zero housing, offsite construction, designing with non-combustible materials and how the industry is tackling climate change.

The first online debate, ‘How are we going to deliver Net Zero Housing?’, takes place on Thursday September 29th.With the UK facing the ambitious target of being net zero by 2050, the latest changes to Building Regulations are an all-important stepping stone to the Future Homes Standard. But with more stringent standards in the pipeline, is this achievable?

Moderated by experienced journalist Ruth Slavid, this first webinar also poses the following questions:
•    How do we address the performance gap?
•    How do we build as designed?
•    What are the key areas we should be looking at to help improve the fabric of buildings?
•    Is the target of 75-80% less carbon emissions from new homes when compared to current regulations      achievable?
•    How can manufacturers support the drive for net zero?
•    What role does product innovation play?

Featuring debate, discussion and Q & A, the webinar has a stellar line-up of industry panellists including Martin Townsend, Director for BSI Centre of Excellence for Sustainability, Ben Cheetham, Senior Group Technical & Innovation Coordinator at Barratt Developments, Robin Dryer, Director and Architect at CDC Studio and representatives from Keystone Lintels and Keylite.

The second in the webinar series on Thursday October 12th, ‘Does Offsite Construction Offer a Credible Solution to Addressing the Need for More Housing, Improved Quality and Better Value?’ focuses on the benefits of offsite construction and why the industry needs to increase its adoption. Panellists include Mark Farmer, CEO of Cast, Stephen Wightman, UK MMC Lead at Faithful+Gould and Kevin Dundas, MMC & Offsite Manager at Wilmott Dixon.

Thursday November 3rd sees the webinar series ask the question: ‘Is the Construction Industry Doing Enough to Tackle Climate Change?’. Will Arnold, Head of Climate Action at Institution of Structural Engineers, Dr Oliver Jones, Research Director at Ryder Architecture and Nitesh Magdani, Director of Net Positive Solutions will offer their insight and perspectives and what we need to do as an industry to slow climate change.

The final webinar on Thursday November 16th, Designing with Non-Combustible Materials will explore the challenges and key considerations when designing tall buildings and how products have evolved to meet new regulations. Ready to share their experience are expert speakers including Richard Smith, Head of Standards, Innovation & Research at NHBC and Nigel Shields, Director of Quality at Durkan.

Keystone Group Marketing Director, Hayley Lowry commented “The Keystone Live series of webinars explores key themes from various industry standpoints.  Debated by commentators, consultants, specifiers, contractors and product specialists – these free events are set to provide a complete 360˚ analysis of the issues at hand and are not to be missed.”

For more information about Keystone Group CLICK HERE 

or to book your free place on these webinars CLICK HERE

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HOPES AND FEARS FOR CABINET SHAKEUP

Trade bodies and experts from the built environment sector have voiced their hopes and fears in the wake of the cabinet shakeup from new prime minister Liz Truss.

Quite rightly, much of the attention of the construction industry is focused on the appointment of Simon Clarke as secretary of state for the department for levelling up, housing & communities, and Jacob Rees-Mogg as secretary of state for business, energy and industrial strategy (BEIS).

Following the cabinet reshuffle, figures from across the construction sector have revealed the areas they hope Liz Truss’ new government will address.

Continued investment in the levelling-up agenda

Caroline Gumble, CEO at the Chartered Institute of Building (CIOB), said: “We want to see the new prime minister continue the government’s existing agendas on levelling up and net zero, both of which can make a positive difference to what we’re sure will be their number one priority: the cost of living crisis.

“The levelling-up agenda provides significant opportunities for the construction sector through local job creation and stability, while property retrofit schemes to improve energy efficiency, for example, will further boost the sector and go some way to helping residents mitigate rising energy costs.”

James Butcher, director of policy at the National Federation of Builders (NFB), commented: “The election of a new prime minister means that the proactive work of government can restart, having had a period of stasis over the summer.

“Liz Truss said during her election campaign that, ‘A recession is not inevitable’, so we hope she will take the opportunity to ensure we have a healthy pipeline for our industry and across all work types.

“We want to see continued investment in major infrastructure, public sector capital projects, housing, and implementation of a national retrofit strategy to support builders in the domestic sector as well as our net zero ambitions.”

Reformed planning laws

Rico Wojtulewicz, head of housing and planning policy at NFB, stated: “The biggest blocker to our nation’s construction potential, not least to meet our housing need, is the horrendous state of our planning laws.

“As the former housing secretary Robert Jenrick stated over the weekend, the planning reforms the last government decided not to proceed with were its ‘greatest missed opportunity’.

“He could not be more right; we must have a revolution in planning laws, and that will require radical and bold leadership.”

Paul Breen, managing director at affordable housing specialist Living Space, said: “This is a prime opportunity for a new government to address the unprecedented delays and blockages that are hampering the planning system.

“While waiting lists for quality, energy-efficient affordable homes are at unprecedented levels, we are continually tackling bureaucratic issues that delay delivery of much-needed new homes; Living Space currently has almost 1,000 affordable new homes stalled within the planning system.

“We need more resources afforded to local authorities, and planning officers [need to be] given greater remit to progress schemes that not only deliver vital new homes but, in turn, secure direct jobs and supply chains that maximise benefits to the regional economy.”

Retrofitting prioritised

Brian Berry, chief executive at the Federation of Master Builders (FMB), added: “We welcome Jacob Rees-Mogg into the role at BEIS and I strongly urge the delivery of a nationwide programme for retrofit to be their number one priority, especially in the face of rising bills for consumers and tough times ahead for the nation’s small, local builders as economic pressures bite.

“While direct government intervention to help struggling homeowners with energy bills will be vital over the coming months, it is ultimately a short-term strategy; long-term, we must improve the efficiency of the UK’s leaky homes and reduce our energy use.

“Retrofit creates a pipeline of work for local builders, opens up vocational training routes, and crucially slashes energy bills.”

Nathan Garnett, event director at UK Construction Week Birmingham, commented: “Construction is a critical part of the economy which employs over two million people.

“The growth of the sector helps drive the economy but, like all industries, it is currently facing strong headwinds that are stalling that growth.

“It is for this reason we hope that the new Liz Truss administration will commit to helping the UK retrofit 30 million homes, helping not just the construction sector, but also consumers battling with high energy prices.

“This also ties in with commitment to net zero targets that the industry is willing and able to meet if given the right support, across projects like HS2, renewable energy projects, and building new nuclear power facilities.”

Taxation, restrictions and policy

Wojtulewicz stated: “Liz Truss has promised to be a low-tax Conservative, and we cannot wait a day longer to see the fruits of that promise.

“The last government put up national insurance contributions, removed the sector’s entitlement to use red diesel, and has added a myriad of levies to housebuilders; it’s high time to roll back the burden on business and give the industry the room to invest in the future.”

Source: Development Finance

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“a unique national moment”

Official national mourning for Her Majesty Queen Elizabeth II has begun. Read this guide to changes in workplaces, building maintenance, and personnel that facilities managers will need to consider.

In what’s being described as “a unique national moment”, the mourning period will continue until the end of the day of the State Funeral on 19 September, and businesses may wish to implement adaptations to their day-to-day operations this week.

 

Visible Construction or Maintenance Work

The Construction Leadership Council (CLC) has acknowledged the unprecedented nature of the period of mourning and has published specific advice for the construction and building services industries.

It states: “There is no precedent for the death of a monarch within the life of anyone working in the UK construction industry, and as such, it is likely to raise significant questions from businesses about how they should respond.”

The CLC urges businesses to carefully consider the nature of construction work on the day of the State Funeral, particularly within Central London. Activities at times or locations where large crowds are likely to gather to pay their respects should be avoided.

For essential works, organisations should ensure that planned work is reviewed to take the mourning period and State Funeral into account, and also to consider the number of people gathering and pressure on the transport system.

 

Service Personnel May be Called to Volunteer in Ceremonial Events

The CLC also reminds businesses that, if they employ workers who also work in the armed forces reserves, or voluntary services such as Saint John’s Ambulance, they may be asked to support the State Funeral or other planned events:

“Businesses will need to understand their obligations in this area and should consider proactively offering paid volunteering time for those who either have obligations or who are keen to volunteer.”

 

Project Delivery Impact

Facilities managers should also keep in mind the realistic impact of the mourning period on project delivery over the next fortnight. The CLC is looking to develop guidance in this area, on how best to manage the impact on cost and time where projects are impacted

Organisations should work closely with their clients and suppliers and communicate openly about any changes required to working hours or operations.

 

Flag Protocol

Flags flying from Royal residences, government buildings and military establishments have been half-masted since the death of Queen Elizabeth II, and organisations with flags should follow suit.

 

Photographs and Official portraits of Her Majesty in Buildings

Some workplaces, particularly those with official links to the Royal Family, display photographs of Royal visits and portraits of Her Majesty Queen Elizabeth II.

The Department for Digital, Culture, Media & Sport is keen to emphasise that these should not be removed and that it is not disrespectful for them to remain in place. In fact, it is customary to leave these in place, as portraits of previous monarchs are commonplace in older public buildings.

 

Supporting Employee Wellbeing During National Mourning

Bereavement can have a strong effect on employee wellbeing, and the death of Queen Elizabeth II will affect individuals differently. Organisations should be aware that national mourning may cause people to recall moments of bereavement in their own lives, and a compassionate approach is required.

Some organisations may wish to provide extra support to those struggling, in the form of a quiet space to reflect or an official way for employees to honour the Queen, like a book of condolence.

Setting up a Book of Condolence

Any organisation can open a book of condolence. Although there is no set format, this usually constitutes a trestle table covered in a white tablecloth, on which the book is placed. An arrangement of flowers (usually lilies or other white flowers) and a framed formal photograph of Her Majesty is also traditional. Business can also encourage workers to sign an online Book of Condolence on the Royal family website.

Employers might also wish to direct employees mourning the Queen to make a donation to a Royal charity.

 

Childcare for Employees

Monday 19 September will be marked as a Bank holiday across the UK, coinciding with the State Funeral and the last day of national mourning. Schools will also be closed, meaning that some employees may need extra support from their employer to accommodate childcare needs.

 

Should Offices Close for the State Funeral?

As with any other Bank Holiday, business closures or provisions for employee absence are a private matter between employer and its employees.

Government advice suggests that “we would expect that many workers will be able to take the day off” and that employers should respond sensitively to requests from workers who wish to take the day off.

 

Source: TwinFM

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REPORT SHOWS PLASTIC PIPES HAVE LOWER CARBON FOOTPRINT THAN OTHER PIPE MATERIALS

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A new report from respected independent researchers McKinsey and Company has looked into the impact of plastics on climate change and concluded that plastics actually have a lower total greenhouse gas contribution than alternatives in most applications.

The report covers municipal sewer pipes and residential water pipes in construction as well as other areas such as food, packaging and furniture and summarised that plastics “…play an important role in enhancing use efficiencies and reducing greenhouse gas emissions.”

 

Lower greenhouse gas emissions

Plastic pipes have become increasingly popular as long-lasting engineered solutions in both below and above ground applications for many technical reasons.  Now their carbon credentials have been significantly boosted by the July 2022 report.  It clearly summarises, after rigorous and extensive research, that “plastics have a lower total greenhouse gas contribution than alternatives in most applications.”

The extensive report compares plastic with other materials in 14 areas within several industries including building and construction, and incorporates HDPE, PVC-U, concrete and ductile iron for below ground applications, and PEX and copper for above ground applications.  It covers greenhouse gas (GHG) emissions for the entire cradle-to-grave lifecycle of all materials in the study.

The results are impressive and show, for example, that PVC-U sewer pipe overall has 35-45 per cent fewer greenhouse gas emissions than its equivalent in concrete or ductile iron.  This was partly due to it being able to carry out the same function but with less weight and the associated lower transport and installation costs.  In above ground water pipes, cross-linked polyethylene (PEX) pipe has 25 per cent fewer overall GHG emissions than copper pipe.  Despite copper’s high recycling rates, the ongoing thermal losses from copper pipe are significantly higher than from PEX pipe.

The full report can be accessed on the BPF website at Third Party Publications and Independent Studies (bpf.co.uk)

 

EPDs

Independent studies by the Belgian research organisation VITO measured the environmental footprint of various plastic pipe systems based on life-cycle assessment data from TEPPFA (https://www.teppfa.eu/sustainability/environmental-footprint/epd/).  The work was validated by the Denkstatt sustainability consultancy in Austria.  These EPDs compare greenhouse gas emissions (given by impact category GWP, Global Warming Potential) and use of fossil fuels (given by impact category ADP, Depletion of Abiotic Resources).  For hot and cold water supply inside buildings, the contributions to all seven categories from any of the four plastics manufactured to European Standards (polybutylene, crosslinked polyethylene, polypropylene or multi-layer) are significantly lower than copper systems for the same application.

 

Increased recycling rates

Most plastic pipes can be recycled multiple times.  An Australian report showed 6-7 recycles without any significant reduction in the pipe material quality requirements, giving plastic pipe a potential overall 600-year lifetime if the average life of each plastic pipe is around 100 years (source: DSEWPC, Waste and Recycling in Australia (2011, 2012)).  Many of the original plastic pipes installed back in the 1950s and 1960s remain in the ground today, continuing to perform successfully; proof that this is an extremely robust pipe material with a low carbon footprint.

In recycling terms, data from the European Plastic Pipes and Fittings Association (TEPPFA) shows that 51,980.4 tonnes of PVC-U and 198,932.4 tons of PE/PP recyclate (external pre- and post-consumer) were used in plastic piping systems across Europe in 2021 alone.  This figure is increasing year on year due to the efforts of both plastic pipe manufacturers and end users.  For example, BPF Pipes Group member Genuit Group now uses recycled plastic in 49.4% of its pipe products (2021 figures) and continues to invest in low carbon materials and products.  The plastics industry is further increasing capacity for chemical recycling to break plastics down into petro-chemical feedstocks which enables them to be recycled indefinitely.

More work is being done on standards which allow the extensive use of recycled plastic pipe product and bringing standards into line; for example, National Highways allows the use of 100 per cent recycled material for surface water drainage pipes in their MCHW Series 500 standard.  European standards for PP, PE and PVC-U underground drainage ancillary fittings, shallow chambers, manholes and inspection chambers (BS EN 13598 Parts 1
and 2) and PP and PVC-U stormwater boxes (BS EN 17152-1) allow the use of recycled material from any source.

The BPF Pipes Group produces guidance on installing below and above ground plastic pipes, intended to encourage best practice and circularity across the entire industry.  All guidance documents are available at https://www.bpfpipesgroup.com/support-downloads/guidance-notes/

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ADSA’s tunes up Quartet for Business Support

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The Automatic Door Suppliers Association (ADSA) has launched Quartet – a new initiative to provide member support across four essential services: HR, legal, health and safety and tax.

 

The service, delivered in partnership with Quest, includes an online library with more than 450 templates, documents and advice sheets and an advice line for direct contact

It is available to all ADSA members – from major manufacturers to sole traders – but should prove particularly helpful to support smaller businesses without dedicated in-house teams.

 

It will help them to:

 

  • manage problems – such as disciplinary issues, disability requirements, grievance procedures, redundancy/dismissal/pay/capability issues and long-term sickness
  • get answers – to workplace changes such as hybrid working and sick pay
  • stay compliant – on contracts of employment, employee handbooks, understanding responsibilities and changes to legislation
  • support staff – around working practice, maternity, paternity, leave and training

 

By including Quartet as an additional member benefit, ADSA hopes that it will help businesses save money – reducing outsourcing costs and delivering peace of mind.

Said ADSA managing director Ken Price: “ADSA membership is great value and this service is a further enhancement to what we offer. We have a range of member organisations from big manufacturers and distributors to micro companies and sole traders.

“Although all our members will be able to access Quartet, we believe that it will be particularly beneficial for smaller companies which have to manage all aspects of business alongside their core service. We hope that it will present a cost-effective solution at a time when business overheads are increasing. It will also provide a service that can be called upon immediately – help at the end of a phone or touch of a button.”

 

 

ADSA member Kevin Treharne, sales director of Entec Access Systems Limited, said: “Entec has been a ADSA member for many years and we have always found enormous benefit in its services. It has always been the ‘go-to’ organisation for technical expertise and training. This new initiative opens-up a much wider range of services that will be of enormous benefit in supporting wider business operations.”

 

For more information on ADSA membership contact:

rachel@adsa.org.uk or visit: www.adsa.org.uk

 

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Bold new policies required, says FMB

The fall in construction activity for the second consecutive month according to S&P Global / CIPS UK Construction PMI® should be a wakeup call to the new Construction Minister that bold new policies are needed to help kickstart building activity to support economic growth, says the Federation of Master Builders (FMB).

 

 

Brian Berry, Chief Executive of the FMB said “This new construction data shows that the industry has returned to its pandemic levels of activity. As the cost-of-living crisis deepens, consumers are cutting back, but builders also face increased costs on materials. This creates a difficult and clearly damaging situation. Bold solutions are required by the new Government under Liz Truss. Delivering a UK wide retrofit strategy to improve the efficiency of the nation’s homes would be a huge boost for local builders and local economies alike. It would also cut homeowners bills and help ensure the UK’s energy security. More immediately we urge the Government to remove VAT on repair, maintenance and improvement work so that savings can be passed on to cash strapped consumers.”

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CONSTRUCTION Activity down for second month running

Construction activity in the UK dipped for the second successive month in August as customer demand moved closer to stagnation amid cost pressures and economic uncertainty. Concerns about wider economic prospects led to a drop in business confidence and slower job creation, while firms’ purchasing activity declined.

Falling buying activity did alleviate some pressure on supply chains, with lead times lengthening to the least extent in two-and-a-half years, while inflationary pressures also showed signs of waning.

The headline seasonally adjusted S&P Global / CIPS UK Construction Purchasing Managers’ Index® (PMI®) – which measures month-on-month changes in total industry activity – was at 49.2 in August, up fractionally from 48.9 in July but still below the 50.0 no-change mark and thus signalling a reduction in construction activity over the month. Activity has now decreased in two consecutive months.

As was the case in July, civil engineering posted the sharpest decline in activity of the three monitored categories, seeing output fall markedly over the month. Commercial activity also declined, thereby ending a period of growth stretching back for a year-and-a-half. On a more positive note, activity on housing projects increased for the first time in three months, albeit fractionally.

While some firms increased activity in response to ongoing growth of new orders, this was outweighed by those constructors that saw output decline as firms adjusted to signs of demand weakening.

New orders increased only marginally in August, and to the least extent since June 2020. Some respondents indicated that customers were holding back on committing to new orders amid cost pressures.

Alongside inflationary pressures, concerns around the potential for a wider economic downturn also impacted the sector in August. Business confidence dropped in July and was well below the series average.

In some cases, concerns around the wider economic environment impacted hiring decisions. Although rising new orders, the clearing of backlogged work and the filling of previously vacant positions kept employment rising solidly, the rate of job creation eased to the softest since March 2021.

Construction firms scaled back their input buying for the first time since the initial wave of the COVID-19 pandemic, again reflecting signs of a slowdown. There were also some reports that less pronounced price and supply pressures reduced the need to build inventories.

In fact, the reduction in pressure on suppliers meant that vendor lead times lengthened to the least extent for two-and-a-half years in August. Where delivery times did lengthen, panellists attributed this to shortages of certain materials.

In line with the picture for supply-chains, there were also signs of inflationary pressures moderating midway through the third quarter. Input costs continued to increase sharply, often due to higher fuel prices, but the rate of inflation softened to the weakest since February 2021. Similarly, the pace of increase in sub-contractor rates also softened, and was the slowest in 16 months.

As well as scaling back purchasing and slowing the rate of job creation, construction firms kept their usage of subcontractors unchanged in August. This ended an 18-month sequence of expansion. Meanwhile, the rate of subcontractor availability continued to fall sharply, and to the largest degree in six months.

COMMENTS:

Andrew Harker, Economics Director at S&P Global Market Intelligence, which compiles the survey said:

“The UK construction sector looks set to be in for a challenging period, according to the latest PMI data. Not only did construction activity fall for the second month running, but a range of indicators from the survey pointed to further weakness ahead. New orders slowed to a crawl, while concerns about the sector and the wider economy led to a drop in confidence.

“Activity weakness was broad-based in August, with none of the three monitored categories immune to the wider slowdown. Commercial activity dropped into contraction for the first time in just over a year-and-a-half, and while housing activity ticked higher, the segment has been in broad stagnation over the past three months.

“Price and supply pressures showed further signs of easing as waning demand throughout the sector lifted pressure on suppliers. Meanwhile,the main positive from the latest survey was a solid increase in employment. That said, hiring at least in part reflects an ongoing catch-up following the pandemic. If activity continues to fall, firms will likely soon feel that their staffing capacity is sufficient and pause hiring.”

 

Dr John Glen, Chief Economist at the Chartered Institute of Procurement & Supply, said:

“The UK construction sector is poised for contraction once again as rising prices for raw materials worldwide filtered into UK supply chains. Just 14 months since the sector’s recent peak as part of the recovery from the pandemic, inflation is seeing housing and commercial building stagnate with civil engineering activity dropping significantly.

“There is some consolation for the sector as it readies itself for a future of high energy costs, however. Lower demand is leading to fewer purchases, downward pressure on input costs and more responsive supply chains. Together, these trends could eventually help to reverse inflation, but a prolonged dip in new orders will be a bitter pill for the sector to swallow.”

Fraser Johns, Beard finance director, said: “Economic uncertainty both in the UK and abroad is clearly having an impact on confidence which is starting to affect the construction market.

“The positives in the data are that new orders continue to increase, if marginally, and a number of construction firms are still reporting increasing activity with a rise in the number of new orders still coming in.

“Demand for both new employees and subcontractors remains strong, while the availability of both fell sharply.  This supports the importance for contractors to treat subcontractors fairly and pay them promptly, something the industry has significantly improved on in recent times.

“All firms are impacted by the continued rise in costs, and looking ahead, given the sheer scale of these cost rises we have seen, we are likely to see a softening of demand.  As always strong relationships and open conversations between all stakeholders will go a long way to the industry working through the challenges we face.”

Joe Sullivan, partner at MHA, believes the Summer holiday season and government paralysis have brought construction down to earth:

“The industry has managed to maintain growth since early 2022 until the tables turned last month. The summer holiday season and the paralysis of government over the past 6 weeks have stunted the industry, especially the civil engineering sector. The contraction does not look like it will begin to abate any time soon.

“The number one priority must be to guard against soaring energy costs causing a rash of business failures in the sector. The new Prime Minister Liz Truss could take two measures immediately to help: reinstate the red diesel rebate and provide additional support for the most energy intensive aspects of the sector, such as aggregate, asphalt and cement businesses. These measures would help curtail the inflationary pressures throughout the supply chain.

“The labour market remains very tight. Skilled tradespeople increasingly shop around and work where the pay is highest which serves as an added stimulant to wage inflation. The Construction Industry Training Board (CITB) recently stated a larger number of workers are needed to deliver on industry demand in the medium term. The concern is that when businesses are focussed on survival recruitment, training and skills development may all suffer, storing up further issues for the future.”

 

 

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Construction plant theft continues to be a problem in 2022!

Construction sites continue to be targeted by criminals who recognise the financial value of plant machinery and equipment.

Large items such as excavators and rollers can be worth thousands of pounds, even if they aren’t brand new. However, smaller items like tools and generators are also an easy target for thief’s, they are often not easily identifiable and can be sold on resale websites and locally for a good price. In 2021 nearly £17.5m worth of tools were stolen in London alone!

AMI Group has seen an increase in customers opting to secure smaller items of machinery such as generators by using a self-contained battery-operated device with no external wires. Many customers are also opting to utilise battery solutions alongside manufacturers telematics systems as a secondary device as the manufactures solutions can often be bypassed in the event of a theft.

Construction related theft is often premeditated, especially where larger items of machinery and equipment are concerned. Some criminals even make a career from the theft and resale of construction plant. Demand for equipment is currently at a high within the industry, with construction and earth moving machinery sales rising by 75% in 2021 compared to the previous year.

The current trend of construction machinery and equipment theft shows no sign of abating. In fact, there are concerns that the situation could even intensify at a time when construction companies are already facing significant increases in the cost of building materials. Criminals continue to exploit both these high prices and long lead times for their own gain. Being familiar with their tactics and using a combination of security measures is the best way to deter thieves looking to profit from plant.

With theft rising in the industry it is urged that companies protect their assets with proven solutions, as many know theft isn’t just the loss of a machine but also the loss of work and many other contributing factors leaving companies out of pocket beyond a stolen machine.

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Marine survey tender launched

Marine survey tender launched for UK-Netherlands interconnector

National Grid Interconnector and European grid operator Tennet are seeking contractors to undertake marine surveys for a proposed interconnector between the UK and the Netherlands.

The Eurolink project will involve the installation of offshore and onshore underground direct current cables (HVDC) between the Netherlands and Suffolk, UK. It will also involve the construction of a converter station in each country.

The capacity of the link will be 1,400MW. The project is still in the early stages of development.

National Grid Interconnector has identified the need for an HVDC interconnector installation over a cumulative distance of approximately 200km. Surveys are thus required to establish suitability of a preferred route alignment.

The Eurolink marine survey contract is divided into four lots.

Lots one and two involve marine geophysical survey work for the cable and platform, as well as shallow marine geotechnical survey work 3-10m below seabed. Lots three and four involve deep marine geotechnical surveying at 50-100m below the seabed. The contracts will last 12 months and take place either in 2023 or 2024.

Interested parties can submit tenders until 23 September.

Eurolink is a “project of common interest” as set under ENTSO-E Central European Funding initiative.

Last year, National Grid Interconnector launched a tender for contractors to undertake seabed surveys for its Nautilus Interconnector project between England and Belgium.

The proposed multi-purpose electricity link between the UK and Belgium could unlock 1.4GW of offshore wind capacity. It would include underground cabling works and onshore infrastructure located in East Suffolk.

Source: GeoPlus

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