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Hundreds of UK construction professionals flock to New Zealand

More than 800 construction professionals have registered to apply to work in New Zealand in the past few days following news coverage of the unprecedented recruitment push to fill thousands of jobs needed for the biggest infrastructure and housing build in the Pacific nation’s history.

The flood of applications to the LookSee Build NZ website represents a 98.6% increase in registrations, while the number of visitors to the site has risen 111.4% compared to the two-week period following the campaign launch.

LookSee Build NZ is a consortium of government organisations, local body entities and private companies. The aim of the campaign is to attract some of the more than 56,000 staff, including 2,200 high-end specialist construction positions, it is estimated New Zealand needs for the more than NZ$125 billion programme of infrastructure works over the next decade.

Recruitment spokesman and construction consultant Aaron Muir says his team is delighted at the level of professional interest in the recruitment offer, which includes a range of quintessential Kiwi ‘experiences’ such as fishing, surfing and canoeing, cultural events and the chance to see stunning sites of natural beauty.

“New Zealand is open for business because we need and want the best the UK construction sector can offer,” says Muir. “We’ve got the support of the New Zealand Government, which is introducing a special KiwiBuild fast track visa scheme, and we’re partnering with Immigration NZ to make the whole process as smooth and as seamless as possible.”

In addition to the pre-existing $125 billion of infrastructure works, new Prime Minister Jacinda Ardern has announced a NZ$2 billion KiwiBuild housing programme for the construction of 10,000 homes a year for 10 years and a range of new infrastructure projects.

It is the first time New Zealand’s public and private construction sector have combined in a single cause and global engineering and infrastructure advisory company Aurecon Regional Director, Carl Devereux, says the need for top talent is so acute it required an innovative approach to talent procurement.

“The opportunity to be able to recruit in such a creative way by giving candidates the opportunity to come and experience the country for themselves is what attracted us to LookSee Build NZ,” says Devereux.

“Aurecon has a strong pipeline of work, including some of New Zealand’s largest infrastructure projects and hiring global talent ensures we have diversity of thought sitting around the table to solve the complex challenges the engineering industry faces today and into the future,” he says. “Diversity means not only gender but also culture, qualifications and even age – we believe diversity of thought helps us to develop innovative solutions to the problems our communities face today.”

Auckland Transport chief infrastructure officer Greg Edmonds says the recent downturn in British construction activity created an ideal employment environment in which to make a pitch to potential migrants to New Zealand.

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Could a quarter of a million homes be built above rail lines?

Is it possible to develop around a quarter of a million new homes in London by building apartments above rail lines? The answer is yes, according to a new report published today.

The report, entitled ‘Out of Thin Air’, says there is the potential to provide all the new homes London needs if existing engineering techniques were used to construct apartment blocks directly above rail, Overground and Underground lines.

Research from the report identified all rail tracks in Transport for London’s (TfL) fare zones 1-6 where there were no breaks in the track made by tunnels, roads or bridges and where there was ten metres of available land on both sides. This would allow for the development of 100m² apartments in buildings rising to 12 storeys. If a conservative 10% of this total was delivered it would provide 250,969 new homes.

The London boroughs of Brent, Ealing and Croydon and TfL Zones 2, 3 and 4 provided the most ‘overbuild’ development potential.

Rail lines with development potential:

Available rail lines for development

Number of hectares available by borough:

Available land by borough

Bill Price, WSP director, said “We have to be more creative in using existing space in what remains a relatively low-rise city. The air rights above rail tracks present an unrealised but significant opportunity to build more new homes on brownfield land. It’s important to emphasise the engineering is absolutely possible and not new. We have been working on projects of this nature in New York for decades. Right now in London we are working on a variety of projects that rise above rail lines including a 50-storey residential tower, homes above a new Crossrail station and even a Premier League stadium.”

“There is a wider point about how we can better connect communities and unlock new homes not just above rail lines but adjacent to them as well. In some parts of London rail lines act as accidental segregators. By ‘decking’ over these lines, such as the proposed regeneration west of Earls Court underground station, we can join together sites to unlock an even higher number of new homes and create new vibrant communities.”

The thinking behind the report emerged after Network Rail appointed WSP in 2012 to study the feasibility of building above rail lines. The study’s conclusions, which focused on the type of decking and noise and vibration issues are detailed in the new report. CGI designs are also provided of what rail overbuild might look like if implemented near a major rail terminal in Central London, above a rail line in West London, and above a station in North London.

Out of Thin Air follows a previous WSP report, ‘Building Our Way Out of a Crisis’, which argued that up to 630,000 new homes in London could be found by building apartments above public buildings such as hospitals and schools.

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RIBA calls for progressive UK immigration policy post-Brexit

The Royal Institute of British Architects (RIBA) has published a new policy paper recommending the creation of a post-Brexit immigration system that ensures the UK job market remains open to skilled professionals from around the world.

RIBA’s Global by Design report (February 2017) highlighted that of their members identified access of skilled talent from across the world as vital to the future success of UK architecture. 40% of non-UK EU respondents said that they had ‘considered leaving the UK with earnest intent’ following the EU referendum result.

The RIBA Building a post-Brexit immigration system that works for UK architecture paper includes eight key post-Brexit recommendations to Government:

  1. Come to an agreement with the EU over the rights of EU citizens currently living in the UK, and UK citizens living in Europe, that includes continued recognition of professional qualifications, at the earliest opportunity
  2. Review the minimum appropriate salary requirements for Tier 2 visas and reduce these requirements for recent graduates or those working for small businesses
  3. Reduce the cost and administration burden on businesses seeking to become a visa sponsor for employees
  4. Re-introduce post-study work visas to allow international architecture students to develop their professional experience between Part 1 and Part 2 study
  5. Secure a transitional relationship with the EU that extends the freedom to study and work in the UK beyond the UK’s exit from the EU in 2019
  6. Include work visa quotas in new trade agreements
  7. Extend mutual recognition of professional qualifications via new trade agreements with priority countries including the USA, Australia and Canada
  8. Implement a system of priority access for business travellers to support architectural practices to do business in overseas markets

RIBA President Ben Derbyshire said “Our members are clear that Britain’s exit from the EU must not imperil our pre-eminent position as a magnet for the very finest talent from around the world. UK architecture has benefitted enormously from the contribution of European and non-European colleagues, who have enriched architectural practice in this country.

“The RIBA’s proposed immigration system aims to ensure that the UK can continue to embrace and attract people to live and work in the country. We are pressing the Government particularly on the urgent need for certainty for our European colleagues currently living in country. Many of our valued colleagues are drifting away, and there will be an exodus, no doubt, if we impose unreasonable burdens on those who are fully aware of the positive contribution they have been making to our pre-eminent position.

“The RIBA will continue to make the case for a Brexit that works for our profession and our built environment, from securing access to the talent and investment we need to survive to opening up the new trade opportunities that will support architects to thrive.”

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Public consultation reopens for controversial third runway at Heathrow

The previously shelved public consultation on the planned third runway at Heathrow has been reopened due to new evidence, according to the Department of Transport (DoT). It will seek to gauge public support for the plans in light of the new findings.

DoT has published a series of new reports relating to the environmental and human cost of expanding an already-bustling airport in a heavily populated area.

The government’s sustainability appraisal expects the plans to have a negative effect on air quality, noise and biodiversity. It also says that the Gatwick second runway scheme would cause less damage than either potential scheme at Heathrow. The plans will have to mitigate against any significant deterioration in air quality or the whole scheme could be thrown into jeopardy.

To build or not to build…

London’s airports are forecast to be full by the mid-2030s with Heathrow already operating at capacity and Gatwick at capacity during peak times.

This has left the government with the dilemma of either being framed as anti-business if it does not act to address capacity, or anti-environment if it goes ahead with expansion. It is worth noting that should they go ahead with construction, efforts to reduce greenhouse gas emissions by at least 80% on 1990 levels by 2050, as legislated by the Climate Change Act, will be seriously undermined.

A Heathrow spokesperson said “Expansion will support our plan to make Heathrow a great place to live and work, doubling the number of apprenticeships at Heathrow to 10,000, with fewer people impacted by noise than today, and an ambition for carbon-neutral growth.”

Attracting Controversy

A third runway at Heathrow would result in an extra 700 planes a day would pass through it. This equates to an extra 260,000 flights each year, increasing flights by 54% to 740,000 a year.

Paul Mcguiness, Chair of the ‘No 3rd Runway Coalition’ said “We are horrified that the government has even considered succumbing to the shameless, no-expense-spared browbeating of Heathrow, as the airport pursues its own narrow, financial self-interest.”

Friends of the Earth London campaigner Sophie Neuburg said “Airport expansion will bring more noise, pollution and misery to local communities.

“Bold and urgent measures are needed to head off the looming threat of catastrophic climate change. It’s simply pie in the sky to think we can build a third runway at Heathrow while keeping UK targets for slashing emissions.

“These short-sighted plans will also add to London’s pollution crisis. The courts have already warned the government to clean up London’s illegally dirty air as soon as possible – we need action now, not more empty promises tomorrow.”

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Industrial sector remains strong while retail suffers

Demand for industrial property space in Wales is significantly outstripping supply, according to the RICS Commercial Market Survey, Wales, Q3 2017.

Chartered surveyor respondents are reporting increases in occupier demand for industrial space and falling availability. They are also pointing to strong rises in interest from investors to purchase industrial property assets.

As a result, both rents and capital values in the sector are expected to keep rising in the three months ahead.

This is contrast to the retail sector, where occupier demand is reported to have been falling, and investor interest flat. As a result, short-term rent and capital value expectations in the retail sector have declined, according to the balance of surveyors.

Whilst there is variation between sectors, overall the commercial property sector in Wales remains stronger than in other UK regions, according to the survey. Like the industrial sector, office continues to perform well, with occupier demand and investor interest rising and expectations for rent and capital values in the three-months ahead still positive.

Chris Sutton, RICS Commercial Property Spokesperson said “With a growth in ‘last-mile’ logistics and steady demand from trade counter operators, the industrial sector has been very buoyant. This has mirrored activity in the capital markets with multi-let industrial investments in demand. In terms of the office sector, the announcement of the 266,000 sq ft public sector hub for HMRC in Central Square, Cardiff is the largest office pre-let ever agreed in Wales and this has given a further boost to the Central Cardiff Enterprise Zone.”

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Industry must rise to meet UK economy growth

Industry must rise to meet UK economy growth

The UK’s economy had higher than expected growth in the three months to September, reveals the latest figures from the Office of National Statistics released today.

According to the ONS, gross domestic product (GDP) for the quarter rose by 0.4%, compared with 0.3% in each of 2017’s first two quarters.

Services and manufacturing industries grew during the period. Industrial production rose in July and August but construction output fell.

The financial markets are now indicating an 84% probability that rates will rise from their current record low of 0.25% when the Bank of England’s Monetary Policy Committee (MPC) meets on 2 November.

Construction is crucial

Construction output in the UK is currently more than £110 billion per annum and contributes 7% of GDP. Approximately 60% of construction output is new build, whilst 40% is refurbishment and maintenance.

The industry accounts for approximately 3 million jobs, 10% of total UK employment and includes both manufacturing and services.

Construction is a high cost, high risk, long-term activity, and so it’s performance is a good indicator of the health of the wider economy. When the economy falters, construction investment often grinds to a halt. However, today’s announcement suggests that our economy is beginning to recover after a tumultuous time post-Brexit. It is imperative that the construction industry recieves the support it needs from government to help continue this upward momentum.

What do you think the industry needs from Government? Let us know in the comments section below, or reach out to us on twitter @BuildSpecifier
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Sensational bounce back for infrastructure activity

Infrastructure bounced back sensationally in September with six major HS2 contracts awarded on the month worth a total of £7.2 billion. However, the same can’t be said for the remaining sectors in construction, including housing which saw new orders decrease for the first time in six months.

The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights the levels of construction contract values awarded in September across all regions of Great Britain. The overall contract value for September was £6.9 billion based on a three month rolling average, the highest monthly figure for almost two years. The strong total was largely based on the commissioning of the large HS2 contracts, which made up six of the top ten biggest projects in the month, whilst also masking the pitfalls across other sectors of construction.

Barbour

Across the industry, project numbers were down in September by 28.5% when compared to August, which was spread right across the various sectors of construction. Housing saw the biggest drop in contract values, decreasing to £1.8 billion, a 33 per cent drop on the month after consistently high growth since May and has up to now been construction’s most reliable source of high contract values over the course of 2017. Outside of Infrastructure, the only two other sectors that saw growth were Hotel, Leisure and Sport with minimal growth of 0.9% compared to August, and Medical & Health which increased by 10.4%.

Outside of the six HS2 projects, the £300 million Old War Office Building residential development in Westminster was the highest value project for September. This is followed by a new Amazon distribution centre in Bristol with a construction cost of more than £200 million – four times higher than the value of any other industrial project on the month.

Regionally, the West Midlands was the leading region for construction contract value with 35 per cent of the total, followed by London and the East Midlands with 28 and 15 per cent respectively, the three regions with HS2 contracts. The remaining regions counted for 1-4 per cent individual share of the monthly total contract value.

Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said “It was an unusual month for construction in September due to the £7.2 billion HS2 contracts, drastically boosting construction figures and depicting a strong, healthy industry, whereas without the six major contracts it was a poor month for contract values, highlighted by the housing sectors uncharacteristic decrease.”

“Nevertheless the HS2 projects will be a major boost to the workforces in the three located regions, providing thousands of jobs and sub-contracting opportunities.”

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Visit Glass: introducing a dynamic new event for the flat glass industry at the NEC

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The FIT Show team organises a brand new event for processors, specifiers and buyers of flat glass in all its forms.

Following increasing demand indicated by visitors to the FIT Show, the organisers have announced the launch of Visit Glass, which will take place alongside the FIT Show in May 2019 at the NEC.

Responding to a massive 40% of the 10,000 visitors to the 2017 FIT Show who declared their interest in seeing glass products and glass-related processing equipment and technology at the event, Visit Glass will become the first UK exhibition and forum dedicated to the manufacture, processing and application of flat glass for almost 15 years.

The event is designed to appeal to glass industry professionals, together with specifiers and buyers of flat glass products and systems. These include insulated glass units, architectural glass, processed flat glass for all non-glazing applications including kitchens, bedrooms, bathrooms and the furniture industry; and glass for interiors including offices and decorative interior design schemes.

Prompted by the visitor feedback the organisers of the FIT show carried out further research into the viability of such an event and were told that professionals operating in the sector would respond positively for something created specifically to address the unique needs of the UK flat glass industry, one that continues to undergo substantial technological and market changes. They also learned that, despite the success of the FIT Show, it did not serve the specific needs of flat glass manufacture, processing and technology. That will now be addressed by the launch of Visit Glass, according to organiser Nickie West.

“Despite glass being an obvious and essential component of almost everything that is shown at the FIT Show, the glass industry has needs that are quite distinct in almost every respect,” she said. “After analysis of visitor research at the 2017 FIT Show we realised that glass-related topics were some of the highest categories they wanted to see at the show. However, this was not reflected in what they saw there. Visit Glass will address this imbalance through a distinct, separate event alongside the FIT Show.

“With the numbers of visitors to the FIT Show indicating their interest in flat glass we can guarantee a very substantial attendance to Visit Glass,” added West. “In addition of course there will be a substantial marketing campaign to encourage a wide cross section of the glass industry, in addition to users and specifiers.”

Visit Glass will take place in its own clearly designated space at the NEC alongside the FIT Show, in a space that combines key exhibitors representing leading brands alongside a powerful, thought provoking and informative seminar programme dedicated to the glass industry and markets in the UK. To ensure an appropriate format for Visit Glass was created the event was ‘soft launched’, during which time a number of powerful, key brands were quick to reserve exhibition space. These include Pilkington, Saint-Gobain, Edgetech, Lisec, National Glass Group and Sapphire Glass Merchants, with others joining the floorplan as word of the event spreads.

A dedicated seminar theatre within Visit Glass will offer a comprehensive programme of seminars addressing UK and general issues relating to the manufacture, processing and application of flat glass. Industry experts are being consulted to ensure content that is highly relevant and current for the UK flat glass industry when the event takes place in May 2019.

Visitors will also be encouraged to network in the Visit Glass bar, access for which will be granted to Visit Glass pre-registered visitors who will automatically be granted VIP status. Visit Glass and FIT Show visitors will have full access to both events.

Visit Glass will take place at the National Exhibition Centre (NEC) Birmingham, 21st to 23rd May 2019. Further information is available at: www.fitshow.co.uk/visitglass or for interest in exhibiting, by calling Freya Humphries on +44 7572 623457.
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Theresa May speech – the view from construction

At an eventful Conservative Conference today PM Theresa May has announced an extra £2bn will be allocated to aid delivery of affordable housing in areas “where need is greatest.” She also confirmed an energy cap in a bid to alleviate fuel poverty. Buildingspecifier reports:

Affordable housing

At an eventful Conservative Conference today PM Theresa May has announced an extra £2bn will be allocated to aid delivery of affordable housing in areas “where need is greatest.”

“We simply haven’t built enough homes,” admitted May said, although she reassures that “help is on the way.”

“It won’t be quick or easy – but as Prime Minister’s I’m going to make this my mission.”

The Prime Minister highlighted that there will now be “almost £9bn” available for affordable housing which both councils and housing associations can bid for.

“We will invest an additional £2bn in affordable housing, taking the government’s affordable housing budget to £9bn. We will encourage councils as well as housing associations and provide certainty over future rent levels.

“In those parts of the country where need is greatest we will allow social rented housing to be built, at well below market levels, getting the government back into the business of building houses.”

Energy cap

The Prime Minister also revealed that caps on energy prices would be imposed under planned legislation. She gave a stark warning to energy firms that they faced a price cap on their “rip-off” bills under her new plans.

Draft legislation for the measure will be published next week, Mrs May revealed, as she accused firms of punishing loyal customers.

May commented “While we are in favour of free markets we will always take action to fix them when they are broken. We will always take on monopolies and vested interests when they are holding people back. One of the greatest examples in Britain today is the broken energy market. The energy market punishes loyalty with higher prices and the most loyal customers are often those with lower incomes, the elderly, people with lower qualifications and people who rent their homes.”

Industry reaction

Chief Executive of the National Housing Federation, David Orr said “In the aftermath of the tragic fire at Grenfell Tower, the prime minister said that we as a nation have not paid enough attention to social housing. Today, she is right to make a bold break with the past and commit to building the homes we need most – genuinely affordable homes for those on the lowest incomes.

“The additional £2bn will make a real difference to those let down by a broken housing market. Building homes for social rent will make work pay and help bring down the housing benefit bill in the long run by moving people out of costly private lets.”

Brian Berry, Chief Executive of the FMB, said “Despite the Prime Minister’s precarious political position since the General Election, Theresa May has today managed to take a braver and bolder stance on house building than any Prime Minister of recent years. The private sector will continue to expand the number of new homes it builds, particularly so if the Government succeeds in its aim of removing barriers that hold back small scale house builders. However, in the house building heyday of the 1950/60s, a healthy private sector was always complemented by significant levels of social house building. Indeed, we have only ever built at the level we need to keep pace with demand when both the private and public house building sectors have been firing on all fronts. In the 1960s, for example, we were building around 400,000 homes per year and half of those were social housing.”

“The Prime Minister’s plan is also an opportunity to help shape a stronger local house building industry. If councils can start to engage with smaller, local builders to deliver this new generation of council housing, it could further help to diversify the industry. This would also boost the capacity of the private sector through the provision of more public sector work. Indeed, the increased use of small and medium-sized building firms will limit the problem of land banking, as this is something small builders simply don’t do.

“There do remain however, some significant roadblocks to the Prime Minister’s vision. Following Brexit, the serious shortage of skilled labour the construction industry is already dealing with will be exacerbated if it becomes much more difficult for EU tradespeople, who have come to play a crucial part in plugging the industry’s chronic skills gap, to move to and work in the UK. Although the industry must seek to overcome this crisis by recruiting and training many more young people than we currently do, the Government must also be mindful and realistic about the continuing need there will be for skilled EU workers as it puts in place its post-Brexit immigration policy. Otherwise it will risk jeopardising the delivery of the bold new house building ambitions the Prime Minister outline today.”

Andy Sommerville, Director of Search Acumen, commented “Our country needs to embark on the greatest housing boom the UK has witnessed in a century. For decades, UK governments have neglected the critical issue of our nation’s housing shortfall and as a result we estimate by 2022 the UK will be short of a million homes.

“Theresa May’s pledge to invest an extra £2bn in affordable housing is the first building block to making up for years of under supply and we can only hope that this is not simply another empty promise to fix our broken housing market. Now that our leaders share the industry’s sense of urgency, we must act to build more homes and we must act quickly. The gulf between supply and demand is widening each day. For the property and construction industry, this is the cue for Britain to start building.”

Chartered Institute of Housing chief executive Terrie Alafat CBE said “We have been calling on the government to invest more in genuinely affordable homes for rent so the Prime Minister’s announcement of an extra £2 billion for affordable housing is very welcome.

“As we have been saying for some time, social rents, which are significantly cheaper than market rents, are the only truly affordable option for many people on lower incomes, so the recognition that we need more of these homes is a vital step forward.

“It’s also encouraging to hear that Theresa May agrees councils have a central role to play in building the homes we need at prices people can afford.

“The details of exactly how these new homes will be funded and just how many will be for the lowest social rents will be crucial. The number of homes for social rent funded by the government collapsed from 36,000 to just over 1,000 between 2010/11 and 2016/17. Reversing this trend will be a significant task – how much of this new funding will be dedicated to building these kinds of homes?

“There is much to welcome in these announcements and they are certainly an important step in the right direction, but we still need to do more if we are to finally build the number of truly affordable homes we need.”

 

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HSE launches second phase of construction inspection campaign

Construction projects across Britain are being urged to act now to ensure the health and safety of their workers is protected as the second phase of a targeted inspection initiative gets underway this week.

The Health and Safety Executive (HSE) says 43 workers were fatally injured in 2015/16, and an estimated ten times that number died from construction related ill-health, with a further 65,000 self-reported non-fatal injuries.

HSE is now asking every construction contractor, client and designer to ensure they are not adding to this unacceptable toll of harm by failing to manage well-known risks.

In addition to things such as falls from height, the campaign will focus on control of harmful dusts including respirable silica from concrete, brick and stone, asbestos and wood dust, as well as work at height, structural safety, materials handling, good order and welfare provision.

HSE points to the mis-conception that health issues cannot be controlled in construction. It says harmful dust, whether silica or wood, is a serious issue and can be managed effectively with the right design, equipment and training. Health effects may not be immediate, but the ultimate impact on workers and their families can be devastating.

HSE carried out over 2000 inspections during the first phase of the initiative earlier this year with action being taken to address these issues in almost half of visits.

HSE’s Chief Inspector of Construction and Director of Construction Division Peter Baker commented “In phase 1 of this campaign HSE’s inspectors found lots of good examples of small sites working safely and protecting workers health from exposure to harmful dusts, proving it can be done. My message to smaller businesses is don’t wait for an accident or a visit from an HSE inspector – learn from the success of others and act now.

“Nearly half of construction fatal accidents and injuries reported to HSE involved refurbishment work.

“Some small refurbishment sites continue to cut corners and not properly protect their workers resulting in an unacceptable number of deaths and injuries each year.”

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