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8% of UK construction workforce comes from the EU

New figures from the Royal Institute of Chartered Surveyors (RICS) reveal that the UK construction industry could lose almost 200,000 EU workers post-Brexit should Britain lose access to the single market, putting some of the country’s biggest infrastructure and construction projects under threat.

RICS has cautioned that for Brexit to succeed, it is essential to secure continued access to the EU Single Market or to put alternative plans in place to safeguard the future of the property and construction sectors in the UK.

Latest RICS figures show that 8% of the UK’s construction workers are EU nationals, accounting for some 176,500 people. 30% of construction professionals surveyed revealed that hiring non-UK workers was important to the success of their businesses.

The UK is already in the grip of a construction skills crisis. While some overseas professionals, such as ballet dancers, are regarded as critical by the UK Government, and are therefore prioritised during the visa application process, construction professions have not yet been added to the ‘UK Shortage Occupations List’. RICS is warning that this could already be placing the UK’s predicted £500 billion infrastructure pipeline under threat and must be addressed as a priority.

When asked about the effectiveness of current plans to address the UK’s long-term skills shortages, 20% of respondents felt that apprenticeship schemes were not effective at all.

Jeremy Blackburn, RICS Head of UK Policy said “These figures reveal that the UK construction industry is currently dependent on thousands of EU workers. It is in all our interests that we make a success of Brexit, but a loss of access to the single market, has the potential to slowly bring the UK’s £500 billion infrastructure pipeline to a standstill. That means that unless access to the single market is secured or alternative plans are put in place, we won’t be able to create the infrastructure needed to enable our cities to compete on a global stage. We have said before that this is a potential stumbling block for the Government, which is working to deliver both its Housing White Paper and Industrial Strategy.

“A simple first step would be to ensure that construction professions, such as quantity surveyors, feature on the ‘UK Shortage Occupations List’. Ballet dancers won’t improve our infrastructure or solve the housing crisis, yet their skills are currently viewed as essential, whereas construction professionals are not.

“Of course, we must also address the need to deliver a construction and property industry that is resilient to future change and can withstand the impact of any future political or economic shocks — key to that will be growing the domestic skills base. As the industry’s professional body, we are working with Government and industry to develop that skills base, building vital initiatives, such as degree apprenticeships, in our sector to drive the talent pipeline forward. This survey reveals that more work needs to be done to promote the indisputable benefits of these schemes to industry — RICS intends to take this forward as a priority.”

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Mayor approves construction of new £500m stadium for Chelsea FC

The Mayor of London, Sadiq Khan, has approved Chelsea Football Club’s plans for a state-of-the-art £500 million stadium on the site of their existing Stamford Bridge ground.

Plans for the new stadium will see Chelsea’s match-day capacity increase from 41,600 to 60,000 and will include the construction of an elevated walkway over the nearby District Line, linking the stadium to Fulham Broadway station.

Sadiq said he was satisfied the new stadium was a ‘high-quality and spectacular design’ which would significantly boost capacity for the Premier League club.

His decision today further builds on his support for London football, including his move to give the green light to a new stadium for AFC Wimbledon, which sees the ‘Dons’ set to return to their Plough Lane home nearly three decades after leaving it in 1991.

Sadiq has also made it clear he ‘wholeheartedly supports’ Millwall FC remaining in Lewisham.

Chelsea’s proposal was approved unanimously by Hammersmith and Fulham Council’s planning committee in January.

The club’s application also includes an investment of £12 million in community activities, such as employment and skills training, as well as a contribution of £3.75 million towards affordable housing in the borough.

The Mayor of London, Sadiq Khan, said “London is one of the world’s greatest sporting cities and I’m delighted that we will soon add Chelsea’s new stadium to the already fantastic array of sporting arenas in the capital.

“Having taken a balanced view of the application, I’m satisfied this is a high-quality and spectacular design which will significantly increase capacity within the existing site, as well as ensuring fans can have easy access from nearby transport connections.

“I’m confident this new stadium will be a jewel in London’s sporting crown and will attract visitors and football fans from around the world.”

The new stadium has been designed by architects Herzog and de Meuron – who also designed the iconic Birds Nest Olympic stadium in Beijing and the widely acclaimed Allianz Arena in Munich.

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Building of UK’s first grid-scale electricity storage facility imminent

Construction of the first grid-scale electricity storage facility to be built in Britain for more than 30 years could begin as early as 2018 following today’s granting of planning permission for the scheme.

Developer Snowdonia Pumped Hydro (SPH) has been given the go-ahead by the UK government to turn two abandoned slate quarries at Glyn Rhonwy near Llanberis in North Wales into water reservoirs that will store some 700 MWhs of electricity—sufficient to supply 200,000 homes with electricity for seven hours a day over a projected operational lifetime of 125 years or more.

The GBP 160m facility will use surplus electricity, for example from wind and solar sources, to pump water through an underground tunnel from the lower to the upper reservoir. When lack of wind or sunshine reduces renewable power output, or when fossil fuel generators fail to start, the water will flow back down the tunnel, spinning a turbine in an underground chamber to regenerate the stored electricity at a power output of 99.9 MW.

The only visible evidence of the pumped hydro storage facility will be a modest building on an industrial park, and two reservoirs contained by slate dams blending with existing slate tips, whose water levels silently rise and fall each day.

The UK currently has four pumped hydro storage sites, the youngest of which was built with taxpayers’ money more than 30 years ago. SPH is seeking private equity funds to build the Glyn Rhonwy scheme without public money.

Pumped hydro provides over 90% of the world’s electricity storage, and countries including the US, South Africa, Australia and China are among those expanding their national pumped hydro fleets as they seek to balance the intermittency of wind and solar.

In Britain it was thought that only a limited number of mountainous areas were suitable for pumped hydro sites, but SPH has shown energy civil servants how the UK could build some 50 GWh of pumped hydro storage using unconventional sites like ex-industrial quarries, coastal locations and existing drinking water reservoirs.

“There are signs that the government is taking storage seriously,” said SPH managing director Dave Holmes. “The National Infrastructure Commission last year urged swift action on storage, and a team inside the Department of Business, Energy and Industrial Strategy is looking urgently at how planning barriers and market disincentives to storage can be addressed. We see the grant of permission for our Glyn Rhonwy scheme as highly significant, signalling a real change that will enable the UK to meet carbon reduction targets, while keeping electricity supply secure and prices for consumers under control.”

Energy experts agree that as the percentage of intermittent renewable generation on Britain’s electricity grid continues to increase, a mix of storage types and technologies may be the optimum solution to ensure that electricity supply remains secure and affordable. These include long duration grid-scale storage such as pumped hydro, localised shorter duration storage provided by household or community batteries, complemented by demand reduction measures.

SPH has not sought to develop Lithium-ion batteries at grid-scale. Said Holmes. “Glyn Rhonwy can be expected to deliver around 32 million MWh over its lifetime. An equivalent 700 MWh Lithium-ion installation would deliver just 2.1million MWh before needing its batteries replacing. This means electricity delivered by pumped hydro is twenty times cheaper per MWh than Lithium-ion batteries over its lifetime, and carries less environmental baggage.”

The Glyn Rhonwy facility is expected to bring a significant economic boost to North Wales, supporting hundreds of jobs during the construction phase and creating up to 30 high quality full time local positions to operate the site for its 125 years or more service lifetime.

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Budget delivers more good news for construction industry

The Spring Budget includes plans that will be undoubtedly welcomed by professionals working within the construction industry.

The announcement of new funding to build 110 free schools and the allocation of £103 million to tackle infrastructure issues in the midlands and the north of England indicates that there is money being spent and the government will be calling on us as an industry to support their plans.

Also mentioned in the Budget, was a stronger growth forecast for the UK economy to 2% in 2017 which will likely have a greater positive impact upon the industry’s fortunes over the coming year.

Tackling the skills gap

Labour supply and skill shortages have long been a major concern for construction; an issue that has been thrown into sharper relief following the Brexit vote. The Government’s efforts to raise the status of vocational training, with the introduction of T-Levels, are a welcome step towards tackling this long term issue. The government will increase by more than 50 per cent the number of programme hours of training for 16-19 year olds on technical routes to more than 900 hours a year on average. This includes the completion of a high quality three-month industry work placement.

Responding to this topic, Brian Berry, Chief Executive of the Federation of Master Builders (FMB) said “The Chancellor clearly understands that the UK won’t address the productivity challenge unless we rethink our approach to technical and vocational education. T-Levels could be the answer if they genuinely rival A-Levels in the eyes of parents, teachers and young people. UK society as a whole has been guilty of putting too much emphasis on the academic route – this has made it more difficult for vital sectors like construction and house building to attract the talented people we need. In construction, we are suffering from a severe skills shortage and this is likely to worsen once we leave the EU and no longer have easy access to European labour. This £500 million funding announced today for T-Levels is therefore a welcome and much-needed boost.”

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78% of construction workers use their personal smartphone at work

  • 120 hours lost per year per employee to personal smartphone use
  • 78% respond to personal text messages at work

The average British worker spends as many as 120 hours per year using their smartphones in the workplace, and those working in construction are among the worst culprits, according to research.

Research of 2,012 UK adults carried out by gadgets and technology etailer, LaptopsDirect.co.uk, has revealed more than three quarters (78%) of construction workers admit to using their smartphones during working hours.

78% regularly respond to personal text messages during working hours, and 59% regularly take personal phone calls whilst working.

52% admit to answering instant messages via platforms such as Whatsapp and Facebook, whilst 9% have sent a Snapchat from their workplace.

44% of respondents said their workplace permitted reasonable use of smartphones.

More than a third (38%) regularly check their social media accounts while in the workplace.

Those working in information and communications (96%), followed in second place.

Mark Kelly, marketing manager at LaptopsDirect.co.uk, said: “It’s no surprise that we are addicted to our smartphones however overuse during working hours can add up, leaving a serious shortfall in productivity. Although companies monitor and prohibit the use of social media during the working day, the research shows that there is still a large amount of people continuing to use their device.

“Use of smartphones and social media in the workplace can lead to hundreds of thousands of hours in lost productivity per year, which could cost UK companies millions of pounds.”

14% have been told off for using smartphones at work, while just 4% have been disciplined for use of their own tech during work time.

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Construction subcontractors forced to accept contract terms

Over half of UK subcontractors believe they must accept the terms of contracts with large construction firms, or face the risk of losing future business, according to new research from specialist funder, Bibby Financial Services (BFS).

Findings of the Subcontracting Growth survey show that the majority of firms (55%) do not believe they can influence the terms of agreements with main contractors. The research highlights the power imbalance between the sector’s large and small businesses.

Helen Wheeler, Managing Director of Construction Finance at Bibby Financial Services said: “All too often we see the battle of David versus Goliath in the construction industry, with larger contractors wielding the power and smaller firms reluctant to negotiate terms through fear of losing future work or gaining a reputation for being difficult.

“However, understanding and negotiating suitable contract terms is critical in ensuring that projects are priced accordingly and profitable for subcontractors.”

Findings of the research reveal that late payment from prime contractors is the most significant challenge subcontractors face over the year ahead (27%), followed by skills shortages (21%). One in five (20%) said the health of the UK economy is the biggest threat to their business in the next 12 months.

The majority of subcontractors (51%) do not believe the UK’s decision to leave the EU will affect their businesses. Almost one in five (19%) said that Brexit will have a negative impact and 17 per cent said it will be bad for their businesses.

Helen continued: “On the subject of Brexit, subcontractors are divided. For some it will help the UK to secure infrastructure investment from wallets further afield than Europe. Others see it posing a threat to labour pools and a cause of significant inflationary pressures.”

“One thing that is clear is the impact poor payment practices are having on the industry. It is unsurprising but discouraging that late payment from main contractors is still an issue for smaller construction firms across the country.”

The report also revealed the enormity of the task for subcontractors having to negotiate contracts with businesses taking on an average of 40 contracts per year. The average value of these contracts was £205,076, highlighting the significance of the work undertaken by the UK’s army of subcontractors.

One in five firms (20%) believes that unfair penalty clauses from prime contractors have negatively impacted their businesses.

Peter Vinden, Managing Director of construction specialists, the Vinden Partnership, said: “The power imbalance of the construction sector is well known but it is critical that subcontractors recognise that there is support available to help them check and negotiate terms with larger firms.

“Ensuring that they are not signing contracts with unfavourable terms or clauses could be the difference between taking on a profitable project and insolvency.

“The impacts of signing contracts with onerous terms or clauses can be anything from a lack of cashflow preventing salary payments through to insolvency, so it really is important that firms ensure they’re negotiating the best terms for their business and seeking help where they need.”

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Saint-Gobain named as Top Employer 2017

Saint-Gobain UK and Ireland, leader in the construction materials markets, has been recognised as a Top Employer in the UK for the fifth year running, and in Ireland for a second consecutive year.

The awards, based on research conducted by the Top Employers Institute, recognises organisations that have achieved the highest standards of excellence in human resources, particularly in the areas of working conditions, learning and development opportunities, career and succession management and the overall culture of the organisation.

Mike Chaldecott, General Delegate and Regional Managing Director for Construction Products at Saint-Gobain UK and Ireland, said “It is a great achievement to have been awarded this accolade once more. It recognises the steps we continue to take to ensure an open, collaborative and fulfilling environment, where our colleagues can thrive.

“We want all of our colleagues to enjoy their time with us, and also to feel supported, challenged, and fulfilled by an organisation that gives them the tools and creates the culture in which they can expand and develop their career for the long-term. With more than 30 businesses in the UK and Ireland, we are able to provide careers in a huge range of disciplines enabling employees to achieve a career without boundaries.”

For a second year in a row, Saint-Gobain has been certified Top Employer Europe and Top Employer Global – only one of 10 companies worldwide to receive this certification.

To find out more about the diverse and rewarding career opportunities available at Saint-Gobain in the UK & Ireland, visit http://www.saint-gobain.co.uk/careers/.

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New report urges industry to act now on skills training to meet smart meter deadline

The UK government’s energy policy requires suppliers to install smart meters in the homes of all domestic customers and small businesses by the end of 2020. But with less than four years to go, more than 48 million meters have yet to be installed.

To achieve the target, installation rates must increase fivefold from the current 200,000 a month to more than one million a month, but the industry has to address a drastic shortage of skilled installers, warns specialist training provider Develop Training Limited (DTL) in a new report.

Fundamental to meeting the deadline will be the availability of qualified meter installers, but the sector is already experiencing a chronic skills shortage. So fast, effective and accredited training programmes and initiatives are vital if suppliers are to boost installer numbers to meet their obligations and avoid penalties, says the DTL report.

DTL’s new whitepaper, ‘Smart Meters: training to meet the challenge of the UK rollout’, explores the issues relating to the UK smart meter rollout and the role training must play in helping to address them.

The report highlights that the shortage of suitably trained engineers is by far the biggest challenge facing an industry under pressure to meet the smart meter target. Research has shown that almost one in five domestic customers who arranged for a smart meter to be installed in their home experienced long delays because there were too few engineers available to carry out the work.

Steve Braund, Marketing Manager at DTL, explains: “Smart meters are an integral part of the UK’s plans to create a greener, safer and more reliable energy network, but the rollout programme is placing severe demands on the energy firms and their supply chain. Faced with the need to meet Government targets, industry must take urgent action to address the skills gaps of existing engineers and, more importantly, increase the number of qualified smart meter installers.

“Our smart meter report is the latest in a series of whitepapers DTL has published on a variety of topics, including electrical safety at work, confined spaces and legionella – all of which are freely available to download from our website.”

To download a free copy of the whitepaper, please click here.

DTL can provide specialist training at any one of its seven training bases nationwide, and can also deliver on-site solutions. Visit www.developtraining.co.uk for more information.

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INFOGRAPHIC: Interesting facts about steel that you should know!

 

Steel is undoubtedly the backbone of our built environment. Steel is used in almost every sector of our industry, including energy, construction and housing (the largest consumer of steel), automotive and transportation, infrastructure and machinery – to name but a few. Seeing as the steel industry employs over 2 million people worldwide and can be seen everywhere around us, buildingspecifier thought it would be a good idea to delve a little deeper into the world of steel and shed light on a material that is so integral to our lives. We spoke to metal roofing experts, Country Towne who kindly put this infographic together, which highlights a few interesting facts about their favourite substance. Enjoy!
Steel

Infographic courtesy of Metal Roofing experts Country Towne.
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Irvine Sellar, Shard developer passes away aged 82

The vision behind the Shard at London Bridge, Irvine Sellar has sadly passed away at the age of 82 after a period of short illness.

His son James, who has worked alongside his father for the past 20 years, will take over running of the Sellar Group, according to the statement released by the company.

Sellar will be remembered by his wife, three children and five grandchildren and his architectural legacy will continue through the buildings he helped create.

His most famous work, the Shard, dominates the London skyline and in its short life span has become a cultural icon of London and Great Britain overall. In memory of Irvine and as a celebration of his work, here are some fascinating facts about the Shard!

the Shard

It is 306 metres tall, briefly held the top spot for the whole of Europe before two buildings in Moscow overtook it within a year!
The average lift speed is 6 metres per second
The Shard is made up of 11,000 glass panels on its exterior
The area of the glass façade is 56,000 sq metres (602,779 sq ft), which equals eight football pitches.
Construction workers found a fox near the top, on the 7nd floor
95% of the construction materials are recycled.
20% of the steelwork is from recycled sources.
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