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Value Engineering – What is it all about?

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As the construction industry strives to provide the optimum building solution, just how can companies today differentiate themselves and ensure they are offering best value?

Steve Thompson, Managing Director of light steel frame manufacturer, EOS Facades explains how they are using value engineering and Design for Manufacture and Assembly (DfMA) to meet the demands of today’s construction industry.

Value Engineering – What is it?

Today’s customers are savvier, more commercially aware and they expect more for their money. As manufacturers and service providers, we need to react and meet this demand, or risk losing out.

But before we can do this, we need to understand what value really is.

Assessing best value depends on the objectives set – speed of construction, build costs or the development of a sustainable, energy efficient building – or perhaps a combination of all.

Adopting a ‘one system fits all approach’ will not necessarily deliver best value. It is not about economies of scale but it is about an optimised approach – working with the client to select the right solution, at the right price, to deliver the right performance.

Adding Value: Design for Manufacture and Assembly

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As a manufacturer of steel solutions, EOS Facades take full advantage of offsite manufacturing techniques by adhering to Design for Manufacture and Assembly (DfMA) protocols. DfMA is now recognised as the foundation for concurrent engineering processes to streamline and fully optimise the structure. The process aids the building design process and helps to identify, quantify and eliminate waste or inefficiency where possible.

At EOS Facades we pride ourselves on driving quality through precision manufacturing whilst delivering accurate results on time and on budget.

We have taken steps to ensure that DfMA is integrated throughout the design and manufacturing process. We have made considerable investment in developing technology to aide specification and design. We are totally committed to working with our clients on product and service innovations to help them gain a competitive advantage in the marketplace – delivering cost and time efficiencies.

The EOS manufacturing facility is a 40,000 sq ft operation that houses state-of-the-art machinery and technology providing offsite systems and solutions that meet the needs of our customers. Our manufacturing facility is well equipped to cater for the demands of offsite construction and precision engineering. Our sophisticated roll-forming machines have embedded framing technology that enables production of self-jigging framing components that are ready for assembly, eliminating the need to manually cut onsite.

All of our products are manufactured under strict quality management control which is fully compliant with BS EN ISO 9001:2008. Our accredited quality management systems and procedures eradicate onsite variability and ensure life time ‘in service’ performance and durability.

Adding Value: Software and Building Information Modelling

Precision built offsite products require the application of leading-edge technology and contemporary manufacturing processes. We have invested substantially in the latest software and hardware systems in steel frame production. Our systems combine the latest E-Frame technology platform with proven assembly processes, providing fully framed panels that do not require jigging.

Sophisticated software transfers building design information directly to our production plant where we are able to manufacture to accuracies that exceed construction industry norms. Once the panels have been designed using our 3D Tekla modelling software, they are directly uploaded to the roll-forming machines, using a bespoke CAD/CAM interface, where they are produced to exact dimensions using CNC technology. Each stud is identified with an inkjet printer to match the assembly drawing and every frame has an identification label attached. This identifies the project, frame number, order number and site location on the GA site drawings so they can be positioned quickly to their onsite location.

Adding Value: Product

Product quality is essential. EOS only use minimum S390Nmm2 G275gsm steel (higher grades and coatings on request). By only using steel with a protective coating and design detailing that eliminates prolonged exposure, EOS are confident in the durability of our systems. Research has shown in these conditions coated steel has a potential life of over 1,000 years.

The team at EOS support key industry standards and strive to exceed expectations on reliability and delivery. All of our products are manufactured to rigorous quality standards which are fully compliant with the Construction Products Regulations – EN 1090-1: 2009 + AL: 2011. Our quality management systems are BS EN ISO 9001: 2008 registered.

Adding Value: Cost

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We offer all-inclusive fixed price packages that are uniquely supplied with proprietary brackets and fixings required. All Double Studs/Opening Jambs/Lintels and Sills will be dispatched from our factory preassembled. This is a flexible service and should you require the product to arrive unassembled, EOS will pre-punch in the factory, ghost assemble and supply, together with all the necessary screws and special drill bits, for assembly and installation onsite.

Adding Value: People

EOS Facades are constantly striving to improve the way we work and the resulting benefits are passed onto our customers. Research & Development is a core focus of our business and it is not just down to one specific team, at EOS everybody is encouraged to put recommendations forward, whether this is a process or an alteration to a product – that way every part of our business can be enhanced.

EOS also offer a total partner solution including application consultancy, structural design support and value engineering, as well as quality manufacturing.

To meet the demands, we need people to make the change happen.

Now the construction industry is starting to recognise the shift in needs of the client, manufacturers must ask themselves, are they well equipped to meet demands or will they risk losing out?

For more information on EOS Facades’ products and services visit: www.eos-facades.co.uk

Adding Value: Knowledge Sharing

In a bid to share their extensive knowledge, EOS Facades are offering a series of CPD sessions, designed to highlight the various light gauge steel solutions available, and explain how these can be applied in real life scenarios.

The hour long seminars will cover a wide range of steel solutions and services including:

  • Cold Formed Sections
  • SFS Infill Systems
  • SFS Onsite Stud and Track
  • SFS Offsite Pre-assembled
  • Other applications – including LBS, Lattices and Cassettes
  • Design
  • Partnering
  • Examples of Best Practice

These CPD sessions could not be more convenient – an EOS Facades technical representative will come directly to you and the seminars are completely free of charge. Get involved and start talking about light gauge steel!

To request your CPD session, simply contact Thomas Elliott, EOS Facades Technical Sales Manager on: Email: thomas@eosuk.org or Telephone: 07528 364 581.

For more information please visit www.eos-facades.co.uk.

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Fresh warning sign for construction industry

New construction activity has fallen back into contraction, according to figures released today by industry analysts Glenigan.

The value of new projects starting on site was 4% lower than a year earlier during the three months to November. Housing, non-residential and civil engineering starts were all scarcer during the period compared to this time last year.

The amount of new commercial and industrial work was flat on a year earlier during the latest period. Growth in the industrial and hotel and leisure sectors offset falling starts of both office and retail schemes.

Commenting on this month’s figures, Allan Wilén, Glenigan’s Economics Director, said: “The latest evidence on commercial construction starts is disappointing given the continued strength of the economic backdrop.”

“However the forward pipeline is much more positive. In the office sector, for example, the value of work achieving planning approval has risen by more than 50% during the last three months.”

Less surprisingly, the public sector is continuing to hold back growth. The value of the health sector is forecast to fall by a quarter during the course of 2015 alone: during the latest three months starts were almost 50% down on a year earlier. The education sector is also in decline. Despite schools funding overall being ring-fenced, government capital programmes do not seem to be making a huge impact on the ground.

Private housing activity grew modestly, up 2% on a year ago. This rise was more than offset by the drag from the social housing sector, where starts were 9% down on a year ago. The sector is bracing itself for three years of reductions in rents. Plans for increased support of housebuilding have been aimed squarely at increasing home ownership, bringing little relief for the rented accommodation model championed by Housing Associations.

According to Mr Wilén: “The Chancellor’s Autumn Statement pledges on housing appear to be a further boon to the private housing sector. In the short term, activity may undergo a pause as developers assess how best to reap the potential rewards.”

The civil engineering sector also saw an 8% annual decline in starts, as growth in utilities work was unable to offset contracting infrastructure starts.

Most parts of the UK have been dragged backwards by weakening commercial and public sector construction. Northern England and the Midlands have led growth through 2015. However only West Midlands and the North East have stayed in the black; the North West, Yorkshire and the Humber and the East Midlands have all moved into decline in the latest figures.

London and the South East, by contrast, have returned to growth after being hit especially hard by an election hiatus and the slowing in the housing market earlier this year.

No such change in fortunes for the UK’s other constituent nations: Scotland, Wales and Northern Ireland have all failed to record growth since March 2015.

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Range of products changing approach to modern methods of residential drainage

A range of products is now proving popular with construction companies looking for innovative and modern methods following its launch earlier this year.

Skeletank is now set to take the UK house construction market by storm, offering a solution to addressing the issues faced by residential builders when designing and installing surface water drainage systems.

Providing innovative sustainable drainage systems (SuDS) designed specifically for residential properties, Skeletank is only available from Hydro Water Management Solutions (Hydro WMS) and is the first modular systems of its type in the UK.

Adhering to the management train laid out in CIRIA C697, Skeletank systems bring with them a host of benefits for residential developers, social housing companies, local authorities and construction companies.

Potential benefits include releasing more land for development; substantial reduction in upfront costs of adoptable networks; improved cash-flow for developers; CDM and Health & Safety benefits and most importantly, the reduction of flood risk.

Director of Hydro WMS Brian Byrne explains further: “Skeletank systems offer ground breaking design benefits to residential drainage schemes, gathering rainwater at source and allowing its controlled release, either naturally back into the environment, or into the sewer network at a manageable rate.

“The systems have been specifically designed to provide flexible solutions to problems that face those building residential property every day. They meet the best-practice requirements of all current SuDS guidance and legislation.”

Providing a more natural approach to managing rainfall, Skeletank is a Surface water drainage system (SuDS) that can deliver provide both infiltration and attenuation. Skeletank solutions are suitable for pervious, impervious and soft-landscaped surfaces making them incredibility flexible in use.

Designed to manage surface water run-off within the grounds of each individual property, the system can return the water to the ground and/or store the water before releasing it in a controlled manner to the mains sewer network, or adjacent watercourses.

This modern method of managing surface water run-off at source can reduce the up-front cost of adoptable networks and provide major cash-flow benefits to developers. It may also be possible to reduce the size of open water features on site, such as ponds, thus allowing more room for more properties on the same sized site.

The main components of Skeletank systems are designed to be installed at a shallow level beneath hardened surfaces with minimal cover. This also proves extremely cost-effective, especially where there are ground issues such as contamination, high water tables or underlying rock layers. This reduced excavation means that the CDM benefits are huge, and staff safety is looked after, which is important in the world of construction.

Brian concluded: “It is an exciting time for Skeletank as more and more home builders are having to look for innovative ways to deal with water and there are now stringent SuDS guidelines to be followed. We not only make life easy, but we offer so many other benefits, that Skeletank is poised to be a market leader used by large and small private and public developers.”

More information about the Skeletank range is available at www.skeletank.co.uk

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HS2 Midlands route to open six years early… despite soaring costs

The section of HS2 that connects Birmingham with Crewe is now set to open six years ahead of the original schedule in 2027.

This announcement follows last week’s Autumn Statement revealing that the overall cost of HS2 is now rising to over £55bn, £5bn more than the projection made two years ago of £50.1bn.

In the Autumn Statement the Chancellor also announced £200 million to support the operations of Transport for the North (TfN) and its delivery of Oyster-style ticketing across rail, bus, metro and trams across the region. He also confirmed at Spending Review 2015 that £13 billion would be spent on transport in the North over this Parliament. TfN and the Department for Transport have also jointly launched their Autumn Report on the Northern Transport Strategy.

Chancellor George Osborne said “bringing forward this part of the HS2 route by six years is a massive step in the right direction for the Northern Powerhouse where high speed rail will play a big role in connecting up the entire region with the rest of the country.”

HS2 Ltd Chairman Sir David Higgins added “This is another significant milestone in the development of Britain’s high speed rail network. By accelerating the second phase between Birmingham and Crewe, we will bring the capacity, connectivity and regeneration benefits of HS2 to the North-West and Scotland years earlier than originally planned. It has also been very gratifying, as we develop the plans for Phase Two, to see a consensus grow among the city regions in the East Midlands and Yorkshire on the siting of future hub stations at Toton and Leeds city centre respectively. We all recognise the huge contribution this infrastructure investment can make in helping to rebalance our economy.”

The plans, coined ‘Phase 2a’, is raising concerns among those who disagree with the building of a High Speed Rail in Britain. Many feel that bringing forward the completion date for just 40 miles of track will surely raise questions as to whether if HS2 is built, it would ever get further than Crewe.

Stop HS2 Campaign Manager Joe Rukin criticised the announcement, saying “the supposed ‘fast-tracking’ of the route to Crewe, coupled with the rising costs of HS2 and real problems with the practicality of the rest of the proposed route, will surely lead many to conclude HS2 would never get further than Crewe. Far from showing a commitment to the North of England, going ahead with this proposal punts the links to Manchester, Yorkshire and the East Midlands firmly into the long grass, and if being a rail hub equaled economic prosperity, Crewe would already be the most prosperous town the the country.”

“HS2 is abysmal value for money, and the increasingly dogmatic support for this white elephant and its’ spiralling costs is completely unfathomable. The costs of HS2 went up 11% in the Autumn Statement and with trains not due to run for over another decade, who knows where the cost of this vanity project will end up and what else will have to be cut to pay for it? A responsible chancellor would be asking serious questions about whether HS2 is really worth it, not chucking more money at a boondoggle which would only benefit the richest in society. This is simply rewarding chronic mismanagement, and signalling that there is no need for budgetary control when it comes to HS2.”

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Autumn Statement: The industry response

In the wake of today’s statement, the industry is currently abuzz with chatter about whether Osborne’s plans will affect the housing sectors for better or worse. Here is what some of the big names in housing are saying regarding the latest spending review.

Skills shortage threatens 400,000 home target

The construction skills shortage could scupper the Chancellor’s vision for 400,000 new affordable homes, warns the Federation of Master Builders (FMB) in response to today’s announcements in the Spending Review.

Brian Berry, Chief Executive of the FMB, said “Faced with some difficult decisions regarding public spending cuts, today the Chancellor was right to ‘choose housing’ by prioritising investment in new affordable homes. The Government has confirmed plans to build 200,000 starter homes with 20% discounts for under-40s, 135,000 shared ownership homes, 10,000 rent-to-buy homes and 8,000 specialist properties for the elderly and disabled. This amounts to a £7bn public investment in new homes – a concerted effort to give aspirational home owners a helping hand onto the housing ladder.”

“Nevertheless, ‘George the Builder’ will need a new generation of ‘real’ builders to make his vision for housing a reality. We’re already seeing housing developments starting to stall because the cost of hiring skilled tradespeople is threatening to make some sites simply unviable. Unless we see a massive uplift in apprenticeship training in our industry, there won’t be enough pairs of hands to deliver more housing on this scale. That’s why we’re keen for the Government to tread carefully when applying the new proposed Apprenticeship Levy to the construction industry.”

“The Chancellor clearly recognises that the crisis of home ownership is inextricably linked to a crisis in house building. We therefore hope that in order to address both, the Government will do everything it can to increase house building capacity. SME developers will have an important role to play in delivering the smaller scale sites across the country. The last time we built in excess of 200,000 homes in one year was in the late 1980s when two-thirds of all homes were built by small developers. SME house builders now only build little over one quarter of all new homes which points to another serious capacity issue – we need more small house builders to enter the market and also for SME house builders to crank up their delivery of new homes in order to build the Chancellors 400,000 new affordable homes.”

Planning reform is needed

Greg Hill, Strategy and Change Management Director at Hill, said “Extra funding for starter homes is great news for prospective homebuyers, and will undoubtedly help to get more first time buyers and young families on to the housing ladder. Shared ownership properties too are a great way for young people to buy a home without a large deposit. It is certainly the case that the size of deposit required to buy a home acts as a major barrier to first time buyers entering the housing market and these initiatives will go some way to addressing the problem.”

“However, it still remains that a crucial issue over the coming years will be whether the UK housing industry is structurally able to supply the volume of homes needed to meet government targets. Planning reform, as well as greater investment in skills and training for careers in construction, are essential if the industry is to deliver the extra homes in the timeframes that Britain needs. We have a rapidly ageing workforce, with many tradesmen and skilled professionals due to retire in the next few years – the industry may struggle to deliver these 400,000 new homes if the gap in capacity is not filled.”

“If the industry is to build more homes, we also need to ensure that council planning departments have enough resources to make quick decisions on planning applications. The budget cuts that have also been announced today as part of the spending review could have an impact on local authorities’ ability to make decisions quickly.”

Lack of confidence in conservatives

Steve Sanham, development director at HUB Residential, said “With the government promising to subsidise homeownership for the masses, the Chancellor has effectively admitted that it can’t get the housing market under control. It appears that the housing policies of the past few decades have been an utter failure.”

“The problem hasn’t been a lack of ‘affordable housing’, rather a lack of affordability in general. Investment in infrastructure to bring new areas on line for development, and freeing up the bureaucracy of the planning system, are the only ways to bring ‘market homes’ within the reach of first time buyers. New headline grabbing affordable housing initiatives smack of more short-termism, and an inability or unwillingness of the government to grasp the big issues.”

‘Crisis Brewing For Social Housing’

Matthew Hyam, partner at BLM said “While targeting housing benefit directly might drive down the welfare bill in the short term, it will inevitably intensify the problems facing social landlords in building new affordable homes.”

“Although the Chancellor has made a huge £7bn commitment to affordable housing in this Statement, the impact of cuts on the social sector has already been immense. In the face of further financial difficulties, there will inevitably need to be a clearer focus on tenant support and arrears enforcement in order to ensure financial viability.”

“The social housing sector has been learning to cope with the effects of welfare reform for some time now and, with the dust barely settled on rent reductions and universal credit, social housing providers are in a more precarious position than ever.”

Positivity on housebuilding

Stewart Baseley, executive chairman of the Home Builders Federation said “The Government is clearly committed to increasing both housing supply and home ownership. Measures introduced in recent years have led to a big increase in house building levels but the scale of the challenge requires further action to close the gap between demand and supply. The Chancellor’s announcements today will provide extra impetus to deliver further increases in housing supply.”

Peter Quinn, Lovell director of business development said “We welcome any stimulus that will increase the supply of housing in this country. There are many parts of the country where we see great housing need and these measures will undoubtedly assist people onto the housing ladder, ‘Starter Homes’ will especially help the firs- time buyers wanting to purchase a Lovell home. However, we remain concerned that even this initiative will remain out of reach for those that cannot afford home ownership, and we need to continue to develop affordable rented housing especially in high value areas.”

Greg Hill, Strategy and Change Management Director at Hill, said “Extra funding for starter homes is great news for prospective homebuyers, and will undoubtedly help to get more first time buyers and young families on to the housing ladder. Shared ownership properties too are a great way for young people to buy a home without a large deposit. It is certainly the case that the size of deposit required to buy a home acts as a major barrier to first time buyers entering the housing market and these initiatives will go some way to addressing the problem.”

What are your thoughts on Autumn Statement 2015? Let us know your thoughts on twitter @ha_magazine!

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New guidance to stop workers dying each week from occupational disease

The construction industry has launched new guidance to encourage better management of occupational health risks. HSE is urging the industry to put an end to the hundreds of construction workers that die of occupational diseases every month.

Inspectors issued more than 200 health related enforcement notices during the recent Health and Safety Executive’s (HSE) construction inspection initiative.

This highlighted the widespread misunderstanding of what ‘occupational health’ means in the construction sector and the employers’ misguided perception that health is more difficult to manage than safety.

The new guide ‘Occupational health risk management in construction’ PDF has been written by the Construction Industry Advisory Committee (ConIAC) Health Risks Working Group and formatted with the assistance of the Institution of Occupational Safety and Health (IOSH).

It gives practical advice on what ‘health risk’ means for the construction industry, and the role of occupational health service provision in preventing or controlling those risks.

Ian Strudley, Chair of the ConIAC Health Risks Working Group and HSE Principal Specialist Inspector said “The misunderstanding of occupational health within the construction sector means that whilst the industry focus on managing the more familiar safety issues, serious health risks get ignored. We cannot let this continue.”

“When figures show that construction workers are at least 100 times more likely to die from a disease caused or made worse by their work as they are from a fatal accident, the industry must take action.”

Shelley Frost, Executive Director – Policy at IOSH said “There have been huge advances in improving safety in the construction sector over the last 15 years but the industry has yet to generate such advances in improving the picture in occupational health.”

“Every week, 100 people die from construction-related ill health in the UK. Less than half of construction workers also stay employed in the industry until they are 60.”

“This new guide raises awareness of the occupational health issues in construction, demystifies how to best manage them and provides information as to where firms can get help and assistance.”

“Ultimately, if the advice is followed, it could help to lower incidence rates of occupational ill-health and transform the perception of working in construction to that of an attractive and respectful industry with great career choices.”

The guidance is freely available on HSE’s and IOSH’s website:

http://www.hse.gov.uk/aboutus/meetings/iacs/coniac/coniac-oh-guidance.pdf
http://www.iosh.co.uk/techguide

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The Queen reopens redeveloped Birmingham New Street station

The Queen has officially reopened the transformed Birmingham New Street station.

Accompanied by His Royal Highness The Duke of Edinburgh, Her Majesty unveiled a plaque marking her visit – the first to New Street in her 62-year reign and her first visit to the city since her Diamond Jubilee tour in 2012.

The Queen and The Duke of Edinburgh were greeted by a host of dignitaries – including Sir Peter Hendy, chairman of Network Rail and Mark Carne, chief executive of Network Rail – after arriving at the station on the Royal Train.

They were shown an exhibition of the station through the ages since it was first built in the 1880s and were introduced to many of those involved in building the latest incarnation. They also met staff who help meet the needs of the 170,000 passengers who use Birmingham New Street every day.

The new station, including the new Grand Central shopping complex, was unveiled in September this year after a five-year, £750m Network Rail project.

Today’s opening ceremony, which took place on the station’s stunning concourse under its vast atrium, included speeches from the Lord Mayor of Birmingham, Councillor Ray Hassall, and Sir Peter Hendy before her Majesty unveiled the special plaque which will take pride of place within the station.

The Queen also attended a short service of dedication, led by the Bishop of Birmingham, The Right Reverend David Urquhart, for the PALS War Memorial outside the new station. The PALS were volunteer soldiers from the city who were involved in World War I after signing up to the army in September 1914.

Sir Peter Hendy, chairman of Network Rail, said: “It was an honour to welcome The Queen to Birmingham New Street and be part of a very special day for Birmingham. For such an impressive and transformed station, it was fitting that it was officially reopened by Her Majesty.

“Birmingham New Street is helping to boost the regeneration of the city centre as well as provide the millions of passengers who use it with a modern, 21st century station. With the Grand Central development above it, it is a unique station which is vital to the continued development of Birmingham and the wider region.

“Our Railway Upgrade Plan is providing a better railway for passengers and this station is the latest example of how these improvements are benefiting millions of people and helping boost our economy at a local and national level.”

Transport Secretary Patrick McLoughlin, who attended the reopening, said: “Birmingham New Street is a truly remarkable development that is not only providing better journeys for passengers, but also driving economic growth and regeneration across the West Midlands and beyond.

“This is just one example of the record investment we are making in the rail network across the UK as part of our long-term economic plan.”

Chris Montgomery, Network Rail’s project director who oversaw the redevelopment of Birmingham New Street, said: “The Queen officially reopening Birmingham New Street station is the culmination of many years of hard work by thousands of people involved in the project. This is a proud day for the project team, for Network Rail and for Birmingham.”

Sir Albert Bore, leader of Birmingham City Council, said: “Birmingham New Street station has undergone a magnificent transformation and, together with the Grand Central development, has transformed the gateway to our city.

“I am confident this project will pave the way for continued regeneration, creating many more jobs and opportunities for the people of Birmingham.”

The Queen and Duke’s visit was broadcast on the station’s largest ‘media eye’ at the front of the station for the public to watch while many also gathered inside.

The redeveloped Birmingham New Street station opened its doors to passengers on 20 September 2015 after a five-year, £750m transformation.

Boasting an iconic new atrium over a huge passenger concourse – five times the size of London Euston’s – the station has been rebuilt while trains continued to run as normal for the 170,000 passengers a day who use it.

With brighter, de-cluttered platforms, improved entrances, a range of new facilities and an abundance of natural light over the new concourse, Birmingham New Street, one of Britain’s busiest inter-change stations, is also a retail destination in its own right.

The new station will eventually feature 43 shops at concourse level. Above it sits the new Grand Central shopping complex, including one of the UK’s largest John Lewis department stores.

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Deafening explosion at Cardiff’s Celsa Steel plant

Many workers at a Celsa Steel plant have sustained injuries following a ‘deafening’ blast at the plant that shook nearby buildings.

Six fire crews were sent to tackle the blaze in the basement of the plant, on East Moors Road in Cardiff.

Workers at the plant told Wales Online the explosion was “very loud, deafening”. One worker commented “We were just in the office we heard a huge explosion and the whole building shook we all went to get out of the building.” Another added “There was a big bang, a big boom of smoke and that was it.”

An anonymous local businessman told the BBC:

“We heard a very loud explosion and then saw smoke coming up. It was a massive explosion, really something. The building we are in shook. We are only 100, 200 yards away from where it happened.”

The chief operating officer for Cardiff and Vale University hospital, Alice Casey stated “We have implemented our protocols for supporting major incidents and our teams are preparing to treat those injured.

“There may be delays for non-urgent patients attending the emergency unit at University hospital of Wales and we would ask the public to think carefully if they need to attend the unit and to make use of other health services.”

Celsa directly employs 725 people at its Cardiff site and supports around 3,000 jobs.

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The North West led all regions for new-build activity

The North West residential sector saw a significant boost in the number of new build properties commissioned in Q3 this year, leading all regions with 5,275 units.

According to the latest Market Insight report from construction data experts Barbour ABI, £621 million pounds worth of property development was commissioned in Q3, with £608 million from the private sector. This is a significant figure that will likely provide a boost in confidence across the industry and region, as investors are giving the go-ahead to a significant amount of residential projects.

Greater Manchester had the leading amount of residential investment in Q3 within the North West, with major projects commissioned including two city centre £40 million projects, the New Union Street and Axis Tower developments, constructing 302 & 172 apartments respectively.

Six of the top ten largest residential projects commissioned in the region in Q3 were private developments for flats, which has been a major area of residential growth within the region.

Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said “With a lack of housing across the North West heavily publicised, it’s welcoming news that the region leads the UK for new build units in Q3.”

“With the mismatch between housing supply and demand, property prices have continued to rise at a significant pace in the region. Home movers, investors and housebuilders will welcome the news, as major residential investment has been poured into the North West in the last quarter, which will hopefully help to alleviate the housing shortage.”

“If there’s one concern coming from these latest figures it is from a social housing perspective. Only ten of the 87 projects came from the public sector in Q3, however it’s likely that affordable housing will be provided within many of the up-coming private residential developments.”

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ONS question reports of ‘healthy growth’ in construction

News that we are experiencing strong growth in constructing has been brought into disrepute by new figures released by the Office for National Statistics (ONS).

The Markit/Cips Purchasing Managers’ Index for construction that was released last month clearly indicated a reassuring reading of 58.8; 50 being the point which separates expansion from contraction. Whilst down from 59.9 recorded in the previous month, the report still highlighted strong growth in construction, an industry that is accountable for around 6% of the UK’s GDP.

However, the latest GDP estimate made by the Office for National Statistics revealed quite the opposite to that being reported by Market/Cips, suggesting that construction output actually reduced by 2.2% in the three months to September.

So which report is right!?

Chief UK and European Economist for IHS Global Insight, Howard Archer commented the clear contradictions between the reports raised “considerable doubts” about the overall accuracy of the official construction data given by the ONS. He pointed out that other data compiled by Bank of England regional agents on construction also pointed towards growth within the sector, rather than reduction.

Vice President and Senior Economist of Markit, Tim Moore reaffirmed their own results, saying “The sector remains in rude health. Rather than acting as a drag on the economy, as suggested by recent GDP estimates, the sector is continuing to act as an important driving force behind the ongoing UK economic upturn.”

The ONS had been due to release a report comparing their own figures and those of Markit on 11 September, but this had to be cancelled for “operational reasons”.

Mark Robinson, the chief executive of the Scape Group warns that regardless of whether the industry has experienced growth or not this year, something must be done to attract new talent into construction if we are to sustain a healthy and vibrant industry long-term. He said “Much of the skilled workforce is due to retire in the next five to 10 years and if we can’t train enough new talent to replace them, the construction industry will struggle to deliver the new homes and infrastructure that both the community and the economy badly needs.”

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