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Leading Eco-Roof company calls for Yorkshire colleges to upskill or risk being left behind

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Huddersfield-based energy efficiency roofing specialist, Ploughcroft, has issued a stark warning to construction colleges across the region: upskill and evolve, or risk being left behind in the fast-moving roofing industry.

With hundreds of students leaving construction colleges to seek employment this summer, Chris Hopkins, Divisional Director at Ploughcroft, is warning the majority of those leavers will be untrained and unprepared for the energy saving construction techniques that consumers now demand.

An industry first

As a consequence, Ploughcroft has taken the initiative to develop its own pioneering, Eco-Roof apprenticeship scheme – which has already been trailed over the last 12-months. This is believed to be an industry first.

This proactive approach from Ploughcroft is essential to provide apprentices with the skills and knowledge required to succeed in the fast-growing energy efficiency industry, and to underpin the cost-effective installation of new roofing schemes.

While under the current college curriculum, the focus quite rightly covers the basic roofing installation essentials, it fails in the view of Chris Hopkins, when it comes to the incorporation of now crucial energy efficient-related skill sets, such as U-Value calculations, condensation risk analysis and heat-loss monthly savings.

This means forward-thinking companies such as Ploughcroft, which lead the way with its unique Eco-Roof product, are unable to find suitably qualified staff, even at entry-level positions, further exacerbating the industry-wide skills shortage. Ploughcroft believes that by ‘future proofing’ the Apprenticeship schemes, this will also have the knock-on effect of attracting the brightest and best to the industry.

Chris Hopkins is now calling for urgent dialogue with course and curriculum planners to collaborate to address this key area. He said “Over the past three years we have seen a rapid growth in our Eco-Roof business, as energy prices continue to rise, and customers become increasingly clued-up when it comes to greener living and the impact it can have on their energy bills.

“However, while consumer demand rises, colleges simply aren’t keeping up. Given there was no existing eco roof apprenticeship scheme in place that covered the type of specialist work we carry out, we’ve been trialing and created our own using my professional teaching and roofing assessor qualifications.

“That said, we can only do so much, and today’s apprentices are the people who will drive the energy efficiency industry forward in years to come. As such it is absolutely essential that colleges – and other construction businesses – continue to evolve, and invest in skills and development.”

One of Ploughcroft’s most successful apprentices is 18-year-old Charlie Oakes, who began his apprenticeship in 2015 when the scheme launched. He says: “Joining the Eco-Roof apprenticeship has been a fantastic experience. Roofing is often seen as industry that lacks innovation, but working at Ploughcroft I’ve found that’s not the case, and I’ve learned a great deal about emerging energy efficiency techniques. This is a huge growth area, and one I’m excited to see developing.”

Ploughcroft’s two-year Eco-Roof apprenticeship offers a mix of on-the-job training and classroom-based learning spanning traditional roofing, as well as a wide range of cutting-edge, energy-efficient construction techniques required to meet the needs of this fast-growing eco-construction sector. It is currently seeking graduates to join its Eco-Roof apprenticeship scheme.

To find out more, visit www.ploughcroft.co.uk.
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Growth continues in UK for construction SMEs

The SME construction sector grew in the second quarter of 2017, albeit at a slower rate in most parts of the UK than the first three months of the year, according to the Federation of Master Builders (FMB).

Key results from the FMB’s State of Trade Survey for Q2 2017, which is the only quarterly assessment of the UK-wide SME construction sector, include:

  • Q2 2017 was the 17th consecutive quarter of positive growth which means that the construction SME sector has been growing for more than four years (ie since Q2 2013)
  • Almost one in two construction SMEs predict rising workloads in the coming three months, with just 9% predicting a decrease in activity
  • 83% of builders believe that material prices will rise in the next six months
  • 60% of construction SMEs are struggling to hire bricklayers; 57% are struggling to hire carpenters and joiners; and 47% are struggling to hire plumbers
  • Almost two-thirds (62%) of construction SMEs expect salaries and wages to increase in the next six months

Brian Berry, Chief Executive of the FMB said “Rising material prices and salaries could be starting to dampen growth among construction SMEs. However, it is encouraging to see that the sector has continued to grow despite the recent snap General Election and the resulting hung Parliament. The construction SME sector is particularly vulnerable to any dips in consumer confidence that might come from periods of political uncertainty. It may be that a number of home owners decided to delay any big spending decisions on new extensions or loft conversions while the election campaign was underway – this would account for the slow-down in growth seen in the second quarter of 2017.”

“Looking ahead, almost two-thirds of construction firms expect wages and salaries to increase over the next six months and this is in contrast to stagnant wages elsewhere in the economy. Rising salaries are undoubtedly the result of the escalating construction skills shortage – construction workers know their worth and are demanding higher wages from their employers. The majority of construction SMEs are struggling to recruit key tradespeople such as bricklayers and carpenters and we’re seeing shortages in other trades, such as plumbers and plasterers, starting to creep up. With Brexit on the horizon and worrying talk of the so-called ‘Tier 2’ immigration system replacing the free movement of people, the construction industry urges Ministers to bear in mind their strategic house building and infrastructure targets before pulling up the drawbridge on EU migrant workers.”

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The UK construction outlook is positive despite challenges

Despite worries surrounding Brexit, tighter margins and labour supply to name a few, optimism across Britain’s construction sector is relatively high in regards to potential growth and future profits, according to the 2017 Construction Sentiment Survey.

Causeway Technologies and Barbour ABI’s survey of the construction sector – measuring various levels of optimism, growth & obstacles within the industry, found that of those surveyed 71 per cent believe that their company’s revenue is expected to grow in 2017 compared to last year and 63 per cent foresee a growth in profits.

The survey also found that the three biggest issues facing the construction industry are stronger competitors, labour supply and customer demand.

Construction

A large proportion of construction companies (67 per cent) are already implementing cost-reduction measures, however they are more prevalent in larger companies (82 per cent) compared to smaller companies (58 per cent). However, the survey also showed evidence of initiatives for growth, with almost 70 per cent believing that their company is implementing initiatives to fuel growth in 2017.

Colin Smith, Chief Executive Officer at Causeway Technologies commented “The UK construction industry is facing considerable change in the coming years and needs to be well prepared for what lies ahead.”

“Whilst it is clear from the survey that construction professionals remain reasonably optimistic about 2017 with the industry growing steadily since 2013, they are also aware that they face an array of challenges, with a significant number of companies already looking at how they can cut costs and improve efficiency.”

“Identifying the issues is clearly the first step in tackling them, the next stage is for construction companies to introduce the solutions that will help them perform better in the face of the challenges they expect to encounter in 2017.”

Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said “Construction firms are looking to “future proof” and expand markets to meet the economic challenges that inevitably lie ahead.”

“The industry appears to be learning its lessons from the years of subdued performance between 2009 and 2012 with many considering closely its initiatives for growth, issues facing their businesses but also ensuring the systems are in place to ensure they can weather any future downturn.”

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Building the case for construction ahead of General Election

In order to improve policy making and provide a better understanding of the construction industry’s contribution to society, the Chartered Institute of Building (CIOB) has outlined five interlinked policy proposals for prospective parliamentary candidates and the next Government to consider ahead of the General Election.

Chris Blythe OBE, Chief Executive of the CIOB said “The quality of our built environment affects every member of society. Construction creates and maintains the places that people live, work and play, the infrastructure that supports them and the services that sustain them. And it is vital that those elected to represent their constituents in Parliament understand this.

“Our manifesto showcases how construction can act as a solution to major policy issues. Our proposals are interlinked, showcasing the need for a collaborative approach to productivity, skills, quality, investment and Brexit.

“It is crucial that policy makers appreciate the contribution of the construction sector: the decisions made today will be felt for decades and generations.”

The five aims outlined in the CIOB’s Building the Case for Construction manifesto are as follows:

  1. Continue support for the Industrial Strategy and recognise construction’s role in improving productivity
  2. Work alongside the construction industry to support a robust system for training and skills development
  3. Recognise and address both the opportunities and risks that Brexit will bring
  4. Ensure quality is at the heart of the nation’s construction programme
  5. Focus on regional investment in construction to rebalance the UK economy

The CIOB will be communicating with prospective parliamentary candidates, urging them to consider the importance of the built environment both at a local and national level. The CIOB has also published a series of articles under the ‘Building the Case for Construction’ banner. It contains a number of resources including the manifesto, an overview of the timetables for the 2017 election and a series of questions for CIOB members and non-members to ask prospective parliamentary candidates.

The full manifesto can be accessed here.

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New survey highlights issues and opinions in the construction industry today

UK Construction Week, the UK’s largest gathering and community of construction professionals, has conducted a survey to uncover and tackle issues facing construction, housebuilding and skills in the run up to the General Election. With over 1,000 responses from a cross section of professionals working in the sector, key points from the survey include:

  • Sir Richard Branson is named as ‘the best person’ to head up new UK infrastructure projects
  • 77% believe state intervention is needed for more housing
  • 38% want Gavin Barwell to retain his position as Housing Minister
  • 54% call for more housebuilding on brownfield sites

One of the most significant results from the survey was for Sir Richard Branson, who was voted as the best person to spearhead new UK infrastructure projects, such as HS2 and Heathrow Airport, signalling a need for more entrepreneurial vision in tackling large scale projects.

On the result, Sir Richard Branson said “I’m very flattered by the survey. The only danger is that if I oversaw these key infrastructure projects then by the time I’ve finished there would only be room for one airline and one train company, both beginning with the letter V! The key thing one needs to get right is to plan these major projects with the customer’s needs in mind. Too often these are planned by engineers for engineers and fail to meet the user’s demand. This means they are underused and fail to have the major impact they should do.”

Further results show a three way split on the government’s current housing policy with a third of those polled voting both for and against current policies, and a third not convinced either way.

Over half of those surveyed (54%) called for the next elected government to be more aggressive with planning permissions on brownfield sites to enable house building. Only 11% voted to loosen Green Belt restrictions, dispelling the myth that the construction industry wants to build on protected land.

Although the industry isn’t wholly satisfied with current housing policy, Gavin Barwell was voted overwhelmingly in favour as the best man for the job of Housing Minister, with the next name suggested, Boris Johnson, only receiving a quarter of the number of nominations. Labour’s John Healey, previous Housing Minister under the Labour government, was the third suggestion.
77% of those surveyed believe the only way to reach 1 million homes by 2020 is by state intervention, and for a council house building programme to begin.

For infrastructure, there was a two way split between Vince Cable and Sir Richard Branson who were both voted as the best people to lead UK infrastructure projects, followed by Sir Alan Sugar and Sir James Dyson. A clear indication the industry feels it needs entrepreneurial visionaries to successfully take projects forward to 2021.

In terms of major projects the industry is generally positive about these going ahead with a Conservative government, with HS2 and Heathrow seen as the safest projects followed by Hinkley point, Crossrail 2, Thames Tideway and the road renewal building programme.

However, there is a real concern that major projects will stall if the Conservative government is not re-elected, with a majority of those surveyed believing all projects will stall with HS2 coming out on top (44%) followed by Crossrail 2 (40%) followed by the road renewal building programme (40%), Hinkley Point (30%), Thames Tideway (30%) and Heathrow third runway (26%).

Nathan Garnett, Event Director at Media 10, which runs UKCW, said: “We have seen a great deal of talk around housing and infrastructure in this general election campaign so far, so I think that the main political parties should take note of this industry wide survey. It shows that there are still a lot more assurances and interventions needed to build the homes we need and the infrastructure we have been promised. We will be using these results to make sure the main political parties know what the industry wants, and one clear message is that innovation and entrepreneurial endeavour cannot happen without government assistance.”

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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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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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Retail construction sees a decline in value but contract numbers hold steady

Even though the internet continues to eat into the share of retail spending (15% market share in October 2016), this has not detracted the industry from building in 2016, albeit showing a widespread trend towards smaller project contracts.

According to the ‘Does retail offer real opportunity?’ report from construction industry analysts Barbour ABI, the key change in work coming from the sector is that construction projects are smaller, fitting in with the emphasis that is being placed, especially by larger retailers, towards an nincrease in smaller, more local retail units.

Retail construction accounts for £4.7 billion pounds a year, down from the £8 billion pre-recession peak. The report also describes how physical stores are still pivotal to the strategies of most retailers, as major opportunities look to be available over the next few years, particularly for architects who can rethink retail space and develop nexus between the physical and digital shopping experience.

Across 2016, the twenty largest retail projects accounted for a value of more than £570 million, with £421 million coming from the South of England which is 74 per cent of the total. However, interestingly it was the North West of England that led all regions with the highest overall number of contracts in the retail sector over the 12 months to September (see fig 1.1).

The two largest projects by value in retail construction last year were the Charter Place shopping Arcade in Watford valued at £178 million and the £75 million O2 retail village outlet in London.

Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said “Ultimately today’s retailer is looking to improve the experience of their customers. That has been reflected in how they design and use the buildings they occupy, which has ultimately resulted in smaller, more frequent projects, making up for the declining overall value of retail work over the past five years for the construction sector.”

“The value of work may have shrunk, but the number of projects being let by retail clients is holding steady, providing similar numbers of opportunities to impress clients.”

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New Construction Minister appointed

The government has appointed Lord David Prior of Brampton as new construction minister this week. His wide-ranging brief will include infrastructure and construction policy, alongside industrial strategy and the EU single market.

Prior to the appointment, the conservative peer was a junior health minister – but was shuffled into the Department for Business, Energy and Industrial Strategy late last year.

Industry response seems to be largely positive. Brian Berry, Chief Executive of the Federation of Master Builders, commented “We welcome the appointment of Lord Prior, whose combination of political and professional experience should leave him well placed to forge the strong, collaborative relationship that is needed between industry and government.

“It’s undoubtedly an exciting time for the construction sector as we respond to the opportunities and challenges which stem from the recommendations made by the recent Farmer and Bonfield reviews. We are also in the midst of the government’s review of CITB [Construction Industry Training Board], the outcome of which will decide the future of our industry training board.

“We look forward to working with the new minister and ensuring that he understands fully the perspective of the small and micro construction firms which make up the vast bulk of our industry.”

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“Construction industry showing encouraging signs of change to offsite methods”

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Speaking at Explore Offsite Futures at Birmingham’s NEC last week (24th November 2016), Fusion’s head of business development, Robert Clark spoke about the past, present and future opportunities for offsite manufacturing, saying he was starting to see encouraging signs of adoption by the construction industry.

As a designer and manufacturer of light gauge steel frames used by some of the UK’s most significant developers, Fusion is at the forefront of driving education and awareness of how offsite manufacturing methods hold the key to the future of construction in this country.

In his presentation to an audience of around 180 delegates from across all disciplines within the construction industry, Robert outlined the history of Fusion. He spoke about its experience in designing and building frames for low rise housing units through to high rise apartment blocks, and how its strategic view now is to focus on low rise, volume house building to help reduce the UK’s desperate shortage.

Robert recounted stories dating back 15 years when some of Fusion’s first projects were completed and little was really know or understood about the possibilities for offsite manufactured steel frames. Looking at the present, he referred to the widely-read Farmer Review: ‘Modernise or Die’, facing the truth about the drastic shortage of housing in the UK and the devastating decline of skilled labour in the construction industry.

Robert said: “The construction industry – or house building in particular, is faced with a dire situation. We’re still trying to make traditional building methods work but as Mark Farmer said in his review, radical steps need to be taken if we are to avoid an ‘inexorable decline’.”

With offsite recommended as one of a number of solutions, Robert explained projects which were currently underway using Fusion’s intelligent end to end service of design and manufacture and build – but pointed out that up until now, projects have largely been one off developments.

Robert continued: “A change in mindset needs to happen and I’m pleased to say it’s starting to. If we’re to make a serious impact on the construction process and housing shortage in the UK, offsite manufacturing needs to work in collaboration and as part of a developer’s integrated supply chain.”

Robert explained how Fusion was starting to see encouraging signs of change and an adoption of offsite manufacturing methods, from school building projects to a trial programme with the UK’s largest house builder. He also alluded to a branding idea called ‘4LP Homes’ or ‘four little pigs’, the fourth pig having his home made out of steel – strong, warm and built in a factory.

Robert was one of 16 speakers at today’s Explore Offsite Futures event – run as part of series of one day conference and exhibitions creating a platform for construction clients and their professional advisers to explore the latest offsite construction solutions, providing a dynamic and interactive learning experience for all visitors.

For further information visit www.fusionbuild.com and www.exploreoffsite.co.uk.
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