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Construction in March gains momentum after a slow start to the year

Construction in March gains momentum after a slow start to the year.

After a subdued start for construction in 2016 the industry picked up the pace in March, with £6.1 billion worth of construction contracts delivered. This is the highest figures of the year to date which was particularly influenced by the continued strength of the residential sector.

According to the latest Economic & Construction Market Review from industry analysts Barbour ABI, total construction contract value figures for March were almost 10% higher than in February.

Alongside the improving figures, residential construction contract values were worth £1.9 billion in March, 31 per cent of the total amount of contracts for the month.

The positive news from March continues as the commercial & retail sector increased its monthly contract value by 25 per cent and Infrastructure by 30 per cent, which is an extra £500 million of contract value compared to February.

Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said “it’s encouraging to see the industry pick up the pace after a lacklustre start to the year. Housebuilding once again continues to storm ahead in the industry, as housebuilders continue to try to keep pace with the demand and appetite for new housing.”

“With both the commercial & retail and infrastructure sectors increasing their levels of activity in March, it would be good to see this continue and take some of the pressure away from private housing, which has been the only sector that has continually grown and at times propped up the industry in recent years.”

“With the EU referendum looming, this will be interesting to follow over the coming months to see what affect it will have across the construction sector as there is anecdotal evidence to suggest this is starting to make an impact on investment decisions inside the boardrooms of construction firms.”

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New direction for Ecobuild 2016 voted a hit by industry

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Tens of thousands of industry professionals flocked to Ecobuild to see 800 brands across core areas of industry growth and market priorities: housing, infrastructure, design, energy efficiency, technology and skills. The UK’s definitive event for the built environment, Ecobuild 2016 unveiled its new direction, shook up its layout and delivered a robust three days of business.

It kicked off on a high note as Berkeley Group Chairman, Tony Pidgley CBE opened the Ecobuild Conference, which together with dedicated learning hubs across the show featured more than 350 high level speakers, celebrities and industry A-listers.

Martin Hurn, Event Director at Ecobuild, said “The built environment has fundamentally changed since Ecobuild launched 12 years ago. Government policy is at a crossroads but sustainability has become normalised. While we continue to maintain the eco-focus and promote sustainability standards with our partners across the industry, the smarter end of the market is taking a broader approach to sustainability, aiming to ensure buildings appeal to occupiers well into the future with improved building performance, design, efficiency, health and wellbeing benefits”.

Hurn added that Ecobuild had confidently set out a repositioned show to reflect market priorities after a period of consultation with customers and stakeholders. New areas introduced for infrastructure, digital construction, smart technology and resource efficiency in the built environment are hot prospects set to grow for the event in 2017.

He said “We’ve been thrilled with the feedback from Ecobuild 2016. The industry is changing and we’re changing with it, ensuring our visitors come away with new ideas and working practices as well as new connections.

“The response has been emphatic. It’s been our buzziest show for a number of years and exhibitors are already looking to book for 2017 in record numbers. I’d like to thank the exhibitors for once again showcasing the very best in innovative products and services that are helping to drive the construction and energy industry, meet future needs and adapt to the challenges ahead.

“I’d also like to say a huge thank you to our partners and look forward to our ongoing collaboration with the industry throughout the year.”

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80% of CBI members think being in EU is best for their business

 

The The Confederation of British Industry (CBI) Chairmen’s Committee has taken the final step in endorsing the leading business group’s mandate to make the economic case for the UK to remain in the EU. It comes after the CBI reaffirmed its member mandate following a rigorous governance process through the organisation’s “business parliament” and publication of a new member survey.

A clear majority of CBI member companies – which together employ nearly 7 million people, about one third of private sector employees – believe that it would be in the best interests of their business and the wider UK economy to remain inside the EU. This is according to an independent survey carried out by polling company ComRes.

The survey had 773 responses among small, medium and large firms across the whole of the UK. It reveals 80% of CBI members, when weighted to reflect its membership – including 71% of small and mid-sized business members – believe that the UK remaining a member of the EU would be best for their business. Overall, 5% say it is in their firms’ best interests for the UK to leave the EU, with 15% unsure.

The survey forms part of a thorough consultation process with the CBI’s governance network of three national councils (Scotland, Wales and Northern Ireland), nine regional councils, eleven standing policy and sector committees. This culminated in an endorsement from the Chairmen’s Committee – the CBI’s highest policy making body – which met on Monday. This round of 24 separate consultations has taken place over the last three weeks, with a clear majority in each meeting backing the business case to remain in the EU.

CBI Director-General, Carolyn Fairbairn said “The message from our members is resounding – most want the UK to stay in the EU because it is better for their business, jobs and prosperity. Walking away makes little economic sense and risks throwing away the many benefits we gain from being part of the EU.”

“Our members tell us that having guaranteed access to a tariff-free market of 500 million people, and to more than 30 global trade deals covering 50 countries, are significant advantages that outweigh the frustrations.”

“A minority of members want to leave the EU. We will continue to respect and reflect their views and campaign for EU reform to get a better deal for all businesses.”

“However, most CBI members are unconvinced that alternatives to full membership would offer the same opportunities. We have yet to see those who seek to leave the EU present a compelling vision of what this would mean for jobs and growth.”

“We will not align ourselves with any campaign. Though prosperity, jobs and future living standards matter to many people, we recognise there will be other considerations. It is not our place to tell people how to vote, but the CBI will play its role in making the economic case for remaining in the EU.”

On securing the CBI’s mandate and its role in the EU referendum, CBI President, Paul Drechsler said “Having secured a strong mandate from our members, the CBI will continue to play a role in shining a light on the business and economic issues at stake. We will seek to inform the public debate focussing on the implications for jobs, prices and prosperity.”

“The vast majority of our members tell us their businesses have gained from being in the EU. We have consulted every one of the CBI’s councils in the last three weeks, involving firms of all sizes and sectors across the UK. All councils agreed, many unanimously, that the CBI should make the economic case for remaining.”

“The referendum is a matter for the British people and it’s clear that the public will base their decision on a range of factors. The business and economic case is only one part of the story, but it is a vital one.”

“The job now for the CBI and business leaders across the UK is to set out the arguments as clearly as possible for the British public. The CBI speaks on behalf of members who employ nearly seven million people and we’re proud to represent entrepreneurs, ambitious growing firms, smaller companies and some of the UK’s biggest employers, spanning all sectors across the UK.”

What are your thoughts? Let us know in the comments section below!

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Osborne urges China to invest in Northern Powerhouse

Chancellor George Osborne announced today that there are “unprecedented opportunities” for China to play their part in funding the development of a Northern Powerhouse.

The Chancellor revealed a selection of opportunities for investments worth up to £24bn at an event being held at the city of Chengdu in China. Coined the “Northern Pitchbook,” Osborne presented a series of regeneration and infrastructure investment projects to senior investors.

Some of the projects included in the Northern Pitchbook are:

  • Opening up the bidding process to build HS2 to Chinese firms and investors on Thursday, offering contracts worth £11.8bn to build the high-speed rail line.
  • Manchester Place regeneration, which consists of creating three new areas of more than 10,000 homes with a combined value of over £3bn.
  • Sheffield Retail Quarter will look to provide new homes within the city centre and also centrally located offices.
  • South Bank regeneration, which will cover over 130 hectares within Leeds city centre.

The Chancellor said “As we continue to work more closely with China, we have an unprecedented opportunity to secure significant investment into some of our most ambitious projects across our Northern Powerhouse.

“From Liverpool to Newcastle, we are opening up our doors to investment that will not only help us to grow and create jobs, but will allow us to build infrastructure to rival any region in the world.

“The North of England is already a magnet for foreign investment into the country and we’ve seen with announcements from Nissan and Hitachi into the North East recently highlighting how perfectly poised our Northern Powerhouse is to attract the eye of global companies.”

Encouraging the Chinese and British firms to work together in joint tender bids for HS2 phase one is a stark contrast to the wishes of opposing Labour Leader Jeremy Corbyn, who has vowed to renationalise the railways if he becomes Prime Minister.

Mr Corbyn said last week “We know there is overwhelming support from the British people for a People’s Railway, better and more efficient services, proper integration and fairer fares.”

“On this issue, it won’t work to have a nearly but not quite position. Labour will commit to a clear plan for a fully integrated railway in public ownership”

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