Exciting Growth but Skills Shortages Remain a Key Concern

Justin Ratcliffe, (CAB Chief Executive)

The latest CAB State of the Market figures for Q2, 2015 continued to highlight a positive long term outlook for the aluminium in building sector with a number of metrics showing signs of increased confidence after the May General Election. Concern over the availability of skilled workers persists, with wages and salaries again being the key drivers of cost inflation while encouragingly 86% net balance of respondents expected sales volume growth for the year ahead.

Headlines:

• 77% of CAB members, on balance, reported a rise in sales over the past year.
• Members reported that they anticipate sales rising over the next quarter (73%) and the next 12 months (86%).
• Costs continued to rise with 59% net balance reporting a rise in costs in the last 12 months (46% in Q1/2015) and 68% expecting a rise over the next year (50% in Q4/2014)
• Wages & salaries (82% net balance) were reported for the 5th successive quarter as the major cost factor closely followed by Raw materials (43%), with Fuel Costs (-14%) and Exchange rates (-19%) both negative on balance.
• 40% net balance of companies expected to operate at over 90% of capacity over the next 12 months (29% in Q1/2015)
• Headcount increase for the year ahead rose (73% net balance) compared to 40% in Q1/2015 but was ahead of the wider construction sector figure of 50% net balance.
• Demand (33%) and Capacity (24%) were once again factors ‘likely constraints on activity over the next 12 months’. Encouragingly 24% of respondents stated ‘No constraints’ (20% in Q1/2015)

Underlying the increased confidence has been the strength of capital investment intentions across all the metrics. In each of the quarters in 2014, there had been a greater commitment (or at least equal) to investment across all the metrics for the 12 months ahead and this has largely continued into 2015.

The metrics being: Property, plant/equipment, customer research, R & D, Product improvement and e-business. The outstanding area was as in the previous quarter was plant/equipment (80% net balance) followed by product improvement (70% net balance) and e-business (70%) highlighting increased priorities in these areas. READ MORE

I hope you enjoy this month's issue'.

Tony Higgin
Publisher

This Month's News

20 per cent increase in home improvement planning applications

Home improvement across England reached a record 417,000 planning applications between March 2014 and March 2015, increasing by 18 per cent compared to the same timeframe in 2011 and 2012, and has also illustrated a home-improver North/South divide.

The latest home improvement data, compiled by construction data experts Barbour ABI, shows increases across all regions of England, however it was predominantly Southern England that made the biggest jump, with Greater London increasing applications by 35 per cent when compared to 2011/12 figures

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Government must increase SME spend

All local authorities and housing associations should set targets to increase their spend with small businesses, according to the Federation of Master Builders (FMB).
 
Sarah McMonagle, Head of External Affairs at the FMB, said: “The Government’s announcement that every £1 in £3 is spent with small businesses is welcome but only applies to central government contracts. We want to see an increase in spend with small and micro firms across the board and by every public sector body. In many parts of the country, it is still the case that small firms are all too often squeezed out by larger competitors when bidding for public sector work.”

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Householders becoming aware of lock snapping

Up to a quarter of all burglaries in one part of the UK are carried out by lock-snapping, according to The Door & Hardware Federation which is advising locksmiths and security professionals that householders are becoming increasingly aware of cylinder ‘snapping’ or ‘bumping’.

Michael Skelding, General Manager and Secretary of the Federation. said: “According to West Yorkshire police, cylinder snapping is used in 20 to 25% of all burglaries in their region. Police forces in other areas of the country are warning householders that their homes could be at risk from this form of attack.

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Home spending set to
soften – survey

Homeowner spending on new windows and doors looks set soften in the last quarter of 2015, with just over half (55%) of the consumers questioned by leads supplier Leads2trade saying they are likely to spend money on home improvements in the next four months as against 66% earlier in the year.

Leads2trade speaks to thousands of consumers each month when double qualifying leads for their members, which is why the company carried out this major consumer survey to gain an insight into homeowner sentiment.

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Financial restructuring announced

VBH, the Stuttgart based hardware distributor, has been undergoing financial restructuring which has been completed and announced at their AGM on 31st July. New private investors have been welcomed on board and are injecting Euro 26m into the group, with the main contribution provided by Ascalon, a private investment company owned by Mr Victor Trenev, who is investing €20m.

In an official announcement, the Finance Director, Mr Jeurgen Kassel says:

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