This Month's News
Boom, gloom or wait
and see?
While the industry is recovering from the shock of Thursday’s Referendum vote, no clear consensus is emerging of the impact it might have and, while there is a mix of optimism and caution, the underlying theme is one of ‘wait and see’.
Leading the optimists is UK Construction Week Event Director Nigel Garnett who says: “Leaving the EU will likely mean UK construction firms will be looking to invest in British products and services like never before,” and even adds that the UK has the foundation for a boom in house building and the industry must be committed to meeting the national need for housing.
“He concludes: “The last few weeks and months have been uncertain for the UK construction industry, but now is the time to embrace the change and these new opportunities.”
But if there is to be a housing boom, the Federation of Master Builders asks who will be doing the building. With 12% of construction workers of non-UK origin – mainly Polish, Rumanian and Lithuanian – FMB Chief Executive Brian Berry warns: “It is now the Government’s responsibility to ensure that the free-flowing tap of migrant workers from Europe is not turned off. If Ministers want to meet their house building and infrastructure objectives, they have to ensure that the new system of immigration is responsive to the needs of industry.”
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Office building in UK returns to pre-recession levels
Office construction reached a post-recession peak in the first quarter of 2016, with over £2 billion worth of contracts awarded, the highest figure since 2008, including six major developments worth over £50 million.
According to the latest figures from industry analysts Barbour ABI on behalf of the Office for National Statistics, office construction new orders have been gradually increasing since 2012, where in the first quarter new orders were worth £890 million, compared to more than double in the first quarter of 2016.
Some of the major developments include Glasgow’s 122 Waterloo Street offices, 10 storeys high and worth £90 million, the £50 million Energis House in Reading and One Capital Square development in Cardiff worth £30 million.
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Fabricators going for more aluminium
Three new aluminium fabricators set up in three months and 30 existing ones taking on an additional aluminium system in the same time – those are among the findings from research by Insight Data on the state of the aluminium market.
Jade Greenhow, operations manager at Insight Data said the three new fabricators showed that systems companies are becoming more active in developing their fabricator base, but added: “It’s the number of companies taking on additional systems that is truly remarkable.”
The increase spans the residential, light commercial and architectural glazing markets. Fabricators are offering trade and residential customers a wider choice of products and specifications, while systems companies are becoming more active in having their products specified by architects, presenting commercial and architectural glazing contractors with new opportunities.
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More homes built
– but less value
The number of new homes planned was up 14% in May despite an overall 17% drop in contract value, indicating a strong swing towards construction of affordable homes, according to the latest Economic & Construction Market Review from industry analyst Barbour ABI.
Contracts awarded within the whole construction industry held strong during May, with £6.1 billion worth of contracts awarded and no change from the previous month, along with an 8 per cent increase year on year, according to
The top performer, after infrastructure, was commercial & retail, which increased its monthly market value by 24 per cent to £877 million.
Michael Dall, lead economist at Barbour ABI (Speaking before the Referendum vote) said: “What is telling is the increase of contract values in May from the infrastructure and commercial & retail sectors, both traditional construction benchmarks that when performing well, give a solid indication that the industry as a whole is moving positively.”
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