Sunday 26 August 2018

Construction slows but civils surge

Civils are a bright spot on an otherwise dull horizon for construction, according to a recent report.

The latest figures from Glenigan, which provides data on the UK construction market, show a drop in both project starts and in value of the work started in the last year. But civil engineering saw a 35% increase on 2017 due to strengthening in both infrastructure and utilities projects.





According to the report:

  • Starts in the three months preceding July were 15% down on last year
  • Residential starts were 20% lower than a year ago, with a weakening in both private and social housing projects
  • Non-residential project starts were 18% lower than last year
  • Civil engineering was 35% higher than last year due to a 12% increase in infrastructure starts and an 80% increase in utilities work
  • The value of work starting on-site in the three months preceding July was 15% lower than last year
  • London saw the sharpest decline in starts, at 45% down on last year
  • The South East, East of England, Yorkshire & the Humber, Northern Ireland and Scotland also saw double-digit falls of 16%, 18%, 30%, 37% and 11% respectively
  • The value of project starts in the East Midlands was 41% up on last year and was 14% higher in both the West Midlands and North East.

John Newcomb, CEO of the Builders Merchants Federation, said: “The private new homes sector has been extremely robust in recent years, so it is somewhat surprising to see residential starts fall back at this stage.

“It may be a hangover from the poor weather at the start of the year.

“However, repair, maintenance and improvement work continues to grow, with the Office of National Statistics reporting 0.9% growth in overall construction output.

“The BMF’s Builders Merchants Building Index reported 7.2% growth in sales value over Q2 2018, and we remain confident of continued growth throughout the rest of the year.”

Steve Turner, Director of Communications at the Home Builders’ Federation, added: “We have seen a massive 74% increase in the number of new homes built over the last four years, and all indicators suggest output will continue to grow. Demand for new homes remains extremely strong.

“Starts on new sites in the early part of the year were affected by the adverse weather that also hindered output on existing sites. We anticipate any falls will be reversed in the latter part of the year as builders continue to strive to build more, desperately needed homes.”

Allan Durning, Managing Director of the H&B Buying Group, said:

“Builders’ merchants have seen many cycles over the previous decades, and we manage through them.

“What’s interesting with the timing of this announcement is the current round of shortages of key primary building materials such as bricks, and Class B engineering bricks in particular. Plasterboard, and insulation amongst others.

The housing space remains buoyant as we know, fuelled by taxpayer’s subsidiaries, and RMI is holding up given the desire to ‘improve and not move’ at local levels.

“But we have to be conscious that capital projects, with the Brexit implications, is going to impact on investor confidence. Major organisations such as Barclay are currently commenting on their concerns about demand going forward.”

Monday 20 August 2018

8% value growth in the UK bathroom and kitchen PODs sector

The UK market for bathroom and kitchen PODs market was estimated to have grown by 4% in 2017, in terms of the volume of POD installations. The market also saw an 8% increase in value, which can partly be attributed to higher prices for steel and GRP resin being passed on. There has also been some growth in demand for higher specification PODs in the luxury apartment and upmarket hotel sectors, which has contributed towards value growth.

Overall demand for PODs has been driven by a combination of factors; including demand for design standardisation and fast-track construction; ongoing key skills shortages; growth in the number of sites where there is restricted space; and increasing demand in the main end-user markets. The key sectors where PODs are used are; purpose-built student accommodation (PBSA), hotels and apartment blocks. Between them, these three sectors account for over 80% of installations, while the remainder of the market is split between hospitals, care homes, MoD accommodation and custodial buildings.

The largest area of demand for bathroom and kitchen PODs is in purpose-built student accommodation in medium-high rise steel and concrete mainframe buildings. In the hotel industry, clients will often specify offsite building methods to achieve fast turnarounds to enable occupation as quickly as possible, and for many of the major hotel brands, a need for high levels of standardisation in design is also important. In the apartments sector, there has been extensive use of bathroom and kitchen PODs on both social housing and luxury, high-rise developments.

By value, PODs manufactured from either glass reinforced plastic or composite (GRP) account for the largest share of the market, closely followed by steel frame, while concrete and other materials, such as timber, account for lower shares. GRP PODs are mostly used in PBSA and budget hotel rooms, while in higher specification developments concrete or steel PODs are typically preferred.

Kitchen PODs account for less than 10% of the market, the core application being multioccupancy residences such as purpose-built student accommodation, holiday resorts, military barracks and apartment blocks. Other areas of application include permanent and temporary use at hospital sites and as temporary stand-alone modules for large-scale events.

Over the next five years, it is anticipated demand for PODs could grow steadily at a rate of 4- 5% per year, there being reasonably strong construction pipelines in key end-use sectors, although the uncertainty surrounding the Brexit negotiations may have some negative impact on demand. On the other hand, associated skills shortages may also lead to an increase in demand for offsite solutions and contribute towards growth in the PODs sector.

The urgent need for more affordable and rented housing in London and other major urban areas is expected to continue to drive demand for fast-build apartment blocks, while the hotel sector in London and other major cities should continue to provide impetus for growth in demand for bathroom PODs in the medium term, although a substantial proportion of schemes will be conversions.

Despite a high level of PBSA development in some cities, such as Leeds and Manchester, a relatively large proportion of student halls built in the 1960s/1970s are now reaching their end of life and in need of redevelopment. There also remains an ongoing shortage of high-quality accommodation in many cities, suggesting there is still an urgent need for PBSA, and predicted strong future build levels in this sector should continue to drive demand for PODs.

The ‘Bathroom and Kitchen PODs Market Report – UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Monday 13 August 2018

Job in Focus: Internal Business Development Job in London for Fit-Out Products - £75k OTE

Our second Job in Focus for August is an exciting internally based job for Office Fit Out products. You would be selling award-winning products to corporate end-users. You would be responsible for an outbound calling team of 20 to make appointments for the field sales team. This is a highly target driven role.

Our Construction & Building Industry Job in Focus feature takes a detailed look at some of the fantastic sales & marketing construction and building materials job vacancies currently on our books. 

Job in Focus is also promoted on our website. www.pinnacleconsulting.co.uk 


JOB IN FOCUS FULL DETAIL














Job Title: Business Development Manager
Job Ref: J10812
Product: Fit Out
Location: London & South East
Salary: £75k

AWARD WINNING OFFICE FIT OUT COMPANY WITH PRESTIGIOUS CLIENTS AND A GLOBAL BRAND

PACKAGE: On offer is a basic salary of up to £75,000 plus pension, 20 days holiday increasing per year of service up to 25 days and other excellent company benefits.

COMPANY: A leading brand in the office fit out market boasting an impressive client list.

ROLE: Business Development Manager - office based - This is an excellent opportunity to join an established team of 20 working in South East London. You will be responsible for outbound calling an account base including warm and cold calls selling office relocation and fit-out service and booking appointments for the field based sales team to attend. This is a highly sales targeted environment where you will be expected to achieve a minimum number of calls and appointments booked. The office hours are 7.30am to 5.30pm.

LOCATION:
 Office based in South East London area close to Dulwich, South Norwood, Thamesmead, Lambeth. Candidates must live within one hour of the offices.

CANDIDATE:
To be considered for this role you need to have experience working in a target driven sales environment ideally in a high volume telephone calling new business role. Product experience or customer base knowledge is not important but anyone from the office fit out / interiors market or who has sold into corporate end users would be an advantage. 


For further information or to discuss your career options contact Natalie Matthews on 01480 405225 or apply online.

Tuesday 7 August 2018

Job in Focus for August: Key Account Manager for Timber Engineering Solutions in North - £50k OTE

Our new Job in Focus for August is a Key Account Manager's job selling high-quality innovative products providing timber engineering solutions to fabricators. Responsible for accountant management & new business generation. You would be responsible for the Midlands and the North - £50k OTE.

Our Construction & Building Industry Job in Focus feature takes a detailed look at some of the fantastic sales & marketing construction and building materials job vacancies currently on our books. 

Job in Focus is also promoted on our website. www.pinnacleconsulting.co.uk 


JOB IN FOCUS FULL DETAIL













Job Title: Key Account Manager
Job Ref: J10801
Product: Fixings
Location: West Midlands
Salary: £45k

MARKET LEADING MANUFACTURER OF FIXINGS & FASTENINGS SELLING INTO FABRICATORS 

PACKAGE: On offer is a basic salary of up to £45K plus up to £5K bonus. As well as company car, mobile phone, laptop, pension, 25 days holiday plus bank holidays. 

EMPLOYER: Our client is a global leading company offering a range of fixings, fastenings and drilling systems for the construction market with a superb reputation for brand quality and innovation. 

JOB DESCRIPTION: Key Account Manager - You will be tasked with selling our clients full range of timber engineering solutions to fabricators. These products will include connectors used for engineered wood products, timber frame and truss to wall plates. The area already has a number of existing key accounts and plenty of new business to go after, meaning this role will be a good mix of account management and new business. 

AREA: Covering the North (not including Scotland) - Candidates will ideally be located between Peterborough and Sheffield. 

PERSON: To be considered for this position you need to have field sales experience within the construction market, although candidates with knowledge of the roof, floor and timber frame industry will be of particular interest. You will be lively, dynamic and an excellent account manager. 

For further information or to discuss your career options contact Kerry Grimes on 01480 405225


Monday 6 August 2018

Latest survey states that the Construction sector buyers are 'busier than ever'

The IHS Markit/CIPS UK Construction Purchasing Managers’ Index climbed to 55.8 in July, up on 53.1 in June and against the no-change reading of 50.

Growth was underpinned by the fastest increase in residential work in more than two-and-a-half years, with commercial work picking up and civil engineering increasing only moderately. Respondents commented on improving demand conditions and higher volumes of new project starts.

Despite an upturn in tender opportunities, construction companies are cautious about the business outlook over the next 12 months with the degree of positive sentiment unchanged since June and weaker than the long-term average.

Input cost inflation eased to a three-month low in July but remained strong in comparison to the post-downturn trend. Respondents reported rising fuel bills and higher prices for steel-related inputs.

Duncan Brock, group director at CIPS, said: “Purchasing managers were busier than ever this month with a welcome surge in new orders and the fastest rise in construction work since May 2017.

“The fly in the ointment was longer lead times across the construction supply chain. Rising demand meant that supply chains creaked under the strain and delivery times lengthened to the greatest extent seen in 12 months.

“Material shortages, limited inventories and capacity pressures bore down, as constructors caught up on previous weather delays and stocked up for new orders.”

Wednesday 1 August 2018

Construction Output set to fall for first time in 6 years but growth predicted for 2019 and 2020

The UK’s construction industry is expected to experience a moderate fall in 2018, following five years of consecutive growth. The Construction Products Association’s Summer Forecasts anticipate growth for the whole of 2018 to fall 0.6%, before accelerating to 2.3% in 2019 and 1.9% in 2020, with house builders the primary drivers of growth for the whole industry.

In private housing, first-time buyer demand, enabled by the government’s Help to Buy scheme, continues to boost sentiment and encourage an increase in housebuilding activity outside London. The sector’s output is forecast to rise 5% in 2018 and 2% in 2019. The infrastructure sector also remains a primary driver of growth for the whole construction industry, with output forecast to hit a historic high of £23.6 billion by 2020, driven by large projects such as HS2 and Hinkley Point C. However, the sector will be hoping government will push to ensure delivery on the ground with work on both projects already significantly delayed. Without the forecast growth in infrastructure and private housing activity, total construction output would fall by 3% in 2018 and remain flat in 2019.

The demise of Carillion resulted in a poor performance for the industry at the start of the year, which combined with the bad weather, lost UK construction £1 billion of work. It is estimated 60% of this work may be recovered, but Carillion’s collapse will cause further delays at two major hospitals as work on the £335 million Royal Liverpool University and Birmingham’s £350 million Midland Metropolitan hospitals is on hold until at least 2019.

Brexit uncertainty continues to drive the sharpest decline for construction in the commercial sector, particularly felt in the offices sub-sector which is expected to fall 20% in 2018 and a further 10% in 2019. Meanwhile, the shift to online shopping is causing woes for the high street, with new retail construction expected to fall by 10% this year.

Noble Francis, Economics Director at the Construction Products Association said: "Clearly the first quarter of the year was difficult for the industry due to the demise of Carillion and the bad weather. Things improved markedly in the second quarter due to a catch-up in work as we would have expected but, overall, it’s mixed fortunes for contractors at the moment. On the positive side, house builders are keen on accelerating building rates outside of London and that is expected to be enough to offset sharp falls in house building in the capital.

"Firms working on major infrastructure projects also have a lot of work in the pipeline. Infrastructure output is forecast to rise by 3% in 2018 and 13% in 2019. This growth is highly dependent on large projects such as HS2 and Hinkley Point C, the first of the new nuclear power stations but, as ever, there remain concerns about government’s ability to deliver infrastructure projects without the cost overruns and delays that we have seen on Crossrail and HS2 recently.

"On the negative side, the elephant in the room is clearly Brexit uncertainty, which has had a big effect on international investment, especially where it is high up-front investment for a long-term rate of return, which is now highly uncertain. It badly affects demand in sectors such as prime residential in London, commercial offices towers and industrial factories, which is dependent on manufacturing.

"Overall in construction, there is forecast to be a slight fall in activity, of -0.6%, in 2018 after five consecutive years. However, in 2019, we are anticipating of growth of 2.3% due to house building and infrastructure."