Growth momentum of the UK Construction sector slows in April

April data signalled a further loss of momentum across the UK construction sector, with new order volumes stagnating and overall business activity expanding at its slowest pace since June 2013.

Subdued demand conditions contributed to one of the weakest rises in employment numbers recorded over the past three years. At the same time, construction firms indicted a softer increase in input buying and noted a renewed fall in optimism regarding the year-ahead business outlook. 


Key points:

• Business activity expands at weakest pace since June 2013 
• New work stagnates in April, contrasting with solid growth in March 
• Construction firms indicate reduced confidence about the business outlook

At 52.0 in April, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI® ) registered above the critical 50.0 no-change threshold, which marked three years of sustained output growth across the construction sector. However, the latest reading was down from 54.2 in March and pointed to the slowest expansion of business activity since mid-2013. 

Commercial building was the strongest performing broad category of activity in April, although the latest upturn was the slowest since July 2013. Residential construction growth rebounded only slightly from March’s 38-month low, while civil engineering activity expanded at the weakest pace so far in 2016. 

The overall slowdown in construction output growth largely reflected stagnating new business volumes in April. Moreover, the latest survey signalled the weakest momentum for exactly three years. Construction companies cited a number of factors weighing on client spending, including heightened uncertainty about the economic outlook and a general unwillingness to commit to new projects. 

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Construction firms signalled a renewed decline in confidence about the year-ahead business outlook in April, thereby resuming the general downward trend seen since June 2015. The latest reading pointed to the weakest degree of positive sentiment for almost three years, which survey respondents mainly linked to stagnating new business volumes and a lack of new invitations to tender. 

Staffing levels continued to increase across the construction sector during April. Job creation has been recorded in each month since June 2013, which represents the longest period of sustained employment for around a decade. However, the latest increase in payroll numbers was only modest and some firms commented on more cautious hiring policies in response to softer demand patterns. This contributed to a rise in sub-contractor usage for the first time in three months during April. 

Supply chain pressures eased again in April, as highlighted by the least marked lengthening of vendor delivery times since November 2010. Some firms commented on softer demand for raw materials. Reflecting this, latest data pointed to the weakest increase in input buying for almost three years. However, cost inflation picked up sharply and was the fastest recorded since July 2015.

Tim Moore, Senior Economist at Markit and author of the Markit/CIPS Construction PMI® , said: “UK construction firms reported their worst month for almost three years in April, meaning that the first quarter slowdown is unlikely to prove temporary. 

“Stalling new order volumes not only set the scene for further weakness ahead, but are already weighing on staff hiring and input buying across the construction sector. 

“Softer growth forecasts for the UK economy alongside uncertainty ahead of the EU referendum appear to have provided reasons for clients to delay major spending decisions until the fog has lifted. 

“An additional factor dragging on construction sector performance is the lack of momentum in residential building. April’s survey highlighted one of the weakest rises in housing activity since early-2013, suggesting that greater caution in this sub-sector is adding to the sluggish growth conditions seen across the wider construction industry.” 

David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: 

“Although UK construction grew marginally in April, clouds of uncertainty are hovering overhead, depressing the industry’s outlook. Business activity expanded at its weakest pace since June 2013, clearly pointing to a loss of momentum in the sector. 

“Fears over weaker UK and global economic growth dealt a blow to confidence in the construction sector, leading to delays in new spending commitments. The prospect of the EU referendum and its outcome in June are likely to add to uncertainty too, with many construction firms preferring to wait and see what happens before making any decisions. 

“Construction companies adopted a more cautious approach to purchasing and hiring, leading to a rise in sub-contractor usage to tide them over until the outlook becomes clearer. The slowdown in new order growth in April suggests that though spring may be in the air, sunnier times may still be a way off for the construction sector, at least for the time being.” 

Job in Focus for May: Sales Director for Roofing and Building Products - £95k OTE

Our new Job in Focus for May is a superb opportunity to be the National Sales Director for an innovative supplier of building and roofing product solutions.

You would be responsible for a  sales team of 12 and would the company into further growth with Merchants, Housebuilders and Developers.

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 Title: Sales Director
Job Ref: J7517
Product: Building Products
Location: National
Salary: £80k (95k OTE)

Manufacturer of innovative Roofing and Building Products, Managing a national sales team supplying Builders Merchants and Housebuilders. 

PACKAGE: £80,000 + £95,000 OTE - Excellent package and secondary benefits scheme 

EMPLOYER: A rapidly growing and dynamic business boasting a reputation for exceptional quality innovative products for Roofing and Building applications. With an already established presence the company are looking for a strategic Sales Director who will provde instrumental in the further growth and development of a key division of their business 

JOB DESCRIPTION: Sales Director - You will be tasked with full strategic and commercial responsibility, managing a high volume sales division supplying products to national and independent builders merchants as well as housebuilders and regional developers. Inheriting a team of 12, your primary responsibility will be in the effective coaching, leadership and management of the sales team ensuring area, customer and national budgets and targets are met and exceeded. 

AREA:- National - You will ideally be based in the Midlands 

PERSON: The successful candidate will be a proven manager, demonstrating success in managing a major field based sales team supplying the Builders Merchant channel. In terms of experience you will have previously held a senior position with strategic and P&L input. Product background is not critical, however an advanced understanding of the Construction supply chain, particular Housebuilding and Merchants is key.

Call Steve Brennan on 01480 405225 or apply online here.

New research shows UK Underfloor Heating Market is growing steadily

According to a new report from AMA Research, after recovering well from the recession and the challenging economic conditions, the UK underfloor heating market has continued to grow steadily, with growth of 9% in 2014 and a further 4% in 2015, and now accounts for around 6.5% of the total UK heating market. Environmental concerns and rising energy bills have been partly responsible for driving demand, as well as wider acceptance of these more aspirational products.

Prospects for continued growth in the UK underfloor heating market remain positive, given optimism and recovery in the housing market, coupled with rising levels of consumer confidence and spending. 

Whilst the private non-residential sector is also showing signs of recovery, with potential for further business investment, the public sector remains severely constrained given reductions in public sector spending. 

Underfloor heating products are now widely marketed alongside renewable technologies and there is likely to be continued growth in this sector. Ease of installation continues to be an important issue in the construction sector, given a skills shortage and a need to reduce both build time and cost, and UFH systems can be installed in bathroom/kitchen PODS, as well as precast concrete flooring. By 2020 the market value for the underfloor heating market (UFH) is forecast to have increased by around 15% compared to the market size in 2015.

The underfloor heating (UFH) market is broadly classified into two product types; water-based, or hydronic UFH systems and electric UFH systems. Some projects may involve a mix of both types of systems, often known as a hybrid solution.

The domestic UFH sector, including new build activity by housebuilders, the self-build market and RMI / DIY retrofit projects in residential homes, accounts for the largest share of the market at manufacturers, though the use of UFH also remains strong in the non-domestic sector. Whilst large-scale health and education projects have declined, there are still opportunities in the care home, industrial, warehousing, leisure and entertainment, office and retail sectors. In terms of value, wet underfloor heating accounts for the largest share with electric UFH a relatively small market by value.

The distribution channel continues to be dominated by direct supply, with some manufacturers and other specialists offering a ‘supply and fit’ service. However, there has been growth in online sales of UFH in the domestic sector, as consumer awareness of the benefits has increased and products are becoming easier to install. UFH systems now form a staple part of the product portfolios of tile manufacturers, floor, kitchen and bathroom specialists, for example. However, as with other heating products, merchants and DIY multiples continue to play a significant role. In addition, many manufacturers continue to supply direct, through approved installers or contractors.

If you are interested in purchasing the full report and gaining detailed information on the following areas, please contact AMA Tel: +44 (0)1242 235724 or 
sales@amaresearch.co.uk

Key content covered:

• Underfloor heating market - size, structure, key trends and future prospects.
• Product sector review - market value, product mix, UFH controls etc. for;
• Water based UFH systems
• Electric UFH systems
• End use applications - self build/custom build housing, health & education, new housebuilding, public sector, domestic RMI and conservatories.
• Supply and distribution - main suppliers and key distribution channels.

Key areas of insight include:

• Market size and trend analysis for electric and water-based systems.
• Analysis of new build housing, refurbishment activity and non-domestic applications.
• Influence of the non-domestic sector, in particular the health and education sectors.
• Key supplier analysis and market shares.
• Analysis of distribution structure and channels, key trends and prospects.
• Review of influential standards and regulatory requirements.

Do you need your force awakened this May? PinBuild Career Clinics for May

'MAY the force be with you' in your search for a new job or in your decision making process to ensure you make the right next step in your career. If you need something to awaken the force and make it strong in you, then we might be able to help you to reach out with your feelings and become more powerful than you could've ever imagine!

So, perhaps you should take advantage of a FREE evaluation of your career, gain expert guidance on your next move and a look at suitable current vacancies. 

Interested...? Arrange to attend our PinBuild Career Development Clinics this May. No need for light sabers though!

This could be the most important appointment of your career so far...

PinBuild Clinics are for sales and marketing professionals in the construction and building products sector, providing specialist career advice and a match to the latest construction sales vacancies.

Call us and arrange to meet one of our expert construction industry consultants on 01480 405225 or contact us via to secure your booking e-mail recruit@pinnacleconsulting.co.uk

May clinic dates

• Tuesday 10th May - Reading 
• Thursday 12th  May - Notts/Derby 
• Tuesday 17th May - Dartford             
• Thursday 19th  May - Birmingham
• Tuesday 24th May - Scotch Corner
• Thursday 26th May - London

Our current jobs: You might find one you'd like to discuss: Search for building and construction products sales jobs

PinBuild Clinics will evaluate the job seeker’s career to date and identify the best opportunities available. The clinics provide professionals with expert advice on how to progress their career by discussing the industry sectors that have potential for growth, the skills and focus needed to ensure that they develop with the changing nature of the market and how to ensure that their career continues to progress rather than stagnating.

The clinics will also assist those that attend to map out a realistic and achievable career path, including any potential training requirements. Assistance will also be given to evaluate their CV and also their interview technique and where they should focus to ensure they realise their true potential in the building and construction industry.

We specialise in external and internal sales positions, marketing and management roles and director and board appointments with manufacturers, merchants or distributors across the whole building, construction and interiors product spectrum.

Take some time out to read about CRASH the construction industry's charity for homeless people and one of our industry partners for our charity initiative 'Helping others as you recruit.' Our other partner is the wonderful Lighthouse Club, who look after people and families from the industry who have suffered from illness, injury or death. 

Job in Focus: International Specification Sales Manager for Bathroom Products - £80k + car/bonus/benefits

Our latest Job in Focus is a fantastic and rare opportunity to become the International Specification Sales Manager for a high-end manufacturer of KBB products, leading global projects within the hospitality and leisure markets, by managing a team of London A&D field sales representatives and in EMEA countries.

Includes regular international travel.

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 Title: International Specification Sales Manager
Job Ref: J7450
Product: Bathroom Products
Location: Based in London
Salary: £80k plus bonus, car, pension and benefits

EMPLOYER: A well respected and global manufacturer of luxury bathroom products with a reputation for outstanding product offering and quality of service and with a presence on more than 6 continents. 

JOB DESCRIPTION: International Specification Manager: This exciting role will be instrumental in developing brand presence and growth across Europe, Middle East and Africa. Based in London, this person will be responsible for leading a team of field sales representatives tasked with targeting the Capital's architect and designer community. The manager will be expected to win specification among the more prestigious A&D practices in London and across the globe with regular international travel required. Other key responsibilities include creating and managing a dedicated project sales and marketing strategy, managing budgets and control spending and providing supply chain and manufacturing teams with product forecast information. 

AREA: London but covering international with a focus on EMEA. Applicants should live in London or within easy commute of the Capital so ideally in Middlesex, Greater London, Buckinghamshire, Berkshire, Kent, Surrey, Hertfordshire, Oxfordshire, West Sussex, East Sussex, Essex, Bedfordshire or Hampshire.

PERSON: The ideal candidate will come from a specification sales background from within the KBB or interiors product sector. They will be familiar with the major A&D organisations, and know how to communicate effectively with this highly influential group. They will also have an extensive network of contacts from within this group, both from within the London based practices but also internationally. The successful candidate will also have the gravitas and authority to interact with credibility with the A&D community. In addition, this person will have had meaningful experience in a leadership role and be comfortable working autonomously and be motivated by getting results. 

PACKAGE: On offer is a salary of £80,000 (potential more for the right candidate) plus bonus and car or car allowance, pension, laptop, mobile phone and 24 days plus bank holidays. 

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

Search for more building products sales jobs >>>

Wolseley UK encourage new and fresh Sales and Management talent

As a company that is keen to give opportunities to new talent in the building and construction industry, the latest 2016 sales graduate programme initiative from Wolseley UK is something we fully support and welcome. 

It is now open for submissions and expected to attract over 2,000 applications this year, the coveted 18-month scheme offers 10 talented graduates a brilliant career opportunity with the heating and plumbing distributor.

The programme immerses individuals into the Wolseley UK business and its brands such as Plumb Center, Pipe Center and Burdens. Divided into two sections, it offers training as well as practical experience from day one. The first six months are spent in branch, teaching graduates the ins and outs of branch operations management. This is an experience that shows first-hand how Wolseley UK offers customers top service.

MORE ON THE PROGRAMME HERE>>

The next 12 months are spent out in the field where graduates have the opportunity to strengthen their business, management and sales skills through various training options, courses and shadowing opportunities with Wolseley UK employees. Graduates are also asked to develop a commercially focused piece of work, and will be given advice and the support necessary to make it a real success.

Wolseley UK HR director Sally-Anne Griffiths said: “We want to create a talent pipeline to meet the future needs of the business and our graduate programme plays an important role in that. The programme’s diverse training and on-the-job experience sets Wolseley UK apart in the industry and is one of the many reasons why we are an employer of choice.”

Kerri Morris, 25, from Solihull recently graduated from the 2014 programme and is now an ecommerce project manager with Wolseley UK. She said: “The graduate programme involves a lot of hands-on experience in branch and in the warehouse. From serving customers, stock management and building relationships with contracted customers, it’s fair to say no day was the same. I also had the opportunity to meet and work with senior management and understand the workings of the business.”

Graduate or not, if you are interested in building a sales career for heating and plumbing products, Pinnacle Consulting can help you >>

CPA reveal positive Q1 sales for construction productions but is 'Brixit' the new 'Brexit' for the industry!!??

The Construction Products Association’s latest State of Trade Survey reports a positive performance in sales of construction products in the first quarter of 2016 as sales increased for a twelfth consecutive quarter. However, manufacturers’ optimism is showing signs of sliding due to uncertainty surrounding the EU referendum in June. 

Perhaps Brexit should be renamed Brixit (or Bricksit) for the building and construction industry!

Key points include:

• A balance of 31% of heavy side firms and 13% of light side firms reported that sales rose during the first quarter of 2016, compared to respective balances of 5% and 38% in the fourth quarter of 2015
• 38% of heavy side firms and 13% of light side firms reported an annual increase in sales
• Exports increased for 14% of heavy side firms and 50% of light side firms compared to a year earlier
• 38% of heavy side product manufacturers and 29% of light side product manufacturers reported that they anticipate a rise in total sales over the next quarter and next 12 months
• 71% of heavy side firms and 60% of light side firms anticipate a rise in exports during the next year
• Annual cost increases were reported by 35% of heavy side firms and 14% of light side firms
• Manufacturers reported that wages and salaries were reported higher by all heavy side firms and 71% of light side firms

Rebecca Larkin, CPA Senior Economist, said:  “It is encouraging that after a couple of quarters of muted activity, heavy side manufacturers reported stronger sales growth in Q1.  Light side manufacturers opened 2016 a little weaker, but this is likely to be a hangover as the slowdown reported by the heavy side at the end of last year filters through to light side activity – typically towards the end of the building process.

“Compared to the fourth quarter of 2015, a balance of 31% of heavy side firms reported a rise in sales in Q1.  This increased from 13% in Q3 and 5% in Q4.  On the light side, 13% of firms reported a rise in Q1 quarterly sales, down from 38% in Q4.

Latest UK construction products sales jobs >>

“Manufacturers’ optimism for Q2 and for the next 12 months has been dented by uncertainty in the run-up to the EU referendum in June.  On balance, 38% of heavy side firms and 29% of those on the light side anticipate a rise in sales in Q2.  These balances mark the lowest sentiment in three years and signpost a slowdown in growth as we approach the vote.

“One favourable side effect of the referendum uncertainty has been the depreciation in Sterling, which has resulted in increased exports for product manufacturers.  On the heavy side, 71% of manufacturers anticipate an increase in export sales over the year, a view shared by 60% of light side firms.  This will provide a welcome fillip if domestic demand pauses as manufacturers expect.”

Photo: Houses under construction at a modern building site in England, United Kingdom. Image ID:163820348
Copyright: CatchaSnap. Shutterstock.

UK Construction sector 'cautious' despite reporting an upturn in business during March

Construction output in the is still expanding and during March UK construction companies indicated a sustained upturn in overall business activity, but the less encouraging news is that the pace of expansion remained relatively subdued in comparison to the trends seen for much of the past three years.

This largely reflected a further moderation in new business growth, with the latest increase the weakest since April 2015. Meanwhile, job creation also softened across the construction sector in March and sub-contractor usage dropped for the second month running.

At 54.2 in March, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI® ) posted above the neutral 50.0 value for the thirty-fifth month running. However, the latest reading was unchanged since February and indicated the joint-slowest rate of output growth since June 2013. Sub-sector data highlighted that faster rises in commercial work and civil engineering activity were offset by another slowdown in residential building. The latest increase in housing activity was only marginal and the weakest recorded since January 2013.

Slower growth of incoming new work continued to act as a brake on construction output in March. Reports from survey respondents cited a generally supportive economic backdrop, but some noted that greater uncertainty about the business outlook had resulted in more cautious spending patterns among clients. Reflecting this, latest data signalled the weakest rise in new work received across the construction sector since the pre-election slowdown in April 2015.

March data highlighted greater caution among construction companies in terms of their staff hiring, with the rate of employment growth easing to its slowest since June 2013. At the same time, subcontractor usage decreased at a slightly steeper pace than in February, which contributed to the least marked rise in sub-contractor charges for just over two-and-a-half years.

A softer upturn in overall workloads across the construction sector led to another slowdown in input buying growth. Moreover, the latest increase in purchasing activity was the weakest since April 2015. Suppliers’ delivery times lengthened again in March, but input cost inflation moderated for the second month running to its weakest since February 2010.

Looking ahead, the majority of survey respondents (51%) expect a rise in business activity at their units over the next 12 months, while only 11% forecast a reduction. While this signalled that UK construction companies remain optimistic about their prospects for growth, the overall degree of confidence was the joint-lowest since December 2014.

Commenting on the report, David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: “There was little comfort to be had this month, as the construction sector was awash with caution and hesitancy not seen since the pre-election lull of 2015. Clients were unwilling to commit to new contracts or expand existing work, meaning that new business growth was at its most fragile since April 2015.

“Where the housing sector was once the star of the show, it became the weakest performer in March. And hopes for more positive employment news were dashed, as the rate of growth in staffing levels slowed to a pace last seen in June 2013; and amidst a landscape of continuing skills shortages after the end of the recession.

“Though activity and new work slowed, construction firms enjoyed the slowest rate of cost increases for just over six years, largely due to ongoing falls in commodity prices. There was evidently a loss of momentum in the sector, though cautious optimism was sustained as a result of encouraging domestic economic conditions, but against a background of some political uncertainty.”


Picture via Shutterstock: Business man drawing on construction site Image ID:123013987 Copyright: Bennyartist

The fall and rise of the Window and Door fabrication market...but for how long?

The window and door fabrication market has turned from steady decline over several years to growth since 2013. In 2015 it was estimated to have grown by 3% with prospects of further growth over the next 5 years.

Our clients in this sector have also confirmed this growth, although the future of this competitive market is quite dependent on the replacement market in the residential sector. As a result, many fabricators have been enhancing and broadening their range offering and developing their sales and marketing teams to ensure that they maintain and make the most of the growth opportunities available.

A new report by AMA Research takes a detailed look at the size, sectors, trends, prospects and key drivers of this still important market of the building industry. 

Summary of report
Key defining factors in this market in 2015-16 are: market maturity (in particular for the domestic replacement market), fragmentation, competition, cost-management, building legislation, ‘green’ building, tough market conditions and diversification. The development of the economy is also a key factor to the glazing sector, impacting on consumer confidence, housebuilding, public spending and commercial construction output.

There is significant over-capacity in the industry resulting in an intensely competitive market, especially in the PVCu sector - prices and margins remain under pressure as companies compete for business.

The supply structure remains very fragmented, comprising a mix of vertically integrated retail glazing companies, PVCu trade fabricators and fabricator/installers, aluminium systems fabricator/installers, bespoke glazing contractors, composite door manufacturers, commercial glazing specialists, roof light manufacturers, steel window manufacturers and major joinery companies etc. 

Closures and acquisitions/mergers continue to be a feature of the market in 2015-16, but in lower numbers than experienced during the recession and noted in the last edition of this report. In particular, there has been further rationalisation among national retail companies; a sector where change has often been a feature, and where corporate ownership is a key focus for change latterly. The aluminium sector has experienced a period of consolidation, but remains the largest supplier of windows and doors to the commercial sector. It has lost its position as a major supplier of domestic windows and doors as the market is mostly now PVCu. 

If you are looking for a new sales job in the building materials industry, please take a look at the very best sales jobs currently on offer >>

In 2016, the prospects for this industry in the immediate term remain relatively good -although a volatile economy in early 2016 casts some uncertainty over short term prospects. However, the UK is performing relatively well and a steady improvement in the glazing market in the medium term is anticipated. The UK market for residential windows is very competitive and is likely to remain so, though within the next few years we expect capacity and demand to become more balanced as demand from the housebuilding sector continues to expand, resulting in less pressure on supplier prices and profitability. Ultimately, the industry is mature and, in the longer term, heavily dependent on replacement demand in the residential sector, supported by new build activity in key non-residential markets.

You can buy the report by contacting AMA at sales@amaresearch.co.uk