Markit/CIPS UK Construction PMI released for April

Construction output growth at lowest level for three years.

UK construction output growth in April was at its weakest since June 2013 according to the latest Markit and the Chartered Institute of Purchasing & Supply (CIPS) UK Construction Purchasing Managers’ Index (PMI) figures.

April saw UK Construction’s PMI fall to 52.0, down from the previous two months’ figures of 54.2 but still above the threshold of 50.0, which indicates growth.

The survey reported that new order volumes also stagnated, meaning that the level of growth in the upcoming months is unlikely to pick up much pace.

In terms of employment, April experienced only slight growth due to low demands but marked the longest period of sustained employment for over over a decade, with job creation registered every month since June 2013.

Commercial building was the best performing sector within the industry while civil engineering was the weakest performing category, expanding at the slowest pace seen so far this year.

There was, however, a slight rebound in residential construction after March’s 28-month low figure.

It would appear there is a loss of confidence within the industry about the prospects for the year ahead, with positivity recorded at its lowest for nearly three years.

Tim Moore, Senior Economist at Markit, 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.”

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Exclusive Interview: Rebecca Trick, Assistant Project Manager at Mott Macdonald

Rebecca Trick was named Best Apprentice 25 and over at this year’s Women in Construction Awards.

After moving from an engineering geologist to a project management role in construction, Rebecca is in the first six months of her career with Mott MacDonald, a global management, engineering and development consultancy. During this time, she has managed various multi-million pound education projects, all while studying for a MSc in construction project management. An advocate for women in this industry, Rebecca has given presentations to students from both her former school and university to help promote careers in construction to women. 

UK Construction Media spoke to Rebecca about the awards, her career and apprenticeships.

Firstly, congratulations on your WIC award – how did you find out you had been nominated and how did you feel?

Thank you! It’s a great award to receive. Initially it was a couple of my managers who informed me that I had been nominated. However it wasn’t until a friend forwarded me the awards shortlist that I truly comprehended the importance of the award and that I may actually have a chance of winning.

I feel absolutely overwhelmed and proud to have won the award. I have worked incredibly hard, both professionally and with my studies, to get where I am today so it feels great that Mott MacDonald has recognised my efforts to date.

Obviously winning is quite a big achievement – do you think your story could inspire other women into construction?

I really hope it does. Anything that can boost the various initiatives aimed at increasing the number of women in construction roles, especially on site, is beneficial in my opinion. I believe if other women hear stories similar to mine then it would show them that the industry isn’t as intimidating as some may think. Being such a diverse industry, construction requires a multitude of services and women are more than able to provide these as well as men.

Can you tell us a little bit about yourself – what inspired you to become a geologist and how did this lead into the construction world?

Growing up on the North Cornwall coastline really immersed me in the wonders and complexity of earth sciences. I was fascinated by all the elements and history behind them, which directed me into a geology and physical geography undergraduate programme.

During my last year of university I was introduced to geotechnical engineering, which inspired me to land the role of a graduate engineering geologist for a ground investigation contractor, where I soon realised the potential and variability of the construction industry. It was from here that I discovered that I was not only fascinated by the ground we build on, but all of the processes involved in the construction of buildings and infrastructure. This confirmed my aspiration to become a construction professional.

Was construction something you have always been interested in? If not, how was it sold to you?

Honestly, not really. The decisions I have made over the last few years have led me into the construction industry. I have to thank my university professor Jim Griffiths for really inspiring me to pursue a geotechnical route and initially selling the industry to me, however it’s not until recently when I gained a more comprehensive understanding of the immense scale of construction that I was really sold.

You have been on quite a steep career path since graduation – from geologist to now project manager. How have you progressed so far so quickly and are you enjoying a management role rather than being a scientist now? Also, how do you find it on site in charge of a male led arena?

I have been very committed to my career since graduating. I managed to secure a graduate project geologist role within a month of sitting my final exams which allowed me to gain invaluable experience early on in my career. A lot of new graduates don’t get this opportunity so I feel very lucky in this respect. I’m still open to new opportunities such as secondments abroad and different training opportunities, which is why I’m currently studying for my masters in construction project management part-time while working for Mott MacDonald.

I love being in a management role, which is very different from my previous site-based role, as I’m involved in a project’s entire lifecycle, from the science behind the ground investigation through design into construction.

I feel that I have really grown as a person since I first started working on site at 21. The confidence I have gained has helped me to earn the respect the various contractors I’ve worked with, despite being in the minority on site as I’m a woman. I am also now much more self-assured on site than when I started my career.

What do you think of the apprenticeship schemes – has it helped you in your career and did you find it worthwhile?

I can’t fault Mott MacDonald’s apprenticeship scheme. It has made a massive difference in my professional career to date and I’m confident that it will continue to do so as I complete my masters and Royal Institution of Chartered Surveyors’ assessment of professional competence.  The support and opportunities I have received have been excellent and I would highly recommend it to anyone branching out into a new career route as I did.

Have you had a mentor throughout your career? If so how did this help?

Since joining Mott MacDonald, my line manager James Stone has offered me continuous support and mentoring which I am very grateful for. I have also received a lot of support from my family, teachers, university and other colleagues along the way.

What can be done to encourage more women into construction? And more apprentices into the industry in general?

More guidance should be given in secondary schools, showing the entry routes available and making it clear that construction is not just a man’s world. Female professionals should also visit schools if they have the time to help teenagers understand the different roles and responsibilities, especially in more rural areas where there isn’t much exposure to engineering and construction. Apprenticeships are possibly more important now than ever before given the high cost of university fees as they offer important vocational training and a wealth of experience from the onset.

What advice would you give to people wanting/or looking at getting into the construction industry – both men & women?

Not to give up. Once you find someone with faith in your capabilities and you get your foot in the door then the opportunities are endless.

Working within the public sector have you been involved in the BIM process and if so what do you think of this?

Yes I have. I think the collaborative nature and early design detection of BIM are great benefits that will keep being realised as it continues to be accepted by the construction industry. While its initial application is challenging to some, I do expect BIM to become a normal process that no one will think twice about. It will keep the industry moving in the right direction.

Do you see yourself staying in the construction industry? If so why and would you encourage others to the sector?

Yes I plan to stick with it. Given the variability of the industry it holds so many opportunities and routes for employees at every stage of their career.

 

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Parents lending £5Bn to get children onto property ladder

The Bank of Mum and Dad will lend £5Bn in 2016, to get children on property ladder according to L&G.

Parents lending to help get their children onto the UK property ladder will amount to £5Bn in 2016, helping finance 25% of UK mortgage transactions this year, according to data from Legal & General (L&G).

Research by L&G estimated that the Bank of Mum and Dad will provide deposits for more than 300,000 mortgages, with the homes purchased totalling £77Bn, which would make family the parents equivalent to the 10^th biggest mortgage lender in the country.

The problem was acute in London, where buyers got an average of 6.2% of their purchase from parents, which amounts 51% of average household wealth in the capital.

Nigel Wilson, chief executive of financial services firm Legal & General, which carried out the research, said the data showed a number of issues, including house prices being out of sync with wages.

He said: “The Bank of Mum and Dad plays a vital role in helping young people to take their early steps on to the housing ladder.

“Not all young people have parents who can afford to help them and some who do still do not have enough to buy a place of their own.

‘We need to fix the housing market by revolutionising the supply side – if we build more houses, demand can be met at a sensible level and prices will stabilise relative to wages.”

Liberal Democrat leader Tim Farron said: “The fact that the Bank of Mum and Dad has to play such a central role in our housing market shows just how desperate the situation has become for a generation that’s been priced out of a home of their own.

“Something is seriously wrong when only those lucky enough to receive significant financial support from their parents can buy a home, regardless of how hard the younger generation work or save each month.”

The Bank of Mum and Dad’s average financial contribution is £17,500.

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MOD £47M fleet management contract

Ministry of Defence to save £100M through new fleet management contract.

A £47M contract to manage the fleet of lease and hire vehicles will save the Ministry of Defence £100M.

The contract, which has been awarded to Babcock, follows the Defence Secretary’s instruction last year that the cost of vehicle hire was reviewed and reduced.

Babcock manage the “white fleet” of cars, vans, trucks and specialist vehicles on behalf of the MOD, covering the UK and Northern Europe, as well as short-term hire around the world.

The MOD uses the vehicles to transport equipment or personnel around the country, often to areas not readily accessible by public transport. The vehicles, which support military operations or training exercises, are also used for operational taking such as mountain rescue and emergency support to civil authorities and the civilian communities.

The vehicles were recently used to assist with flood relief.

The initial service is due to begin in September, followed by Northern Ireland in October and the rest of the world in April 2017.

Defence Secretary Michael Fallon said: “Defence has the strongest incentive to be efficient. Every pound that we save on vehicle hire will be reinvested into a defence budget that keeps Britain safe. I want to see us meet and exceed the £100m target.”

Brigadier Colin McClean, the Army’s Head of Equipment, based at Andover, said: “The use of lease and hire vehicles is an important part of Defence’s overall ability to both train for and deliver its operational taskings and I know I speak for soldiers, sailors and airmen when I say that we look forward to working very closely with Babcock and in particular to achieving financial savings through the more efficient use of this vehicle fleet.”

The contract with Babcock will cover the management of the fleet, including the procurement of vehicles via the Crown Commercial Services, incident management, administrative services, including vehicle registration, and service, maintenance and repair management.

 

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Construction industry comes together to fight cancer

Cancer remains one of the biggest threats to the health of the construction industry’s workers and six construction companies have united to fight the disease.

It is estimated that by 2020, nearly half of the British population will get cancer in their lifetime. The campaign ‘Don’t let Cancer Ruin Your Foundations’ run in collaboration with Macmillan Cancer Support, whose construction industry partners are joining forces to empower men to take control of their health.

The first two weeks in May will se fundraising and campaigns to raise awareness undertaken by the partners – Selco Builders Warehouse, Travis Perkins, Benchmarx Kitchen & Joinery, Kier Group, Costain, and Wolseley UK – will be carrying out fundraising. awareness raising activities during the first two weeks of May. Sites across the country will signpost employees and customers to Macmillan information and support.

Alix Wooding, Head of Corporate Partnerships at Macmillan Cancer Support said: “It’s very exciting for Macmillan to be working across an entire sector and uniting businesses who would traditionally be competitors, in the name of providing vital support to people with worries about cancer.

“By working with a coalition of companies to provide Macmillan information and support we can ensure that men – who are least likely to speak out about their cancer concerns – are confident enough to do so. I’d urge anyone who would like more information to get in touch with Macmillan because no one should face the worry of a cancer diagnosis alone.”

Research carried out by Macmillan focussing on the construction industry reveal that 43% of men surveyed would feel discouraged from discussing changes in their health such as discovering a lump, experiencing pain or a change in a mole, in case they were seen as ‘making a fuss’. 22% wouldn’t raise the issue through feeling embarrassment.

Chris Cunliffe, Chief Executive of Selco Builders Warehouse which has partnered with Macmillan since 2013 raising more than £300,000 for the charity, said: “The aim of the campaign is to educate male employees and customers that they don’t have to face cancer alone. We want to encourage men to put their health first, by ensuring they are aware of the most common signs and symptoms of cancer.”

YouGov research commissioned by Macmillan showed that more than on in three men (38%) admitted to having health concerns that have kept them awake at night. Macmillian point to this as evidence of men putting on a show of bravado but really struggling to face up to their fears.

Mr Cunliffe continued: “All of the companies taking part in the campaign are Macmillan Cancer Support fundraising partners and collectively we have raised over £1,570,000 for the charity and we hope to reach millions of people through each of the partners’ staff, customers, suppliers, contractors and their families. If this campaign helps just one man face his cancer fears and take control by seeing a doctor or talking about his concerns, then it will have been a success.”

For more information about the campaign and the signs and symptoms of cancer please visit http://ift.tt/24lpiwj.

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Liberty House to submit bid for Tata Steel’s UK Assets

Liberty House has confirmed plans to bid to buy Tata Steel’s UK assets, which include the Port Talbot.

Liberty House, headed by Sanjeev Gupta, will submit a formal bid on Tuesday, to buy Tata Steel’s UK assets, which includes the Port Talbot works who employ around 4,000 people.

A spokesman for Liberty said: “We can confirm that Liberty will submit a letter of intent to Tata Steel today and has put in place a strong internal transaction steering committee and panel of leading external advisers to take the bid forward.”

Commodities trading firm, Liberty House, were the first to express interest after the announcement was made to dispose of the UK business, which included the country’s biggest Steel Plant, Port Talbot in south Wales.

In addition to the Port Talbot factory, Tata’s remaining assets include sites at Newport, where more than 1,300 people are employed, and Rotherham, which employs 1,200. Tata also has operations at Corby, Shotton and Teesside.

A spokesman said Liberty was planning to submit a letter of intent to Tata, and had put together an internal transaction team of external advisors to take the bid forward.

It has appointed investment banker Mark Rhydderch-Roberts as a non-executive director.

He joins Stuart Wilkie, the Head of Tata’s United Kingdom strip steel business, former Alcan Senior Executive and venture capitalist Roger Maggs, Simon Gibson, Chief Executive Officer of Wesley Clover and Company Secretary Jon Fernandez Lewis in the board.

Tata Steel have not given a deadline date for a deal to be made, however have said that they cannot sustain the £1M a day losses for long, or keep workers or customers uncertain for too long.

The government has pledged to support any buyer of the business by buying up to a quarter stake. They have also agreed to help financially by making hundreds of millions of pounds available.

Greybull Capital have brought Tata’s Scunthorpe operation, which employs more than 3,000 people, for a nominal £1.

The government has said that any investment is offered on commercial terms, and that they would not take any control over the business.

 

 

 

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House of Lords make amendments to Housing and Planning Bill

UK Construction Online examines the amendments made recently by the House of Lords to the Housing and Planning Bill.

The Housing and Planning Bill has been through the final report stage resulting in defeat for government on certain policy and also being forced to make a number of concessions.

The House of Lords rejected the government’s decision to scrap the zero carbon homes standard. The original policy, which was axed by the government in 2015 in the Chancellor’s ‘Fixing the Foundations’ plan, proposed that all new homes built in England from April 2018 be zero carbon.

The Peers also backed a move from Labour Peer Baroness Royall that would see local authorities to require housing developers to make affordable housing contributions on developments in certain rural areas that contain ten or less units. This would also encompass situations where permission had been given on the on the basis of a policy for the provision of housing on rural exception sites.

The Federation of Master Builders (FMB) has claimed that this move could end up stifling the housing industry by increasing regulations and taxes on small builders.

Brian Berry, Chief Executive of the FMB, said: “We understand the need for more affordable homes in rural areas and Government policy must address this need but the intention to hit all small scale housing developments will be counterproductive. Up until relatively recently, including under a Labour Government, we had a national threshold for affordable housing requirements set at 15 units. This was part of a longstanding recognition that it is not appropriate to place the same demands on the smallest sites and the smallest firms, as it is on major developments and multi-national companies.”

“Now we have a situation where the House of Lord’s is actually inserting into legislation that small sites should be treated the same as large sites, almost as if it were a matter of principle. We’ve seen a long-term decline in the number and output of small and medium-sized (SME) house builders, a trend which has accelerated during the downturn and has almost certainly reduced the overall capacity of the industry, and in turn reduced our ability to build our way out of the housing crisis. There’s little doubt that the historically unprecedented demands now being placed on small developers are a major barrier to this. To our members, this amendment will appear little more than a direct attack on SME house builders.”

“Unfortunately, this is only one of a series of amendments backed by the Lords which show a reckless lack of realism and concern for consequences of heavy-handed regulation. The disinterring of a zero carbon standard flies in the face of the fact that further carbon reduction on site will be difficult-to-impossible to achieve, so will likely amount to no more than a tax to enable off-site carbon mitigation. Heaping ever-more taxes and heavy-handed regulations on small local builders will worsen the housing crisis.”

The House of Lords also voted in favour of increasing the pay-to-stay threshold in line with inflation every three years.

Local councils have existing powers to charge households earning £60,000 or over the market or close market rent if they live in social housing. The government’s proposal would see this reduced to £30,000 and for those living in London £40,000.

However, the House of Lords have backed three amendments to curb the government’s plans. One put forward would see local councils rather than the Treasury to choose it they wished to charge those tenants on higher income more rent.

Another alternative would see the threshold set as £40,000 outside London and £50,000 for those in the capital. The other amendment would cap rents at 10p in every pound earned above the threshold.

The government has said it will resist many of the changes made to the when the legislation is due to be finalised this month.

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