Building News is an information portal for all professional building specifiers. Here you can find all of the latest construction news from around the UK and the rest of the world.

Sparkies, chippies and painters might not be the first trades that come to mind when you think about the preservation of Britain’s historic buildings, but according new research from the UK’s leading insurer of Grade I listed buildings, Ecclesiastical they are the most important.

Chippies (61%), painters (60%), roofers (58%) and plasterers (53%) were also seen as key trades while more traditional heritage skills such as stonemasonry, thatching and ironmongery were felt to be the most at risk.

According to the survey, 90% of heritage property owners believe that investing in skills is crucial for the future of Britain’s heritage with one in three property owners saying that they found it difficult to source skilled tradespeople to work on their properties. Almost half said they are concerned about increasing costs of hiring them.

Faith Parish, heritage director for Ecclesiastical commented “Many historic properties are having to find new income streams to help cover the costs associated with running and maintaining these properties. We have seen an increase in new activities such as exhibitions, festivals and coffee shops or restaurants, and these kinds of activities often require additional power sources or the installation of new equipment, so it’s not too surprising to see electricians at the top of the list.”

“Research from Historic England’s Heritage Counts 2017 publication showed a decade long decline in students signing up for heritage related construction courses and, with an estimated 10% of those currently working in the UK construction industry coming from Europe, the situation could worsen post Brexit.” Faith added.

The concern was reflected in Ecclesiastical’s own research which showed that, amongst heritage property owners, 42% were worried about the current shortage of skills in the UK, while 52% were concerned about the longer term impact and availability of skilled tradesmen in ten years’ time.

Property owners are so concerned that they are willing to actively support a campaign to invest in skills, in fact more than half (55%) would willingly make their property available for the training of skilled people and nearly two-third (59%) would help create opportunities for apprentices to work at their properties.

“When it comes to heritage properties regular maintenance is incredibly important, a small issue can cause immense damage if left unchecked. Leaking pipes can lead to whole ceilings collapsing, blocked guttering can cause water to seep in to the building and outdated or faulty wiring can be a fire risk.” Faith explained.

However, it’s not just the history and beauty of these buildings that needs preserving. According to Historic England’s Heritage Counts 2017 report the heritage sector employs 278,000 people and contributes £16.4 billion to the UK economy through domestic and international tourism plus a further £9.6 billion via the construction industry by means of repair and maintenance bills.

“Many historic properties have a long term maintenance schedule that stretches over many years, so jobs that are being done today will need to be redone in ten or twenty years’ time to preserve the integrity of the building. A shortfall in the supply of skilled tradespeople to implement this schedule could leave some properties vulnerable. It is therefore crucial that we invest in skills now to ensure that there are enough skilled tradespeople in the future to continue to care for these buildings.”

The Government must learn from Carillion by enforcing fair payment and opening up public sector contracts to smaller firms, according to the Federation of Master Builders (FMB).

Commenting on the joint report on Carillion from the Work and Pensions and Business, Energy and Industrial Strategy Select Committees, Brian Berry, Chief Executive of the FMB, said “It’s the small firms in Carillion’s supply chain that bore the brunt of the giant’s demise earlier this year. The Government now has a unique opportunity to completely change how it works with the private sector. For too long, many large firms have reigned supreme and walked all over their supply chains. MPs are right to note that “measures that Government has taken to improve the business environment, such as the Prompt Payment Code, have proved wholly ineffective.” As a signatory of the Government’s Prompt Payment Code, Carillion should have paid 95 per cent of invoices within 60 days. However, Carillion enforced standard payment terms of 120 days to its suppliers and we know of FMB members that have had to wait for more than 200 days to be paid by major contractors. A company that was so flagrantly breaking the rules should not have been rewarded by the Government with juicy contract after juicy contract.”

“The collapse of Carillion created a ‘domino effect’ among sub-contractors. We know of firms that have lost more than £200,000 since the collapse and of others that were so reliant on Carillion contracts, they’ve gone out of business entirely. Once a company at the top of a chain goes under it creates a ripple effect. In this instance, however, the ripple has been more like a tsunami because of the extent to which the Government relied on this single company. At present, there is nothing in place to ensure another Carillion doesn’t happen again.”

“This report is welcome but we now want to see root-and-branch reform in terms of how the Government procures from the private sector. The Government should exclude suppliers from major Government procurements if they do not demonstrate fair, effective and responsible payment practices. The Government should also end retentions abuse by ensuring that retentions are held in a deposit scheme. Finally, the Government must also make greater efforts to work directly with small firms by breaking larger contracts down into smaller lots. That way, not only will the Government spread its risk, it will also reap the benefits that come from procuring a greater proportion of its work from a broad range of small companies. Small companies reinvest profits into the local economy and in construction, small firms train two thirds of all apprentices. Ensuring SMEs win a higher proportion of public sector contracts makes sense on every level.”

A report looking at the role that technology will play in the construction industry in the future, has revealed that 3D printed walls, drones and a roof made from recycled plastic bottles from the Ocean will all be possible by 2025, thanks to advancements in technology.

The report, written by renowned future gazer, Dr. Ian Pearson BSc DSc(hc) and commissioned by Colmore Tang Construction and Virgin StartUp, also revealed that floating buildings or apartments will be possible by 2050 thanks to carbon foam, which is lighter than air.

By 2025, drones will be able to carry large materials up construction sites and even more remarkably, plastic bottles recovered from the world’s oceans will be recycled to create a roof.
Over the next decade, artificial intelligence (AI) will be commonplace, linking to sensors and cameras around construction sites, ensuring that buildings are being developed according to the architect’s plans. Humans will work alongside AIs and will not only see these robots as clever tools, but also colleagues and even friends as they start to develop unique relationships.

Looking more than 50 years into the future, by 2075 Dr. Pearson suggests that self-assembling buildings under AI control will allow a new form of structure – kinetic architecture – where a structure is literally thrown into the sky and assembled while gravity forms the materials into beautiful designs.

However, it is 3D printing that will steal most of the construction headlines in the immediate future, according to the future-gazer. Cheap homes, built quickly using 3D printing, will essentially put an end to the housing crisis.

The report was launched by Colmore Tang Construction, who has partnered with Virgin StartUp to deliver a £10m innovation fund that is open to entrepreneurial companies in a construction industry-first technology accelerator programme called ‘ConstrucTech’.

The fund will be provided to those companies that can successfully show how their innovation and technology could improve the sector’s productivity, sustainability and skills issues.
Futurologist, Dr Ian Pearson BSc DSc(hc), said: “By 2025 we will already see huge changes in the construction industry thanks to technology with drones, AI and 3D printing all becoming commonplace.

By 2050, we could see floating buildings or apartments that could save the housing crisis using carbon foam that’s lighter than air – the possibilities for this really are endless.”

Andy Robinson – Group CEO, Colmore Tang, said “The forward-thinking report has shown that technology can have a positive impact on the construction industry, however, we need to discover those exciting and innovative start-ups, whose products and services could deliver the technologies and innovations that will be the key to future success.

“We are hopeful that our partnership with Virgin StartUp to create the ConstrucTech programme and £10m innovation fund will be the start of a new dawn within the industry, where the future innovations predicted become a reality.”

Virgin StartUp is a leading business support organisation which has run a number of successful accelerators and supported 11,000 entrepreneurs across the UK. Construction in the UK has been slow to embrace innovation and adopt new technology and Colmore Tang has identified a number of key areas within its business, and the industry as a whole, which it believes could benefit from the contribution of enterprising start-ups.

Colmore Tang and Virgin StartUp are calling for businesses to apply to the ConstrucTech programme to address the following problems:

  • People: improving analysis of performance, sharing best practice across building projects, measurement of quality and also implementation of health and safety.
  • Data: using data to pre-empt potential delays, more efficient material ordering, more effective use of labour along with use of performance data to improve cost, timescales and estimates of new projects for future clients.
  • Smart Materials: design and implementation of materials to improve sustainability; improve safety and finding materials which are digitally connected.

Colmore Tang is providing start-ups with the opportunity to use the programme as a test bed and development platform to bring products and ideas to the construction sector. It’s hoped the £10m innovation behind ConstrucTech will be the spark to improve lacklustre productivity levels and also begin addressing the need to re-skill over half a million construction workers to suit the industry’s future Mace Report – Moving Construction 4.0.

A private company in Shanghai used 3D printers to print 10 full-sized houses in just one day.

Many believe 3D printing could a viable solution to alleviate slum housing in the world and provide shelter to disaster-stricken communities. Is 3D printing the future of construction?

The video shows a 3D printer creating a structure using a special material, comprised of recycled rubble, fibreglass, steel, cement and binder. Once pumped into place, the material takes just 24 hours to dry completely.

Behrokh Khoshnevis, a pioneer of 3D printing at the University of Southern California, who is currently working with NASA on 3D-printed lunar structures, believes that we could one day live and work in 3D printed cities. “I think in about five years you are going to see a lot of buildings built in this way.”

He also suggested that the innovative technology could help tackle a worldwide shortage of low-income housing. “I think it is a shame that at the dawn of the 21st century, about two billion people live in slums. I think this technology is a good solution.”

Watch the video below and see for yourself. How to you think 3D housing will affect the construction industry? Will its impact be good or bad? Let us know in the comments section below!

As Mental Health Awareness week is launched across the UK on 14th May, Willmott Dixon offers some simple tips that businesses of all sizes can use to help make life at work more pleasant for their employees.

It’s long overdue, but our awareness of Mental Health is at last on the rise, with more and more initiatives and resources being dedicated to an issue which has silently blighted the lives of millions for as far back as we can remember.

One such initiative, All Safe Minds, was launched by major UK Contractor Willmott Dixon in 2017, offering support to tradespeople in the construction sector struggling with depression – and it has been receiving masses of positive attention and feedback from industry colleagues.

It’s Win Win

14th-20th May 2018 is national Mental Health Awareness Week in the UK, so Mark French, Head of Health, Safety and Enviroment for Willmott Dixon, offers up 5 simple steps that employers can implement to provide their employees with a supportive and happy work environment. Completely cost-free, all of these steps work on the basis that when employees feel cared for and appreciated, it has a hugely positive impact on their productivity.

1. Keep work strictly to work hours.
Work-life balance is an incredibly important factor in helping to avoid work-related stress and anxiety. By allowing your staff to ‘switch off’ at the end of the day, and respecting their family/private life, they will ultimately feel more inclined to work harder during work hours. Avoid sending late night emails and don’t expect them to sit up until midnight writing reports – mutual respect and common sense go a very long way.

2. Be Flexible
Life rarely runs to plan. School emergencies, ill-health, hospital visits etc – they’re all stressful enough, without the added worry that your boss is going to penalise you, or even worse, prevent you, from dealing with them. Be realistic – if someone needs time off for a valid reason, make it an easy process. Communicate your company policy, explaining clearly what the expectations are on both sides so that you’re all on the same page – not only will it be massively appreciated but could also help your business function more effectively when emergencies strike.

3. Make it personal
Small acts of appreciation can go a very long way. For example, at Willmott Dixon we give all our employees a day off on their birthday. We find that remaining staff members don’t mind covering their colleagues for one day, because they know they’ll get their turn when their own birthday comes around. If it helps create a happier workforce, what’s one day between friends?

4. Encourage personal development and career goals
It’s cheaper and easier to keep the employees you already have, as oppose to recruiting new ones. If your staff become disillusioned, bored or unfulfilled in their work, the likelihood is sooner or later they’ll move on. This is costly for your business in terms of recruitment, interviewing and training time, not to mention the decrease in productivity that can take place while you’re busy getting a new member of staff in place. If you understand what your employees are hoping for in the long-term and help them progress, you’re far more likely to keep them. Similarly, if they are struggling with an element of their job, give them the means to communicate that freely to you, knowing that they’ll receive the support they need to master it.

5. Add a simple page to your website
There are already a huge number of professional resources available for people who might be struggling with their mental health. We don’t need to reinvent the wheel – we just need the people we care about to be aware of those existing resources.

Consider adding one single page to your website or company intranet, listing all the important numbers and support services that are available. Someone needing those services is unlikely to feel like surfing the net, so being able to refer quickly to a single resource, could offer a very simple but very real lifeline. Willmott Dixon has done exactly that – check out the All Safe Minds page here.

Showing that you care about your employees doesn’t have to involve hugely expensive sweeping gestures. Follow a few of the everyday tips above and you could start to see a positive difference very quickly – it’s just about being human.

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New research reveals the extent to which smaller construction firms are on the brink of bankruptcy or liquidation with rising numbers of construction business owners suffering depression, anxiety, stress and ‘extreme anger.’

Worst excuses for late payments include: ‘the money for your invoice was eaten by our bank overdraft, ‘the dog ate your invoice’ and ‘your cheque blew out of the window’ while most common excuses include:

  • We can’t pay until own customers pay their overdue invoice (32%)
  • The accounts person is away (23%)
  • We can’t pay until business turnover improves (17%)

Latest research reveals that the number of small construction firms struggling financially has risen dramatically since last year as too has the number of company owners suffering from mental health issues as a result of poor cashflow.

The findings come amidst fears over the knock-on effect to the supply chain following the Carillion collapse earlier this year.

74% of the construction companies polled – 30% more than last year – have been on the brink of bankruptcy or liquidation, or could be soon due to late payments. 48% – also nearly a quarter more than last year – blame poor cashflow for their panic attacks, anxiety and depression, with some even having suicidal feelings and almost a quarter (22%) experiencing emotions of ‘severe anger’.

62% of owners said late payment issues had also meant that they had not paid themselves for some time, 35% had stopped or delayed bonuses, 15% had had to pay staff late and 17% had reduced their own salary.

If customers continue to pay late, 30% of construction company owners said it will soon affect the progress and growth of their business, while 30% said it had already impacted staff morale, recruitment and retention, 38% had struggled to pay business rates and a quarter had struggled to pay mortgage or rental payments on their office.

The research commissioned by The Prompt Payment Directory (PPD), a payment rating website for businesses, comes despite the Government’s Prompt Payment Code (PPC) and last April’s enforcement of the Government’s new ‘Duty to Report’ scheme that requires large companies to report on payment practices twice a year. It also follows official figures confirming that the number of British businesses going bankrupt reached a four-year high for 2017, with one in every 213 companies falling into liquidation – the highest since 2013.

The survey polled 400 owners, MDs and CEOs of small construction businesses who suffer from poor cashflow due to late or outstanding invoice payments. Ahead of Mental Health Awareness Week (14-20 May), the research examined the personal, financial and business impact of late payments on owners and found the issue had worsened since PPD’s first study was launched last spring.

The personal cost

Key findings for 2018 compared to last year include:

The impact of late payment/and the knock-on effects to SME construction owner’s personal life 2018 2017
Is the business on the brink of bankruptcy or liquidation as a result of late payment, or will be soon if more payments are made late? 74% 44%
Not paid self for period of time 62% 44%
Caused loss of sleep 80% 53%
Caused depression, anxiety, increased stress of other mental health related illness 48% 27%
Put pressure on marriage/relationship with partner 33% 14%
Refused credit 36% 17%
Struggled to make house mortgage or rental payment 36% 11%
Sold and downsized the family home or had to move into rental property 25% 9%

33% of SME construction company owners had been forced to sell assets such as property, shares and pension plans to make ends meet whilst nearly 10% had put plans on hold to grow their family and 11% can no longer afford to pay for school trips, clubs or tuition fees for their children.

19% had cut back on their social activity like going to the cinema, eating out or drinks with friends, 16% had cancelled their family holiday and 8% had sold or downgraded their car.

Mental health issues

Out of the increased number of construction owners now suffering from health related issues due to late payments, 45% suffer from stress, 39% struggle with insomnia, 16% experience depression and 14% experience anxiety and panic attacks, whilst the remaining stated issues such as having suicidal feelings, self-harm, eating problems and paranoia.

Effects on staff

Late payments have also had a strong knock-on effect on staff, PPD’s research has revealed.

Half of the construction owners polled had either paid their staff late, stopped or delayed bonuses, while nearly 5% said they had had to stop or reduce staff perks such as company phones, cars or health insurance.

Unfair practices

A staggering 73% said they were victim to long payment terms beyond the Prompt Payment Code recommended payment terms of 45 days pays. A third said they had been on the receiving end of mid contract terms to payment terms, 17% had been asked for retrospective discounting and 15% had been asked to ‘pay to stay’, or face supplier delisting.

Hugh Gage, Managing Director of The Prompt Payment Directory said “Recent high profile cases such as Carillion have made many more people aware of the cost of late or non-payment and how it can affect smaller construction firms, but in reality this has been going on for years.

“Our latest research reveals that the impact of late payments has got even worse since last year and is having even deeper repercussions on smaller companies nationwide, it’s affecting and even destroying people’s business, health and lives.

“Construction business owners need to arm themselves against some of the most common late payment issues and fight back against these poor practices as it’s always best to try and avoid them from the outset by using due diligence through credit reference agencies, or services such as The Prompt Payment Directory which rates businesses’ payment behaviour by those that it affects – their suppliers.”

Handling common late payment excuses

1) “We can’t afford to pay the bill”
Firstly, stop supplying and don’t make the problem any worse. Agree a payment plan to reduce the debt. If the organisation is keen for you to continue to supply because they need what you have to keep trading, establish their plans for getting out of the situation and check if they’re really viable. If you do choose to support them, protect yourself with robust terms which includes payment with order – an instruction to the buyer’s bank to make a payment or series of payments to you on an agreed regular date.

2) Accounts not in/is away
While this can sometimes be a legitimate excuse, you need to convince the business you can’t or shouldn’t have to wait until the next time they’re in the office to get paid. Support calls with an email. If you can’t get through, escalate the problem to the buyer, business owner or the relevant department, outlining what you need to happen and how to follow up in the most appropriately way. You should also remind the customer of any provisions around late payment – such as charging of interest and how their intervention will keep any additional costs in check.

3) Your cheque is in the post
Technology may have moved on but unfortunately even in this electronic age many businesses still insist on paying by cheque and this is one of the popular ‘fob offs’. Ask for the date it was sent, class of postage and the cheque number. If they can’t give you a cheque number ask why not? If it has been more than a week and it has still not arrived, ask them to cancel the cheque and send replacement by BACS/Faster payment and assure them the cheque will be returned or destroyed if it does arrive. You do have every right to refuse cheques, so look at your customer demographic and decide if this is a risk you’re willing to take if they refuse to comply.

The RICS has launched an insight paper which explores the impact of using artificial intelligence (AI) in the built environment, and the urgent need for industry professionals to understand how it will influence their role, as the future will rely less on human labour and more on technology.

AI in FM

One sector that the Artificial Intelligence: What it means for the built environment highlights as facing a significant impact of AI is facilities management (FM), due to the labour-intensive and repetitive nature of many FM jobs, making it an ideal place for automation of previously human-dominated tasks. However, the report weighs up the positives and negatives of such changes and how companies should deal with them.

Paul Bagust, RICS Global Property Standards Director says “FM will always have a vital role to play within the built environment, and even though many operational roles will become more technology-led, the sector could benefit hugely from AI at a strategic level. For example, machinery utilising AI will revolutionise the FM industry, making many jobs faster, safer, less costly and this will ultimately improve a company’s service offering and increase their bottom line.

“Technology and the availability of data is also changing the way investors look for opportunities and invest. This will present a huge threat to the industry if ignored, but, again, it presents so many opportunities for those who work in the built environment. So, all businesses, however large or small, must act now and analyse and prepare for how this disruptive technology could transform their role, sector and the wider built environment — otherwise they face becoming obsolete.”

Chris Hoar, co-founder of AI in FM added “The paper discusses how AI will transform the property industry by driving smart, efficient buildings from design through to construction. It also highlights how those in the industry can exploit the latest AI applications and developments, including drones and BIM (Building Information Modelling), to plan and work more effectively, while improving and better maintaining the quality of buildings and the wider built environment.

“The overarching message of this report is that organisations should seek out and maximise the opportunities that artificial intelligence presents, while minimising any potential threats. This way, they will have a much better chance of controlling their business strategy, direction and financial health.”

  • Currently 1 in 6 homes in the UK are at risk of flooding – a number that is expected to double by 2050
  • Flooding causes an average of £1.4 billion of damage each year to businesses and households
  • RIBA’s The Value of Flood Resilient Architecture and Design report calls for innovation and regulation change, to ensure both new build and existing properties are flood resilient and future proof

The Royal Institute of British Architects (RIBA) has published a new report outlining what the Government needs to do to help create homes and communities that are resilient to flood damage.

RIBA’s The Value of Flood Resilient Architecture and Design report stresses that the UK can no longer base its approach to managing flood risk on simply keeping the water out. The Government needs to enable communities to manage their risks. This means better equipping people and businesses to live with water; being able to stop water entering their properties and speeding recovery if it does.

The RIBA report advocates building flood resilient homes and buildings. To do this it recommends that the Government develops a new approach to decision-making and regulation in tackling flooding threats, encourages innovation in flooding resilience in the housing and urban design sector, and introduces specific building regulations for flood resilience and resistance – ensuring that these are taken up by any building owner exposed to flood risk.

The report concludes that embedding flood resilient design will help future-proof new developments and deliver greater value for money when investments in new flood defences are made. In addition, there is room for the UK to become a leader in this area, paving the way with innovative responses and solutions to flooding.

RIBA President Ben Derbyshire said “In the next 30 years, the number of homes at risk of flooding is expected to double. Now is the time to adapt and think creatively about how to tackle this threat. The RIBA urges the Government to step up and encourage the collaboration and innovation needed to create new homes and communities that are resilient to the devastating effects of flooding.”

The report makes five key recommendations for Government:

  • Improved decision-making processes which address a broader range of factors and potential solutions to water management issues
  • Pilot ‘Licences for Innovation’ to examine the effectiveness of new approaches to managing flood risk in new development to flooding and ensure all new buildings incorporate appropriate measures
  • Examine the potential for regulations on flood resilience to be linked to Flood Zone Designations through Building Regulations and planning policy
  • Regulate to ensure that all new developments in flood risk areas demonstrate reduced exposure and vulnerability to flood damage as well as broader benefits to the resilience of the local area
  • Encourage greater uptake of flood-resilient design by home and building owners exposed to flood risk

Construction firms in the south of England enjoyed strong growth in the first quarter of 2018, according to the Federation of Master Builders (FMB) South.

Key results from the FMB’s latest State of Trade Survey, which is the only quarterly assessment of the UK-wide SME construction sector, include:

  • In terms of workloads, expected workloads and enquiries, the combined indicator for the performance of South Eastern construction SMEs the balance of responses remained clearly positive at +17%, but fell by 6 percentage points compared with the previous quarter, indicating a slight fall in positive responses
  • In terms of workloads, expected workloads and enquiries, the combined indicator for the performance of South Western construction SMEs, the balance of responses rose 16 percentage points in Q1 2018 compared with the previous quarter, to +20%, indicating a marked increase in positivity
  • More construction SMEs predict rising workloads in the coming three months, up from 38% in the previous quarter to 49% in Q1 2018
  • 90% of builders reported increasing material prices in Q1 2018, this is the highest reading on record
  • More than half (58%) of construction SMEs are struggling to hire bricklayers and 55% are struggling to hire carpenters and joiners
  • Two-thirds (66%) of construction SMEs expect salaries and wages to increase during the next six months, up from 62% in the previous quarter

Phil Hodge, Director of FMB South, said “The first quarter of this year saw smaller building firms in the South of England enjoy growing workloads and enquiries. Although growth slowed slightly in South East, it remained in overwhelmingly positive territory. The South West also had a particularly strong quarter with workloads, expected workloads and enquiries improving since the final quarter of 2017. This is all the more pleasing given the stumbling blocks small builders had to contend with in the first quarter of the year. In March the south of England experienced heavy snow fall which forced construction sites across the region to close, some for weeks at a time. The positive growth enjoyed in the first three months of the year therefore shows how resilient the South’s construction sector currently is.”

“However, construction bosses know they need to keep their wits about them and not count their chickens just yet. These latest findings show that there are significant headwinds, which will continue to cause headaches for smaller building firms. More than three-quarters of firms think that material costs are expected to rise over the next six months, while two-thirds anticipate rising wages. The cost of doing business is going up and this will cause difficulties for firms across the South of England. These SME builders should have a key role to play in delivering the 300,000 homes needed every year in England alone. So, it is in everyone’s best interest that these firms continue to weather the storm of rising costs.”

The workloads of small and medium-sized (SME) construction firms grew slightly in the first three months of this year despite record numbers of builders reporting rising material prices, according to the Federation of Master Builders (FMB).

Key results from the FMB’s latest State of Trade Survey, which is the only quarterly assessment of the UK-wide SME construction sector, include:

  • Construction SME workloads remained positive in Q1 2018 but grew at a slower rate than in Q4 2017
  • The construction SME sector has now enjoyed five years of consecutive growth
  • More construction SMEs predict rising workloads in the coming three months, up from 38% in the previous quarter to 49% in Q1 2018
  • 90% of builders reported increasing material prices in Q1 2018, this is the highest reading on record
  • More than half (58%) of construction SMEs are struggling to hire bricklayers and 55% are struggling to hire carpenters and joiners
  • Two-thirds (66%) of construction SMEs expect salaries and wages to increase during the next six months, up from 62% in the previous quarter

Brian Berry, Chief Executive of the FMB, said “Workloads for builders continued to grow in the first quarter of 2018 despite the ‘Beast from the East’ wreaking havoc across the UK’s construction sites. However, once again, the growth we are seeing is slower than in the previous three months and this can be partly attributed to pressure from rising costs. Indeed, 90% of builders reported increasing material prices in the first three months of 2018 and this is the highest reading on record. Insulation, bricks and timber are the materials that have increased the most and builders are predicting that these price increases will continue. We are also seeing increased salaries for tradespeople stemming from the acute skills crisis and that, coupled with material price hikes, are squeezing margins and stifling growth for construction firms of all sizes.”

“In terms of house building, these latest results should sound some alarm bells with the workloads of SME house builders dropping off in the first quarter of this year. In 2017/18, 197,000 homes were started in England but this is some way off the Government’s target to build 300,000 homes per year. The FMB has worked closely with the Government to identify how to remove barriers to small local house builders, but these latest results act as a reminder that there is more to be done. The FMB would now like to see the continued and speedy implementation of some positive Government policies designed to bring forward more small sites, properly resource planning departments and increase the flow of finance to SME house builders. If we are to reach our ambitious house building targets, we cannot rely solely on the largest house builders.”