The value of all construction contract awards in 2020 was £57.0 billion. Despite the challenges 2020 brought, this represents a slight decrease of 4.7% on 2019. Contract award values held steady in 2020, but the number of contract awards declined by just under 16%. The latest edition of the Economic
In 2020, market value is projected to decrease by around 6%, largely due to Covid-19 and the lockdown measures introduced to attempt to halt its spread. Although FM contracts have continued to be issued within the last year, the UK economy is expected to take a severe hit, with budgets
The World Steel Association’s 2020 World Steel in Figures whitepaper reports the continued rise of annual steel production, up by 3% in 2019 from the previous year. The world’s total steel output is now ten times as much as it had produced 70 years ago. It also states that steel
To meet its climate change commitments, the UK government has said all houses, old and new, must be carbon-free by 2050. A review of energy-efficient housing is urgently required. The World Green Building Council estimate buildings and construction are responsible for around 39% of global greenhouse gas emissions. The Energy Savings Trust estimate that
Every business owner should have goals not only for their business but also for what they intend to do with the profits they earn from the business as you start to improve your income. However, when you start to think about these goals, it’s easy to see how they can
BDC 319 : Aug 2024
The value of all construction contract awards in 2020 was £57.0 billion. Despite the challenges 2020 brought, this represents a slight decrease of 4.7% on 2019. Contract award values held steady in 2020, but the number of contract awards declined by just under 16%. The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain. Certain sectors in 2020 experienced strong growth whilst others felt the impact of the Covid-19 pandemic. The infrastructure sector contract awards in 2020 were valued at £14.5 billion, an increase of 40% on 2019. A large increase in utilities and civil engineering projects contributed to the total, increasing by 61% and 54% respectively. The hotel, leisure and sport sector contract awards for 2020 was £3.1 billion which is a decline of 43% compared to 2019. This was largely due to a fall in arenas & stadia, and audience & exhibition centres, falling by 68% and 63% respectively. However, most significantly the medical & healthcare sector saw an increase of 62% in 2020 compared to 2019 with a total value of contract awards at £2.0 billion. Commenting on the figures, Tom Hall, Chief Economist at Barbour ABI and AMA Research said, “The total value of contract awards only fell by 5% in 2020, thanks to an extremely strong start to the year and a moderate recovery after the first nationwide lockdown. It’s a complete turnaround where activity is happening compared to 2019, which was dominated by the residential and leisure sectors. In 2020 it has been the healthcare and infrastructure sectors that maintained activity. We expect the same over the first period of 2021, at least until the Covid-19 situation improves and the uncertainty clears.” Download the full report here: http://ubm.io/2FRLrwm
In 2020, market value is projected to decrease by around 6%, largely due to Covid-19 and the lockdown measures introduced to attempt to halt its spread. Although FM contracts have continued to be issued within the last year, the UK economy is expected to take a severe hit, with budgets and investment decisions likely to be negatively impacted. The effects of the lockdown measures introduced across the UK have been especially hard within several key end-users of FM services. Notable examples include retail, leisure (e.g. gyms and sports stadiums) and the hospitality industry, i.e. pubs, cafes and restaurants. Meanwhile, the curtailing of international travel has also adversely affected end-use FM sectors such as hotels. Prior to 2020, the bundled outsourced FM market experienced relatively steady growth of around 3% per annum, with the exception of 2017 when the prevailing political uncertainty caused by Brexit resulted in a slowdown. Between 2015 and 2019, market value rose by almost 10%. The FM market is considered relatively mature across a wide range of sectors, a factor likely to inhibit growth levels over the next few years. The performance of the market remains heavily dependent upon the prevailing political and economic situation in the UK and its effects upon budgets and investment. Fiona Watts, Commissioned Research Manager at AMA Research, comments “it remains to be seen to what extent end-user sectors such as retail, leisure and hospitality recover from Covid-19 and the associated economic impacts of lockdown. Given that many were struggling to remain profitable prior to the pandemic, it seems likely that many companies may either go out of business or dramatically scale down their estates, thereby reducing demand for FM services”. The market for outsourced FM services is expected to recover in the years following 2020, although to what extent largely depends upon the UK economic situation. It has been suggested in the past that outsourcing is protected from the worst effects of economic cycles to a large extent – in times of economic slowdown or recession, cost-cutting measures by clients can often stimulate demand for FM services. In times of economic growth, the number of FM contracts tends to increase.
The World Steel Association’s 2020 World Steel in Figures whitepaper reports the continued rise of annual steel production, up by 3% in 2019 from the previous year. The world’s total steel output is now ten times as much as it had produced 70 years ago. It also states that steel will remain the backbone of cities and communities of the future for its durability and recyclability. It’s incredible to know that a material created somewhat by accident is now everywhere, from cars to skyscrapers. Had the steel we know and use today existed during the times of great conquerors like Alexander the Great, the landscape of the globe would’ve been much different. Even the first forms of steel—wrought iron, for instance, had made ancient armies for a time unstoppable. Technology is continuously improving how to make steel. Some steelmakers are now looking into creating ‘green steel,’ burning hydrogen instead of coal to reduce their carbon footprint. If it works, steel production might reach record highs, as a chance to cut back on the industry’s 8% global CO2 emissions is too good to pass. One thing that has barely changed about steel is its use. The World Steel Association’s report cited these five sectors as the most extensive applications of steel. 1. Building and Infrastructure (52%) From the humble single-story house to history’s megastructures, steel has contributed significantly to the building and infrastructure sectors. Fabricators such as Steelgram Fabrications manufacture and supply steel beams and frames to various construction projects. It can be formed to any shape the project requires, allowing for a wide range of approaches to tackling the project. Over the years, steel has tackled countless engineering challenges and surpassed them. The 50-km Channel Tunnel connecting the U.K. and France, for example, is an engineering marvel of concrete and steel. Together, these materials are strong enough to withstand the pressures exerted by being built underneath the English Channel’s seafloor. 2. Mechanical Equipment (16%) It’s not only the infrastructure itself that uses steel but also the heavy equipment that built it. From excavators to lofty cranes, steel is the preferred choice for the same reasons as construction. Steel can be molded into any shape or form, yet maintaining its rigidity. Fabricators with contact details on sites like engineeringarena.co.uk also make steel for such applications. The Channel Tunnel wouldn’t have been possible without the help of boring machines. Weighing in at 1,100 tonnes and 8.8 metres in diameter, the machines cut through marl from both the British and French sides. High-alloy steel was used to fabricate the cutter heads that led the way, allowing them to cut away at soft or hard rock. 3. Automotive (12%) Although lighter materials like carbon fiber see widespread use, steel is still a crucial component in every new car that rolls off the assembly line. The World Steel Association estimates that every car uses 900 kg of steel, namely advanced high-strength steel (AHSS) that’s lighter than traditional steel but just as strong. With AHSS making up at least 60%, a car’s gross weight can be reduced by as much as 10%. The lighter the vehicle, the less drag it experiences on the road, which also translates to less fuel used. As regulations regarding new cars are stressing more on fuel economy, steel will help automakers meet them without sacrificing quality. 4. Metal Products (10%) Chances are nearly all your things at home are, to an extent, made out of steel or one variant of it. For instance, cookware such as pots and pans are mostly made using stainless steel. Aside from its high heat and corrosion resistance, stainless steel also makes cleaning a breeze. Just remember not to use an abrasive brush for cleaning. Another example is tool steel, specifically designed for making into tools like hammers and pliers. The steel needs to withstand the rigors of everyday use, mainly wear-and-tear and softening when exposed to heat due to friction. 5. Other Transport (5%) Motorcycles, bicycles, trains, ships, and planes all fall under this category and for the same reasons as automotive. However, the base material used for this purpose can vary from the traditional iron. This gives steel properties that make it suitable for specific conditions. For shipbuilding, it uses aluminium-based steel to make the ships highly resistant to sea corrosion. It’s also applied to building high-speed trains for its lightweight property, allowing trains to cover vast distances in hours. In recent years, the aerospace sector is slowly replacing aluminum-based steel in favor of titanium-based one. Lighter than aluminum but stronger, titanium is the ideal choice for commercial planes and military jets. This steel is also better at withstanding extreme temperatures at high altitudes.
To meet its climate change commitments, the UK government has said all houses, old and new, must be carbon-free by 2050. A review of energy-efficient housing is urgently required. The World Green Building Council estimate buildings and construction are responsible for around 39% of global greenhouse gas emissions. The Energy Savings Trust estimate that 40% of the UK’s carbon footprint comes from domestic housing – half of which comes from the energy used for heating and air conditioning. Prime Minister Boris Johnson has been urged to “flesh out plans” following a string of underachievement that has caused the UK to miss their 2023 greenhouse target. Among the PM’s plans is to build more zero-carbon homes. At present, a very small percentage of homes are built to better the minimum legal requirement for energy efficiency. In Scotland, only eight of the 14,000 new builds achieved a “gold level” rating for energy efficiency. It is estimated that around 80% of the homes that exist in the UK today will still be standing in 2050. In the absence of energy-efficient new builds, almost all existing homes will require retrofitting to reduce energy demands. Whilst new homes can take advantage of electric boilers, better insulation and energy-efficient technologies, current homeowners also need to look towards energy-efficient solutions such as energy-efficient boilers, improved insulation and effective energy management strategies. Sustainable Homes of the Future Heating for domestic homes currently accounts for 65% of the total fossil fuel consumption. There is a pressing need to reduce the UK’s carbon footprint improve energy efficiency in existing homes through renewables and energy management. The National Association of Homebuilders say sustainable buildings are less damaging to the environment and less expensive to operate because they use less energy generated by fossil fuels, less water and retain more heat. Similar solutions are needed to retrofit existing homes. The World Economic Forum explain the design of new zero-carbon buildings is being driven by four major trends: decarbonization of the electric power grid; electrification of building space and water heating; efficiency improvements to reduce energy demand; and digitalization to provide needed flexibility in meeting the needs of building occupants and the energy grid. While zero-carbon buildings may seem rare, global organisations such as Architecture 2030, Global Alliance for Buildings and Construction and the World Green Building Council are committed to bringing energy-efficient homes into the mainstream. However, building new homes is going to emit even more carbon into the atmosphere. Whilst the upfront costs of retrofitting existing homes with energy-efficient technologies are hefty, there is a promise of significant long-term savings. To help homeowners in the UK fund an energy-efficient retrofit, the government has introduced Green Homes Grant vouchers up to a maximum of £5000. Homeowners and residential landlords could be eligible for funds covering two-thirds of the cost of making green home improvements including the installation of modern and efficient front doors, energy-efficient windows, heat pumps, draught-proofing and heating controls such as thermostats and smart controls.
Every business owner should have goals not only for their business but also for what they intend to do with the profits they earn from the business as you start to improve your income. However, when you start to think about these goals, it’s easy to see how they can start to become a jumble and it can be hard to think about which ones are better worth pursuing. Stability comes first First of all, if it’s looking like you’re about to lose your car or your home, or you’re in enough debt that it can start to affect your ability to run the business, that’s where you should be aiming the bulk of your expendable income from your profits. Get out of debt and get some stability in your life so you can start looking at other goals. If it’s looking like you’re not recovering from your losses, it might be time to consider filing for bankruptcy. By doing so, you can pay a portion of the original debt and have the rest permanently disregarded. While it may come with consequences, it is a good way to sort out your finances and to start with a clean slate. What happens when you file for bankruptcy? Many online articles can help you understand the process. Just remember that this should be your last resort in saving yourself from further financial casualty. Contribute to the long-term No matter what else you do, you should always ensure that at least some of your cash is heading for your retirement. The sooner you start putting aside some cash, even a little, the easier it can be to meet your eventual retirement goals. If you’ve reached your thirties without anything set aside, you need to dive into a retirement checklist and make it an active goal to make sure you’re sorted for the future. It’s going to become harder the longer you leave it. Have some emergency savings It’s never easy to tell when you’re going to need a little extra cash, but without any sort of buffer, it’s too easy to go raiding the savings every time a sudden expense hits. It’s a good idea to have some form of emergency savings set aside so that you’re not either going into your savings or building up needless unplanned debt. Investing it back You can invest some of your own earnings back into your business but you should already have money set aside from the overall profits to do just that. Rather, if you have expendable income after meeting your primary needs, it’s a good idea, in general, to start building an investment portfolio. At a minimum, it can help boost your retirement plans, but it can also help you generate real wealth. Rank, divide, and achieve When you have worked out what your financial needs are, you might find you have several. Depending on which is the most urgent and has the highest priority, think of a hypothetical division for each. For instance, 50% towards paying off debt, 20% towards retirement, 20% towards emergency funds, and 10% towards investments. Pay yourself first, setting aside a portion of every paycheck that is designed to meet your financial goals, and split that portion along the ratio you decide on. The truth is that all of the goals mentioned above are worth considering, but there’s no single answer as to which is your priority. However, by outlining your existing financial needs, for yourself and the business, present, and future, it becomes easier to see where you should be putting your profits.
