New starters in Building and Industrial teams CBRE has bolstered its team in Leeds with a round of new hires across the National Building Consultancy and Industrial service lines. Dan Wells has been appointed as Senior Project Manager and Tom Wright joins as Building Surveyor. Davina Hyde-Sykes joins the team
With water damage proving to be one of the most frequently reported insurance claims in buildings, the latest in ultrasound technology offers a promising solution to avoid costly damage in vulnerable commercial buildings. According to ABI, insurers pay out £1.8 million for residential water damage every day. Causes can relate
Opening of new regional office away from its St Albans head office comes in response to rapid growth in projects across the north west. Glencar, an expanding construction company specialising in the industrial, logistics, distribution, manufacturing, life science and pharmaceutical sectors has today announced that it has opened a new
Despite a four year delay, the latest research by London lettings and estate agent, Benham and Reeves, has found that house prices surrounding Crossrail stations are still largely outperforming the wider areas in which they are located. Last week, a ‘crucial milestone’ was reached as testing began on the long-awaited
The Condition Improvement Fund (CIF) is an annual bidding round offered by the government for academies and sixth form colleges to apply for capital funding, with the objective of identifying buildings in need of repair and ensuring they’re safe. While the initial bidding stage doesn’t begin until the new school
Mobile Mini UK’s SHEQ team has been crowned ‘Safety Team of the Year Highly Commended Winner 2021’ this month by the British Safety Council at the International Safety Awards. Out of 292 organisations of all sizes and sectors, including businesses from the UK, Africa, Asia, India, mainland Europe and the
Work has started on a £16 million affordable housing scheme in Doncaster. The development of 126 homes will be delivered by Esh Construction in partnership with Together Housing Group, which also owns and manages Lakeside Rise in the town, and Housing 21. Together Housing will take ownership of 56 two,
Commercial property management specialist, NSM, has been appointed to manage three North West industrial assets. The three developments were acquired by client, Network Space last month. They include: Newfield Industrial Estate in Tunstall, Stoke on Trent, a 125,000 sq ft multi-let industrial estate which is occupied by 20 businesses including
In April 2021, contract awards increased by 58% compared to March to £9.1 billion. This level of activity was last seen in January 2020. The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain. Sector
UK construction’s demand for big-volume mineral products like aggregates and concrete showed resilience in the first quarter of 2021, despite renewed lockdown restrictions, Brexit and particularly wet winter weather hampering activity. That’s according to the latest survey from the Mineral Products Association (MPA) which warns that an encouraging start to
New starters in Building and Industrial teams CBRE has bolstered its team in Leeds with a round of new hires across the National Building Consultancy and Industrial service lines. Dan Wells has been appointed as Senior Project Manager and Tom Wright joins as Building Surveyor. Davina Hyde-Sykes joins the team as PA to support the Building Consultancy and Engineering teams across the North, based in Leeds. The Industrial team has appointed Danielle Raunjak as Assistant Surveyor, joining from CBRE’s London office where she worked for 3 years. Forming part of a wider Building Consultancy team of more than 30, Dan Wells joins from Gardiner & Theobold and Turner & Townsend, where he delivered a range of projects spanning new build education facilities, hotel refurbishment and the largest CAT A office building in Leeds with a contract value of £84M. Dan’s role at CBRE is as a senior lead and Project Manager with focus on delivery of capital schemes across a range of sectors and property types. Following a 13 year service as a Royal Air Force mechanical technician, Dan has successfully delivered a range of projects across Leeds and London. Tom Wright joins from Knight Frank where he acted for commercial clients on a wide range of instructions across office, industrial, retail and leisure properties. His role with CBRE will see him working on a range of core Building Surveying instructions for commercial clients across the North East. CBRE also announces two promotions with Charles Parkinson promoted to Associate Director in the Office Agency team and Alison Mackay becomes Associate Director in Planning. Two new graduates also join the CBRE Leeds office – Sam Berry joins Planning and Tom Kruger joins Building Consultancy. Charles Parkinson joined CBRE’s Office Agency team in 2019 as a senior surveyor from Garness Jones Ltd to work on Landlords office space and occupier projects. Alison Mackay joined CBRE’s UK Planning team in 2018 from Colliers to support the firm’s growing project workload. Alison’s expertise in large complex commercial planning applications and land promotion across multiple service lines has been instrumental in her success. Richard Bamford, MD, CBRE Leeds commented: “We are delighted to welcome both Dan and Tom to the National Building Consultancy team. The sector has remained resilient despite the pandemic and we look forward to harnessing their experience and expertise to grow our project workload and complement the wider team. Davina will also be a great addition to Leeds to support both the Building and Engineering teams across the North of England and it’s great to welcome two bright young graduates to the Leeds Planning and Building teams. Congratulations also to both Charles and Alison on their well-deserved promotions to Associate Director. We look forward to a busy and exciting year ahead.”
With water damage proving to be one of the most frequently reported insurance claims in buildings, the latest in ultrasound technology offers a promising solution to avoid costly damage in vulnerable commercial buildings. According to ABI, insurers pay out £1.8 million for residential water damage every day. Causes can relate to a number of issues such as corrosion, limescale and frost compromising old pipes, as well as accidental drilling of new systems, all of which can have disastrous effects in commercial buildings. According to an expert from AXA[1], particularly vulnerable buildings include those that have just been built, vacant, or reduced occupancy – as are many buildings currently due to the pandemic. The message comes from polymer company, REHAU which has recently unveiled a pioneering smart water control system using the latest in ultrasound technology – RE.GUARD. With most drip-based leaks usually going unnoticed, and burst pipes then leading to severe damage, REHAU is encouraging specifiers, contractors and facilities managers to take advantage of this new prevention technology. REHAU’s RE.GUARD smart control water system monitors the water flow rate assessing it in real time due to integrated software. The innovative new system is comprised of four main components: a smart water controller, water sensors, a hub gateway and an app. Water damage issues pose increased risk in commercial buildings such as offices as they generally have more water features than residential homes, including more toilet facilities, air conditioning, water coolers, and coffee machines connected to the mains. The RE.GUARD smart water controller helps to detect burst pipes and drip leaks by shutting off the water supply to mitigate damage. It is installed after the water meter which allows it to also measure water consumption, and has the ability to be manually turned on and off. The controller is supported by RE.GUARD water sensors which detect leaking water in critical areas even faster by being positioned throughout the building. It connects to the RE.GUARD smart water controller via the Z-Wave radio standard and includes an extension cable for places that are particularly difficult to reach. All devices are connected to the Internet via the RE.HUB gateway which can easily be connected to a building’s router. Essential information is then available to the property manager at a glance which also helps to identify sustainable ways to save on water consumption. Steve Richmond, Head of Marketing and Technical at REHAU Building Solutions said: “Not only is water damage an expensive problem to face for building owners, it can also result in the formation of mould within just 24 hours of moisture penetrating a building structure, which is harmful to health and requires extensive remediation work. The unfortunate reality is that many property owners don’t find out until it’s too late. “With smart technology now embedded into most of our daily lives, we just knew there should be a better solution to this issue. We monitor the health of our bodies, so why shouldn’t we monitor the health of our buildings? It really is an exciting new gadget which we believe can help building professionals by providing a cost-effective safety net.” To find out more, visit: www.rehau.uk/reguard [1] https://www.insurancebusinessmag.com/uk/opinion/containing-escape-of-water-claims-in-commercial-buildings-161150.aspx
Opening of new regional office away from its St Albans head office comes in response to rapid growth in projects across the north west. Glencar, an expanding construction company specialising in the industrial, logistics, distribution, manufacturing, life science and pharmaceutical sectors has today announced that it has opened a new regional office in Manchester city centre in response to the increasing number of projects it is working on across the north west. The office is situated within the iconic Neo Building in the heart of the central business district and is the second regional office that Glencar has opened away from its St Albans HQ. The opening of this new office in the North West together with the Birmingham office is a real indicator of regional expansion with turnover expected to reach £250M this year. Several new positions have been created as a result of the office opening including the recruitment of Dawa Singh as North Regional Director from Sheffield based national construction company J.F Finnegan where he served as Head of Pre-Construction. Talking about the opening of the new office, Pete Goodman Glencar Managing Director Midlands and North said: “Over the past twelve months Glencar have been awarded a number of high-profile project instructions at sites throughout the north west and it makes sense to have a permanent presence in this region to be closer to our customers and continue our expansion in this fast-growing UK region, part of the northern powerhouse”. Amongst the projects that Glencar have been appointed on and delivered recently at sites across the north west – including several projects ongoing currently include: Construction of two speculative logistics warehouse units of 90,000 and 138,000 sq ft respectively for PLP at its Ellesmere Port scheme adjacent to Junction 8 of the M53 motorway. Both units were completed on time and on budget in April 2021. The construction in 27 weeks of two speculative logistics units of 92,000 and 43,000 sq ft also for PLP at its Crewe Commercial park development with both units subsequently let to Brightstar, the world’s leading provider of integrated solutions for the mobile and financial service industries. Glencar is currently onsite implementing fit-out works. Fit out works on a 525,600 sq ft warehouse at Haydock, St Helens occupied by Kellogg Company. Works were carried out while the facility was live. Talking about the market and opportunities across the region Dawa Singh, Glencar North Regional Director said: “The Northern Region (West and East) is demonstrating significant market confidence and prosperity, allowing our new Manchester regional office to track and secure considerable tender and contract value opportunities. This ensures a robust new work pipe-line during 2021/22 and beyond”.
Despite a four year delay, the latest research by London lettings and estate agent, Benham and Reeves, has found that house prices surrounding Crossrail stations are still largely outperforming the wider areas in which they are located. Last week, a ‘crucial milestone’ was reached as testing began on the long-awaited Crossrail route and the research by Benham and Reeves shows that, on average, property values in postcodes home to a Crossrail station sit 17% higher than the wider area. Current Crossrail Property Price Premiums Current property prices in postcodes due to benefit from a Crossrail station currently average £572,686, 17% higher compared to the average £490,429 across the wider districts in which they are found. Tottenham Court Road is home to the highest Crossrail boost, with property prices in the W1 postcode currently averaging just shy of £2m, 140% higher than the wider borough of Camden (£822,936). Bond Street (97%), Liverpool Street (55%), Twyford (40%), Gidea Park (32%), Iver (27%), Whitechapel (26%), West Ealing (22%), Shenfield (21%) and Canary Wharf (17%) are also home to some of the largest Crossrail property price premiums. Crossrail Property Price Growth Since Crossrail was approved in July 2008, property values in postcodes due to benefit from a station have climbed by 65% on average, far higher than the 39% seen across the UK. Crossrail stations within London have seen prices increase at an even greater rate, up 71% since 2008, although this rate of growth sits at the same level as London as a whole. Tottenham Court Road and Bond Street have, again, seen the biggest boost with values in the W1 postcode climbing by 172%. Woolwich has also seen a notable jump with property prices up 122%, along with West Ealing (97%), Twyford (92%) and Maryland and Stratford (89%). However, the research by Benham and Reeves shows that in addition to Crossrail station house prices sitting 17% higher than their wider areas today, this premium has also increased from 14% since it was first approved. This boost in Crossrail house prices is even more substantial across some stations. In 2008, property prices in Tottenham Court Road’s W1 postcode were 39% higher than the wider area of Camden. However, today this premium sits at 140%, a 101% increase in the price premium paid for Crossrail properties. Crossrail also seems to be reversing negative price trends found around stations due to benefit. In Woolwich, for example, the average house price in the Crossrail postcode of SE18 was £181,022 in 2008, -23% lower than the wider borough of Greenwich (£233,729). Today, the average price in the postcode has increased to £401,326 and while it remains lower than the average for Greenwich as a whole (£421,221), this gap has closed to just -5%. In other areas, Crossrail house prices have seen a complete turnaround. In 2008, the average property price in the IG postcode (£254,328), home to the Goodmayes and Seven Kings Crossrail stations, came in -6% below the wider borough of Redbridge (£271,019). Today, the postcode is home to an average property price of £478,831, 5% higher than the average of £456,098 seen across Redbridge as a whole – an 11% swing on the premium paid for homes close to the Crossrail station. Director of Benham and Reeves, Marc von Grundherr, commented: “Despite the ongoing and extensive delays, Crossrail remains one of the most eagerly anticipated developments to the London landscape in recent times. It’s set to transform the way we traverse the capital by train and will substantially shorten journey times for both Londoners, and those commuting from further afield. So it’s hardly surprising that despite its late arrival, many areas due to benefit continue to see a substantial rate of property price growth, with homes surrounding a Crossrail station also commanding a notable premium when compared to the wider area in which they are located. This strong market performance also comes against a backdrop of Covid uncertainty which has seen London underperform to some extent when compared to other regions of the UK. However, the capital has started to regain momentum with many now returning to work as lockdown restrictions are eased and so we expect to see house prices along the Crossrail route continue to climb as its launch approaches.” Table shows the top 10 Crossrail stations with the largest property price premium when compared to the wider area CrossRail Station Outcode Average Crossrail Postcode Property Price Wider area Average Property Price Difference (%) Tottenham Court Road W1 £1,972,185 Camden £822,936 140% Bond Street W1 £1,972,185 City of Westminster £1,000,560 97% Liverpool Street EC2 £1,046,782 City of London £675,309 55% Twyford RG10 £581,908 Wokingham £416,164 40% Gidea Park RM2 £500,367 Havering £378,213 32% Iver SL0 £534,069 Buckinghamshire £419,428 27% Whitechapel E1 £574,017 Tower Hamlets £455,633 26% West Ealing W13 £634,733 Ealing £520,674 22% Shenfield CM15 £538,243 Brentwood £445,723 21% Canary Wharf E14 £533,976 Tower Hamlets £455,633 17% Average £572,686 Average £490,429 17% Table shows the top 10 largest increases in Crossrail house prices since the scheme was approved in July 2008 CrossRail Station Outcode Average Crossrail Property Price – July 2008 Current Average Crossrail Property Price Change % Tottenham Court Road/Bond Street W1 £725,603 £1,972,185 172% Woolwich SE18 £181,022 £401,326 122% West Ealing W13 £322,644 £634,733 97% Twyford RG10 £303,248 £581,908 92% Maryland/Stratford E15 £232,879 £439,325 89% Goodmayes/Seven Kings IG3 £254,328 £478,831 88% Abbey Wood SE2 £196,698 £368,266 87% Forest Gate E7 £234,723 £437,470 86% Manor Park E12 £222,916 £401,192 80% Romford RM1 £199,635 £354,024 77% Average (All Crossrail Stations) £322,981 £534,284 65% Average (London Crossrail Stations) £329,637 £564,046 71% Average UK House Price £290,261 £496,269 39% Average London House Price £179,845 £250,341 71% Table shows the top 10 Crossrail stations to see the biggest change in property price difference vs the wider area between 2008 and now CrossRail Station Outcode Wider area Crossrail property price vs wider area 2008 Crossrail property price vs wider area 2021 Change in Crossrail price
The Condition Improvement Fund (CIF) is an annual bidding round offered by the government for academies and sixth form colleges to apply for capital funding, with the objective of identifying buildings in need of repair and ensuring they’re safe. While the initial bidding stage doesn’t begin until the new school term in September, Sunny Lotay, national commercial manager at PermaRoof UK, discusses how it’s never too early to prepare for your submission and how suppliers can assist local authorities with the bidding process. CIF funding improves the facilities of schools, academies and colleges – so applying for the capital grant is essential for the development, maintenance and safety of education establishments. The CIF provides financial support for a wide range of schemes, having funded 1,400 projects across England in the 2019-2020 academic year, but does tend to prioritise certain applications – namely roof, window and central heating replacements. Bidding for CIF funding opens at the beginning of the autumn term and is awarded in the spring – normally around April. But for any college or sixth form thinking they might be in need of flat roof repairs, the time is now to start preparing, and that’s where experienced commercial specification managers can provide vital support in securing the grant. Carrying out surveys The first step in any potential flat roofing project is to investigate the condition of the roof and conduct a survey to find improvements that are required to bring it back up to regulations – from checking thermal regulation and fall of water discharge, to structural soundness and whether there are enough outlets. A survey of this kind is essentially looking to pre-empt any problems before they occur and provide a solution to the roof’s current state. This means that, depending on the results of the survey, there might not be any action required. As a result of this, when finding a specification manager to carry out the survey, it’s important that you opt for someone who is able to offer no obligation, completely free of charge surveys, core testing and condition reports, like PermaRoof, which can then be used to support a CIF submission – if one is required. Arranging quotes and guaranteeing warranties Once the next steps have been identified, getting a quote for the work that needs to be carried out can support your CIF application as it evidences exactly how the funding will be utilised. As schools play a significant role in society, it makes sense that when refurbishing existing sites, materials that guarantee longevity are specified – creating a legacy for generations to come. Warranties are the most effective way to guarantee quality assurance – providing vital protection and security – and will be beneficial in your application in showing sound investment. Choosing a full system from a reputable brand will usually mean the inclusion of a warranty – giving you further peace of mind. But do remember to check the guarantee you are being offered as some cheaper options may only offer a five-year warranty, whereas more reputable brands, such as Firestone, will deliver up to 20 years. At PermaRoof, we have access to a national network of registered installers who will be able to provide a quote for the project, with full support and warranties assured. All our contractors have learned the correct method of installing our flagship system – Firestone RubberCover single ply EPDM – and come with a warranty as standard. However, this doesn’t mean our commercial team steps back. We stay on-hand to provide project management and a full consultative approach, offering that much-needed peace of mind that the correct contractor and solutions are being sought and provided. Collating the findings Once the full roof survey has been completed, the report written and full quotes arranged, it’s time to collate the findings into a report to be submitted to the CIF. What’s worth bearing in mind is that every case is unique and has its own timeline – there is no one size fits all. Funding can either happen quickly or it can take up to two years. Usually, funding will be gained retrospectively after completion, however, depending on the severity of the project, there are occasions where it can be awarded while the project is ongoing or even beforehand. Bringing in the experts The UK’s educational establishments are vitally important to our country’s future. The fact they remained open to support vulnerable students and the children of key workers throughout the course of the Covid-19 pandemic is a testament to the fact that schools simply can’t close – regardless of what is happening in the world, there will also be a need for certain school places. Therefore, it’s in everyone’s best interests to ensure the buildings themselves are maintained to the highest possible standard – and CIF funding helps to contribute towards this. Whether contractors and suppliers are brought in to assist with a reactive issue (for example a leaky roof) or a proactive approach (such as a full roof overlay), ensuring you’re getting a comprehensive service that offers a guiding hand from initial consultation through to tender and final sign off means academies and sixth form colleges can focus on educating the next generation – some of whom could decide to pursue a career in building products. For more information on PermaRoof, please visit www.permaroof.co.uk or call 01773 608839.
Mobile Mini UK’s SHEQ team has been crowned ‘Safety Team of the Year Highly Commended Winner 2021’ this month by the British Safety Council at the International Safety Awards. Out of 292 organisations of all sizes and sectors, including businesses from the UK, Africa, Asia, India, mainland Europe and the Middle East, only Mobile Mini UK succeeded in being crowned overall Team of the Year highly commended winner. These awards, which are now in their 63rd year, span all sectors with significant representation from construction, manufacturing, oil, gas, mining, power and utility organisations. They aim to celebrate organisations that have shown dedication to keeping their workers and workplaces healthy and safe. The team of the year category recognises outstanding achievements resulting in a significant improvement to health, safety and wellbeing, from a collaboration of stakeholders. The study submitted by the Mobile Mini UK SHEQ team focused on alliances and teamwork during the evolving coronavirus pandemic and was reviewed and adjudicated by several safety professionals. This detailed how the different teams within Mobile Mini quickly aligned and adapted to ensure that the risk of Covid-19 could be adequately managed internally, allowing operational teams to provide a prompt service externally. Key features included the fast procurement of equipment and PPE, the rapidly facilitated switch from office working to home working, skeleton office teams working safely in socially distanced modified offices and the continued successful delivery of units to the frontline. Underpinning all of these changes was the Covid-19 risk assessment process, which was designed to ensure that all stakeholders had ongoing input. All teams responded admirably to these changes and no employee was injured as a result. This steadfast engagement and teamwork were some of the biggest factors in the business safely navigating through the worst of the pandemic and undoubtedly contributed to the judging panel’s decision when deeming Mobile Mini as worthy Team of the Year winners. Chris Watcham, Health and Safety Director at Mobile Mini UK said, “Winning this highly respected award is a truly remarkable achievement given the company we were in. This is an incredible endorsement from an internationally recognised and sought-after awarding body. We believe this benchmark and the illustrious company we find ourselves in, further establishes our unwavering commitment to Safety, Health and Environment. We have always been proud of our industry-leading health and safety record, but this has become even more integral to expectations post the coronavirus pandemic. Although this was a safety award, the obvious input and teamwork from all teams within the business made this possible. Our thanks go out to all teams across the business who continue to make achievements like this possible.” Last month three Mobile Mini UK sites, North East, North West and South Wales, achieved Merit safety from the British Safety Council. Recognisable businesses to have successfully obtained passes, merits or distinctions previously include the likes of BAE Systems, GlaxoSmithKline, Sodexho, Kier, Wilmott Dixon and Volker. Congratulating Mobile Mini on their award, Mike Robinson, Chief Executive of the British Safety Council, said, “The long list of winners of the International Safety Awards shows that an increasing number of companies are embracing the management of health and safety risks as an enabler of business, benefiting people, companies and society but none more so than Mobile Mini UK, as an overall highly commended winner. The team has shown a true alignment with the vision of the British Safety Council that no one should be injured or made ill through their work – anywhere in the world. My warmest congratulations to Mobile Mini UK as overall 2021 Team of the Year winner, you should be truly proud of your achievement.”
Work has started on a £16 million affordable housing scheme in Doncaster. The development of 126 homes will be delivered by Esh Construction in partnership with Together Housing Group, which also owns and manages Lakeside Rise in the town, and Housing 21. Together Housing will take ownership of 56 two, three and four-bedroom homes and 10 two-bedroom bungalows for affordable rent, all of which will benefit from front and rear gardens and parking facilities. Housing 21 will take ownership of 58 apartments in a three-storey retirement living scheme, and two bungalows. Located off Highfield Road, Askern, the development meets an identified housing need in the district whilst the retirement living element will meet the requirements of an ageing population. The neighbourhood will be focused around extensive public open space, with the design including footpath links to the surrounding community. A Sustainable Urban Drainage scheme will also be implemented at the development. Steve Close, Chief Executive at Together Housing Group, said: “Building much needed new homes is one of our key aims at Together Housing and it’s great to see this development underway in Askern. “Working with our partners, we are helping to provide high quality affordable rented housing in the area. From the bungalows to the four-bedroom houses, these new homes combined with the retirement living scheme will meet the needs of all residents.” Paul Crosland, Construction Project Manager at Housing 21, said: “Housing 21 is a leading provider of Retirement Living and Extra Care for older people of modest means and we are excited to be working together with Esh Construction, Doncaster Council and Together Housing Group to offer further Retirement Living in Doncaster. “This latest development will provide people over the age of 65 with choice and control over their living arrangements as residents will benefit from having their own front door while having access to communal facilities, such as lounge and garden, offering a safe and secure place to call home.” Stuart Leslie, Divisional Director at Esh Construction, said: “The scheme at Highfield Road represents the largest land led development we have on site at present, and is testament to a huge combined effort from everyone who has been involved from the very early stages. “Esh has a strong portfolio of successfully delivering high quality affordable housing and extra care developments across the region, and we look forward to working in partnership with two of our valued clients, Together Housing Group and Housing 21, to bring much needed new homes to Doncaster.”
Commercial property management specialist, NSM, has been appointed to manage three North West industrial assets. The three developments were acquired by client, Network Space last month. They include: Newfield Industrial Estate in Tunstall, Stoke on Trent, a 125,000 sq ft multi-let industrial estate which is occupied by 20 businesses including global corporate Air Liquide and a number of successful local companies. The 28-acre Sovereign Distillery which provides 446,151 sq ft of commercial space in Huyton, Liverpool A prime 11.4 acre site on Atlantic Street in South Manchester offering 220,000 sq ft of industrial warehouse space with redevelopment opportunities. NSM operates from offices in St Helen’s and Doncaster and will help the landlord maximise the value of the properties and their return on investment, as well as managing the day to day running of the estate and rent roll. Nicky Jones, Managing Director of NSM, said: “These are three significant sites across the North West and will ultimately bring almost a million sq ft of new property for the team to manage. As some of the sites offer refurbishment and redevelopment potential we will build strong relationships with the existing tenants to effectively manage that process.” NSM has continued to collect over 95% of all rents billed since lockdown commenced, working closely with tenants to provide support and advice about Government initiatives as well as managing staged payments. The company’s investment into its Spaceman platform has shown how vital proptech can be in ensuring every member of the team can deliver effectively regardless of the pandemic challenges, with all information about every project live at the touch of a button.
In April 2021, contract awards increased by 58% compared to March to £9.1 billion. This level of activity was last seen in January 2020. The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain. Sector analysis shows that residential contract awards increase again in April to £2.5 billion, up from £2.0 billion in March. A strong performance for infrastructure, with total value of contract awards reaching £2.1 billion, the first monthly value over £2.0 billion since January 2020. And the industrial sector activity sees the second highest monthly value on record of £1.2 billion in April, driven once again by warehousing. Commenting on the figures, Tom Hall, Chief Economist at Barbour ABI and AMA Research said, “Building on the improvements in the planning environment we reported in March, April saw a bumper month for contract awards of £9.1bn. This is the highest value since January last year. All sectors apart from healthcare saw sizeable monthly increases to well above their long-term average values, particularly the infrastructure and commercial sectors. A year on from the start of the Covid-19 pandemic we have finally seen a value that starts to recover some of the lost ground. However, a fall in April’s planning approvals back to previous levels seen over the second half of 2020 may demonstrate that the uncertainty plaguing the sector has not fully cleared. We require a sustained increase over a period of time to fill the weak construction pipeline.” Download the full report here: https://www.barbour-abi.com/zones/2103032-Snap-Analysis-May-Output-File-v2.pdf
UK construction’s demand for big-volume mineral products like aggregates and concrete showed resilience in the first quarter of 2021, despite renewed lockdown restrictions, Brexit and particularly wet winter weather hampering activity. That’s according to the latest survey from the Mineral Products Association (MPA) which warns that an encouraging start to the year should not distract from real challenges that lie ahead. MPA says the recovery in construction must not be taken for granted because so much depends on the Government’s policy stimuli in housing and its delivery of the UK’s planned infrastructure programme. ONS data shows that construction output has flatlined since September, whilst new contract awards have been weak for most of the past year. Whilst broadly positive, trends in sales volumes for essential mineral products show mixed results for heavy-side building materials such as aggregates, ready-mixed concrete, asphalt and mortar. These core products are mostly used in the early stages of construction — for example foundations and structures — so their sales provide a unique barometer for the start of new projects rather than the completion of finished ones. In the latest MPA survey, building materials manufacturers who between them supply around 1 million tonnes of mineral products every day reported a slow but steady start to the year, with construction demand in March much stronger than in January. Sales volumes for primary aggregates and ready-mixed concrete increased by 3.4% and 1.6% respectively in the first quarter of 2021 compared to the last quarter of 2020, but both asphalt and mortar sales volumes declined over the quarter, down 4.9% and 7.4% respectively. Robust housing activity, particularly in landscaping and home improvement, and an acceleration in infrastructure work driven by Highway England’s roads programme and HS2, were tempered by a combination of factors, including supply chain disruptions, rising Covid-19 infections and a particularly wet winter affecting work on site. Longer-term, recovery for asphalt is supported by renewed momentum in roads construction and maintenance, and market demand has rapidly recovered to pre-pandemic levels. At the start of the year, total sales volumes for asphalt were significantly higher than their previous 5-year average (2014-19). Likewise, sales volumes for crushed rock aggregate have also been recovering well, boosted by roadworks and HS2, which are driving demand for asphalt and bulk fill materials. The trend for housing-led mortar demand is more ambiguous and producers continue to report uncertainty on the outlook for new housing this year. Mortar sales volumes remain well below pre-pandemic levels and longer-term data indicates that, regardless of the pandemic, mortar demand has been on a steady downward trend since mid-2018. Despite all the talk about recovery, this suggests that housing activity remains dominated by the completion of existing sites ahead of the planned phasing out of the stamp duty holiday and ’Help to Buy’ deadlines, rather than the start of new ones. Volatile new housing contract data in the past year and a subdued overall number of new residential units in the pipeline are expected to weigh on the potential recovery in mortar demand this year. More concerning is the weak recovery path for ready-mixed concrete, held back by a combination of sluggish new housing activity and a lack of new projects in commercial construction. Over 60% of ready-mixed concrete is used either in new housing or other non-infrastructure projects, mostly in commercial buildings, with London and the South East representing a third of all sales. The total sales volume of ready-mixed concrete at the start of the year remained over 9% below the previous 5-year average, despite three consecutive quarters of growth since last year’s initial lockdown. Looking further back, ready-mixed concrete sales have been subdued since 2017, initially impacted by Brexit-related uncertainty which slowed private sector investment in the commercial sector and triggered a general slowdown in housebuilding. This suggests that the market recovery so far is really just a slow-motion return to growth from a subdued level of activity that pre-dates Covid-19. Aurelie Delannoy, Director of Economics Affairs at the MPA, said that a balanced perspective is required: “Mineral products manufacturers are busy supplying post- lockdown pent-up demand, particularly for domestic activity such as landscaping, repair and maintenance, and home improvements, as well as infrastructure projects already in the pipeline, including momentum building on HS2.” “The outlook for this year and next is also positive, but the stakes are high. Any optimism assumes activity is not disrupted by renewed outbreaks of Covid-19, and most importantly, relies on the Government delivering on its planned infrastructure commitments. MPA members tell us they are yet to see a more clear-cut pick-up in new housebuilding, whilst any recovery in commercial development is expected to remain muted given the current reticence for major new investments.” Nigel Jackson, CEO at MPA, added: “For many of our members, enquiries have been at record levels with some consequential issues relating to haulage availability as well as temporary, localised supply constraints on some products. Brexit-related import delays for spare parts, new lorries and some machinery are also posing a challenge,. Our members are having to adapt quickly to changing market conditions but are generally managing to meet current demand whilst also preparing to ensure future supply. For an industry that is supplying over 1 million tonnes of essential products every day and is the largest supplier to construction, it would be surprising if there were not short-term issues of supply as the economy gathers momentum.” Figure 1. Mineral products sales volumes in Great Britain Table 1. MPA sales volumes in GB: change on the previous period (seasonally adjusted) Note: Ready-mixed concrete includes sales from both fixed and site (mobile) plants. Source: MPA, ONS.