Following on from the recent success of Breedon Aggregates in increasing profits by almost 50% last year, in addition to the company’s potential acquisition of Hope Construction Materials, it has been announced that the organisation’s Chief Executive, Pat Ward clearly sees continuation in the brand’s success, procuring some 150,000 shares
As a continuation of the company’s declaration to both encourage and promote innovation for the benefit of the customer, Travis Perkins has gone out of its way to highlight some of the most prominent issues, or “headaches” currently prevalent in the industry. As for the concepts themselves, it is reported
In recent years, insulation has accelerated in importance for contractors and consumers alike and is amongst the most rapidly growing sectors in the industry. Despite an uptake in business, techniques and solutions have been proportionately slower to progress. Systems have remained unchanged for decades and with the increase in activity,
Buildbase: The Tradesman’s Supermarket (The Following is a Promoted Article) Of the challenges facing regional tradesmen, the sheer complexities of building a well established supply chain is often almost as daunting a concept as the job itself. Not only do smaller contractors struggle to find the right supplier for the job,
In recent construction news it has been reported that an increased move towards urbanisation, as well as improvements seen in the wider construction industry, may yet see a notable degree of growth within the concrete fiber market. Highlighted in a report by Transparency Market Research, the report effectively highlights those
A worrying statistic; it has been reported that aggregate reserves are being used up at a notably faster rate than permission is being granted for the development of new quarrying capacity – a warning by the Mineral Products Association (MPA) of a tip in the scales of supply and demand
Increasingly, all aspects of the supply chain are facing increased pressured to act with responsibility and sustainability always at the fore. As such, many construction contractors, service providers, designers, architects and even material suppliers are being faced with conditions for work relating to the approach that they take to minimising
For the final quarter of last year it has been reported that, surprisingly, tender prices have remained unaffected since the quarter coming previously, yet prices have been reported to sit 5.4% higher than they were on year previously. These figures a yearly inflation of prices which sits at almost half
Although the overall rate at which the sales of construction-related products is increasing has slowed down, the overall sales figures of such products are still on the rise for the eleventh year running, says a report by the Construction Product Association. The report highlights that over the final four months
As we move towards a more sustainable economy, our goals have rightly shifted, as has our long-term ambition. With the latest development in window technology revealing the potential to cut cleaning costs and a reduction in heating bills, it is unsurprising to see builders, architects and estate managers eagerly eyeing
Following on from the recent success of Breedon Aggregates in increasing profits by almost 50% last year, in addition to the company’s potential acquisition of Hope Construction Materials, it has been announced that the organisation’s Chief Executive, Pat Ward clearly sees continuation in the brand’s success, procuring some 150,000 shares in the company at a rate of 70p – a deal which is heralded as quite a safe investment given the company’s recent, and predicted success. The move signifies Pat Ward’s first investment made into Breedon Aggregates, which will complement the vast number of shares he has recently been presented with as part of the group’s performance share plan; a total of 709,219 shares being provided to Pat Ward, 531,914 shares to Chairman, Peter Tom, and 425,531 shares provided to Finance Director, Rob Wood. Now, more than ever, certainly seems like a good time to invest into Breedon Aggregates, with predictions seeing the company grow almost twofold should the acquisition of Hope Construction Materials follow through. And while the deal is presently facing concerns as to reduced competition in the mixed-concrete market, it would seem that Breedon Aggregates had already foreseen this and may be prepared to sacrifice a portion of its concrete production capacity to enable the deal to continue. Should the deal continue, it is expected that Breedon Aggregates will become something of a powerhouse in the industry and, while regulation will require the company to downsize somewhat to maintain a level of competitiveness in the wider industry, this will still see Breedon Aggregates maintain a sizeable share in the market for the production of mixed-concrete. Also with Hope Construction Materials only recently launching its very own, branded range of product, the company may very well see the acquisition of a very strong product portfolio from Hope Construction Materials which will only cement the company’s future prosperity in the market for mixed-concrete products.
As a continuation of the company’s declaration to both encourage and promote innovation for the benefit of the customer, Travis Perkins has gone out of its way to highlight some of the most prominent issues, or “headaches” currently prevalent in the industry. As for the concepts themselves, it is reported that they became apparent upon Travis Perkins conversing with a mixture of industry manufacturers, housebuilders, contractors and members of staff. Of the key gripes, the weather in the UK was noted to be one of those challenges shared by many individuals across the sector. Notoriously poor weather has always been something of a gripe for the UK as a whole, but within the construction sector it is something to which many organisations attribute a degree of their construction delays, the reduced effectiveness of some building products, and a deprecation of working conditions and overall productivities. It’s of no real surprise that another of the key areas highlighted was health and safety, being something that presently places more limiters on what can be done more than any other construction concept. Incorporating areas such as working from heights and the use of heavy equipment and materials, the potential for injury within the construction sector has always, and perhaps always will be something of an annoyance to the industry itself. As has also been reported, the skills shortage was also highlighted as one of the other key areas of challenges, which has placed severe brakes on the continued growth of the sector; this also being something very difficult for the average SME to be able to overcome without dedicating a great deal more attention to community engagement and recruitment strategy. Travis Perkins’ Group Strategy Director, Norman Bell commented: “This is a golden opportunity for those in construction who face daily problems that are a barrier to progress and profit, as well as for creative minds that want to make a difference to a vital industry sector.”
In recent years, insulation has accelerated in importance for contractors and consumers alike and is amongst the most rapidly growing sectors in the industry. Despite an uptake in business, techniques and solutions have been proportionately slower to progress. Systems have remained unchanged for decades and with the increase in activity, as well as the increasing use of poor quality timber in the process, something has to change in order to prevent a future of failures. Introducing pioneering best practice to a sector of renewed interest, Swifix offers ground-breaking new possibilities in the way of efficiencies and cost reductions. Swifix made its entry into marketplace at the end of 2015 and, with its revolutionary range of insulation products, has ambitions to invoke sector-wide change. Where insulation would ordinarily be interrupted by external fitments such as washing lines, downpipes, lights, alarms and outdoor taps, signage, canopies, the company presents the opportunity for 100% building insulation– and at a fraction of the cost. Millions of UK properties can benefit from insulation renewal and thousands are upgraded on a daily basis. At present, the process currently involves stripping every fitting from the exterior, and fitting large blocks of timber in order to be able to replace fixtures with a screw. The use of timber instantly compromises the insulation system and introduces areas of weakness, thereby preventing maximum gains in efficiency. As Paul Brown, Managing Director of Swifix continues, “As soon as you incorporate timber into the system, you’re effectively introducing an alien, unnecessary product. Coupled with inappropriate timber being used due to costs and the insulation process has the potential to cause long-term system failures, putting customers at financial as well as health and safety risk. Though it’s been best practice in the sector for quite some time, that’s purely because there has never been a commercially suitable alternative.” That alternative however has now arrived, and Swifix suite of products have been designed and engineered so as to be installed in conjunction with external or solid wall insulation, and are there- fore capable of making a structure completely water-tight. Alongside maximum thermal efficiency and the accompanying savings on annual fuel bills, clients are also provided the assurance of a product which is long-term, non-degradable and flexible to repair and maintain. Brown is keen to stress the advantages of such: “One of our target markets is social housing, and those properties require much more in the way of maintenance and repair. If somebody wants to fit something to the property three days, three weeks, or three years down the line, Swifix products provide the flexibility to do so without compromising on the integrity of either the structure or insulation.” Of course, beyond a product being more technically-capable, it must be financially viable, and cost remains a motivating factor for both domestic and commercial property-owners. As well as the long-term cost advantage of increasing energy efficiency, Swifix’s installation products are also far cheaper at initial investment; for a typical, three-bedroom, semi-detached house, using the Swifix range would provide savings of up to 20% as opposed to the use of timber, and over a 100% against alternatives currently on the market. The products in scale therefore provide critical competitive advantage for main contractors and developers. Having currently gained approval and recommendation from 14 of the UK’s largest system manufacturers and secured the backing of the both National Insulation Association (NIA) and Insulated Render and Cladding Association (INCA), Swifix has high aspirations for the future. Determined to ‘re-define best practice’ in an industry of phenomenal growth, the company is encouraging businesses to embrace change and enjoy guaranteed results. and savings.
Buildbase: The Tradesman’s Supermarket (The Following is a Promoted Article) Of the challenges facing regional tradesmen, the sheer complexities of building a well established supply chain is often almost as daunting a concept as the job itself. Not only do smaller contractors struggle to find the right supplier for the job, but with the inability to demand economies of scale and a lack of support in finding the right products for the task at hand, comes a situation in which contractors are unable to focus on what it is that they do best. But this is where Buildbase comes in, offering a simple and effective source for everything required by the modern tradesman. Established in the UK some 20 years ago, Buildbase, part of the Grafton Group, the UK’s third largest builders merchanting business, has an unrivalled offering of everything the modern-day building contractor could hope for. Electricbase, Hirebase and Plumbase sit alongside Buildbase in the Grafton merchanting portfolio of businesses, enabling tradespeople to access the full range of building materials. The core of the Buildbase range is, as is to be expected, standardised building products, however Buildbase differentiates itself by being the only national supplier of the whole package of these products, combined with that of a comprehensive range of electrical goods – something which keen competitors have yet to fully develop. Additionally, Buildbase also has a national hire business, boasting 120 sites across the country where customers are able to hire whatever they may need. Understanding that individuals are, in general quite “time poor”, Buildbase presents itself as a one-stop-shop, an easy and simple solution for sourcing any supplies for the task at hand. As Kate Tinsley, Managing Director of Buildbase explains: “We can essentially build a house from the ground upwards, with every single thing you can see in that house, provided here, by us. Whatever the build contract is, Buildbase can support with a complete materials offering. They can find everything they need in one place, reducing time and money spent driving around to negotiate prices with different sources. Instead, they simply come straight to us and do it all in one go.” The Buildbase range is consistently being updated, not only to incorporate new products, but also to ensure that everything on the shelves is fit for purpose. While customer and market research do play a vital role in this process, Buildbase equally regards the importance of direct customer feedback and liaison with customers on a day-to-day basis. Through straightforward communication, Buildbase team members pursue an initiative-led approach to better understanding customer needs and effectively finding ways of making it as easy as possible for tradesmen to complete the jobs which they are currently working on. Key to this ethos is, as one would expect, the economies of scale that Buildbase can offer its customers. This is achieved by offering customers the weight and breadth of Buildbase, as well as of the Grafton Group, in getting the best value, fit for purpose products on demand. As Kate Tinsley furthers: “We leverage everything powerful that comes with being part of a national company. This mostly comes down to the suppliers, but is also about making sure the people at the front-end of our network are agile and responsive to customer needs. It’s effectively like being a local merchant but with the national leveraging behind it.” Yet it isn’t simply a case of supplying to the requirement of the customer, as Buildbase understands it. Due to the sheer experience and understanding of the wider industry, Buildbase simultaneously toes the line of offering a responsive needs-based service, whilst also providing an advisory role in both specification and the best products for the job itself. And this level of support is essential for many an SME, where tradesmen may have ambitious designs or challenges to meet, but require something a little above and beyond the bare provision of product and, in this instance, Buildbase is able to step up to the challenge and work alongside the customer to assess the commercial viability of a project as well as the various areas which must be covered over the course of the project itself. “One of the big differentiators between us and our competitors is that our staff have extensive product knowledge and, as experts, we can offer advice where required. We also offer an estimating services and so, people can bring in their building plans and we can advise on how much that might cost from a project perspective,” enthuses Kate Tinsley, nodding to the support offered to tradesmen through simple, yet effective communication. It is, however, not solely on this side of the fence that truly defines Buildbase. Kate Tinsley adds: “We work really closely with key suppliers,, partnering with them and taking new product suggestions. Additionally, we’re in constant communication and we’ll feed back customer thoughts and responses to their products too – in this industry you have to work closely with the manufacturers as ultimately they are the ones with the intimate product knowledge that can often be required by our customers.” On both sides, it is the expertise of Buildbase’s team that makes all of this possible. Unlike many keen competitors who do indeed offer a friendly service, Buildbase’s offering is one whereupon each and every member of the team is qualified and experienced enough to offer targeted, project-specific advice and consultation. This approach is not only backed by extensive training programmes for the team, but also through a keen recognition of the importance of this service and the motivational support required to ensure that each and every member of staff is both ready and able to provide for the customer as best as can be done; effectively, as Buildbase understands it, it is a case of developing relationships in an industry where trust is paramount. Providing her personal thoughts and drive behind the Buildbase approach to people, Kate Tinsley explains: “I try to push engagement with our people. It’s very much a relationship-driven industry and if we
In recent construction news it has been reported that an increased move towards urbanisation, as well as improvements seen in the wider construction industry, may yet see a notable degree of growth within the concrete fiber market. Highlighted in a report by Transparency Market Research, the report effectively highlights those areas within which the success of the market depends upon, not solely for today, but into the future (2016 to 2023 most specifically). Most commonly used to manage cracks occurring as a by-product of ventilation shrinkage and the reduction of plastic, concrete fibers represent one of the most favourable reinforcement materials as a direct result of the physical, and chemical attributes held within. In particular, concrete fibers are reported to offer a high degree of resistance, stability and the overall strength of the material as a result of its particular environmental, chemical, mechanical and optical attributes. In the report, a degree of expansion has been predicted in the coming years, with the aforementioned reasoning sitting behind this. Additionally, reduced boundaries to entry in the sector has also seen an increasing competitiveness in the industry, with new industry players popping up to serve the specific requirements of smaller development projects; something to which a degree of growth thus far can be attributed. As to where the emerging markets for concrete fibers lie, Asia Pacific has been highlighted as one of those markets enjoying a great deal of growth, with the areas having enjoyed some 40% of the global market back in 2014. As such, there are great hopes and expectation for further growth within this market, amongst others, in the times to come. Whether the market will indeed fall in the line with the predictions made is, as always, uncertain, however the positive outlook portrayed by Transparency Market Research is to which organisations in the sector may find hope in, with the potential to benefit from renewing market confidence levels and growth out of the recession.
A worrying statistic; it has been reported that aggregate reserves are being used up at a notably faster rate than permission is being granted for the development of new quarrying capacity – a warning by the Mineral Products Association (MPA) of a tip in the scales of supply and demand for key construction materials. The warning of the supply and demand situation was showcased in the MPA’s Annual Mineral Planning Survey, which covers the period up to the close of 2014, incorporating data submitted by the association’s members from around the UK. As the construction industry as a whole recovers, with increasing workloads and developments coming to the fore, so too has the demand for aggregates. Yet, whilst this would seem like a very positive result for key aggregate suppliers, dwindling reserves and the inability to develop further capacity quickly enough may prevent suppliers from truly taking advantage of the surge in demand. As such, the MPA has urged local authorities to reassess mineral plans and hasten the planning process for new capacity. Other key areas aside from aggregates in a similar situation include the supply of sand and gravel. Shockingly, it was actually reported that reserves are being used at a rate two times as high as the new capacity is being facilitated. And while crushed rock is a material being superficially restocked, it has been argued that this simply acts as a shroud over the lack of replenishment seen across other key construction materials. Yet, it has been argued that it isn’t a case of an actual lack in the availability of raw materials, but simply ineffectiveness in the arrangement of mineral plans. Nigel Jackson, Chief Executive of the MPA commented: “With over half of new permissions being for sites that have not yet been allocated in mineral plans, it is clear that the plan led system is not providing the certainty that it should.”
Increasingly, all aspects of the supply chain are facing increased pressured to act with responsibility and sustainability always at the fore. As such, many construction contractors, service providers, designers, architects and even material suppliers are being faced with conditions for work relating to the approach that they take to minimising their environmental impacts, as well as providing sustainable solutions for clients so as best to support the future growth of the sector. Whilst, to some degree, this is seeing many organisations make a clear push towards effective corporate social responsibility (always a good thing), the most notable achievement is the ever-increasing emphasis placed on the effective utilisation of local labour, contractors and increasingly, suppliers. Whilst many construction companies do indeed have a list of dedicated suppliers for key materials, subcontractors and specialist services, it is increasingly being seen that many projects will maintain a healthier balance of those contractors involved, with a clear mixture of national and local supply chain partners. What this effectively means is that, whilst national supply chain partners are still, in effect prospering, the doors yet remain open for smaller, local businesses who wish to engage in incredible feats of construction. Beyond face value, this not only means that local businesses are able to access more areas of work, should they pursue it with the right contractor, but it also gives such businesses the chance to work on key local developments which may form a part of the communities within which they work. Additionally, as is usually the case with smaller supply chain partners, a keenness to impress main contractors has also been observed which, firstly has helped to support the delivery of high quality works and services yet, secondly also allows for easier relationship development between main and sub contractors who recognise the need to make an impression on any and all works which they secure.
For the final quarter of last year it has been reported that, surprisingly, tender prices have remained unaffected since the quarter coming previously, yet prices have been reported to sit 5.4% higher than they were on year previously. These figures a yearly inflation of prices which sits at almost half the value we’re used to, giving a positive indication of effective workload management at leading contractors despite surging amounts of work – a clear highlight of how well the industry is starting to perform. The report, put together by the BCIS, highlights its predictions of tender pricing increasing by some 3.3% over the course of the upcoming year, with further increases of 4.5-5.5% each year thereafter up to 2020 (perhaps even further). Additionally, it has been reported that the prices for materials actually fell by some 1.1% in the penultimate quarter of last year when compared to the quarter previous, with it coming in at 2.3% on a yearly basis. This has been perceived to be countering inflation of 1.1% during the same quarter of last year, and can be partially attributed to the sudden fall in crude oil and steel billet prices which will have contributed to the fall in material pricing. Yet, despite the recent fall in pricing, it has been estimated that the yearly rate at which pricing for materials will change will sit at around 2% by the final quarter of the year, then surging to circa 4% year-on-year for the next four years. Also, wages have been predicted to grow by 3-4% year-on-year for the next five years, with input costs expected to match this same rate of growth. This also sits well alongside the expected growth to be seen in new work output, which is expected to persist with its present growth rate and hit around 4% growth for this year, 3% next and back up to 5% by 2020.
Although the overall rate at which the sales of construction-related products is increasing has slowed down, the overall sales figures of such products are still on the rise for the eleventh year running, says a report by the Construction Product Association. The report highlights that over the final four months of 2015 overall sales have risen at a slowed rate than previously, yet manufacturers of such products still remain very positive as to the future of the industry over the course of 2016. Another positive aspect of the report was that many UK manufacturers have, in fact noticed a notable reduction in costs associated with energy, fuel and even on the exchange rate. However, on the flip side, the costs associated with staffing organisations has been noted to rise somewhat, which, while a very positive figure for employees in the sector, will also be reducing the benefit employers are seeing from the decreased operational costs. As Rebecca Larkin, Senior Economist for the CPA explains, the figures do highlight positive growth for construction-related products yet, with regard to heavy manufacturing, the figures actually highlighted the lowest balance within a quarter over the past 3 years. She commented that this: “Echoes weakness in overall construction output data for the closing months of last year.” Yet, those operating within the sector do seemingly remain confidence of its success. One of the key factors to which we can attribute the lessening of energy prices is the oft-reported fall in oil pricing around the world, which has greatly assisted manufacturers in maintaining commercial growth despite relatively shaky economic climate. With regard to the change in employment costs, the rise in pay did not, in fact show up the figured expected by inflation and recognition for performing employers, but the widely-reported skill shortages have acted as a catalyst for employees demanding increased wages which have consequently increased bills.
As we move towards a more sustainable economy, our goals have rightly shifted, as has our long-term ambition. With the latest development in window technology revealing the potential to cut cleaning costs and a reduction in heating bills, it is unsurprising to see builders, architects and estate managers eagerly eyeing the true benefits of “smart windows”. Believed to be on track to hit the market within five years, University College London (UCL) has produced a prototype that confirms three major benefits. Firstly, the windows offer “self cleaning”. It accomplishes this by being ultra-resistant to water, the material making any moisture hitting its surface form spherical droplets that roll away. As they do so they pick up dirt along the way, removing dust, debris and other contaminants. This is achieved through a conical design; a pencil-like nanastructure etched on the glass which enhances the smart window’s abilities by trapping air and thus allowing only a small amount of water to settle on the surface. This is in comparison to traditional glass which allows rain to settle on the surface and stay there, leaving streak marks as it rolls away. Crucially, the glass also saves energy. Utilising a tiny layer of low-cost vanadium dioxide the glass is capable of stopping thermal radiation from escaping during cold periods preventing heat loss. Meanwhile, when the season changes, the glass stops sunlight radiation penetrating the building. The value and size of vanadium dioxide makes it ideal and a better, more sustainable option over other glass coatings like silver or gold based layers. UCL believes it will enable the glass to help reduce heating costs by up to 40%. In addition, the structure offers anti-glare capabilities – dramatically cutting light reflection internally – that has been estimated to have the anti-reflective capabilities of moths and such creatures that have evolved to evade predators. Dr Ioannis Papakonstantinou, UCL project leader, noted the innovative characteristics of the smart window calling the product a “self-cleaning, highly performing” piece of technology. Discussions are currently underway with glass manufacturers in the UK. Key ambitions going forward involve scaling up the nano-manufacturing methods.