100 days on: Iran conflict creates a different challenge for construction than previous global shocks
One hundred days after the outbreak of conflict in Iran, the UK construction sector is facing mounting pressure from rising energy costs, persistent inflation and weakening demand, according to analysis by the Building Cost Information Service (BCIS). While the conflict initially impacted commodity markets, its effects are now spreading more widely through the economy, creating challenges for construction firms, clients and investors alike. Dr David Crosthwaite, BCIS chief economist, said: “The conflict is no longer simply a commodity market story. The longer it continues, the more its effects are spreading. “Construction is being affected through multiple channels simultaneously. Higher energy costs are increasing pressure on supply chains and materials, while inflationary pressures and uncertainty around interest rates are weighing on confidence, investment decisions and demand. “What makes the current situation unusual is that the industry is experiencing rising cost pressures at the same time as activity is weakening. Previous shocks have often been characterised either by strong inflationary pressures or weak demand. Today we are seeing both forces at work simultaneously.” The most immediate impact has been through energy markets. Brent crude oil has remained above $100 per barrel since mid-March, while natural gas prices have also remained elevated. This has increased transport, logistics and manufacturing costs across the construction supply chain. Provisional data from BCIS work category indices show that DERV (diesel engined road vehicle) fuel prices were 38% higher in April 2026 than a year earlier, adding pressure to plant operation, distribution and wider construction logistics costs. At the same time, key construction-related commodities have experienced significant price increases. Aluminium prices, for example, rose from $2,967 per tonne in early January to $3,769 per tonne by late May, approaching levels seen during the Russia-Ukraine conflict. The BCIS aluminium windows and doors work category index increased by 14% between April and May. The wider economic implications are becoming increasingly significant. Although UK inflation eased in April, BCIS expects inflationary pressures to remain elevated for longer as higher energy, transport and import costs continue to feed through the economy. Financial markets have also shifted their expectations for interest rates, with the prospect of lower borrowing costs becoming increasingly uncertain. Earlier expectations for construction growth have also weakened as uncertainty around inflation, interest rates and economic growth has increased. Residential construction is expected to be among the sectors most exposed to these pressures due to its sensitivity to mortgage rates and consumer confidence. Dr Crosthwaite said the current situation differs from previous global disruptions affecting the construction sector. He said: “During the height of the Russia-Ukraine conflict, significant cost inflation was accompanied by relatively strong demand conditions, enabling higher costs to feed through more readily into tender prices. “By contrast, the current conflict is unfolding against a backdrop of weaker economic growth, subdued construction activity and declining confidence. It also differs from the Red Sea shipping disruption, where impacts were more heavily concentrated on logistics and freight.” This tension between rising costs and weaker demand is also reflected in feedback from the BCIS Tender Price Index (TPI) Panel in 2Q2026. The panel, which comprises practising cost consultants from firms involved in multiple tenders across the UK, reported cost pressures in energy-intensive materials. Several respondents highlighted rising steel prices linked to geopolitical tensions and trade measures. Petroleum-derived products such as PIR insulation, PVC and roofing materials are also expected to see upward pressure. Dr Crosthwaite added: “Weak construction demand and material surpluses have limited the extent to which some increases have fed through into project costs, with mixed evidence of price rises in tender returns. This suggests that competitive market conditions are continuing to constrain the extent to which higher costs are reflected in tender prices. “The longer the conflict continues, the greater the risk that higher energy and commodity costs become embedded throughout supply chains. The key question for the industry is not whether rising costs will affect tender prices, but how far those pressures can feed through in a market where demand remains so weak.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Burges Salmon advises on £199m Tritax Big Box asset sale
Independent UK law firm Burges Salmon has advised Tritax Big Box REIT plc, one of the UK’s leading listed investors in high-quality logistics real estate, on the completion of a £199 million sale of a portfolio of six logistics assets. The deal forms part of the FTSE100 logistics real estate investor’s strategy to recycle capital and increase investment in higher-growth opportunities across its development pipeline. The disposals comprised big box and urban logistics assets located at Leamington Spa, Peterborough, Didcot and Kettering. The assets generate total contracted annual rent of £12 million. Burges Salmon provided legal advice to Tritax Big Box throughout the transaction, supporting on all aspects of the sale process. The Burges Salmon team advising on the transaction was led by Ross Polkinghorne with support from Jonathan Cantor, Gregory Nash, Ceren Ghanem (corporate real estate), Alexander Clayton, Matt Sims, Jess Garner, Emma Everett, Megan Long and Kate Davies (real estate), Matt Tucker (planning), Christian Mulhilvill (construction) and Hilary Barclay and Jess Chesterfield (real estate tax) Bjorn Hobart, Investment Director at Tritax Big Box, comments: “We are pleased to have completed this £199 million transaction with EQT Real Estate, with the proceeds enabling us to invest in higher-returning development opportunities while further strengthening our financial position. The Burges Salmon team provided clear, commercially focused advice throughout and were a pleasure to work with.” Ross Polkinghorne, Partner at Burges Salmon, adds: “We are pleased to have supported Tritax Big Box on this significant portfolio sale. The transaction highlights the enduring attractiveness of prime logistics assets and the sophistication of investors operating in this space. Working closely with the Tritax Big Box team, we were able to deliver pragmatic, solution-focused advice to help achieve a successful outcome.” This is the latest of a series of deals that the Burges Salmon’s real estate team have advised Tritax Big Box on – the last being the £1b+ acquisition from Blackstone last year which helped to promote Tritax to the FTSE 100. Building, Design & Construction Magazine | The Choice of Industry Professionals
Roofing apprentices say mentor support is key to building confidence in the trade
Roofing apprentices are opening up about the role that mentor support plays in building their confidence, enhancing their skills, and helping them progress within the trade. The insight comes from applications submitted to the 2026 BMI UK & Ireland Apprentice of the Year competition, which this year received a record number of entries from apprentices. Among the 68 applicants across pitched and flat roofing categories, more than two-thirds (68%) said they would first turn to a mentor, manager or experienced colleague when faced with a challenge on site, highlighting the importance of day-to-day support in helping apprentices develop both technically and professionally. “I feel very confident and comfortable asking the people I work with,” one applicant shared, emphasising the vital role mentors play in apprenticeships. “I always ask my manager or others on site for help.” Another apprentice added: “I feel lucky, my boss is always happy to show me what to do and teach me new things. I know I can always ask for help in my company.” The findings suggest that apprentices prefer learning the trade through peer-to-peer interactions, alongside formal training routes, particularly when developing confidence on-site and learning to handle real-world challenges. When peer support is unavailable, 20% of applicants indicated they would turn to free online resources, including Instagram, YouTube, and manufacturer-led content to learn from other skilled professionals. This suggests that practical learning, whether in person or online, is still highly valued in the trade, especially given the ongoing concerns about skills shortages. “As a young person, I use YouTube to see if I can gain any knowledge there,” explained one apprentice. The findings come at a time when the roofing industry continues to face significant recruitment and retention challenges. According to the National Federation of Roofing Contractors (NFRC), the UK will need an additional 3,800 roofers by 2029. However, current training routes are projected to deliver only 1,550, resulting in a shortfall of over half. Completion rates further compound this issue. The latest ‘Apprenticeship Gap Report’ reveals that the completion rate for roofing apprenticeships is just 28%, the lowest among construction trades, meaning nearly three in four roofing apprentices do not finish their training. Several applicants also expressed ambitions to progress into leadership positions or eventually establish their own roofing business, reflecting the long-term career aspirations emerging across this year’s cohort. The findings suggest strong workplace support and positive site cultures could play an important role in supporting these ambitions and improving retention within the industry. Stuart Farnell, Lead Technical Trainer at BMI Academy, said: “What stands out from this year’s applications is how much apprentices value having experienced people around them who are willing to support, teach and share their knowledge on site. “Technical training is essential, but confidence, encouragement and practical guidance also play a huge role in helping apprentices develop successful long-term careers in roofing. Creating supportive environments where people feel able to ask questions and continue learning is incredibly important for the future of the industry.” The final of the Apprentice of the Year competition will be held on July 22nd and 23rd, 2026, at the BMI Academy in Gloucestershire. To find out more about the event or training courses provided by the academy, visit: https://www.bmigroup.com/uk/bmi-academy/?utm_source=PR&utm_medium=Release&utm_campaign=Insights&utm_id=insights Building, Design & Construction Magazine | The Choice of Industry Professionals
Quarry on driving down emissions: Certas Energy HVO set to power official shuttle buses at UK’s biggest quarrying, construction and recycling exhibition
Reinforcing its ongoing commitment to the construction sector, Certas Energy, the UK’s leading independent fuel distributor, will be one of the sponsors at Hillhead, the country’s largest quarrying, construction and recycling exhibition, running from 23rd until 25th June. As part of its sponsorship of the event, which will take place in cavernous Hillhead Quarry in Buxton, the country’s leading fuel and energy transition partner will also be supplying approximately 2,000 litres of its Hydrotreated Vegetable Oil (HVO) to power the site’s official shuttle buses, which will transport up to 20,000 attendees to and from the huge quarry site across three dynamic, action-packed days. Compared to standard diesel, HVO can cut life-cycle GHG emissions by up to 90%*. This means that a delivery of 2,000 litres from Certas Energy could drive down emissions by up to 5,164KG of CO2e** over the three-day period, highlighting the significant role lower-carbon fuels can play in reducing the environmental impact of large-scale events. In addition to lowering carbon emissions, HVO can also contribute to improved local air quality compared to standard diesel emissions, helping to reduce nitrogen oxides (NOx), sulphur oxides (SOx), particulate matter (PMs) and carbon monoxide (CO), a positive outcome for attendees and surrounding communities. As a drop-in alternative to red and white diesel, HVO can typically be used in existing engines without the need for costly modifications or downtime, making it an accessible and practical step for business owners looking to transition to lower-carbon fuel solutions*. HVO is playing an increasingly significant role as a transitional fuel, enabling customers to reduce emissions by up to 90%* compared with standard diesel from their operations while supporting longer-term net zero ambitions. During Hillhead, Certas Energy will be exhibiting at stand A8, where brand representatives will proudly showcase how renewable fuels can effectively cut on-site emissions. The stand will also welcome attendees keen to explore bulk fuel, HVO, AdBlue and lubricants, all expert-backed solutions with a proven track record of keeping construction fleets efficient and reliable. The team will also be demonstrating Certas Energy’s impressive new telemetry systems, which enable business owners to monitor fuel levels remotely, in real time, via a handy mobile app. This reduces the risk of runouts and minimises the need for reactive ordering, and customers purchasing a telemetry system during Hillhead can take advantage of a 10% discount. Visitors to the stand will also have the chance to meet brand representatives from Flogas Britain, joining the Certas Energy team as a collective front, forming part of DCC Energy Great Britain. As a trusted energy partner, Flogas Britain supports customers with reliable LPG, BioLPG and LNG energy solutions, helping to improve operational efficiency while taking practical steps towards a lower-carbon future. Whether powering asphalt production, supporting off-grid sites or helping businesses reduce emissions, it works alongside customers to deliver practical solutions that meet their operational needs today, while supporting their journey to net zero. Quarry Face will showcase 35 mighty machines in action, including large excavators, wheel loaders, dump trucks, dozers, hydraulic breakers, screening buckets and mist cannons, working in tandem. Rock Processing, also known as ‘Crusher Alley’, will feature a range of tracked and skid-mounted crushers, screens, scalping grids and stockpiling conveyers side by side for Hillhead visitors to behold in wonder. East Demo Area, aptly located to the east of the exhibition site, features a range of specialist crushers, shredders, screens and washing equipment, while the Registration zone will play host to rock processing and impressive recycling demonstrations. Curated Demonstrations, new for Hillhead 2026, will welcome leading manufacturers at selected times throughout each day, with each invited to showcase their machines as part of a dynamic, curated live show hosted by broadcaster and technology presenter, Nikki Dean. Combining live machine operation with expert commentary and manufacturer interviews, the dramatic action will be streamed onto a giant LED screen, set against the impressive quarry face backdrop. Visitors will gain a unique insight into exactly what these marvellous machines can do in real working conditions, while learning more about the latest product developments, technologies and innovations directly from the experts operating them. Cathy Bailey, Energy Transition Manager at Certas Energy, said: “Construction is a very important sector for us, one we’ve been proudly supporting for more than 20 years, so we’re delighted to be attending and sponsoring Hillhead this year. “It’s a fantastic opportunity to support not only this brilliant event but the industry as a whole, engaging with attendees to showcase the energy transition possibilities available, whatever stage of their journey they may be at when they meet us. “I’m incredibly proud to be attending Hillhead and look forward to meeting anyone keen to take the first step of their energy transition journey.” To learn more about how the UK’s leading energy transition partner can support your business at any and every stage of your transition journey, visit the Certas Energy team at stand A8 during all three days of the action-packed event. Building, Design & Construction Magazine | The Choice of Industry Professionals
Multibillion-pound theme park will inspire youngsters to pursue construction careers, hopes Actis
The buzz surrounding the planned creation of a multibillion-pound theme park in Bedfordshire is to be used to encourage children to consider careers in the construction industry when they leave school. That’s the aim of insulation specialist Actis, a long-term champion of encouraging young people into the sector, often via outreach sessions in schools and colleges. And with developers Comcast NBCUniversal promising to provide training and apprenticeships via colleges and universities throughout the construction and resort phase, the development of the newly named Universal United Kingdom Resort should be good news for the wider construction industry, believes Actis. The US entertainment giant, which says it will invest an initial £5 billion into the resort and a further £1bn over its first decade, wants the theme park to become the most visited in Europe. It says the work will generate around 20,000 jobs during the construction period, with a further 8,000 created after its opening in 2031. The government will support the surrounding infrastructure development and transport links to the tune of £1.3 billion. Actis East and Scotland regional sales director, Steven Ellis, who lives near the planned theme park, is due to take part in a ‘careers and aspirations’ day at a village school literally a stone’s throw from the site in the coming weeks. He plans to reference the resort as an example of the kind of imaginative project open to those choosing a construction career path. “The popular appeal and glamour of a theme park is a tangible and exciting example of the kind of project likely to strike a chord with those still at school. I’m hoping it will give them a real passion to be involved in an industry which can bring so much joy to millions of people all over the world,” he said. “With the theme park’s creators predicting there will be 8.5 million visitors a year initially, rising to 12 million within 20 years of opening, the magnitude of the resort points to a great need for skilled tradespeople and apprentices. “These will be required to work not only on the 476-acre theme park but also on the road and rail links being created and upgraded to allow access to the site. This is a career opportunity on their doorstep and I’m hoping they will share my enthusiasm!” Building, Design & Construction Magazine | The Choice of Industry Professionals
Reds10 Group announces strategic investment in façade specialist Mad About Facades, strengthening in-house delivery capability
Reds10 Group has completed a strategic investment in façade specialist Mad About Facades (MAF), strengthening Reds10’s vertically integrated, industrialised construction model by bringing façade design and delivery fully in-house, enhancing quality, efficiency and control across projects. Mad About Facades is a specialist façade and cladding contractor, delivering façade design, manufacture and installation across the defence, education and residential sectors. The business has grown rapidly since launching, with a team of nine employees supported by a workforce of up to 30 operatives delivering projects across the UK. Notable schemes include Single Living Accommodation for the Ministry of Defence, alongside education projects at Thomas Telford School and Connaught SEND School. Reds10 and Mad About Facades have worked together since February 2025, with Reds10 acting as a key client across MAF’s growing portfolio. The investment formalises this relationship, with Reds10 becoming a strategic shareholder, supporting the continued scaling of the business while strengthening Reds10’s ability to deliver façade packages as part of a fully integrated model. Façades are a key component of modern offsite construction, and this investment builds on Reds10 Group’s wider strategy to bring critical construction capabilities in-house, supporting more efficient programme delivery and greater coordination across complex projects. Last month, Reds10 Group completed a strategic investment in steel fabrication specialist ESL Fabrication Engineers (ESL), which specialises in the comprehensive delivery of steel fabrication across the UK, from manufacture and installation to repair and maintenance works. Mad About Facades joins ESL as part of the Reds10 Group, bringing the total number of companies in the Group to twelve, including Reds10 and its sister businesses. The Group structure brings together complementary businesses under one roof to drive the industrialisation of construction, supported by data-led processes and AI integration across the development lifecycle. Paul Ruddick, Chief Executive of Reds10 Group, said: “Bringing façade capability into the Group is an important step in strengthening our fully integrated model. Mad About Facades has an excellent reputation for quality and delivery, and this investment allows us to align façade design and manufacture more closely with our wider operations. As we continue to grow, having this expertise in-house will be key to driving efficiency, innovation and consistency across our projects.” Warren Moses, Commercial Director of Mad About Facades, added: “Joining the Reds10 Group marks an exciting new chapter for Mad About Facades. We are incredibly proud of what we have achieved as a business, building our reputation on technical expertise, innovation and a commitment to delivering high-quality façade solutions. Reds10 has established itself as a leader in industrialised construction, and its vision closely aligns with our own ambitions for quality, efficiency and continuous improvement. By becoming part of the Group, we can combine our specialist façade expertise with a fully integrated delivery model, creating significant opportunities for growth, collaboration and innovation.” The investment follows Reds10’s continued growth and its ambition to further expand its presence across key sectors, including defence, education, justice and health, alongside an increasing focus on affordable housing and temporary accommodation. Reds10 manufactures all its buildings off-site at its advanced construction facility in Driffield, East Yorkshire, where it operates five factories totalling 300,000 sq ft. By investing in its own capabilities and supply chain, the Group is able to deliver sustainable, high-quality buildings with greater certainty, from concept through to completion. Building, Design & Construction Magazine | The Choice of Industry Professionals