In an age of economic uncertainty, it is more than ever lovely to read about success stories and a South Western building design and construction company known as County Contractors feature today as this day’s happy story amidst all the doom and gloom of post-Brexit Britain. Indeed, the firm has
The latest alarming revelations from the Federation of Master Builders (FMB) indicate that the amount of genuine building skills in the construction employee sector is getting worse as time goes by. The federal group found that the average British bricklayer is not the only one to suffer in the reduction
Is It Possible To Remove Risk From Your Property Development? Investments all come with risks, and the property market has its fair share of those to consider before any decisions can be made. However, it is possible to reduce risk from your property development, to protect yourself, those working for
The British construction industry could lose out on almost 215,000 workers if there is a ‘hard’ Brexit, according to research from Arcadis. The report found that a ‘soft’ Brexit could see the industry lose out on 136,000 workers – around 78,000 fewer than in the hard Brexit scenario. According to
Despite the ongoing uncertainty around the UK’s decision to leave the EU, industry contractor T Clarke has reported “steady, but cautious” improvements in its core markets. The firm revealed it has a “strong order book” of more than £300 million as its performance “continues to be in line with the
A survey of Build UK members has found that the shortage of skilled labour has become more severe since Brexit, despite the EU referendum outcome not having an immediate slowdown in work for UK contractors overall. The survey shows that in the three months following the referendum, labour costs are
A number of major construction industry forecasts suggest strong growth in the UK’s infrastructure spending in the coming years. It is hoped that this would mitigate the faltering commercial industry which is predicted to worsen as the effects of Brexit take its toll. New reports indicate that this influx of
The London lettings market is starting to wobble due to a potential Brexit and global economic concern, says the London Central Portfolio’s most recent report. The report shows that in the current quarter, lets have gained a mere 0.3% rental increase, with re-lets having been the worst affected, as shown
Increased woes have been reported on the matter of the potential of the UK exiting the European Union; SSE has stated that the move may put its business at risk should a perceived period of legislative and, or regulatory uncertainty pursue. Of course, in the short term SEE has reported
In an age of economic uncertainty, it is more than ever lovely to read about success stories and a South Western building design and construction company known as County Contractors feature today as this day’s happy story amidst all the doom and gloom of post-Brexit Britain. Indeed, the firm has been blessed with being able to celebrate its 40th year in existence in style, since the annual turnout that they have made has been greater than ever, totaling a golden £56 million between 2015 and 2016. This is excellent but not very surprising news considering the hard work that the firm has been undertaking for so long all year, and County Contractors have been on the front line of many of the most interesting and lucrative building developments in recent times. For example, since their inception in 1976 they have worked on a number of exciting construction products that have included redevelopments of such things as luxury hotels, accommodation outlets and top of the range retail outlets. Recently, they carried out a series of repairs and plans to renovate the luxurious Lancaster Hotel in the city of London: this involved the rebuilding of more than 400 accommodation rooms and the contract was covered at a staggering £39 million. Now, thanks to County Contractors’ hard and diligent work, the 18-month project is nearing the end of the race and will soon be finished and available to the public. In addition to this, County Contractors also continue the devotion of many building industries towards charities that try and improve the lives of the vulnerable and the down-trodden. In County Contractors’ case, their consistent and enthusiastic support towards Guide Dogs and Cancer Research UK was proven when they succeeded in aiding them to total a raised funding of no less than £48,000 which they achieved by performing a charity bike ride. Ding ding!
The latest alarming revelations from the Federation of Master Builders (FMB) indicate that the amount of genuine building skills in the construction employee sector is getting worse as time goes by. The federal group found that the average British bricklayer is not the only one to suffer in the reduction of skills crisis that has plagued the building and construction industry. For example, the findings of the FMB indicate that 46 per cent of site managers and construction officials are finding it harder and harder to employ professionals to work on roofs. To make this trend worse, figures have shown that the level of plastering and electrical workers are lower than they have ever been in the last four years. Furthermore, the fact that there are less and less skilled workers operating in the construction industry in Britain is surely a sign that Theresa May and the government need to do something fast to rectify the situation before Britain runs out of skilled workers altogether. Mister Brian Berry, CE of the Federation of Master Builders, explains that the skills set in construction has significantly decreased in the past few years and is an issue that needs to be addressed. A lack of apprenticeships and the growing costs of training and materials is an alarming sign that many construction firms are in danger of losing many of their assets and acquisitions over the years, and Britain’s decision to leave the European Union will surely equally have an impact on the situation of building and construction in the country. The current fluctuations of the English Pound are also a worry for manufacturers in the country, and trade relations with the European Union will need be certified by the government so that the FMB does not have to report any more bad news for the construction industry. There is hope however that 2017 will be a wake-up call for the building industry to seek the government’s help to safeguard its future.
Is It Possible To Remove Risk From Your Property Development? Investments all come with risks, and the property market has its fair share of those to consider before any decisions can be made. However, it is possible to reduce risk from your property development, to protect yourself, those working for you and the development itself. RIsk cannot be removed altogether but you can put precautions in place to ensure your losses are minimised. If you have been considering how best to minimise risk in your latest project, read on to discover just how you can go about doing so: Team up with a reputable, knowledgeable builder When it comes to hiring a builder, don’t shop around on the basis of cost alone. Quality is key when working in the property development field, which is why you need to look for a builder who knows what they’re doing, who you can rely on and even turn to advice when it comes to renovations and putting together your vision. They should also be able to overcome any hurdles along the way, they’ll know when to apply for planning permission, who to turn to in the event of an emergency repair and can help you correctly plan timelines for builds and work. Look at what the big players are doing The big property development players and land acquisition companies have got to where they are for a reason, the First Urban Group for example has curated a portfolio of developments, where sustainability is key and the local area is considered carefully. Look carefully at what companies such as this are doing and follow in their footsteps to avoid any risk of taking the wrong path. Take time to understand the property market You should stay up to date on property news, especially with Brexit continuing to cause confusion and caution. If buy-to-let is your main ambition, it’s very important you read up on the latest restrictions applied to this area, making decisions without understanding the implications can have a negative effect on your investments and future as a property developer. Educating yourself about the processes will significantly reduce risk; help you become knowledgeable in the financial areas and ensure you know what you are talking about when dealing with future buyers. Work with the right estate agent Whether you are selling the property on for potential profit or teaming up with a letting agent, ensure you select the right one and avoid risk of taking on the services of an incompetent team. A big name doesn’t always mean the best service, so speak to people in the industry and ask who they recommend. Always ensure you are covered The simplest of things can be forgotten, such as property developer insurance. Ensure you are covered for any house building work to ensure that should something go wrong while the builders are in you are protected financially and legally. It’s worth paying out for and is the simplest way to reduce risk. Before you begin your next development project, check through this list and ensure you feel confident that risk is at a minimum before taking the next step.
The British construction industry could lose out on almost 215,000 workers if there is a ‘hard’ Brexit, according to research from Arcadis. The report found that a ‘soft’ Brexit could see the industry lose out on 136,000 workers – around 78,000 fewer than in the hard Brexit scenario. According to the research, which was conducted for Arcadis by the Centre for Economics and Business Research, British construction could lose a volume of workers equivalent to the entire population of Luton (214,700 according to ONS 2015 estimates) in the event of a hard Brexit. This is based on a potential scenario whereby there would be an extension of the points-based system currently in place for non-EU migrants. If those EU nationals leaving the industry could not be replaced at the same rate by new EU workers, the research estimated there would be almost 215,000 fewer people from the EU would enter the infrastructure and housebuilding sectors between now and 2020, based on an assumed combined workforce of 1.5m. Arcadis said that, were policies implemented on a sector-by-sector basis and allowing for a degree of EU migration into the sector, it expected around 135,000 fewer European nationals would relocate to British construction – a number equivalent to the population of Ipswich. Read more at https://www.constructionnews.co.uk/markets/international/eu-referendum/hard-brexit-could-cost-construction-215000-jobs/10015295.article
Despite the ongoing uncertainty around the UK’s decision to leave the EU, industry contractor T Clarke has reported “steady, but cautious” improvements in its core markets. The firm revealed it has a “strong order book” of more than £300 million as its performance “continues to be in line with the Board’s expectations.” Major deals include securing four key package deals valued at £56 million on the 22 Bishopsgate project in London. These are: • Electrical, Shell & Core • Electrical, Cat “A” Fit Out • ELV (Systems Integration) Package, including BMS, ICT and Security • Fire Alarm Installation Onsite activities will start next year to be completed in 2019. Furthermore, the group has secured a £24 million M&E fit out scheme at The International Quarter in London, while two new student accommodation schemes are being carried out in Newcastle. In Scotland, three quarters of revenues for next year have now been secured including the following notable recent wins in the residential sector: • Barratt Homes West Scotland, Bonhill, Dumbartonshire • Barratt Homes West Scotland, Wallace Fields, Glasgow • Cala Homes West Scotland, Dullater Greens, Cumbernauld • Robertson Homes, Fair Acres, Dunbar Other wins have been secured in the education sector, including at Easter Bush Campus, University of Edinburgh and St Joseph College, Dumfries. T Clarke will also work in partnership with Mitsubishi Electric Air Conditioning Europe to make`, supply and install Calorimeter Testing Facilities at their manufacturing plant in Livingston West Lothian Scotland. T Clarke Scotland Managing Director, Gary Jackson, said: “TClarke will be working closely with Mitsubishi’s engineering partners, Onishi of Japan who are world leaders in the design and construction of Calorimeter Test Facilities. We are very proud to have gained the professional confidence of Onishi and Mitsubishi to undertake this massive project for them.” Elsewhere, the Group has begun proceedings to recover up to £2.8 million of “misappropriated funds” taken by an employee over a number of years.
A survey of Build UK members has found that the shortage of skilled labour has become more severe since Brexit, despite the EU referendum outcome not having an immediate slowdown in work for UK contractors overall. The survey shows that in the three months following the referendum, labour costs are on the rise and there has been a significant increase in the number of contractors unable to bid for jobs because they cannot afford the workforce. At the end of June, the UK voted in favour of leaving the European Union in a referendum and while it will be at least two years before the UK actually leaves the EU, there is still uncertainty about what the impact will be in the end. Trade deals will need to be put in place that will determine the extent the UK will continue to support the free movement of people and goods. Build UK’s state of trade survey for Q3 of 2016, covering the months straight after the referendum (July to September) show that while members of Build UK saw their workloads increase immediately after the vote, there were more and more difficulties in recruiting skilled operatives. However, the survey does not shed any light on whether the result of the referendum may have in any way contributed to the recruitment problems recently experienced by the construction industry. An unrelated report from brokers Willis Towers Watson on the implications of Brexit for the UK construction industry states that the industry is currently relying on foreign labour from within the EU, with migrant workers currently filling around 12% of the 2.9 million UK construction jobs. The Build UK survey does show that labour shortages stopped a quarter of contractors from bidding for work during the third quarter of this year, a number that has increased from 16% in Q2.
A number of major construction industry forecasts suggest strong growth in the UK’s infrastructure spending in the coming years. It is hoped that this would mitigate the faltering commercial industry which is predicted to worsen as the effects of Brexit take its toll. New reports indicate that this influx of monies into the sector could result in a post-Brexit growth of between 0.2% and 0.3%. A sharp deviation from the predicted 3.6% growth before the referendum. Figures from the CPA suggest that a majority of the industry activity in the interim are being sustained by the work on projects that were agreed on or started before the referendum. The construction forecast posits Construction output to rise 0.6% in 2016, 0.3% in 2017 and 0.2% in 2018 Offices construction to increase 8% in 2016 before falling 3% in 2017 and a further 10% in 2018 Factories construction to fall 5% in 2016 and 2% in 2017 Infrastructure work to rise by 6.2% in 2017 and 10.2% in 2018 Private housing starts to rise 2% but remain flat in 2017 and fall 2% in 2018 Retail construction to fall 8.0% in 2016 before falls of 4% in 2017 and 2% in 2018 This implies continued activity in the industry for the first half of next year. The second half though, does not bode well for privately funded construction sectors who are poised to suffer more from the uncertainty of the current times. Noble Francis, the economics director at the CPA predicts that industrial construction outputs could fall as much as 11% by 2018. This he argues is because large players in the industry would likely make fewer major investments as a result of the economic uncertainty that has gripped the industry. Reports indicate that it is vital that the Chancellor, for the upcoming autumn statement, focuses on reducing uncertainty for the private sector and ensure the delivery of projects that are already in the pipeline if the industry is to survive the times.
The London lettings market is starting to wobble due to a potential Brexit and global economic concern, says the London Central Portfolio’s most recent report. The report shows that in the current quarter, lets have gained a mere 0.3% rental increase, with re-lets having been the worst affected, as shown by the 1.2% decline in rentals this quarter This fall may have been due to the rising stock on the lettings market, which has increased by 26.7% in the last quarter, as reported by Lonres. Conversely, existing tenant renewals have gone against these statistics as rental increased averaged 3.3% during the previous quarter. However, demands from tenants are still strong in the one and two bedroom property market as void periods have fallen to 23 days. Mayfair, Fitzrovia and Marylebone have shown the best results with a rise of 10.6% rent on average for a one bed flat, while for two bed flats the average increase is 12.8% over the last six month period. On the flip side, Earl’s Court and Chelsea have seen the biggest drop in rents, with an average drop of 9.7% for one bedroom flats and for two bedroom flats a drop of 14.4%. Often, the lettings sector is seen as a dependable gauge of general market thoughts because of the high turnover of properties and the ability of applicants to swiftly react to developing economic conditions. The LCP’s latest research shows that the ongoing economic uncertainty has resulted in the slowing down of the rental market. The market has started to subdue, despite consistently strong rental performance (a 5.5% average increase) during the course of the previous five quarters. The analysis also shows re-lets are painting a negative picture, as shown by a 1.2% decrease in rents during the last quarter, after a rather stagnant state of affairs over the last year.
Increased woes have been reported on the matter of the potential of the UK exiting the European Union; SSE has stated that the move may put its business at risk should a perceived period of legislative and, or regulatory uncertainty pursue. Of course, in the short term SEE has reported that there would not be a direct risk to the provision of its service to customers, and it is expected that the industry giant will be able to continue investing back into its business and infrastructure as planned, regardless of the decision made on the EU referendum. Yet, in the longer term, the effects of drawn out regulatory and legislative changes may cause a degree of risk for SEE, as it most likely would also effect other key industry organisations. As for predictions over the course of the year, SSE has predicted a similar degree of success this year as was achieved in the last, perhaps a nod to the potential uncertainty of the market as a whole, yet also maintaining a positive outlook on being able to turn a meaningful profit in various areas of the business this year. Specifically, those profits pertaining to networks operating are expected to see a degree of increase, with wholesale operating profits expected to maintain, and those retail operations expected to see a reduction due to reduced energy-supply customers. Key areas attributed to the mixed predictions on profits can be attributed to the challenges faced by dropping prices for commodities, as well as increased competition within the retail market. However, Gregor Alexander, Finance Director of SEE commented towards a more positive outlook, saying: “Nevertheless, completion of the CMA investigation and the UK government’s consultation on the future of the electricity capacity market imply progress towards a more settled regulatory and policy framework.” With this in place, a far more positive outlook could be perceived for next year, and we can only expect predictions for the year to follow suit.
