Marco Verdonkschot, Managing Director at IronmongeryDirect & ElectricalDirect, has commented on the latest furlough figures for the construction industry: “This morning, the Office for National Statistics released the latest figures for the government’s job retention scheme and it’s natural for them to be a bit concerning. “The number of construction
Charlie Carlton, Head of Digital at IronmongeryDirect, the UK’s largest supplier of ironmongery, has commented on the UK economy entering a recession and the outlook for the construction industry: “The UK has now officially, and inevitably, entered a recession, with the economy shrinking by 20.4% between April and June, compared
BDC 319 : Aug 2024
Marco Verdonkschot, Managing Director at IronmongeryDirect & ElectricalDirect, has commented on the latest furlough figures for the construction industry: “This morning, the Office for National Statistics released the latest figures for the government’s job retention scheme and it’s natural for them to be a bit concerning. “The number of construction workers that have been furloughed has risen to 769,300, up by 17,300 from July. Three in five (60%) employees in the industry are now being paid by the scheme. “The number of employers having to sign up also rose, with 174,000 now enrolled (up from 171,400). This means that over three-quarters (76%) of construction companies are now furloughing at least some of their workforce. “As a result, the value of claims for furlough payments increased too. In August, construction employers claimed £2,931m to help pay their staff, up £324m from the previous month. “Some areas of the country are having to rely on the scheme more than others. The South West of England has furloughed the highest percentage of its construction workers (63%). The least affected is the South East of England (55%), although it experienced the UK’s equal highest rise between July and August (2%), with 2,500 more employees furloughed. “However, Scotland remains the worst hit, with a staggering 73% of its construction workforce (89,200 out of 121,500) being paid by the government. Northern Ireland is a close second, with 71% currently furloughed, with Wales and England a little behind (62% and 58% respectively). “It is positive that so many construction workers are receiving income during these difficult times, rather than companies simply making them redundant. However, when the furlough scheme ends at the end of October, we need to hope that the demand for work is great enough that employers don’t need to let staff go. “Thankfully, there are some positive signs that this might be the case, as while construction output remains around a quarter (24.8%) lower than it was pre-lockdown, it increased by 23.5% between May and June – the greatest rise since records began.” For more information about IronmongeryDirect, visit: www.ironmongerydirect.co.uk/.
Charlie Carlton, Head of Digital at IronmongeryDirect, the UK’s largest supplier of ironmongery, has commented on the UK economy entering a recession and the outlook for the construction industry: “The UK has now officially, and inevitably, entered a recession, with the economy shrinking by 20.4% between April and June, compared to the first three months of 2020. “The construction industry has been hit hard by the pandemic, with the lockdown causing output to plummet since March. In April, it fell by a staggering 40.2% – the highest monthly fall since such records began in 2010. “However, while construction output remains around a quarter (24.8%) lower than it was pre-lockdown, there are certainly signs of recovery. The latest figures from the Office for National Statistics show that output increased by 23.5% between May and June, which was also a record. “The sectors which grew the most were repairs and maintenance of private housing (44%) and the building of private new houses (42.3%). “In other more positive news, the number of unemployed construction workers dropped by 3,000 in the months between April to June (compared with March to May), and this was joined by a rise in average weekly earnings, from £578 up to £590. While this is 9% lower than the equivalent period last year, it is the first increase in 2020, so hopefully it will continue to rise. “The slow, but visible signs of recovery are also evident in our sales figures, as IronmongeryDirect saw record numbers for both orders and revenue in June. We experienced an 80% year-on-year increase in web traffic and a 75% rise in transactions. “While there is undoubtedly still a long way to go before the construction industry fully recovers, it’s great to see that there are a few signs of progress after an incredibly challenging few months. While we are about to hit a hard time as a nation, there can be hope that we’ll recover in full force.” For more information about IronmongeryDirect, visit: www.ironmongerydirect.co.uk/.
