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New
Construction Orders: May 2004
Orders
in the year to May 2004 fell by four per cent compared to orders in the
previous twelve month period, but orders in the three months to May 2004
rose by 13 per cent compared to the same three months a year earlier.
Orders in the three months to May 2004 rose by nine per cent compared
to the previous three months, with increases in all sectors except private
commercial. All orders
figures quoted are seasonally adjusted and in constant (2000) prices.
Private housing orders in the year to May 2004 rose by four per cent compared
to the previous year. Orders in the three months to May 2004 rose by two
per cent compared with the previous three months, and rose by 12 per cent
compared with the same three months a year earlier.
Public housing and housing association orders in the year to May 2004
rose by four per cent when compared to the previous year. Public housing
and housing association orders in the three months to May 2004 rose by
38 per cent compared to the previous three months, and by six per cent
compared to the same three months a year earlier. All comparisons in this
sector are affected by large variations due to its relatively small size.
Infrastructure orders in the year to May 2004 decreased by 26 per cent
compared with the previous twelve months. Orders in the three months to
May 2004 rose by 40 per cent compared with the previous three months,
and fell by 22 per cent when compared to the same period a year earlier.
Public non-housing orders (excluding infrastructure) in the year to May
2004 fell by three per cent when compared with the previous twelve months.
Orders in the three months to May 2004 rose by 40 per cent compared with
the previous three months, and were 35 per cent higher compared to the
same period a year earlier. The twelve month comparison is still affected
by the exceptionally high level of public miscellaneous orders in December
2002.
Private commercial orders in the year to May 2004 fell by one per cent
compared to the previous year. Orders in the three months to May 2004
fell by nine per cent compared to the previous three months, and were
29 per cent higher than in the same period a year earlier.
Private industrial orders in the year to May 2004 rose by eight per cent
compared to the previous year. Orders in the three months to May 2004
rose by five per cent compared to the previous period, and were four per
cent higher compared to the same period a year earlier.
Construction Partnership Tackles Building Site Waste
A
new project to cut high levels of waste on construction sites and improve
health and safety was announced by Employment Relations Minister Gerry
Sutcliffe on 7th June.
Currently, about 15-20% of all material delivered to construction sites
ends up in skips, costing industry hundreds of millions of pounds a year.
The Health and Safety Executive reports that almost half of accidents
are the result of untidy and badly laid out construction sites.
The project aims to spread environmentally friendly practices throughout
UK construction sites by closer working between the main contractor, sub-contractors
and trade unions.
It will provide companies running construction projects with the necessary
tools to ensure that everyone joining a construction site learns about
environmental concerns and safety as part of their induction.
These tools will include learning packs, tools to manage and maintain
partnerships and a framework for reporting success.
Mr Sutcliffe has earmarked a £191,500 from the DTI's Strategic Partnership
Fund, which helps strengthen employer-employee relationships and improve
business performance. Business will make up the rest of the £827,600
in total needed over two years to get the scheme off the ground.
Gerry Sutcliffe said:
'Health and safety on construction sites must always be a top priority.
I welcome this initiative for its direct approach to tackling safety and
environmental concerns.'
Project manager Uly Ma, of Greenfile Developments Ltd, said:
'A majority of the construction sector employs subcontractors and this
means that good practices learnt from one project may not be carried through
to another. Also, many of these small companies may not have the resources
to provide lifelong learning for their employees.
'We believe that significant cost savings, reduction in accidents and
minimising environmental impacts - the three components of sustainable
development - can be achieved through a well-organised and neat construction
site, coupled with teams that know how to spot waste and how to resolve
waste problems.'
New Construction Orders: April 2004
Orders
in the year to April 2004 fell by six per cent compared to orders in the
previous twelve month period, but orders in the three months to April
2004 rose by six per cent compared to the same three months a year earlier.
Orders in the three months to April 2004 rose by 19 per cent compared
to the previous three months, with increases in the private commercial,
public non-housing, private housing and public housing sectors. All orders
figures quoted are seasonally adjusted and in constant (2000) prices.
Private housing orders in the year to April 2004 rose by four per cent
compared to the previous year. Orders in the three months to April 2004
rose by five per cent compared with the previous three months, and rose
by 13 per cent compared with the same three months a year earlier.
Public housing and housing association orders in the year to April 2004
rose by 14 per cent when compared to the previous year. Public housing
and housing association orders in the three months to April 2004 rose
by 31 per cent compared to the previous three months, and by 31 per cent
compared to the same three months a year earlier. All comparisons in this
sector are affected by large variations due to its relatively small size.
Infrastructure orders in the year to April 2004 decreased by 28 per cent
compared with the previous twelve months. Orders in the three months to
April 2004 fell by 10 per cent compared with the previous three months,
and fell by 52 per cent when compared to the same period a year earlier.
Public non-housing orders (excluding infrastructure) in the year to April
2004 fell by seven per cent when compared with the previous twelve months.
Orders in the three months to April 2004 rose by 27 per cent compared
with the previous three months, and were two per cent higher compared
to the same period a year earlier. The twelve month comparison is still
affected by the exceptionally high level of public miscellaneous orders
in December 2002.
Private commercial orders in the year to April 2004 fell by seven per
cent compared to the previous year. Orders in the three months to April
2004 rose by 51 per cent compared to the previous three months, and were
49 per cent higher than in the same period a year earlier.
Private industrial orders in the year to April 2004 rose by nine per cent
compared to the previous year. Orders in the three months to April 2004
fell by 16 per cent compared to the previous period, and were seven per
cent higher compared to the same period a year earlier.
Output
and Employment in the Construction Industry: First Quarter 2004
The total volume of construction output in the year to the first quarter
of 2004 rose by seven per cent compared to the previous year. Overall
new work rose over the same period, despite a decrease in the infrastructure
and private commercial sectors. Repair and maintenance rose, with increases
in all sectors. Output in the first quarter of 2004 was unchanged compared
to the fourth quarter of 2003 in volume terms and by three per cent in
current prices.
The total volume of new work in the year to the first quarter of 2004
was five per cent higher compared with the previous year but was three
per cent lower in the first quarter compared with the previous quarter.
The total volume of repair and maintenance work was eight per cent higher
in the year to the first quarter of 2004 compared with the previous year,
and rose by four per cent in the first quarter of 2004 compared to the
previous quarter.
New private housing work in the year to the first quarter of 2004 was
14 per cent higher compared with the previous year but the first quarter
of 2004 was 2 per cent lower than the previous quarter. New work in the
public housing sector in the year to the first quarter of 2004 was 18
per cent higher (on a small base figure) compared with the previous year
and the latest quarter was 18 per cent higher than the previous quarter.
New infrastructure output in the year to the
first quarter of 2004 was 11 per cent lower compared with the previous
year, and the first quarter of 2004 fell by eight per cent compared with
the previous quarter.
Repair and maintenance work in the public non-housing sector in the year
to the first quarter of 2004 was 11 per cent higher compared with the
previous year, and was eight per cent higher in the most recent quarter
compared with the previous quarter. Repair and maintenance work in the
private non-housing sector in the year to the first quarter of 2004 was
six per cent higher compared with the previous year and was two per cent
higher in the most recent quarter compared with the previous quarter.
Employment
The seasonally adjusted number of employees in employment in January 2004
was three per cent higher compared with October 2003 and was four per
cent higher when compared with January 2003. Total employment (including
the self-employed) in January 2004 rose by three per cent compared with
October 2003 and was two per cent higher compared with January 2003.
Call
for Action to Deliver Government Promises
The
delivery of promised Government investment will be key to sustaining recent
construction growth, according to the Construction Industry Trade Surveys
compiled jointly by the Construction Confederation
and the Construction Products Association.
However, contractors and product manufacturers warn that urgent action
is needed in this summer's Spending Review to cut bureaucratic red tape
and planning delays and to equip the public sector with the necessary
skills to deliver the Government's investment programme.
Construction Products Association Chief Executive Michael Ankers said,
'Both construction product manufacturers and contractors believe that
the industry can deliver the Government's spending plans, despite rising
capacity utilisation.
Product manufacturers in particular are committed to higher investment
across the board in order to secure improvements in efficiency and increase
capacity. However the survey reveals that there are very real obstacles
that the Government must overcome if it is to realise its ambitious investment
plans for the built environment.'
Construction Confederation Chief Executive Stephen Ratcliffe said: 'The
survey reveals that the construction industry enjoyed another strong performance
during the first quarter of this year, thanks to higher private housing
activity and government investment. With rising interest rates likely
to dampen private housing activity, the industry is looking to the public
sector as the principal source of growth. Our industry needs consistency,
continuity and the security of long-term planned investment to maintain
and develop its skills base as well as delivering the Government's planned
improvements to the quality of life and competitiveness of our nation.'
Other key survey findings are:
• Building contractors report a buoyant start to the year with a
net balance of 22% of contractors reporting seeing output volumes on a
year ago. The strongest growth in workload was in private housing and
public sector work. Overall construction product manufacturers report
higher sales volumes with especially strong growth on the light side of
the industry.
• Industry expectations remain largely positive. A net balance of
42% of building contractors report above normal order books and 15% report
an increase in enquiries, while on balance two thirds of product manufactures
anticipate increased second quarter sales volumes.
• Both building contractors and product manufacturers report an increase
in building cost inflation during the first quarter. Manufacturers identify
higher raw material costs as a particular area of concern, while manufacturers
report an increase in both material and labour costs.
• Overall labour availability appears to have deteriorated markedly,
with contractors reporting continued difficulties in recruiting key skilled
labour such as bricklayers, electricians, carpenters and plasters.
• Manufacturers are planning to accelerate their investment plans
over the next 12 months, with spending increasingly directed at enhancing
capacity as well as improved efficiency and product development.
Griffiths Green Lights Way Ahead as Construction Group Builds on Firm Foundations
Sir
Michael Latham, chairman of the new group set up to deal with concerns
over late payment in the construction industry, recently unveiled a route
map to tackle late and non-payment provisions in current legislation.
The review group, set up to improve the delivery of construction projects
by increasing the effectiveness of fairer payment provisions in the Housing
Grants, Construction and Regeneration Act, met for the first time last
week. It confirmed its membership and agreed a timetable for action. Its
first task is to establish a new working group to deal with the payment
provisions. This new group, along with the Construction Umbrella Bodies
Adjudication Task Group will report
to Sir Michael and the review group in July.
Nigel Griffiths, Construction Minister, congratulated Sir Michael on his
work so far and gave his full support to the group's direction. An announcement
regarding the appointment of a chair for the new working group is expected
shortly.
Mr Griffiths said:
'We have the right person for the job, and the construction industry is
rapidly coming on board to support this process.
'The industry has an invaluable role to play, providing support and contributing
ideas, and can add to the progress made already.'
Following the first meeting of the group, Sir Michael said:
'Both Nigel Griffiths and I will ensure that this review is results focused.
The group has agreed a timetable that will strike the right balance to
make sure we have enough discussion but which ensures we address the urgency
of our work.
'A lot of work has been done already by the construction umbrella bodies,
identifying possible improvements and we hope that detailed consideration
of proposals will begin early in the summer.'
Following the main strategic meeting of the review group on 29th April,
two working groups were tasked to begin the review process. The next steps,
outlined in the timetable agreed at this meeting, include a detailed public
consultation in the autumn.
Association
Helps Companies to Smarten Up
The
Construction Products Association,
in partnership with Ernst & Young, has launched Construction Products
- Working Smarter to Improve Profitability, a new publication which looks
at the issues that will influence the future development of the industry.
Speaking at the launch, the Association's Chief Executive, Michael Ankers,
said: 'This research establishes the key drivers to sustained long term
growth for the industry. Respondents identified three major areas of concern:
best value procurement, the skills shortage, and new product development.'
Presenting the findings, Simon Oldfield, Head of Building Products at
Ernst & Young, first of all highlighted the City's view of the construction
and building material sector by comparing its p/e ratio of just below
10 with the FTSE all share index at 18 and the electronic and electrical
equipment as high as 42.
He went on to say: 'There is a lot of talk about best value in the marketplace
but price is still the primary dictator. Turning to the shortage of skills,
this is a sector which has a real image problem. We estimate that the
shortage of skilled labour is expected to hold back average sales growth
by as much as 5% this year and GDP by up to 0.5%. This presents a huge
challenge for both the industry and the Government who must work together
to improve the image of the industry, remove red tape from regulatory
control, clamp down on the black economy and support the migration of
skilled workers into the UK.'
New
Construction Orders: March 2004
Orders
in the year to March 2004 fell by four per cent compared to orders in
the previous twelve month period, but orders in the first quarter of 2004
rose by one per cent compared to the same quarter a year earlier. Orders
in the first quarter of 2004 rose by 14 per cent compared to the previous
quarter, with increases in the private commercial, public non-housing,
public housing and private housing sectors. All orders figures quoted
are seasonally adjusted and in constant (2000) prices.
Private housing orders in the year to March 2004 rose by five per cent
compared to the previous year. Orders in the first quarter of 2004 rose
by six per cent compared with the previous quarter, and by nine per cent
compared with the same quarter a year earlier.
Public housing and housing association orders in the year to March 2004
rose by 13 per cent when compared to the previous year. Public housing
and housing association orders in the first quarter of 2004 rose by 27
per cent compared to the previous quarter, and by 16 per cent compared
to the same quarter a year earlier. All comparisons in this sector are
affected by large variations due to its relatively small size.
Infrastructure orders in the year to March 2004 decreased by 15 per cent
compared with the previous twelve months. Orders in the first quarter
of 2004 fell by 15 per cent compared with the previous quarter, and fell
by 48 per cent when compared to the same period a year earlier.
Public non-housing orders (excluding infrastructure) in the year to March
2004 fell by four per cent when compared with the previous twelve months.
Orders in the first quarter of 2004 rose by 11 per cent compared with
the previous quarter, and were eight per cent higher compared to the same
period a year earlier. The twelve month comparison is still affected by
the exceptionally high level of public miscellaneous orders in December
2002.
Private commercial orders in the year to March 2004 fell by eight per
cent compared to the previous year. Orders in the first quarter of 2004
rose by 46 per cent compared to the previous quarter, and were 19 per
cent higher than in the same period a year earlier.
Private industrial orders in the year to March 2004 rose by four per cent
compared to the previous year. Orders in the first quarter of 2004 fell
by 15 per cent compared to the previous period, and by one per cent higher
compared to the same period a year earlier.
Slang,
Jokes and Irony Banned from Building Sites
Britain's
building site workers have been told to avoid slang, jokes and irony in
a bid to make sites safer for those speaking English as a second language.
A new report focusing on the communication skills of foreign construction
workers recommends that workers should avoid terms like 'we're dumping
on the welders' and 'I wasn't born yesterday'.
According to CITB construction skills estimates, one in five workers on
building sites in London and the south-east speak English as a second
language.
The report recommends that supervisors talk to these workers in simple
sentences, avoiding irony and jokes that require advanced language skills.
Site induction videos should also avoid harder words like 'lacerations',
'eliminate' and 'punctures'.
The study calls on the Health and Safety Executive (HSE) to consider whether
difficulty communicating with foreign language speakers is a factor in
accidents and recommends that signage be simplified for second-language
speakers.
Workers are allowed to sit the health and safety test to gain a CSCS card
through an interpreter, but the study calls for more training for interpreters.
One Swahili speaker failed the test because he had been unable to understand
the interpreter's Glaswegian accent.
ACE
Report Calls for Government Action to Tackle Crisis in Construction Professional
Indemnity Insurance Market
The
Association of Consulting Engineers
(ACE) is calling on the government to promote a bill to change the law
on joint and several liability in the construction industry to address
the problem of spiralling professional indemnity insurance (PII) costs
in the industry.
ACE chairman David Upton and chief executive Nelson Ogunshakin met construction
minister, Nigel Griffiths MP last month for a general introductory meeting
during which PI insurance was raised. The Association presented a detailed
report to the minister which cited recent PI insurance premium increases
for engineering consultancy firms of up to 300%. ACE, which represents
over 750 UK engineering consultancy companies employing over 40,000 people,
is warning of a potential meltdown in the PII market if the situation
remains unchanged.
The minister told ACE that it was the first organisation in the construction
industry to raise the issue with him in such dramatic terms. He would
give the ACE a considered response to their report in due course.
ACE chief executive Nelson Ogunshakin said: 'The current situation is
unsustainable. UK engineering consultancy firms are facing intolerable
business pressures, brought on by PI insurance premiums which in some
cases are equivalent to up to 6% of their annual turnover. They also face
rocketing claims excesses and an increasing number of limitations to their
cover, including work in relation to asbestos and terrorist exclusions.
'Many of our member companies are finding it increasingly difficult to
operate within a legal framework in which they are regarded as the financial
guarantor for other parties to a contract when claims arise. The current
system of joint and several liability discriminates against firms, irrespective
of blame, making them responsible for the failings of other parties over
which they have no control.'
ACE believes that there is a growing practice in the construction industry
for consulting firms to be included in a claim purely because they are
likely to carry insurance, even where they have little, if any, potential
liability.
The association is pressing for government to promote a bill to change
the law on joint and several liability relating to the construction industry,
including full consideration of a rational and fair statutory capping
regime to alleviate the problems of disproportionate liability. ACE is
also calling for measures to address the problem of terrorism exclusions
in PII policies and the lack of available insurance cover for asbestos-related
work.
Ogunshakin said: 'Only by removing the existing discriminatory system
of joint and several liability and replacing it with some form of proportionate
liability, together with sensible insurance premiums and excesses, can
we be assured of a construction industry where companies can succeed in
business and where clients and end users get the best possible outcome.'
Contact: Andy Walker
Tel: 020 7222 6557
Web: http://www.acenet.co.uk
New
Construction Orders: February 2004
Construction
Orders in the year to February 2004 fell by seven per cent compared to
orders in the previous twelve month period, and orders in the three months
to February 2004 fell by 11 per cent compared to the same three months
a year earlier.
Orders in the three months to February 2004 rose by five per cent compared
to the previous three months, with increases in the private commercial
and private housing sectors. All orders figures quoted are seasonally
adjusted and in constant (2000) prices.
Private housing orders in the year to February 2004 rose by three per
cent compared to the previous year. Orders in the three months to February
2004 rose by nine per cent compared with the previous three months, and
by two per cent compared with the same three months a year earlier.
Public housing and housing association orders in the year to February
2004 rose by 18 per cent when compared to the previous year. Public housing
and housing association orders in the three months to February 2004 fell
by six per cent compared to the previous three months, but rose by five
per cent compared to the same three months a year earlier. All comparisons
in this sector are affected by large variations due to its relatively
small size.
Infrastructure orders in the year to February 2004 decreased by 21 per
cent compared with the previous twelve months. Orders in the three months
to February 2004 fell by five per cent compared with the previous three
months, and fell by 37 per cent when compared to the same period a year
earlier.
Public non-housing orders (excluding infrastructure) in the year to February
2004 fell by nine per cent when compared with the previous twelve months.
Orders in the three months to February 2004 fell by 20 per cent compared
with the previous three months, and were 43 per cent lower compared to
the same period a year earlier. Some comparisons are still affected by
the exceptionally high level of public miscellaneous orders in December
2002.
Private commercial orders in the year to February 2004 fell by 11 per
cent compared to the previous year. Orders in the three months to February
2004 rose by 36 per cent compared to the previous three months, and were
17 per cent higher than in the same period a year earlier, following a
number of large orders in February.
Private industrial orders in the year to February 2004 rose by five per
cent compared to the previous year. Orders in the three months to February
2004 fell by 23 per cent compared to the previous period, but were 6 per
cent higher compared to the same period a year earlier.
'Healthy
Market Conditions' Delight George Wimpey
George
Wimpey PLC forecast
on Friday 2nd April that the 'healthy market conditions' in the UK
and US are expected to continue.
'And our businesses are well placed to take advantage of them', the company
said ahead of a meeting with analysts and investors.
'The strong sales performance to date, along with actions taken to sustain
margins and control costs will ensure George Wimpey continues to achieve
further progress in 2004.'
After 13 weeks, the housebuilder said more than 60% of expected sales
for the year have been completed or reserved in the US, with combined
volumes of 34% and revenue 35% ahead of the same period last year.
In the UK, over half projected sales for the year have been completed
or reserved, it said.
Total volumes either completed or reserved are 4% ahead and revenue 14%
ahead of the same period last year in the UK, despite the reduced number
of outlets open, as reported in February.
Nigel
Griffiths Appoints Sir Michael Latham to Conduct Construction Act Review
Construction
Minister, Nigel Griffiths has appointed
Sir Michael Latham to undertake a
review into Part II of the Housing Grants Construction and Regeneration
Act 1996.
The appointment follows the Chancellor's Budget commitment to review the
adjudication and payment provisions in the Act following concerns expressed
in the construction industry about unreasonable delays in payment.
Nigel Griffiths said:
'I am very pleased that someone of Sir Michael' s expertise and experience
is leading the review in this important area. The government's commitment
to identify what improvements can be made to the Construction Act is good
news for the construction industry and its clients. It underlines the
government's promise to address the problems of disputed, late and non-payment,
and will provide
assurances that this legislation is working as effectively as possible.
'Sir Michael played a vital role in the development of the Construction
Act and has long been a leading advocate of the construction industry
improvement agenda. I am very much looking forward to working with him
to identify what improvements can be made to bring about better payment
practices and help achieve a lasting culture change in the construction
industry.'
'The provisions in the Construction Act provide the basis for a fairer
payment culture in construction and more effective project delivery. I
want to make sure we continue to bring about improvements in practices
through all means available, with the support of all sectors of the industry.
Sir Michael's appointment will help this happen.'
Sir Michael said:
'I am delighted that Nigel Griffiths has asked me to undertake this review
and am keen to set the ball rolling. I have invited all the major construction
representative organisations to nominate members of a review group and
have asked them to write to the DTI outlining their concerns and offering
possible solutions in advance of a first meeting.'
Construction
Activity Growth Slows Down
The
building industry lost some of its forward momentum last month, research
from the Chartered Institute of Purchasing and
Supply (CIPS) has revealed.
Although the industry continued to expand in March, the pace of growth
in total construction activity slowed slightly against the previous month.
The CIPS construction Purchasing Managers' Index registered 58.1 during
March against 58.3 in February, with any figure above 50 indicating growth.
The rate of growth in new orders achieved by companies in the sector was
slightly slower, registering 62.2 against February's 62.5.
However, housebuilders generated better business, recording 58.3 against
56.9.
Jobs in construction also improved, picking up from 53.2 to 54.2.
Firms were confident of a further improvement in activity levels during
the next 12 months, although the seasonally adjusted Future Business Activity
index, standing at 74.3, reflected a less marked degree of optimism than
the previous month's 79.9.
Roy Ayliffe, director of professional practice at the CIPS, said: 'Expansion
looks set to continue.'
DTI:Output
and Employment in the Construction Industry 4th Quarter 2003
The
total volume of construction output in 2003 rose by four per cent compared
to the previous year. Overall new work rose over the same period, despite
a decrease in the infrastructure and private commercial sectors. Repair
and maintenance rose, with increases in all sectors. Output in the fourth
quarter of 2003 rose by two per cent compared to the third quarter of
2003 in volume terms and by three per cent in current prices.
The total volume of new work in 2003 was three per cent higher compared
with the previous year and was seven per cent higher in the fourth quarter
compared with the previous quarter. The total volume of repair and maintenance
work was seven per cent higher in 2003 compared with the previous year,
but fell by four per cent in the fourth quarter of 2003 compared to the
previous quarter.
New private housing work in 2003 was 13 per cent higher compared with
the previous year and the fourth quarter of 2003 was 18 per cent higher
than the previous quarter. New work in the public housing sector in 2003
was 10 per cent higher (on a small base figure) compared with the previous
year and the latest quarter was nine per cent higher than the previous
quarter. New infrastructure output in 2003 was 11 per cent lower compared
with the previous year, and the fourth quarter of 2003 fell by one per
cent compared with the previous quarter.
New construction work in the private industrial sector in 2003 was six
per cent higher compared with the previous year, and rose by 16 per cent
in the fourth quarter compared with the previous quarter. New private
commercial output in 2003 fell by six per cent compared to the previous
year but rose by two per cent in the fourth quarter of 2003 compared to
the previous quarter. New work in the public non-housing sector (excluding
infrastructure) in 2003 rose by 20 per cent compared to the previous year
and the fourth quarter of 2003 rose by six per cent compared with the
previous quarter.
Housing repair and maintenance work (including improvement work) in the
public sector was eight per cent higher in 2003 compared with the previous
year but was seven per cent lower in the most recent quarter compared
with previous quarter. Housing repair and maintenance work in the private
sector in 2003 was five per cent higher compared with the previous year
and was two per cent higher in the fourth quarter compared to the previous
quarter.
Repair and maintenance work in the public non-housing sector in 2003 was
11 per cent higher compared with the previous year, and was one per cent
higher in the most recent quarter compared with the previous quarter.
Repair and maintenance work in the private non-housing sector in 2003
was four per cent higher compared with the previous year but was 11 per
cent lower in the most recent quarter compared with the previous quarter.
Employment
The seasonally adjusted number of employees in employment in October 2003
was one per cent higher compared with July 2003 and was also one per cent
higher when compared with October 2002. Total employment (including the
self-employed) in October 2003 rose by one per cent compared with July
2003 and was also one per cent higher compared with October 2002.
DTI:New
Construction Orders: December 2003
Orders
in 2003 fell by four per cent compared to orders in 2002, and orders in
the fourth quarter of 2003 fell by eight per cent compared to the same
quarter a year earlier. Much of this downturn is due to an exceptionally
high figure for the public miscellaneous sector in December 2002. Orders
in the fourth quarter of 2003 decreased by five per cent compared to the
previous quarter, though there were increases in all the private housing
and private industrial sectors. All orders figures quoted are seasonally
adjusted and in constant (2000) prices.
Private housing orders in 2003 rose by four per cent compared to the previous
year. Orders in the fourth quarter of 2003 rose by 16 per cent compared
with the previous quarter, and by one per cent compared with the same
quarter a year earlier.
Public housing and housing association orders in 2003 rose by 13 per cent
when compared to the previous year. Public housing and housing association
orders in the fourth quarter of 2003 fell by 11 per cent compared to the
previous quarter, and rose by five per cent compared to the same quarter
a year earlier. All comparisons in this sector are affected by large variations
due to its relatively small size.
Infrastructure orders in 2003 decreased by 18 per cent compared with 2002.
Orders in the fourth quarter of 2003 fell by 22 per cent compared with
the previous quarter, and were unchanged when compared to the same quarter
a year earlier.
Public non-housing orders (excluding infrastructure) in 2003 fell by one
per cent when compared with 2002. Orders in the fourth quarter of 2003
fell by 11 per cent compared with the previous year, and were 31 per cent
lower compared to the fourth quarter of 2002.
Private commercial orders in 2003 fell by seven per cent compared to the
previous year. Orders in the fourth quarter of 2003 were ten per cent
lower compared to the previous quarter, and were four per cent lower than
in the same quarter a year earlier.
Private industrial orders in 2003, rose by one per cent compared to the
previous year. Orders in the fourth quarter of 2003 rose by four per cent
compared to the previous period, and were seven per cent higher compared
to the same quarter a year earlier.
House
Building: October to December Quarter 2003
A
new govt statistical report presents figures on new house building starts
and completions in England and its regions up to the quarter ending December
2003. House building figures are also provided for the other UK countries.
Summary
Latest figures for the quarter ending December 2003 show:
* In England, there were 35.7 thousand housing starts and 42.2 thousand
completions, up 10 per cent and 8 per cent respectively on the same period
in the previous year.
* There has been a gradual upward trend in starts and completions in England
since 2001/02.
* Most regions, apart from the East Midlands and London, saw an upturn
in starts in the December quarter compared with the same period in the
previous year. There were increases in completions in Yorkshire and the
Humber, the North East, the West Midlands, London, the South East, East
and the South West.
* Since 2001/02, trends in starts have been upward in most regions but
have remained level in London and the North East.
* Trends in completions in the north and midlands regions have remained
level; trends in London, the South East and the East have been upward.
* Latest available UK figures for 2002/03 show 195 thousand starts and
183 thousand completions. Completions are up on the previous year, particularly
reflecting the upturn in England and Northern Ireland.Recent Trends in
House building in England
Some 35,700 dwellings were started in the quarter ending December 2003,
10 per cent more than in the same period in 2002. This continues an upward
trend since the beginning of 2001/02.
Completions were also up 8 per cent (on the same basis) with some 42,200
dwellings finished in the December quarter. This again follows an upward
trend since the beginning of 2001/02.
Regional Trends
North and Midlands
The north and midlands regions (with the exception of the East Midlands)
saw increases in starts in the December 2003 quarter compared with the
same period in the previous year: the West Midlands (33 per cent), Yorkshire
and the Humber (32 per cent) North East (28 per cent) and the North West
(8 per cent). Over the same period, completions were up in Yorkshire and
the Humber (18 per cent), the North East (9 per cent), and the West Midlands
(5 per cent).
The trends show increases in starts from 2001/02 in all regions apart
from the North East where they have remained level. The trends in completions,
however, have remained level apart from some fluctuation.
East,
South East, London South West
Comparing the December quarter with the same period in previous year,
starts were up in the South East (10 per cent), the South West (9 per
cent) and the East (3 per cent). Starts in London, however, were down
by around 12 per cent. On the same basis, completions were up over 40
per cent in London, 9 per cent in the South West and 8 per cent in both
the South East and East. The South East has continuing upward trends in
starts and completions since 2001/02. Starts in London have remained level
despite fluctuations, but completions have shown a strong upturn during
2003. The rise in starts in the East has levelled over the last year but
completions have continued to rise. Starts and completions in the South
West have been remained level apart from some fluctuations.
House building around the UK
Latest available UK figures for 2002/03 show 195 thousand starts and 183
thousand completions. Completions are up on the previous year whilst starts
remain level after a substantial increase in activity from 2000/01 to
2001/02.
In Scotland during 2002/03, there were 22.8 thousand starts, down 1 per
cent on the previous financial year. There were 23.4 thousand completions,
down 2 per cent on the 2001/02 figure.
Starts in Wales in 2002/03 numbered 9 thousand, level with the previous
year, and completions amounted to 7.9 thousand, down on the previous year.
House building in Northern Ireland has shown a strong upward trend in
recent years, but starts recorded as 12.2 thousand in 2002/03 were down
5 per cent on the previous year. Completions at 14.2 thousand were up
6 per cent on the previous year.
New
Construction Orders: November 2003
Construction
orders
in the twelve months to November 2003
rose by two per cent compared to orders in the previous twelve months,
and orders in the three months to November 2003 fell by two per cent compared
to the same three months a year earlier. Orders in the three months to
November 2003 rose by six per cent compared to the previous three months,
with increases in all sectors except infrastructure. All orders figures
quoted are seasonally adjusted and in constant (2000) prices.
Private housing orders in the twelve months to November 2003 rose by seven
per cent compared to the previous twelve months. Orders in the three months
to November 2003 rose by seven per cent compared with the previous three
months, and by four per cent compared with the same three months a year
earlier. Public housing and housing association orders in the twelve months
to November 2003 rose by 12 per cent when compared to the previous twelve
months. Public housing and housing association orders in the three months
to November 2003 rose by 23 per cent compared to the previous three months,
and rose by 42 per cent compared to the same three months a year earlier.
All comparisons in this sector are affected by large variations due to
its relatively small size.
Infrastructure orders in the twelve months to November 2003 decreased
by 15 per cent compared with the previous twelve months. Orders in the
three months to November 2003 fell by 22 per cent compared with the previous
three months, and were 29 per cent lower than in the same three months
a year earlier.
Public non-housing orders (excluding infrastructure) in the twelve months
to November 2003 rose by 35 per cent when compared with the previous twelve
months. Orders in the three months to November 2003 rose by 19 per cent
compared with the previous period, and were 25 per cent higher compared
to the same three months a year earlier.
Private commercial orders in the twelve months to November 2003 fell by
10 per cent compared to the previous twelve months. Orders in the three
months to November 2003 were four per cent higher compared to the previous
period, and were 13 per cent lower than in the same three months a year
earlier.
Private industrial orders in the twelve months to November 2003 were unchanged
compared with the previous twelve months. Orders in the three months to
November 2003 rose by 19 per cent compared to the previous period, and
were eight per cent higher compared to the same three months twelve months
earlier.
Construction
Boom Over as Growth Forecast to Slow During 2004
Growth
in Britain’s construction industry is set to slow rapidly as the
public sector construction funding boom runs out of steam over the next
two years, according to Experian®,
the global business solutions company. This year, construction output
is expected to rise by 3.2 per cent, down from 4.3 per cent in 2003. In
2005, growth is forecast to moderate further to 1.8 per cent before increasing
strongly to 2.7 per cent in 2006. However, despite expectations of more
subdued growth this year, the construction industry is still set to outperform
the rest of the economy, where GDP growth of 2.7 per cent is forecast.
Jane Croot, Associate Director at the Business Strategies division of
Experian, said: ‘The construction industry has been propped up by
public sector funding and the current slowdown is due to a lack of private
construction activity. The recession in the South of England’s office
market has led to a collapse in commercial construction and, despite weak
improvements in Britain’s manufacturing industry, it is likely to
be some time before this translates into new investment in industrial
construction. Only private housing is showing robust growth, fuelled by
still buoyant house prices, but growth is expected to tail off as the
housing market cools.
‘The main driver of construction output continues to be the Government’s
commitments to improvement in transport infrastructure, health, education
and social housing. Indeed, education and health construction is expected
to see its third year of double digit growth in 2004, but there are concerns
about capacity constraints limiting activity particularly in specialist
areas of construction.
‘2003 was unexpectedly a very disappointing year for the infrastructure
sector but, as work resumes on Heathrow’s Terminal 5, the upgrade
of the West Coast Mainline and London Underground, growth is expected
to continue.
‘Social housing is being driven by affordable housing needs in the
South East and large regeneration projects.’
Sector Summary
PUBLIC HOUSING
Robust growth in public housing output throughout the forecast period
continues to be driven by affordable housing needs in the South East and
large regeneration projects, many of which will have a new build element.
The main vehicles for the delivery of these programmes remain the Sustainable
Communities Plan and the Housing Renewal Fund.
PRIVATE HOUSING
In the light of a cooling housing market, private housing output growth
is expected to slow considerably this year from its 2003 level. Output
is likely to stagnate in 2005 and 2006 as a tougher market causes housebuilders
to cut back on volumes.
HOUSING RM&I
Work related to Large Scale Voluntary Transfers (LSVTs) of housing stock
from council to registered social landlord control finally began to show
up in output statistics last year, with growth in the sector reaching
double-digits. Further rises in output are expected for the forecast period,
although the rate of increase is expected to slow as current LSVT renewal
programmes are completed and fewer transfers take place to replace them.
The private housing RM&I sector is forecast to see only modest growth
to 2006 as the cooling housing market and weaker consumer spending growth
take their effect.
INFRASTRUCTURE
After a very disappointing year in 2003, infrastructure output is anticipated
to return to growth as work on Terminal 5, the upgrade of the West Coast
Main Line continues, and the regeneration of London Underground gains
pace.
PUBLIC NON-RESIDENTIAL
Public non-residential construction output has grown by around 40 per
cent in real terms in the past two years and while this rate of growth
is unsustainable in the medium term, the sector will still be the star
performer over the forecast period. Construction output in the health
and education sectors continues to grow strongly. These sectors have been
joined by offices, driven by two or three big projects, and by work for
Defence Estates on barracks’ refurbishment.
PRIVATE INDUSTRIAL
The prospects for industrial construction remain dull, with little speculative
development in the pipeline and a high level of available space on the
market. While prospects for manufacturers are improving, it is likely
to be some time before this translates into any significant growth in
capital investment.
PRIVATE COMMERCIAL
After only marginal growth in 2002, commercial construction is expected
to have experienced its first decline in output for 11 years in 2003.
This is due to sharp falls in office construction, but all other sub-sectors
will see rising output. Commercial construction output is not expected
to stop declining until 2006, when a turnaround in the offices market
starts to feed through into new build.
NON-RESIDENTIAL REPAIR & MAINTENANCE
Public non-residential R&M is anticipated to grow reasonably strongly
as expenditure on health and education facilities spills into this area
of work. Private non-residential R&M is expected to be a little less
robust, as continued corporate weakness leads to the postponement of maintenance
programmes and the uncertainty created by Network Rail’s decision
to take all R&M work back in-house perhaps causes a hiatus in activity.
CFR’s UK Forecasts can be obtained from James Hastings on 0870 196
8263, fax 0870 196 8277 or james.hastings@uk.experian.com
Web: http://
www.constructionfutures.co.uk
Griffiths
Brings Quality Mark to the North East
Firms
in the North East of England are to be targeted in the latest drive for
new members by Quality Mark - the
only Government-backed national register of approved builders working
in the home improvement market.
The February push, announced by Construction Minister Nigel Griffiths
on 7th January, is to include three or four enlistment events in prestigiouslocal
venues across the region over a week.
It follows the successful blueprint established by a series of trade launches
in the neighbouring North West region during October and November. They
featured actors dramatising realistic scenes between contractors and customers,
film clips and advice clinics with Scheme advisors, resulting in a 72%
sign-up rate from attendees for more information and, in many cases, to
start the assessment process to join up.
Nigel Griffiths said:
'There are over 4,000 small building firms in the North East, many of
whom work on private home improvements and would therefore benefit greatly
from Quality Mark membership.
'We are now taking the Quality Mark trade launch events to their region,
offering them the opportunity to come along at their convenience after
work and find out what the Scheme can do for them.
'I would urge all firms working in that sector to give serious consideration
to becoming Quality Mark accredited as it can both boost their business
and is what their customers are calling for.'
The Quality Mark team is now booking venues across the North East for
presentations to construction firms in February, preparing a linked marketing
and awareness raising campaign for the area and consulting with local
authorities, trade bodies and other organisations to help in the enrolment
drive.
Meanwhile liaison and partnership work with key organisations is continuing
in areas where Quality Mark is already established and growing, along
with the development of additional business benefits and products for
scheme members.
Designed with the home improvement market in mind, Quality Mark works
by placing contact details of independently assessed and accredited firms,
which reach the required standard, on a single national register. This
is accessed free-of-charge by phoning low cost call centre number 0845
300 80 40 or via the internet at http://www.qualitymark.org.uk.
DTI:
New Construction Orders - October 2003
Orders
in the twelve months to October 2003 fell by one per cent compared to
orders in the previous twelve months, and orders in the three months to
October 2003 fell by 16 per cent compared to the same three months a year
earlier.
Orders in the three months to October 2003 fell by 11 per cent compared
to the previous three months, with falls in all sectors except public
non-housing. All orders figures quoted are seasonally adjusted and in
constant (2000) prices.
Private housing orders in the twelve months to October 2003 rose by 8
per cent compared to the previous twelve months. Orders in the three months
to October 2003 fell by two per cent compared with the previous three
months, and by four per cent compared with the same three months a year
earlier. Public housing and housing association orders in the twelve months
to October 2003 rose by nine per cent when compared to the previous twelve
months. Public housing and housing association orders in the three months
to October 2003 fell by seven per cent compared to the previous three
months, but rose by 20 per cent compared to the same three months a year
earlier. All comparisons in this sector are affected by large variations
due to its relatively small size.
Infrastructure orders in the twelve months to October 2003 decreased by
18 per cent compared with the previous twelve months. Orders in the three
months to October 2003 fell by 33 per cent compared with the previous
three months, and were 38 per cent lower than in the same three months
a year earlier.
Public non-housing orders (excluding infrastructure) in the twelve months
to October 2003 rose by 33 per cent when compared with the previous twelve
months, largely due to an exceptionally high public miscellaneous figure
in December 2002. Orders in the three months to October 2003 rose by 10
per cent compared with the previous period, and were 11 per cent higher
compared to the same three months a year earlier.
Private commercial orders in the twelve months to October 2003 fell by
12 per cent compared to the previous twelve months. Orders in the three
months to October 2003 were 22 per cent lower compared to the previous
period, and were 32 per cent lower than in the same three months a year
earlier.
Private industrial orders in the twelve months to October 2003 fell by
nine per cent compared with the previous twelve months. Orders in the
three months to October 2003 were unchanged compared to the previous period,
and were 20 per cent lower compared to the same three months twelve months
earlier.
DTI:
Output and Employment in the Construction Industry - Third Quarter 2003
The
total volume of construction output in the year to the third quarter of
2003 rose by four per cent compared to the previous year. Overall new
work rose over the same period, despite a decrease in the infrastructure,
private industrial and private commercial sectors. Repair and maintenance
rose, with increases in all sectors. Output in the third quarter of 2003
rose by two per cent compared to the second quarter of 2003 in volume
terms and by six per cent in current prices.
The total volume of new work in the year to the third quarter of 2003
was one per cent higher compared with the previous year and was two per
cent higher in the third quarter compared with the previous quarter. The
total volume of repair and maintenance work was eight per cent higher
in the year to the third quarter of 2003 compared with the previous year,
and rose by two per cent in the third quarter of 2003 compared to the
previous quarter.
New private housing work in the year to the third quarter of 2003 was
18 per cent higher compared with the previous year and the third quarter
of 2003 was eight per cent higher than the previous quarter. New work
in the public housing sector in the year to the third quarter of 2003
was five per cent higher (on a small base figure) compared with the previous
year but the latest quarter was one per cent lower than the previous quarter.
New infrastructure output in the twelve months to the third quarter of
2002 was 12 per cent lower compared with the previous year, and the third
quarter of 2002 fell by two per cent compared with the previous quarter.
New construction work in the private industrial sector in the year to
the third quarter of 2003 was 12 per cent lower compared with the previous
year, but rose by six per cent in the third quarter compared with the
previous quarter. New private commercial output in the year to the third
quarter of 2003 fell by seven per cent compared to the previous year and
by one per cent in the third quarter of 2003 compared to the previous
quarter. New work in the public non-housing sector (excluding infrastructure)
in the year to the third quarter of 2003 rose by 19 per cent compared
to the previous year and the third quarter of 2002 rose by four per cent
compared with the previous quarter.
Housing repair and maintenance work (including improvement work) in the
public sector was seven per cent higher in the year to the third quarter
of 2003 compared with the previous year and was three per cent higher
in the most recent quarter compared with previous quarter. Housing repair
and maintenance work in the private sector in the year to the third quarter
of 2003 was 10 per cent higher compared with the previous year but was
three per cent lower in the third quarter compared to the previous quarter.
Repair and maintenance work in the public non-housing sector in the year
to the third quarter of 2003 was eight per cent higher compared with the
previous year, but was eight per cent lower in the most recent quarter
compared with the previous quarter. Repair and maintenance work in the
private non-housing sector in the year to the third quarter of 2003 was
five per cent higher compared with the previous year and was 11 per cent
higher in the most recent quarter compared with the previous quarter.
Employment
The seasonally adjusted number of employees in employment in July 2003
was unchanged compared with April 2003 and was five per cent lower compared
with July 2002. Total employment (including the self-employed) in July
2003 rose by two per cent compared with April 2003 but was three per cent
lower compared with July 2002.
Construction
Growth Set to Slow as Private Sector Weakens
Higher
government spending will be crucial to sustained construction industry
growth over the next three years as private sector generated work weakens,
according to the Construction Products Association's
latest Construction Industry Forecasts.
Commenting on the figures, Michael Ankers, the Association's Chief Executive,
said: 'Although private sector growth is forecast to constrain construction
activity over the next three years, government spending continues to keep
the industry optimistic, with public sector output forecast to grow by
7.5% in 2004, 3.1% in 2005, and 2.5% in 2006.
'In contrast, higher interest rates and a moderation in household spending
growth are forecast to curb related construction sectors such as housing,
retail and leisure premises. Additionally, oversupply in the office market
will continue to depress the flow of new office developments over the
next two years, while near term industrial building work will remain at
a low ebb despite the recent strengthening in the Euro and an anticipated
recovery in world trade.
'Overall the construction industry is expected to avoid recession thanks
to higher Government investment in the built environment. However, statistical
rules will artificially depress the official figures as rail maintenance
contracts are brought in house by Network Rail and are excluded from the
construction output statistics. This will trim 1% for total construction
output this year and next. As a result, overall construction industry
growth is set to slow to 1.5% this year, with output dropping 0.7% next
year before growth resumes in 2006.'
Tel: 020 7323 3770
E-mail: mailto:awilen@constprod.org.uk
or mailto:ankersm@constprod.org.uk
Web: http://www.constprod.org.uk