CLC Latest: Material Supply Chain Group

CLC Latest: Material Supply Chain Group

Statement from John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the Construction Leadership Council’s Material Supply Chain Group.

As the first quarter of 2024 draws to a close the latest report from Construction Leadership Council’s Material Supply Chain Group (formerly Product Availability Group) continues to show good levels of product availability across the board.

The beginning of 2024 has also brought early signs of improvement in construction activity, although housebuilding is expected to be flat for most of the year.

Overall construction activity trended upward in January and February reaching its highest level since August 2023, despite poor weather. The weather is likely to have affected sales volumes through builders’ merchants, which remained static during the first two months of the year. Most regions, however, saw an increase in volumes in March and there are hints of pent-up demand as a handful of regions are showing high levels of sales compared to 2023.

Prices generally have increased by 3 to 4%, which mirrors the wider economy where CPI inflation in January was 4.0%.

Previous concerns about the impact on products normally transported via the Red Sea seem to have dissipated or are manageable. Although some are experiencing increased shipping costs and slight delays in delivery of ironmongery and sanitaryware this is now described as an ‘inconvenience’, and not a major issue.

Separately, the electro-technical sector has flagged concerns about the ongoing geopolitical risks in East Asia and the potential impact on any construction products, plant and tools with chips sourced from that region. The Group is considering adding this issue to its ‘horizon scanning’ and some members are independently analysing the situation.

However, the availability of skilled labour (outlined in the Group’s report of 20 February 2024) remains the most immediate and pressing concern for most in the Group, with several expressing the view that current market conditions have been masking the true scale of this issue, which will be exposed when the market picks up. The Group has shared these concerns with the CLC’s People & Skills Group where they will be taken up in further detail.

FIS launch updated Best Practice Drylining Guide

FIS launch updated Best Practice Drylining Guide

FIS has launched a revised and updated Best Practice Guide – Installation of Drylining to help promote best practice in the installation of drylining, and to take account of new working practices, the Building Safety Act and sustainability.

First published in 2015 and updated in 2018, this revised guide is an invaluable aid to specifiers, contractors, clients and installers. This publication will guide them through the design and installation of internal, non-loadbearing drylining constructions using gypsum plasterboard on rigid metal framework. It also includes descriptions of other non-plasterboard, such as calcium silicate board, which are also used in drylined systems. This guide includes drylined partitions, linings and passive fire protection.

Split into sections, the revised guide covers everything from the initial tendering and planning stages through to the eventual installation. It offers a series of points to consider when carrying out the installation of all types of drywall and provides updated and revised information including:

The guide sits alongside other FIS Best Practice Guides that relate to drylining:

Commenting on the drylining guides, Iain McIlwee, FIS Chief Executive said:

“Drylining systems form firewalls, fire escape routes and provide passive internal fire protection so it is incredibly important to get it right at all stages of installation and this has to start far earlier and long before boots hit the ground. Our new and updated guides allow professionals to reduce risks, support compliance and most importantly of all encourage responsible planning.”

A valuable resource for improving works package delivery, these guides work well when they are included in proposals and project plans to demonstrate how to best approach a project.

You can download the Best Practice Guide – Installation of Drylining here.

For further information or for any questions and comments please contact the FIS at info@thefis.org or call 0121-707-0077

 

 

 

Diabetes: the invisible epidemic creating major health and safety risks

Diabetes: the invisible epidemic creating major health and safety risks

FIS is working with The Diabetes Safety Organisation (DSO) to draw attention to the vital issue and risks that can be posed by diabetes in the workplace. Diabetes is often misunderstood and underestimated as a condition, and its impact on individuals and the workplace is not always visible. Around 8% of your employees have diabetes and around 33% have pre-diabetes. Many employees with diabetes ‘hide’ their condition at work and/or feel unsupported by their employer, leading to poor diabetes management for individuals and greater diabetes risks for them and the business.

In a previous issue of SpecFinish, we heard from Kate Walker, Director at Diabetes Safety Organisation, who explained that the rapid increase in the number of people with diabetes means that it is very likely that some employees on site will have the condition. Employers, therefore, must understand the risks and know how to support affected employees and their colleagues. You can read he full article here https://www.specfinish.co.uk/diabetes-the-invisible-epidemic-creating-major-health-and-safety-risks/

There are 1 million people living with undiagnosed diabetes. Undiagnosed and poorly managed diabetes can lead to significant changes in eye sight, lack of sensation in feet and lower concentration levels. Additionally it causes long term damage to key organs like the heart and kidneys, increasing the number of people who exit the workplace early. With the correct support at work, people can better manage their condition, improving their productivity, concentration and over all safety.

There is limited real world data on diabetes in the workplace and we are looking for organisations to help us and themselves understand key organisational risks such as:

  • Whether work practices are compromising the ability of employees with diabetes to manage their condition according to their health providers’ recommendations
  • Whether severe hypos are being hidden/not recorded in health and safety data
  • Whether employees know how to recognise and assist a colleague experiencing a hypo
  • Whether employees with diabetes are choosing to not disclose their condition to their line manager/HR
  • Whether employees with diabetes are compliant with DVLA driving regulations
  • Whether employees understand the risks from undiagnosed diabetes
  • Whether line managers are confident in their knowledge of diabetes risks at work and ability to support employees with diabetes

The survey is confidential and can be completed here – https://forms.office.com/r/iZ1aX051Va

 

CPA Construction Trade Survey – further weakness to end 2023

CPA Construction Trade Survey – further weakness to end 2023

It was a weak end to 2023 and a subdued start to 2024 for firms operating throughout the construction supply chain, according to the CPA Q4 2023 Trade Survey.

Trade surveys for the fourth quarter of 2023 indicated that it was the worst quarterly performance since the first half of 2020, when activity was disrupted by lockdowns at the height of the pandemic, with declines in workloads for chartered surveyors and SME building contractors, and falls in sales for both heavy and light side product manufacturers.

There are still some areas of growth, however, and workloads growth reported by civil engineering contractors confirms that infrastructure continued to provide activity, a pocket of growth also identified by chartered surveyors, alongside public non-housing. Outside of these sectors, however, the constituent surveys point to little near-term pickup in the first half of 2024.

Falls in new enquiries were reported across SME contractors’ main sectors of focus of house building, commercial/industrial and RM&I, which mirrors the official ONS data on construction output, which has shown a notable decline since the second half of last year, and new orders, which have declined since the end of 2022. For product manufacturers, sales are expected to fall in 2024, whilst for chartered surveyors expectations of growing workloads were again restricted to infrastructure and public non-housing.

A stark downshift in the housing market, reluctance among homeowners to commit to large improvements spending and lower volumes of large commercial and industrial projects in the pipeline mean that demand is increasingly being flagged as a primary constraint or concern for activity over the coming 12 months, particularly when this combines with flatlining economic growth, a step-change to higher interest rates and financing costs, and continued uncertainty over input inflation as the Red Sea transport diversions continue.

FIS seeks mandate for next Government

FIS seeks mandate for next Government

With Rt Hon Jeremey Hunt MP having set out his stall for what could well be his last time as Chancellor, FIS has issued to their community the first part of the FIS Manifesto, A Blueprint for Better Construction: Delivering Change in the Finishes and Interiors Sector.

This document, the first in a series of three policy documents sets down FIS views on near- and long-term policy levers that will support transformation in the sector.  The Manifesto draws heavily on recent research with the University of Reading on Procurement and Contracting, It is less focussed on the macro-economic picture than the Chancellor’s Budget, instead zoning in on the pressing business challenges which beset the specialist construction sector set against four key headings.

  • Public Sector Procurement reform led by a more ambitious Construction Playbook.  This needs to be backed by a consistent effort to measure outcomes.
  • Eliminate unreasonable risk transfer by enforcing standard form contracts that are aligned with supply chain insurance.
  • Revisit the Construction Act to simplify payment, reform retention and extend enforcement powers.
  • UK Construction Products Marking rules must be aligned to those for other products to support investment in new testing.

Commenting on the launch of this document, FIS President Philip Brown stated:

“This document draws together a lot of work that the FIS team has been doing through our daily engagement with members.  For an organisation to have a strong voice, it must carry a strong mandate and this is what we are seeking here.  We have a unique opportunity with Building Regulatory Change and an awakening on Sustainability already adding momentum to transformation.  Now is the time to rally the construction voice, to unite our community around a number of key simple statements.  The main focus is Policy levers, but it should complement our “Empowering the Responsible No” campaign highlighting areas where clients, including Government have unreasonable and damaging expectations that are ultimately undermining the sector.”

FIS CEO Iain McIlwee added:

“It is important to note that we are not sending this out as a fait accompli but playing back what we have learned from our research and wider engagement with members.  The essence of this document is simple and at risk of repeating requests of the past, but the reality is that there is at a basic level, I believe an understanding and realisation of the key things that do need to change.  We need to get on top of the design development process to deliver safety reform, this needs early supply chain involvement – there is a big gap between the Plan of Works and the Work!   If we want businesses to invest we need to create an environment that allows and rewards this.  None of it is rocket science.  My hope in this document is that we are moving beyond the who, what and when and starting to get into the why and how.  We welcome all comments and will listen, reflect and absorb before we finalise.  FIS provides a voice for the sector and this is about opening our ears before we start using our lungs!”

The draft manifesto is available to download here.

Unlock the door to a career in construction

Unlock the door to a career in construction

FIS is looking for members in London to provide support for individuals that have undertaken an introduction course for Interior Systems. The course is taking place in April, so if you can offer a work trial, work experience, or employment then please contact FIS Head of Skills and Training, Beena Nana beenanana@thefis.org before the end of March for more details.

Background
The Skills Centre London are putting together a four-week introduction to Interior Systems in London, in collaboration with FIS and Worshipful Company of Plaisterers.

Individuals will be provided with the following training:

  • Green Labourers CSCS card
  • Level 1 Award in Health and Safety in a Construction Environment
  • Level 1 Certificate in Basic Construction (including Plastering Techniques)
  • First Steps into Construction
  • Personal Wellbeing in Construction
  • Introducing Environmental Awareness and Sustainability
  • Practical skills training in our training environment
  • Work experience with an interior systems employer
  • Employability skills, mock interviews, CV support and career information, advice and guidance

A graduation ceremony will held at Plaisterers Hall on Monday 29 April, for both the candidates and members.

More information on the course is available here.

Construction quality improvement – contractors design portion survey

Construction quality improvement – contractors design portion survey

Supported by FIS, the Construction Quality Improvement Collaborative (CQIC) in Scotland is conducting research into Contractor Design Portions (CDPs).  The use of CDP has grown over the years, and we know that its use can create challenges (this was a major issue raised in our work with the University of Reading last year).

This survey will give an insight into why and how it is used and how its use can be improved. The survey information will be analysed and will allow the development of guidance that will support the sector to use CDP in a manner that will contribute to the construction quality outcomes we are all striving for. 

The link to the survey is: CQIC – CDP Working Group

We would urge all those involved in the sector to take the time to contribute to this important piece of research which will bring benefits to us all – the deadline for the survey is 15 March 2024.  Please do forward this too, to any construction colleagues (the aim is to gather information from all parts of the supply chain and it is not limited to the finishes and interiors sector).  We have a real opportunity to use the data to make a difference, but the validity and power of the data will be dependent on the level of response.

If you have any questions about the survey, contact Iain McIlwee on iainmcilwee@thefis.org

That’s a wrap

That’s a wrap

Thanks again to all who supported the FIS Conference on Delivering Productivity, Quality and Compliance in the fit-out sector and Putting Net Zero and sustainability first in a practical way at the Workspace Design Show.  It was a really interesting couple of days with views from over 30 leading experts blending with hundreds of attendees over the two days.  It was a great opportunity to look (collectively as a supply chain) at some of the key opportunities and challenges that we face and how we can individually and collectively change for the better.  So much content to digest and consider, but clear themes that we can draw.  It really struck me that whilst we covered a wide range of subjects, regardless of the question, the answers were similar and lean back into some core principles.  To really step forward we need:

  • earlier supply chain engagement centred on better risk management and a clear design development process,
  • we need to look in this at the Design Responsibility Matrix and a better defined process that picks up where the plan of works falls short,
  • the need to be clearer on what value we are procuring and find ways to step outside of the immediacy of the project,
  • stepping outside of the project amounts to focussing on a more circular supply chain that loops back rather that overlaps to accelerate
  • empathy led change needs better communication and more direct engagement with the client on the impact of current behaviours on insurability and sustainability.
  • Complicated contractual engagements undermine all of above and there needs to finally ne a genuine concerted effort to outlaw the routine amendments that distort risk and mask problems

Above is where we’ll be focussing on in our lobbying work and will be captured in Part 1 of our upcoming Manifesto that we will be releasing to members for consultation in the next week.

Celebrating innovation in the finishes and interiors sector

Celebrating innovation in the finishes and interiors sector

FIS announced the winners of its 2024 Innovation Awards at a ceremony held at is Conference in London on 27 February.

In front of a packed audience at the Business Design Centre, the winners of the FIS Innovation Awards were announced and presented. The Awards recognise and celebrate innovation in the finishes and interiors sector showcasing companies that are paving the way for greater efficiency and collaboration. The awards comprised four categories: Product Fit-Out, Product FF&E, Digital and Sustainability.

All entries were independently assessed by a panel of expert judges and the winner of each category was announced in front of a live audience. The winner of each category was then invited to deliver a short pitch on their innovation to the audience, who then determined the overall 2024 Innovation of the Year winner.

The 2024 award winners are:

Innovation of the Year
IOBAC UK for its contamination free flooring installation tabs

Digital
PlanRadar for its SaaS field management platfor, PlanRadar

Product – Fit Out
Fire Stop Products for SpeedCutter

Product – FF&E
Box Strap for its Box Strap bracket

Sustainability
IOBAC UK for its contamination free flooring installation tabs

The awards and event were supported by sponsors Troldtekt, Protektor, EPD Insulation Group, Canary Wharf Contractors and SpecFinish

Find out more about the winners and shortlist across all four categories.

FIS updates Risk Register to support compliance and business improvement

FIS updates Risk Register to support compliance and business improvement

As the full implication of the Building Safety Act and it’s impact on the wider Building Regulatory environment and commercial behaviours, FIS has updated its Product Process People Risk Register.  The aim is to provide members with a comprehensive Risk Register to support compliance and business improvement.

The FIS PPP Risk Register gives people a structured framework to interrogate project risk based on a assessment of severity and probability of a risk occurring.  The standard scoring system helps members to identify any unacceptable high risks and ensure management strategies are put in place to address.  The tool also helps a management team to assign risk correctly and contains a range of links to additional tools and information that will help support specific risk management.

FIS CEO Iain McIlwee said:

“Risk is inescapable in any construction project, but at times we can feel so beset by risk that we become indifferent to it.  It is vital that as an industry we get better at measuring, managing and mitigating.

A large part of our work centres on identifying, interrogating and helping members to manage day to day problems they may encounter.  Our understanding and exposure to risk is constantly moving and evolving and it is critical we adopt a consistent approach to risk management.

This simple tool is built on collective wisdom, lessons learned and understanding gained through our wider work that ensures members are alert to where problems may appear.  It aims to help people to score and priorise risks and to start the necessary focus on mitigation, linking the user to the vast array of tools available to our members, directly through the FIS and our wider network.  The underlying principle is that the school of hard knocks is fine, but it is better to learn together and avoid learning the hard way wherever possible.”

Richard Brackstone Chief Executive of RB Management and Consulting Ltd who supported FIS in this update added:

“This is a really useful tool and one I would urge all members to work through, it is comprehensive and accessible.  Construction is fast and furious and risk is all around us, and it is tempting to bury our heads in the sand and hope for the best.  But, ultimately, success in construction is entirely dependent on how well we manage that inherent risk.  This list provides a focal point to conduct a review and at the very least serves as a helpful reminder”.

The FIS PPP Risk Register is available for members to download here

RB Management and Consulting Limited provide specialist Risk Management Support for FIS Members

Less than one week to go until the Workspace Design Show opens its doors

Less than one week to go until the Workspace Design Show opens its doors

In just a few days the eagerly-awaited Workspace Design Show, a leading trade show that brings together the UK workplace interiors community, will open its doors. Held at London’s Business Design Centre, handily placed in the heart of Islington, from 27-28 February 2024, the event offers attendees the chance to explore the latest industry trends, see the latest products, and find inspiration in the thought-provoking talks programmes.

This year’s extensive speaker programme has over 120 speakers across four key elements of discourse. The Workspace Design Talks programme, will feature inspiring sessions from leading industry professionals over the event’s two days. Speakers include Alan Bainbridge, Director of Workplace, BBC; Yasmin Al-Ani Spence, Director, WilkinsonEyre; Mary-Louise Gray, VP Workplace, Real Estate and Facilities, GSK; and Naomi Sakamoto, Principal Studio Director, Gensler. Topics covered include designing a workspace that meets cross generational needs, the hotelification of the office, using AI in workplace design and the evolution of workplace design through the eyes of next gen architects.

The FIS Conference, taking place on 27-28 February, will explore productivity, quality, compliance and sustainability issues in the fit-out sector, with leading speakers from among others tp bennett, MCM, Claremont, ISG, British Land and Turner & Townsend.

Sustainability Works, curated by Mick Jordan, Editor of Works magazine, returns for 2024 and is held on 27 February, once again bringing together a selection of key figures from firms such as Perkins&Will, Scott Brownrigg, BDG architecture and design and M Moser Associates, who are behind the workplace market’s leading sustainable initiatives and projects. The Occupiers Forum, held on 28 February, offers the complete ‘The View from HQ’. Located in the Insights Lounge, it will provide unique insights from occupiers such as BT Group, HSBC, Clifford Chance, Salesforce and Barclays into what employers are doing to create an engaging workplace experience.

2024’s features represent an incredible spectacle for attendees of the Show, all seeking inspiration from the overarching show theme ‘Bloom – Exploring the Thriving Ecosystem of Work Life’. There will be an array of captivating features such as the Design Talks Lounge by Gensler, the Entrance by tp bennett, the Insights Lounge by BDP, a Living Workplace lighting installation by Jason Bruges Studio, and the Recharge Lounge M Moser Associates,

Once again, FIS will host its awards at the Workspace Design Show. These will celebrate the creativity, craftsmanship, and cutting-edge innovations that define the finishes and interiors sector. With a spotlight on revolutionary materials, exceptional design techniques, and sustainability breakthroughs, the FIS Innovation Awards serve as a showcase of the industry’s finest achievements.

As the sun sets on the first day of the show, the Workspace Design Show invites attendees to party and socialise into the rest of the evening. This exclusive event is the perfect opportunity to unwind, network, and celebrate. The party kicks off immediately after the day’s activities from 5:30pm to 8:00pm, completely transforming the venue into a vibrant hub of creativity and connection.

This year will bring the exciting mood board contest area designed by MF Design Studio. The unique scheme runs parallel with a blooming tree; MF Design Studio have created an environment for the mood board contest to engage participants, to experience the world of workplace design through a personal exploration of materials, textures and colours. Their use of colour represents our diversity and how they approach design in an individual yet collaborative way, bold lines bloom into curves that define the different palettes. Using all sustainable materials to inspire designers to create a more sustainable future.  The contest allows attendees to create their own stunning mood boards, which they can then submit as their entry to the contest.

Exhibitors from over 20 countries will be showcasing innovative and transformational workplace interiors products during the event. The workplace world descends on London for the two days of Workplace Design Show from Pedrali and Lapalma from Italy, Spain’s Kettal and Actiu, Modulyss from Belgium and Woven image all the way from Australia, plus many more.

Workspace Design Show will be the place in London for architects, designers, occupiers, developers, consultants, coworking companies and fit-out companies to explore the latest industry trends, see the latest products, and find inspiration in the thought-provoking talks programmes.

Register now for a complimentary pass and attend the Workspace Design Show

Lens Blog: Learn to say, No

Lens Blog: Learn to say, No

FIS Consultant Len Bunton shares his thoughts on why businesses should learn to say, No.

Len’s message is that businesses should not accept onerous contract clauses that increase risk, extended payment periods, or contra charges to name a few.

In this blog, Len has set down a list of things that businesses in thge sector should be saying no to.

Adopting some of the statements should help you to manage the commercial aspects of projects much more efficiently and profitably. In my experience there are plenty of good employers and contractors out there who will look after you and who have long-term building programmes, and who will value your input, and who will want you to help them build successful projects on cost, on time and to a high quality.

Be selective of who you work for, and find out which organisations have long-term building programmmes, with whom you can build a successful relationship.

Len Bunton, Bunton Consulting

 

Members can see the full blog

These monthly Blogs are designed to help FIS Members avoid common traps and build on our focus on collective experience.  They share ideas about improving the commercial management of your contracts. In other words, instilling best practice into the way FIS members run and manage their business. What I have endeavored to suggest is ways to ensure you get paid on time, and what you are due.

Boosting routes into industry

Boosting routes into industry

The Construction Leadership Council (CLC) has published a report from NOCN’s and CCATF (both education and skills bodies) setting out recommendations to improve the flow of skilled and competent talent into the construction sector.

The report highlights the challenges of ensuring competency of the workforce to comply with the new Building Safety Act, the overall decline in skills funding over the past 10 years and the need to upskill the workforce to embrace the green, digital jobs of the future. It suggests developing the CSCS scheme to support verification with competency under the Building Safety Act, improving diversity, and developing a more agile and consistent UK skills system for construction.

Find out more here.

Careers in construction: Go behind the scenes with Open Doors 2024!

Careers in construction: Go behind the scenes with Open Doors 2024!

There is just a month to go until Open Doors 2024 when construction companies across Great Britain will take visitors behind the scenes to showcase the diverse range of career opportunities available in the industry.

Open Doors 2024, delivered by Build UK, will see more than 210 events take place from Monday 18 to Saturday 23 March, giving young people and those looking for a change of career a unique opportunity to see construction in action.

Visitors are encouraged to go to the Open Doors website and see what’s happening in their local area, with a wide variety of construction projects offering the chance to go behind the hoardings. Sites include HS2 stations, skyscrapers, hospitals, schools, leisure centres, prisons and more, whilst factories, offices and training centres will also be opening their doors to demonstrate the off-site roles on offer across the sector.

An Open Doors visit gives a real insight into the opportunities within construction, dispelling many of the myths that surround the industry. For example, the average annual salary in construction is higher than many people think at almost £45,000. Build UK research also shows that the average completion rate for apprenticeships delivered by members is 85%, compared to the Government target of 67%, whilst 90% of other new entrants who come via college or university remain with their company after completing their training or probationary period.

With construction traditionally seen as outdoor physical work, Open Doors visitors will also see the huge range of office-based roles along with a significant increase in the use of technology and demand for digital skills.

With more than 180 careers available and currently 36,000 vacancies in construction, the industry has something to offer everyone, whatever their age, background or skills. There is so much more to construction than just building – from design and engineering through to project planning and sustainability initiatives – and more companies are embracing flexible working to help make it a positive career choice for everyone.

Find out more and book your place on the Open Doors website.

Government publishes national infrastructure and construction pipeline

Government publishes national infrastructure and construction pipeline

The Government has published its long awaited National Infrastructure and Construction Pipeline 2023, which sets out planned and projected investment in major economic and social infrastructure over the next 10 years, the workforce requirement to deliver it, as well as a list of near term planned procurements.  The aim is to help manufacturers and the wider industry make informed business planning decisions, and support investment in skills and construction productivity.

For more information click here

Government confirms plans to permanently remove RAAC from all schools and colleges in England

Government confirms plans to permanently remove RAAC from all schools and colleges in England

Measures to permanently remove Reinforced Autoclaved Aerated Concrete (RAAC) from all affected schools and colleges, have been confirmed this week by the government. A final list of schools and colleges with confirmed cases of RAAC in schools and colleges in England has also been published. There are 234 education settings, out of 22,000, with confirmed RAAC in some areas of their buildings – around 1%. Click here to read more.
CPA Construction Trade Survey – further weakness to end 2023

Falling demand hits construction product manufacturers’ sales

The Construction Products Association’s latest State of Trade Survey for 2023 Q4 showed that manufacturers ended last year with a further fall in construction product sales on both the heavy side and light side – the sixth consecutive quarter of decline for heavy side manufacturers and the second fall for those on the light side. Manufacturers anticipate sales will decline over the next 12 months, citing a clear concern over the weak demand expected in 2024.

In 2023 Q4, a balance of 63% of heavy side manufacturers reported that sales of construction products decreased, marking the sixth consecutive quarter of decline and the weakest performance since 2020 Q2, at the height of the pandemic. Alongside this, 40% of light side manufacturers also reported a fall in product sales. This was the second quarterly decline but, equally, the lowest balance recorded since activity was paused during the early pandemic restrictions.

Looking to the next 12 months, demand was cited by 71% of heavy side manufacturers and 80% of light side manufacturers as the factor most likely to constrain growth during 2024. Consequently, 11% of heavy side manufacturers and 15% of light side manufacturers anticipated a fall in sales over this year.

The backdrop for costs was shown to be more favourable, however, with manufacturers reporting a continued easing in cost inflation. Price pressures were lower for raw materials, fuel and energy, which had all been major contributors to inflation over the last couple of years. Nevertheless, manufacturers reported continued upward pressure from wages & salaries.

Rebecca Larkin, CPA Head of Construction Research said: “Manufacturers had a challenging end to 2023 and there appears little to rally expectations for growth this year. Falls in new construction orders since the end of 2022 have now begun to filter through into lower construction activity, particularly in housing, commercial offices and warehouses and factories in the industrial sector. With flatlining GDP growth, a step-change in interest rates and build costs, and emerging risks around delays and cost rises related to the Red Sea shipping disruptions, it should come as no surprise that demand was flagged as the key concern for construction product manufacturing activity in 2024.”

Key survey findings include:

  • A balance of 63% of heavy side firms and 40% of light side firms reported that construction products sales fell in 2023 Q4 compared with Q3
  • This was the sixth straight quarter of decline for the heavy side and second for the light side
  • 11% of heavy side manufacturers and 15% of light side manufacturers anticipated a fall in sales over the next 12 months
  • 71% heavy side manufacturers and 80% of light side manufacturers cited ‘demand’ as the key concern for sales over the next 12 months
  • Cost balances continued to moderate but wages & salaries were the strongest cost pressures for both heavy side and light side manufacturers
Understanding the barriers and challenges when recruiting

Understanding the barriers and challenges when recruiting

The FIS Skills Team are working on setting direction to support the skills strategy for the year. To help suport this, we want to understand the barriers and challenges members have with recruiting.

Your support in completing the Skills Pulse Survey will help ensure FIS provides the right support.

We would like to understand:

  • What the challenges are with training
  • What is being done to recruit and engage with potential apprentices/trainees and how can we share best practice wider
  • Is there sufficient provision for training?

This data will help FIS to build evidence and focus our priorities to ensure we are responding to the needs of our members and the wider sector.

The survey can be completed here and the closing date for responses is Friday 9 February.

FIS State of Trade Survey Q1 2024: Inflation continues, contractual battles persist but hope on the horizon

FIS State of Trade Survey Q1 2024: Inflation continues, contractual battles persist but hope on the horizon

FIS Q1 2024 State of Trade Survey

FIS State of Trade Survey Q1 2024 highlights that inflation has slowed, but prices continue to rise due to raw materials and wages.  

Workloads reported by FIS members in the final quarter of 2023 were mixed.   Whilst a balance of 9% experienced growth, close to a quarter reported no changes quarter-on-quarter and the difference between those growing by over 5% and declining by over 5% was marginal.  

Looking to the next quarter (Q1 2024) the expectation for most is more positive with 30% anticipating growth of over 5%, but this is balanced by 34% expecting their market to level out and 23% expecting the market to tighten and a further. 

Members can dowload a full copy of the FIS State of Trade Survey Q1 2024 here

Alignment with wider industry forecasts

FIS data is gathered with the support of the COnstruction Products Association, who this week published the Construction Products Association’s Winter Forecasts..  Construction output is forecast to fall by 2.1% this year due to falls in private housing new build and repair, maintenance and improvement (rm&i) – the two largest construction sectors. The CPA forecasts that construction output will rise by 2.0% in 2025 in line with falling interest rates and a general economic recovery, which, in turn, could ease challenges in the housing and rm&i sectors. Recent disruptions in the Red Sea, however, have been identified as a key risk to the forecasts, potentially leading to supply issues such as delays and accelerating cost inflation.

Private housing – the largest construction sector – suffered a double-digit fall last year after a spike in mortgage rates hit housing market demand. Consequently, many house builders have reported a fall of around 25-35% in demand, in addition to the regulatory issues that smaller house builders continue to face in particular around planning, as well as water and nutrient neutrality. The lagged effect of higher mortgage rates is likely to continue to weigh upon property transactions this year with private housing output expected to fall by a further 4.0%. Looking to next year, a gradual fall in interest rates should boost demand with private housing output expected to rise by 4.0%. This doesn’t imply a speedy recovery however, as interest and mortgage rates are not expected to return to the record lows seen as recently as 2021 anytime soon. The lack of a government policy stimulus to help overcome high deposit and mortgage payment requirements, also means the recent peaks in housebuilding from 2022 are unlikely to be seen again until at least the end of the decade.

Private housing rm&i is the second-largest construction sector and activity continues to be on a general downward trend. The rising cost of living has hit discretionary household improvements spending. In addition, fewer property transactions last year led to a decline in refurbishment activity from new homeowners who typically make cosmetic improvements within the first 6-9 months of moving in. Smaller project work is likely to continue to remain flat in the first half of this year as household spending remains tight, whilst the continued fall in property transactions in the first half of this year is likely to hit larger project work for the remainder of 2024. This is likely to be partially offset though by strong activity on energy-efficiency retrofit such as insulation and solar photovoltaic work. Overall, private housing rm&i output is expected to fall by 4.0% in 2024 before growth of 3.0% in 2025.

In infrastructure, which is the third-largest construction sector, activity remains strong down on the ground. Work continues apace on HS2 Phase One despite the most recent cost increases, as well as on Hinkley Point C and the Thames Tideway Tunnel. Frameworks activity in the regulated sectors of roads, rail, water and electricity provides sustained levels of activity in the infrastructure sector too. Concerns remain, however, over pauses and delays to National Highways projects, as well as increasing uncertainty on the deliverability of plans in the water sector to deal with water quality issues through increased capital expenditure. Furthermore, at a local level, councils continue to face financial constraints and despite government announcing £8.3 billion of funding for potholes, resurfacing and roads projects to 2034, there is little evidence to suggest that this will lead to any uplift over the forecast period. As a result, overall, infrastructure output is expected to fall by 0.5% in 2024, a third successive marginal fall in output, before rising by 1.2% in 2025.

Commenting on the Winter Forecasts, CPA Economics Director, Noble Francis said: “The bad weather at the start of January has already affected the construction industry but there is still lots of time for a catch up in activity when the weather improves. The bigger problems for the industry are the hits to activity last year in its two largest sectors – private housing and private housing rm&i. These are likely to continue into 2024. Even with expected falls in interest and mortgage rates in the second half of this year, rates are likely to remain relatively high and so demand in the housing market, house building sector and rm&i sector is likely to remain subdued overall.

“Given the importance of housing to the UK economy, it was disappointing that the Chancellor’s Autumn Statement last year had little to help the beleaguered sector. It is critical that we see measures to help boost house building and homeownership from government in the upcoming Spring Budget. Furthermore, government should do more on infrastructure delivery given that the sector is set for its third consecutive fall in output. This is despite announcements from government on new projects to compensate for the cancelling of the Northern leg of HS2.”

FIS announces Innovation Awards Shortlist

FIS announces Innovation Awards Shortlist

FIS has announced the shortlist for its 2024 Innovation Awards. The awards aim to shine a light on innovation, debunking the myth that our sector is not innovative. The Awards comprise four categories, Digital, Sustainability, Product-Fit Out and Product – FF&E. A judging panel was set up for each category, who indpenedetly assesed all entries.

Digital

  • PlanRadar
  • Zentia for Sonify 3D Studio
  • Etex for MySiniat

Sustainability

  • IOBAC UK for its contamination-free flooring installation tabs
  • Optima for its Glass Partitions manufactured with Hydro CIRCAL aluminium
  • Selo for TEMPUS – temporary fire doors

Product – Fit Out

  • Fire Stop Products for Speed Cutter
  • Global Ceilings Services for Teg Clip
  • Seamless Abutment Solutions for Cross Stud

Product – FF&E

  • Box Strap
  • Mute for OmniRoom
  • Eyevolution for Shadowline

Congratulations to those who made the shortlist, and thank you to everyone who entered. We will be announcing the winners at the FIS Awards Ceremony on 27 February in London. Reserve your place here.