Vocational and technical qualification assessments in 2021

Vocational and technical qualification assessments in 2021

Ofqual publishes regulatory arrangements on adapting vocational and technical qualifications and assessments in 2021.

In  recognition that some learners taking vocational and technical qualifications (VTQs) have experienced lost teaching and training time as a result of COVID-19 and that appropriate arrangements need to be put in place to mitigate the impact of this disruption and respond to any ongoing or future public health measures.  Ofqual consulted on proposals to permit awarding organisations to adjust their qualifications and assessments, which took account of the different ways in which the qualifications are used ranging from those taken alongside, or instead of general qualifications, to those used to signal occupational competency.  On 7 September, Ofqual confirmed their decisions and the proposed arrangements will be implemented in full.

On 12 October 2020 Ofqual published the Extended Extraordinary Regulatory Framework (ERF), to put the arrangements into effect.  The Extended ERF sets out the regulatory arrangements and statutory guidance with which awarding organisations must comply when adapting their qualifications.  It includes 4 principles with which awarding organisations must comply when making their decisions around adaptations, supported by statutory guidance.  Ofqual have also included statutory guidance on Special Consideration within the regulatory framework.

Supporting Training Groups – industry wide consultation

Supporting Training Groups – industry wide consultation

At a time when many programmes have been paused, CITB has maintained its support for a nationwide network of local and specialist Training Groups, so that employers who are Training Group members can access the local training they need.

However, CITB need to look at costs given the significant reduced levy income for the foreseeable future.  At the same time, they need to consider what are the most effective ways to help companies access training at a local level, while ensuring value for money and quality of provision.

On Wednesday 11 November 2020, CITB launched an industry wide consultation on how best to provide support in future.  This will help them understand the biggest benefits of Training Groups to employers and gather thoughts on the options CITB are presenting.

You can find the full options paper and the survey on the CITB website.  If you need more information, please contact the CITB Partnership Team or give George a call.

Training providers are business as usual

Training providers are business as usual

With the second lockdown for England now in force, education and training is set to continue across the country for all industries and sectors.  Awarding Organisations are providing information to centres on acceptable approaches and contingencies to ensure government guidance aimed at reducing infection is applied.  From what we have seen so far Training Providers for the construction industry are being encouraged to continue delivering training, assessment and qualifications, including end point assessments.  Special measures that have enabled 25,000 apprentices to complete their end-point assessment during the Covid-19 pandemic will be retained until at least March 2021.

The FIS Approved Training Provider network will continue to deliver training and qualifications for FIS members and there are discounts and offers available, have a look at membership benefits on the membership hub.  FIS is happy to help identify a supplier for your training needs, a list of available training and qualifications and suppliers can be found here or give us a call on 0121 707 0077 or email info@thefis.org.

CITB Skills and Training Fund Extended

CITB Skills and Training Fund Extended

CITB has confirmed the Skills and Training fund can continue to support business with Covid-19 related resilience support.  The deadline for reverting the Skills and Training Fund will be extended to 31 December 2020.  The fund was expanded earlier this year to include skill retention and sustainability projects and had been scheduled to revert on 1 December to supporting productivity and innovation projects only.  CITB adapted to the COVID-19 situation by amending the scope of activity to support what businesses can apply for.  The fund comprises two streams:

  • A Skills and Training fund for micro and small businesses where businesses can apply for a maximum of £10,000 (full details and how to apply) depending on the size of the employer.
  • A Skills and Training fund for medium-sized businesses where employers with up to 250 employees are eligible to receive up to £25,000 (full details and how to apply).

If you have not applied for CITB Skills and Training Fund, FIS will be happy to help. Call us on 0121 707 0077 or email info@thefis.org or you can book a Skills and Funding Clinic online at https://www.thefis.org/skills-hub/skills-clinics/

Immigration concerns – your support needed

Immigration concerns – your support needed

The new points based system that will be implemented to control immigration from 1 January 2021 will have a significant impact on how and who we can engage individuals from outside the UK to work.  With most of the detail available, FIS is conducting a snap survey to assess the impact on your business and to support our representative work in this area.  Our concerns stem from how occupations have been determined “skilled” and the surprisingly hard line the Home Secretary has taken on shortage occupations.  This will not impact those workers already working in the UK and successfully applying for pre-settled or settled status, but will have a profound impact on our ability to attract new people (or indeed those who have returned home for a period before securing any kind of settled status).

To support our attempts to assess the impact, we have created a short survey in which we would like to gather your best estimates for your business.  We will be using the survey on a rolling basis and will keep it open until the 15th November.  

In terms of immediate actions, there is new guidance from the CLC that FIS helped to pull together Movement of people – what should you be doing now?   From this page you can also follow links to a more detailed explanation of how the new system will work, the scale of the problem and why FIS is concerned.

We are planning a planning a webinar to look at actions and options for later November, so keep an eye on our events page for details.

CITB launches new free COVID-19 eCourse

CITB launches new free COVID-19 eCourse

Following the development of a new pandemic Standard announced back in August, an eCourse, ‘Setting up and operating a safe construction site during COVID-19’ is now live on CITB’s eCourses platform.

Government guidance is for construction sites to remain open, with a reminder to review social distancing measures and comply with the Site Operating Procedures ‐ Version 6. The COVID-19 eCourse can be used alongside existing guidelines to ensure sites remain open safely, and as the Standard is not grant supported, CITB is offering this online course FREE of charge. Aimed primarily at managers and supervisors, the course will enable the confident and knowledgeable delivery of toolbox talks, and cover topics such as, ‘Understanding a Virus’ and ‘Social Distancing’.

Barbour ABI: UK economy disappoints as Covid-19 cases rise

Barbour ABI: UK economy disappoints as Covid-19 cases rise

Unemployment starts its anticipated upwards trajectory.

The ONS’ publication of August GDP all but confirmed a “square root” shaped recovery for Great Britain as the economy started to plateau. Growth was 2.1% in August, a sharp fall from 6.4% in July and 9.1% in June, and well below forecasters’ expectations of 4-5%. The result was surprising as the scene was set for a further strong recovery with low Coronavirus circulation and the Government’s July mini-budget providing a sugar-rush for benefitting sectors. A “V-shaped” recovery is now highly unlikely, and many commentators will be revising down their forecasts.

Nonetheless, two thirds of March and April’s fall in output has now been recovered. The economy remains 9% smaller compared to February: output is now at 2014 levels.

August’s result underlines the danger of relying on transient stimulus measures. A robust infrastructure to manage the virus, minimising fatalities while allowing as much normal activity to resume is now vitally important. The likelihood of activity inhibiting measures such as regional lockdowns are now all but certain. It appears that SAGE recommended a “circuit-breaker” mini lockdown four weeks ago among other measures that were not acted upon.

The Construction Sector – Awards values climb 21.2% in September as upward trend continues

According to the latest data release from ONS, construction output increased by 3.0% in August following 17.2% uplift in July and record 21.8% increase in June. Whilst the upward trend has been extremely positive since April 2020, overall construction output in August is still 10.8% lower than February 2020, immediately prior to the Covid-19 lockdown. Comparisons on a year ago show total construction output is 13.0% lower than August 2019 with new work 13.9% lower and repair & maintenance 11.3% lower than a year ago. With the exception of
infrastructure new work which showed annual increase of 1.3%, all other construction sectors showed output decreases compared with August 2019. The most notable of these were the private industrial sector showing output decline of 42.5% on a year ago with the private commercial sector down 22.0% and public sector new housing down 25.2%.

FIS members can access the full report here.

Invest to save skills from being lost – CITB forecast

Invest to save skills from being lost – CITB forecast

CITB has today published a new construction industry forecast in which it states that Government investment is needed to support skills in the coming year to prevent a generation of talent being lost.

The CITB Construction Skills Network (CSN) report for 2021-25 outlines three scenarios for how the construction sector might recover from the current recession.

Under the best-case scenario, UK Gross Domestic Product (GDP) would return to pre-Covid-19 levels in 2022, whereas it is likely to be 2025 or later for the mid-case or worst-case. The forecast fall in construction employment varies between 10% and 14% of the workforce, or 286,000-372,000 sector workers. The numbers employed will only approach pre-Covid levels from 2025 onwards.

Action is essential to ensure that this loss of skilled workers does not hold industry back from delivering on its pipeline of work, meeting the governments ambitions for infrastructure, new homes and zero carbon or modernising to boost productivity.

CITB is working with industry to make it easier for people to join construction, to place people who have lost their jobs, to help learners complete their apprenticeships and to carry out essential training and retraining.

The report makes four key recommendations for Government to build on this. These are:

  • Protect and retain as much of construction’s existing talent as possible
  • Make construction a priority sector in the new National Skills Fund
  • Reform the Apprenticeship Levy so that more money can be spent on smaller companies in the supply chain
  • Help get more college students into construction jobs and apprenticeships

FIS Skills and Training Lead George Swann said: “The coronavirus pandemic has led to the economy taking a severe hit, with many sectors struggling.  This Construction Skills Network, Industry Outlook provides three economic recovery scenarios for the construction industry, categorised as base, mid and worst cases.  Each case predicts a steady rise in workforce numbers, which means employer investment in recruitment selection and induction then training and qualifying individuals.  FIS can help not only with recruitment and training activities, but in identifying, sourcing and securing funding finishes and interiors employers are eligible for.  If you need any information, advice or guidance, please give FIS a call”.

Steve Radley, CITB Policy Director, said: “This forecast shows that a recovery will be slower than previously hoped but that construction will grow and create more jobs over the next five years. This will create skills challenges and it is vital that CITB, industry and government work together to meet them.

“CITB is investing levy funds to make it easier for people to join construction, to place people who have lost their jobs, to help learners complete their apprenticeships and to carry out essential training and retraining.

“Government can play a key role and providing certainty on its infrastructure pipeline, working with industry to help more college students into construction jobs and apprenticeship and prioritising construction in the new National Skills Fund to help it recruit and train fresh talent. It should also look at reforming the Apprenticeship Levy to allow employers to pass on unspent vouchers in bulk.”

CSN’s annual average sub-sector growth rates over the next five years see public housing in the strongest position (8.2%), while private housing (7.8%) and infrastructure (5.5%) are also expected to grow strongly and be key drivers for recovery.

Growth is expected to be evenly spread across all nations, with a UK average rate for 2021-2025 at 5.4%, England at 5.5%, Northern Ireland at 5.2%, Wales at 4.8%, and Scotland at 4.5%.

In the short term, 2021-2022, limited recruitment of new entrants and apprenticeship starts is expected, with a rise in unemployment but demand for skilled workers in infrastructure. In 2023-2025 recruitment of new entrants and apprenticeships should pick up with increased demand for training from employers.

Urgent update regarding conformity marking of construction products from January 2021

Urgent update regarding conformity marking of construction products from January 2021

As the UK leaves the EU on 1 January 2021 new rules come into force for construction products that are currently covered by the European Construction Regulation (CPR).  This requires products covered by a harmonised European Norm (hEN) to carry a CE mark when placed on the market. From January new rules in the UK require a new mark of conformity Assessment (UKCA) mark to be applied to products put on the market in the UK; Northern Ireland has separate rules where CE marking will be acceptable if the product comes from the EU or a UKNI mark for products coming from outside the EU which includes the UK.

Placing products in the UK market will require the Notified Body to be in the UK and in the EU where manufactures from the UK are exporting to the EU

To help, The Brexit working group of the Construction Leadership Council has published advice and information on the conformity marking of construction products

Read the full press Release here.

And the new guidance EU EXIT BUSINESS READINESS: CONFORMITY MARKING OF CONSTRUCTION PRODUCTS HERE

United Kingdom Conformity Assessment  Mark (UKCA)

United Kingdom Conformity Assessment Mark (UKCA)

From January 2021 Organizations putting their products on the market will be able to use the UKCA mark which replaces CE marking in the UK after a transitional period of 12 months until January 2022; This will require products to be handled by a UK notified body including Manufacturers importing products.

Products placed on the market in Northern Ireland will have to use a UKNI mark or CE mark if the product is imported from Europe.

All organisations placing construction products on the market in the UK where a harmonised European Norm (hEN) should check the UK Government website HERE for more information and guidance.

Fire safety in construction – roles and responsibilities

Fire safety in construction – roles and responsibilities

The Construction Industry Advisory Committee (CONIAC) Managing Risk Well Working Group on fire has produced the Construction fire safety: Responsibility and competence matrix for fire safety in construction.

Hosted by the Construction Health & Safety Group (CHSG), the purpose of the matrix is to identify and outline the roles and the responsibilities of those involved in fire safety and prevention on construction projects.

The document sets out the minimum knowledge needed for each role and has been produced to support the construction industry in defining the skills, knowledge, training and experience needed by each of the duty holders’ roles.

Further information about CONIAC/CONIAN and its Working Groups is available from the CONIAN web community.

FIS joins the UK BIM Alliance Affiliate Programme

FIS joins the UK BIM Alliance Affiliate Programme

In a bid to drive a greater understanding and support the implementation of BIM in the fit-out and finishing world, UK BIM Alliance is delighted to announce a formal affiliation with the trade body for the sector Finishes and Interiors Sector (FIS).

Iain Mcilwee, Finishes and Interiors Sector (FIS) CEO “There is little doubt that, as construction reinvents itself in the post COVID/post Grenfell era, the Digital Revolution is here.  If we look at the reforms that will be driven through regulatory requirements or commercial drivers linked to  productivity and quality, how we create and share information through the specification and construction process is key.  BIM was always going to struggle to live up to the early hype, but the principles of BIM are already helping us to adapt and change and with greater standardisation and simplification, it will help us to deliver the golden thread along with the structural and cultural changes that we need to see.   We are very much looking forward to aligning and working more closely with the UK BIM Alliance and helping our community to understand and implement these changes – like with BIM itself, collaboration is everything.”

Andy Boutle, UK BIM Alliance Engagement Co-Lead “We are delighted to welcome FIS to the affiliate programme who already have an active Digital Working Group focussing efforts in this area .  We look forward to supporting and coordinating future activities together.”

The Affiliate programme aims to bring together the professional institutions, trade associations and any other industry organisations to provide a consistent message and coordinated approach to digital transformation, working across silos to a shared objective.

About the UK BIM Alliance
We are here to support the built environment sector take the first fundamental step in their journey to digital transformation.  The UK BIM Alliance aims to ensure BIM becomes business as usual whilst at the same time, transforming and future proofing the way the industry work.  The UK BIM Alliance is also the UK & Ireland chapter of buildingSMART.  For more information visit the website.

About the Finishes and Interiors Sector
FIS is the representative body for the £10 billion finishes and interiors sector in the UK.  The FIS membership is drawn from contractors, manufacturers and distributors of ceilings, steel framing systems, partitions, operable walls, plastering, drylining, and specialist interior fit-out and refurbishment businesses.

FIS exists to support its members, improve safety, minimise risk, enhance productivity and drive innovation in the sector.  As well as specialist publications, technical support and expert helplines, FIS is a dynamic network that brings the sector together through a range of events, awards and specialist working groups, all aimed at sharing best practice, setting standards and advising Government, that help its members to improve performance and win work.

For more information visit the website.

Can the FIS Kickstart Gateway organisation help you?

Can the FIS Kickstart Gateway organisation help you?

With the news this week that unemployment surged to 4.5% by August as pandemic hits jobs, this is the highest UK unemployment rate in three years.  There is also clear data showing redundancies have risen to their highest level since 2009.  The National Office of Statistics states about 300,000 of those currently unemployed are aged 16-24.  It is well reported the biggest industries hit are hospitality, travel agencies and employment agencies.  The number claiming work related benefits, hit 2.7 million in September an increase of 1.5 million since the beginning of the crisis in March.

After a record low of 343,000 vacancies in April to June 2020, there has been an estimated record quarterly increase of 144,000 to 488,000 vacancies in July to September 2020; vacancies remain below the pre-coronavirus (COVID-19) pandemic levels and are 332,000 (40.5%) less than a year ago.

The Chancellors Plan for Jobs includes the Kickstart scheme.  This gives employers an opportunity to engage an individuals for six months.  Officially launched on 2 September 2020.  The scheme is aimed at helping unemployed young people aged 16-24 get a foothold on the career ladder by funding six-month job placements.  Under the scheme, funding will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions.

One of the elements of this scheme is that applications must be for a minimum of 30 job placements.  FIS recognise this is likely to be too many for the majority of our members and as such, we are delighted to advise we have been approved to act as an intermediary on behalf of you, our members and the Department for Work and Pensions (DWP).

As an intermediary, we are able to amalgamate all requests and submit a consolidated bid on your behalf.

To make it as seamless as possible for you to engage with the scheme, FIS will be playing an active part in working with DWP to select the best and most suitable people available, FIS will be there to support you through the Kickstart process.  We can also help you to access the £1,500 per job placement fund to cover the initial set up costs and the costs of training and support.

We urge you to support this initiative and give unemployed young people a chance.  There is no obligation to employ individuals after the work placement has concluded.  Even if you don’t think you’ll be in a position to employ anyone for the next 6 months, you can still give someone an opportunity to train and develop, at no cost to yourself or your organisation and perhaps help them secure a career in construction.

The attached link gives you further information Kickstart Scheme Guidance but if you do have any further questions, please give our Skills and Training Coordinator, Paul Glover a call on 07975 759378.

Health and Safety Testing in Wales

Health and Safety Testing in Wales

Following the announcement from the Welsh Government, Test Centres in Wales will be closed from 23 October (6pm) and will re-open on 9 November.  There is no need to contact Pearson VUE.  All booking will be cancelled with no charges and refunded back.  If the booking is with a third party, please contact them for refunds or to reschedule.

Health and safety COVID-secure spot checks ongoing

HSE is carrying out spot checks and inspections on all types of businesses in all areas to ensure they are COVID-secure.  By calling and visiting premises and speaking directly to employers, they can check the measures organisations have put in place are in line with government guidance.

Visit the HSE webpage which includes a short video explaining:

  • how spot checks and inspections work
  • what our inspectors will need to check
  • how they can help you keep your workplace COVID-secure
  • actions we will take if employers are not managing the risk of COVID spreading
Chancellor increases financial support for businesses and workers

Chancellor increases financial support for businesses and workers

Rishi Sunak has announced big changes to the Job Support Scheme (JSS) – set to replace furlough in November.

 

The Chancellor has announced an expansion of the Job Support Scheme ahead of its launch on 1 November 2020. Employees will now be required to work at least 20% of their contracted hours, rather than 33%, with employers required to contribute just 5% of wages for unworked hours, rather than 33%. Employers using the scheme will also be able to claim the Job Retention Bonus for each eligible employee retained until at least 31 January 2021.

The scheme will, as before, be open to all small businesses and larger businesses that can show an impact on revenues.

For more information click here.

From 1 November, grants available under the Self‐Employed Income Support Scheme will also be doubled from 20% to 40% of profits, increasing the maximum grant available from £1,875 to £3,750.

You can access updates via the FIS COVID-19 hub here.

 

Immigration concerns – your support needed

Movement of people – what should you be doing now?

The Construction Leadership Council has published guidance on the movement of people and workers into the UK in respect of the expiration of the transition period with the European Union at the end of the year.

 The guidance offers an overview of the new points-based immigration system, the Common Travel Area (CTA), the skilled worker route, the shortage occupation list, how to become a licensed sponsor, the rights of EU, EEA and Swiss migrants, the mutual recognition of professional qualifications and the Construction Industry Scheme (CIS) as well as useful links and resources. It is appropriate for all businesses across the industry and along the supply chain.

 The guidance has been issued by the Movement of People Workstream of the CLC BREXIT Working Group and comprises the second publication in a suite of business readiness advice that the group intends to publish ahead of 31 December 2020.

 FIS Chief Executive Iain McIlwee commented: “We have been supporting this vital group within the CLC and playing in our concerns that the cliff edge we face in January could leave us with a real labour shortage in the sector. We will continue to press this point, but we need to start preparing and time is already short.  This guidance from the CLC is, without doubt going to help smaller businesses to pick through what could be a really difficult and bureaucratic process and start communicating with overseas workers in their labour pool in ensuring they secure the right entitlement to work.”.

 How the Points Based System Works

 The table below explains how points will be allocated for anyone on the Skilled Visa route will work, including mandatory and tradeable points.

Characteristics Mandatory/Tradeable Points
Mandatory Requirement
Offer of job by approved sponsor Mandatory 20
Job at appropriate skill level (RFQ3+) Mandatory 20
Speaks English at required level Mandatory 10
Points for Salary
Salary of £20,480 to £23,039 or at least 80% of the going rate for the profession (whichever is higher) Tradeable 0
Salary of £23,040 to £25,599 or at least 90% of the going rate for the profession (whichever is higher) Tradeable 10
Salary of £25,600 or above or at least the going rate for the profession (whichever is higher) Tradeable 20
Additional points
Job in a shortage occupation as designated by the Migration Advisory Committee Tradeable 20
Education qualification: PhD in a subject relevant to the job Tradeable 10
Education qualification: PhD in a STEM subject relevant to the job Tradeable 20

 As it stands, no construction occupations are listed on the shortage occupation list, and many trades within the Finishes and Interiors Sector are not deemed to be at an RFQ3+ level making it very difficult to attract new labour from overseas.

 How to prepare as a business

 Hiring New People

 If you are planning to recruit from overseas from 1 January, you will need to obtain a sponsor licence, which can take up to eight weeks.  If you have workers from the EU or EEA who wish to continue living and working in the UK after 30 June 2021, you should advise them to apply for settled and pre‐settled status.

Managing your Existing Workforce

 FIS recommends contacting overseas workers to understand their intentions and pre-empt any problems.  This will also support you in communicating the importance of applying for settled or pre-settled status.  A set of potential questions is provided below to support this activity: 

Covid-19 Holiday Impact Questionnaire

  1. Are you a national from an EU member state?
  2. Are you a national from an non EU member state?
  3. Have you applied for settled status?
  4. Have you been granted settled status?
  5. Have you applied for pre-settled status?
  6. Have you been granted pre-settled status?
  7. For how long do you anticipate working in the UK?
  8. Are you returning home for the festive break?
  9. Which country are you returning to?
  10. Does this country have a quarantine policy in place when returning from the UK?
  11. Does the UK have a quarantine policy in place when returning from your destination?
  12. From the following list below, which weeks do you intend spending away from work, week number only please?

    Week 1   14-20 December | Week 2   21-27 December | Week 3   28 December – 3rd of January | Week 4   4 – 10 January | Week 5   11 – 17 January | Week 6   18– 24 January

Access the CLC Guidance on movement of labour is here.

FIS remains concerned about the points based system and impact on labour availability.  Government continues to take a very hard line on this with the Home Secretary ignoring advice from the MAC and rejecting any construction trades from being added to the shortage occupation list.  We would welcome your support in commpleting this survey.  

 If you are experiencing or expecting labour shortages, please email your concerns to iainmcilwee@thefis.org 

 

Crucial winter ahead for Construction according to the CPA’s latest scenarios

Crucial winter ahead for Construction according to the CPA’s latest scenarios

The CPA main scenario for construction output in 2020 is a 14.5% fall as the construction industry shows promising signs of recovery from the coronavirus pandemic. Demand for new private housing and private housing repair, maintenance and improvement (rm&i), as well as strong growth in the infrastructure sector, are expected to support recovery for the industry towards the end of this year and into the next following historic falls in output during lockdown. The prospects, however, of both a deterioration in labour market conditions along with a potential ‘No Deal’ Brexit deal at the end of December mean that the upcoming winter will be decisive for how far such a recovery can be sustained.

The Construction Products Association’s (CPA) Autumn Scenarios, published today, continue to expect a tick-shaped economic recovery as the most likely outcome, with output for construction rising by 13.5% in 2021 from the sharpest fall on record in 2020. The easing of lockdown measures over the summer was accompanied by a rush to meet pent-up demand, particularly in private housing and refurbishment work that couldn’t take place as sites were closed. With social distancing integrated on construction sites, productivity was also able to pick up.

The CPA points out that the housing market is being given a boost from pent-up demand coming through and transactions being brought forward by both the stamp duty holiday and the end of the first phase of Help to Buy in March 2021. Equally, private housing rm&i has benefitted from home working brought on by the pandemic. With more disposable income as a result of spending less on travel and hospitality, many households are choosing to spend it on ‘safe’ options such as home improvements. Some caution remains from 2021 Q2, however, with the end of the stamp duty holiday and uncertainty in the employment market possibly reducing demand.

Along with private housing, the CPA expects the infrastructure sector to be critical for growth. With output not falling as sharply this year as in other sectors due to larger sites making social distancing easier, next year’s growth will capture the start of main works on HS2, plus ongoing work on major projects such as offshore wind, Thames Tideway and Hinkley Point C. Only airports within the infrastructure sector are expected to see a decline in activity over the next few years, given sharp declines in airline passenger numbers as a result of the pandemic.

Commenting on the Autumn Scenarios, the CPA’s Economics Director, Noble Francis, said: “The easing of the social distancing restrictions in summer led to a sharp recovery in certain sectors of the construction industry – most notably, in the form of increased demand for private housing and private housing rm&i where growth is currently strong. The government’s commitment to infrastructure delivery, as outlined in the National Infrastructure and Construction Procurement Pipeline for 2020/21, is also a promising sign of growth.

“But, uncertainty continues to loom for the commercial sector. If working from home becomes more engrained in society, footfall in city and town centres will decline leading to a lack of demand for office and retail space. Equally, a critical winter lies ahead for the wider economy. The key risks to the construction industry remain a potential second national lockdown and a ‘No Deal’ Brexit, which are illustrated in the CPA’s other scenario. Either would lead to a second dip in the UK economy and construction output.

“A free trade deal agreed in principle with the EU, with the details determined over time, would at least give some degree of confidence for what is still a fragile economic recovery. In addition, construction recovery so far has been highly reliant on government either directly through spending in infrastructure or indirectly through policy stimulus to boost housing. Government has an extra responsibility, therefore, to deliver on its announcements and ensure construction recovery does not stall in the next 12 months. We certainly aren’t out of the woods yet.”

Construction Industry Scenarios 2020-22

Q3 sales rebound but outlook marred by uncertainties

Q3 sales rebound but outlook marred by uncertainties

The Construction Products Association’s State of Trade Survey for 2020 Q3 is now available. Key survey findings include:

  • 33% of heavy side firms and 48% of light side firms reported that construction products sales rose in Q3 compared with the previous quarter, improving from the weakest balances in nearly 12 years.
  • On balance, 56% of both heavy side and light side manufacturers anticipated a rise in sales over the next three months.
  • Half of heavy side firms anticipated a decline sales over the next 12 months, according to a balance of 24%

FIS members can access the full report here.

Timber shortages

Timber shortages

The impact of coronavirus has caused significant disruption to international supply chains and resulted in a substantial reduction in stocks of wood and timber products. The UK is currently experiencing long lead times, with limited availability for immediate sale, and structural timber and plywood are of particular concern. Members are advised to identify all elements of work that use timber products, contact suppliers, and look at how delays may impact project timelines following the end of the transition period.

 

Get Brexit Ready Now

Get Brexit Ready Now

With 80 days until the end of the Brexit transition period, Business Secretary Alok Sharma has written to more than 600,000 businesses urging them to act now and make sure they are prepared. Regardless of whether the UK reaches a trade agreement with the EU, there will be guaranteed changes from 1 January 2021, including the ways in which businesses import and export goods and hire people from the EU.

In order to minimise any disruption, businesses can use the Government’s checker tool which will set out exactly what they need to do. There is also a free construction webinar on Wednesday 28 October at 11:00am, which will provide sector‐specific information on the actions businesses in construction should take.