Enhancing Risk Management: Exclusive Insurance Solutions

Enhancing Risk Management: Exclusive Insurance Solutions

At FIS, we understand the importance of providing robust insurance support to our members, which is why FIS is partnered with Construction Shield, a leader in insurance consulting.

This collaboration opens up a wealth of opportunities for our members to assess their current coverage efficiently. With the expertise of Construction Shield, you can now evaluate the effectiveness of your existing insurance policies and identify areas for improvement. Not only can you gain insights into your current coverage, but you’ll also have access to alternative quotes that could better suit your specific needs.

In our ongoing effort to keep costs at a minimum for our members, we are excited to announce that FIS will waive any commission fees associated with this service. This means that you can benefit from Construction Shield’s expertise without worrying about additional costs. Instead, the savings generated from this partnership will be rebared direct to the member.

Making a Difference

Find out how our partnerships can help you

See our partnerships and benefits

Shaping the future of skills and training

Shaping the future of skills and training

FIS is looking for individuals to join our Skills Board to help shape our skills strategy.

The Skills Board provides opportunities for members to raise issues, share best practice and hear from other key stakeholders invested in Skills and Training.

It is a dynamic forum designed to:

  • Guide FIS in support of the sector for all types of training and qualification outcomes.
  • Support innovation and promote best practice in Training Delivery.
  • Support the sector to ensure sufficient skills and knowledge for a competent workforce.
  • Comment on and contribute to the content of qualifications and standards for the sector.

The Skills Board meet quarterly online with the next one to take place in September (date TBC).

 We are also looking for a new Chair and Vice Chair for Skills Board, a brief description of duties are listed below:

 The Role of the Chair

The Chair of the FIS Skills Board is a non-executive role elected by the existing members of the board responsible for chairing the quarterly meetings of the FIS Skills Board.

 Their role is to ensure that the views of the membership are fairly represented by through the Board and that FIS work is steered by and meets the needs of the wider membership.

 The Chair must come from an FIS member company and preferably a champion of skills development.

 The FIS Head of Skills, FIS Skills and Training Advisor and FIS CEO, Iain McIlwee will confer with the Chair on matters such as future direction and skills and training strategy.

Vice Chair of the FIS Skills Board

The Vice Chair of the FIS Training Group and FIS Skills Board is a non-executive role elected by the existing members of the board. The role of the Vice Chair is to support the current chair and to deputise in the absence of the Chair.

 Should the Chair, for any reason leave post it is expected that the Vice Chair would step-up to act as Chair until such a time as the change can be ratified through the Skills Board or alternative Chair is appointed.

The role is designed to support the Chair in ensuring that the views of the membership are fairly represented through the Skills Board and that FIS work is steered by and meets the needs of the wider membership.

 The Vice Chair must come from an FIS member company and be a champion of skills development.

 If you are interested in getting involved, email beenanana@thefis.org

Building Control Authority – update on application approvals

Building Control Authority – update on application approvals

The Building Safety Regulator (BSR) recognises the challenges and issues that recent delays to building control application approvals for higher-risk building work are causing industry.  It has published an update on those challenges and issues:
“(The BSR) is contacting all applicants who have been directly affected and we want to assure everyone that the necessary contingency is in place which will allow us to stabilise and improve the service over the coming months and for the future.  New applications will not go into the backlog and be processed within normal timelines.
“While in part the delays have arisen due to an unexpected increase in applications coming into BSR, we are also experiencing a high number of applications which are incomplete or unclear, making them unsuitable for approval. This is particularly the case for smaller refurbishment projects and work on existing buildings.
“As the regulator, we will not:

  • tell you how to comply with the requirements of the building regulations
  • provide pre-application advice on building control applications

“For some complex projects we may provide advice on the best way of staging your application. For example, multi-building projects. Advice on the buildings regulations, if needed, should be sought from competent professionals.
“We need applicants to play their part to help facilitate the process by ensuring their applications provide quality, detailed information that clearly and comprehensively demonstrates compliance with building regulations.  High-quality applications help BSR make informed decisions quickly, reducing the risk of misinterpretation and ensuring all building control standards are met.  Applications which lack the required detailed information or fail to demonstrate clear compliance will be rejected.
“Applicants do not need to contact BSR again after they have submitted their applications.  We will contact applicants directly where necessary, for example if we need to request further information or when applications are moving forward.
“Earlier this week (the BSR) shared some useful Q&A via the Construction Leadership Council on making building control applications. You can find a link at the bottom of this article.  You can also revisit the following presentations delivered at our conference in May:

“We will publish further information and resources on our Making Buildings Safer website over the coming weeks.”

CPA Economic and Construction Update

CPA Economic and Construction Update

The CPA’s Economic and Construction Update provides an insightful summary of the latest economic and construction trends in the UK. The update covers key indicators such as the CPI inflation and core CPI inflation, UK construction average weekly earnings, UK construction insolvencies, UK house price index, and the UK residential market survey.

The latest weekly update includes:

  • ONS UK CPI Inflation (July 2024)
  • ONS Construction Output (June 2024)
  • ONS and Barbour ABI Construction New Orders (2024 Q2)
  • ONS UK Construction Employment (2024 Q2)
  • ONS/Land Registry UK House Price Index (June 2024)

The update is an excellent resource for anyone interested in the UK construction industry, and the contents page allows readers to easily navigate to the sections that are most relevant to their interests.

In addition to this update, the CPA also publishes Construction Forecasts twice a year. Members can download both the pdf and excel versions of the forecast from the FIS website here.

A-level Results Day – Unveiling Career Opportunities and Pathways

A-level Results Day – Unveiling Career Opportunities and Pathways

With today being A-level results day we want to reach out to everyone who is thinking about the next step in their career journey.

The construction industry, offers numerous career opportunities. The finesse of the industry lies in the finishes and interiors sector, where Apprenticeships and NVQs in plastering, drylining, ceilings, and partition fixing are available.

Prospective construction professionals can embark on several routes which include opportunities to gain experience in the workplace, underlining proficiency in a specific job role. These avenues equip you with the hands-on skills needed to progress and succeed in the diverse world of construction.

The finishes and interiors sector is a dynamic field, presenting an array of career pathways – from budding novice to seasoned leader. As expertise is gathered, you can climb the ladder from apprentice to site supervisor.

If you have any questions about getting started with a career in the Finishes and Interiors Sector, email beenanana@thefis.org 

Sound interesting?

Find out more about careers in our sector and the skills needed.

Updates to BS8000-Part 8

Updates to BS8000-Part 8

After BS8000-Part 8: Workmanship on construction sites – design and installation of dry lining systems code of practice was published last year, it was noted that some of the drawings were not as clear as they could have been and the values for openings in drylining were incorrect. BSI has subsequently re-published the document.

FIS has produced a Technical Note outlining the changes, which can be downloaded here.

Government Focus on UK Recruitment

Government Focus on UK Recruitment

In a Written Ministerial Statement to Parliament, Home Secretary Yvette Cooper has set out plans to reduce net migration in favour of sectors “sourc[ing] the skills they need here at home”. Promising a new approach that “links migration policy and visa controls to skills and labour market policies”, she has commissioned the Migration Advisory Committee (MAC) to review the reliance of key sectors on international recruitment, starting with engineering and IT, which have consistently been on the list of shortage occupations for over a decade. The Government will keep a number of changes introduced by the previous Government, including maintaining the salary threshold for Skilled Worker Visas at £38,700 and scrapping the 20% going rate discount for overseas workers in shortage occupations.

Build UK’s flowchart provides an overview of the process of employing a worker from outside the UK in construction, with detailed guidance on How to Get a Sponsor Licence and How to Apply for a Skilled Worker Visa.

Find out more about FIS work to address the Skills Shortage here

Contract Terms Guidance Updated

Contract Terms Guidance Updated

Following the release of the first JCT 2024 contracts, which include a number of changes in response to our recommendation on contract terms, Build UK has updated its guidance on implementing the recommendation when using JCT contracts. The changes, which will help to support a fairer allocation of risk through the supply chain, include:

  • Fitness for Purpose ‐ A new clause containing an express exclusion for fitness for purpose, making it clear that in undertaking the design, the contractor will have no duty beyond reasonable skill and care, and will not be subject to any fitness for purpose obligation in respect of its design
  • Unquantifiable Risks ‐ The range of events giving rise to an extension of time and/or loss and expense has been extended to include asbestos, contaminated material and unexploded ordnance, in addition to antiquities, allowing the parties to agree a share of the risk in the event of such conditions
  • Uncapped Liabilities ‐ A new footnote highlighting that the parties may wish to agree a cap on liability, with model clauses now included in the Guide.

The business environment remains challenging, and our recommendation identifies six contract terms that should be avoided in order to promote collaboration and realise better project outcomes. The updated guidance is designed to help implement the recommendation by explaining why each term should be avoided and setting out ways to manage the underlying issues in a more collaborative way, with specific guidance for both JCT and NEC contracts.

BuildUK represent large contractors in the UK and they state that the recommendation is non‐binding and Build UK members are free to negotiate their own contractual terms.

Whilst this is the case FIS CEO Iain McIlwee stressed the importance of “not putting up with rubbish contracts” and encouraged members to report unreasonable contract terms to the FIS so that we can take them up with BuildUK and, if necessary the contractor in question on a collective level.

FIS Members can (and are encouraged) to report unreasonable and irresponsible contract clauses via our website here.

Further help on legal and contractual matters is available by calling the dedicated FIS Legal Helplines (supported by expert lawyers and quantity surveyors).  This helpline is available during office hours Monday – Friday via 0121 707 0077.

A raft of legal advice, support and training is available via the FIS Contractual and Legal Toolkit.  Here you will also find details of our subsidised contract review service and details of recommended training on legal and contractual matters.

Find out more about FIS campaign to support better contracting: The Responsible No here

FIS is supporting the Conflict Avoidance Coalition: Find out more about the coalition and signing the Pledge here

Build UK Claims Members Maintain Payment Terms

Build UK Claims Members Maintain Payment Terms

The latest results published under the Reporting on Payment Practices and Performance Regulations show that Build UK members have maintained theirpayment performance over the last six months. For the first time, BuildUK claim all tier one Contractor members are paying invoices within an average of 45 days, which will be the requirement for new Government contracts over £5 million from April 2025. On average, Build UK Contractor members now pay 96% of invoices in 60 days and none of them average less than 90%.  Remember this relates to the volume of invoices paid.

FIS CEO Iain McIlwee said: “Whilst the headline is positive, we can’t let it distract us from the fact that our members are still finding getting paid a daily battle.  I suspect when we start seeing the value and not the volume paid and disputed invoices in the reports we will start to see some different patterns.  One thing we need to be doing is making sure as the new requirements come in that we compare them to what is happening on the ground to ensure that people are reporting accurately and fairly and not bending the rules.”   

With new reporting requirements on the value of invoices paid and disputed invoices coming into force from 1 January 2025.

If you need help getting paid, visit the FIS Contractual Toolkit.

Government Announces Ambitious Reforms to UK Migration System

Government Announces Ambitious Reforms to UK Migration System

Before the summer recess of Parliament, the Home Secretary, the Rt Hon Yvette Cooper MP, published a Written Ministerial statement setting out the Government’s ambitions for the legal migration system, including new reforms which will link migration policy and visa controls and labour market policies. These consist of:

  • The Migration Advisory Committee (MAC), Skills England, the Industrial Strategy Council, and the Labour Market Advisory Board will work together to support a coherent approach to skills, migration and labour market policy, engaging and working closely with the Devolved Governments;
  • The Government will commission the MAC to review the reliance on international recruitment in key sectors, commencing with IT and engineering; and
  • The Government will provide additional resources to the MAC to enable it to work more strategically to forecast future trends.

The Statement also confirms that the Government will keep some changes made earlier this year by the previous administration, including:

  • Restricting most overseas students from bringing family members to the UK;
  • Restricting the ability of care workers and senior care workers to bring dependants with them; and requiring all care providers sponsoring migrants in England to register with the Care Quality Commission;
  • Increasing the general salary threshold for those arriving on Skilled Worker visas by 48% from £26,200 to £38,700;
  • Abolishing the 20% going rate discount so that employers can no longer pay migrants less than UK workers in shortage occupations; and
  • Introducing measures announced on 23 May to reduce the potential for abuse on the student and graduate visa routes, working closely with the Department for Education to ensure the measures are effective.

Finally, the statement explains the need to balance respect for family life with the economic wellbeing of the UK. The Government will commission the MAC to review the financial requirements in the Family Immigration Rules, keeping the minimum income requirement in the Spouse/Partner route at £29,000 until the review is complete.

The following may also be of interest:

On 30 July, the Immigration Minister, Seema Malhotra MP published Written Ministerial Statement on Afghan Resettlement:

Written statements – Written questions, answers and statements – UK Parliament.

  • This Government is implementing the commitment that families who were separated by the military evacuation from Kabul in August 2021 can be reunited in the UK.
  • Afghan Citizens Resettlement Scheme Pathway 1 Stage 2: Separated Families opened on Tuesday 30 July. The window to submit an expression of interest will remain open for 3 months until 30 October 2024.

On 29 July, the Immigration Minister published a Written Ministerial statement on the European Entry/Exit System (EES)

Written statements – Written questions, answers and statements – UK Parliament

  • The UK Government is working to maintain border fluidity with the European Union throughout the implementation of the new Entry/Exit System, ensuring UK nationals and residents can continue to access European destinations effectively and efficiently.
  • Provides an update on the immediate steps being taken to improve preparations and levels of readiness.

FIS is working with the Construction Leadership Council to ensure that the Government understands the impact of current policy on the construction sector (more here) and has advice on employing migrant workers in our employment hub here.

To help members recruit overseas skilled workers to fill the skills gaps being experienced in the industry which is inhibiting growth, FIS has partnered with specialist immigration lawyers, Migrate UK to help members to explore whether hiring overseas skilled workers is a viable route for them Find out more here

Preview Invitation: FIS Training Modules for Estimators and Procurement Teams

Preview Invitation: FIS Training Modules for Estimators and Procurement Teams

FIS is developing a series of modules to help train the next generation of estimators and procurement teams and we would like to preview the modules with specialists who could help shape the final draft.

The training course has been designed to educate and inform new entrants to the sector and those moving from site-based activities to an in house estimating role and is broken into three modules

  • The contract Module
  • The commercial Module
  • The technical Module

The aim of this course is to provide:​

  • An overview of what estimating entails​
  • What contractual terms should be known​
  • How commercial decisions are made​
  • provide granular information about drylining systems to estimators.

We would like to invite you to have access to our development slides to let us know if we have missed anything or if there should be more emphasis on a particular aspect of the role.

Please contact FIS Technical Director Joe Cilia joecilia@thefis.org for details on how to access the course, and who knows, it could be the best read of the summer break?

Navigating the Changing Employment Law Landscape Under a New Labour Government

Navigating the Changing Employment Law Landscape Under a New Labour Government

The first part of 2024 was already full of Employment Law updates that were set to hit business owners. Now, with a new Labour government in charge, there’s even more change set to come in that will dramatically alter the landscape of employment rights.

Wondering how to get prepared? Join our Partner Citation for their ‘Employment law update – What to expect under a Labour government’ webinar on Wednesday 4 September at 10-11am for an exclusive briefing covering:

  1. An overview of 2024’s Employment Law changes.
  2. Current regulations that are already in force and what’s set to come into effect later in the year.
  1. What to expect from the Employment Rights Bill.
  2. The steps you need to take today to get prepared.

Register today to make sure you don’t miss out!

SECURE MY SPOT >

Maximising the Benefits of Employing Apprentices and New Entrants: CITB Support Webinars

Maximising the Benefits of Employing Apprentices and New Entrants: CITB Support Webinars

If you are considering hiring an Apprentice or New Entrant and are CITB registered and levy-compliant, the CITB New Entrant Support Team is ready to assist you every step of the way. Here is how they can support you:

  • Recruitment
  • CITB Funding
  • Administration (including setting up your Government Digital Account for accessing additional Grants)
  • Retention

For more information, reach out to marieflinter@thefis.org to receive links for the upcoming Webinars:

  • August 16 – 0930/1030
  • August 21 – 1600/1700
  • August 27 – 1600/1700

These webinars aim to provide valuable insights on optimising the advantages of hiring apprentices and new entrants. Industry experts will share recruitment best practices, how to navigate CITB funding opportunities, and effective retention strategies. They will also offer guidance on managing administrative tasks efficiently, allowing you to concentrate on developing your workforce.

Whether you are new to the process or want to improve your current approach, these webinars offer a great opportunity to learn and network with industry peers. Seize the chance to streamline your operations and make the most of the available support.

To secure your spot, contact Marie Flinter via the email provided. Let’s work together to build a more robust and skilled workforce for the future.

Reforms to the CSCS Card – your views are important

Reforms to the CSCS Card – your views are important

FIS have been working closely with CSCS to review how competency is tracked and new requirements for re-accreditation should be managed.  As part of discussions CSCS has sought FIS views on proposed changes to the Labourer, Trainee and Provisional cards.

Beyond the digitisation process, the reform looks at whether it is relevant to reduce the validity of the (green) Labourers Card to 2 years (from 5) with a view to providing the industry with greater accuracy on the number of active labourers in construction. The suggestion is that  this also provides more frequent checks to ensure individuals continue to work in a labouring role and encourages their progression onto a Skilled card.  Within the proposals CSCS are recommending that after the first renewal the 5 year period is restored.

Changes to the trainee card are also proposed with a view to ensuring those completing a college diploma (not entitled to a skilled worker card due to lack of site experience) are issued with a red trainee card to ensure that their journey to a (blue) skilled worker card is clear and to avoid further distortion of the(green) labourer card.

Final changes are proposed to the (red) provisional card available to individuals working through probationary periods while employers assess their suitability for further training and employment. It currently lasts for 6 months and is not renewable.  Employers have indicated that the (green) Labourer card is currently favoured as it is a more cost-effective route to obtain than the provisional card, because it’s a longer duration card, even though the candidate has to complete a formal level 1 qualification.  Proposals are to extend the Provisional card validity to enable more time to assess the suitability of a worker and enrol them on the correct occupational journey for their skills and abilities.

You can feed your views in via the short survey here.  We need your response by close of play Wednesday 14th August.

If you haven any questions about the card scheme and which cards you should be using for what or comments reference the above proposals, please don’t hesitate to get in touch with the FIS Skills Team on 0121 707 0077.

You can visit the FIS Skills Hub here to access further guidance on recruitment, funding, competence and training  support available.

Have you looked into how the FIS Competency Passport can support your business?  It enhances the CSCS process with specific information that is relevant to employers in our sector.

Scottish Awards 2024 Shortlist Announced

Scottish Awards 2024 Shortlist Announced

Join us on 20 September in Glasgow for our annual Scottish Awards Lunch at which we honour the outstanding projects completed by our members in Scotland. The FIS Scottish Awards showcase the remarkable achievements of our members, with each project undergoing rigorous examination by our judges. From on-site visits to comprehensive judging criteria, every aspect is carefully evaluated to recognise excellence in the field.

The standard of entries into this year’s Awards as always was extremely high, so congratulations to all companies that entered. The shortlisted projects are:

Specialist Installation under £1m:

Specialist Installation over £1m:

Interior Fit Out:

In addition to these categories, we will also be recognising individual achievements with awards for Apprentice of the Year and Lifetime Achievement.

You can book to attend here.

PFKG and GIRI join forces to enhance fire safety and improve quality in UK construction industry

PFKG and GIRI join forces to enhance fire safety and improve quality in UK construction industry

The Passive Fire Knowledge Group (PFKG) and The Get It Right Initiative (GIRI) have announced their intention to work together to improve safety and construction practices by sharing knowledge, exchanging ideas, and promoting each other’s aims and objectives.

This collaboration brings together the specialised focus of the PFKG on passive fire protection with GIRI’s broader based approach to improving construction practices and eliminating errors.  PFKG, established in 2022, is a unique non-for-profit collaboration comprising contractors, consultants, and relevant trade associations. Its mission is to improve the delivery of well designed, specified and installed passive fire protection by focusing on three key areas: Process, Testing and Education.

Formed in 2015, GIRI is a group of over 100 leading UK construction industry experts, organisations and businesses actively improving productivity, quality, sustainability and safety in the construction sector by eliminating error.

Passive fire protection (PFP), also sometimes referred to as ‘built-in’ fire protection, are those components, materials or systems that integrate with the fabric of the building.  PFP comprises  many different product and system categories including structural steel fire protection, compartment walls and floors, fire doors, fire resisting dampers and ductwork, and firestopping (service penetration seals, linear joint seals, and cavity barriers).  It is a critical fire element of fire safety in buildings which continues to place demands on the construction industry.

Commenting on the new collaboration, Cliff Smith, Executive Director at the Get It Right Initiative (GIRI), said: “The construction industry is navigating wholesale changes that have come through the Building Safety Act, with more rigorous standards and regulation at every stage of the development lifecycle.

“Through the GIRI Design Guide and our Building Safety Act working group, GIRI is working across the industry to meet these requirements and keep people safe through a common culture of getting things right first time.

This collaboration with the PFKG will enable us to highlight the critical importance of addressing fire safety, using our collective expertise to increase the focus on this high priority issue.”

Will Pitt and Joe Cilia, Joint Chairs of the Passive Fire Knowledge Group (PFKG) said:  “Passive Fire Protection is often a key interface between the architecture, structure and building engineering services and getting it right first time requires careful consideration and planning especially at early design stages.

“It is clear to us that GIRI shares similar aims and objectives and by working more closely together, we can help amplify each other’s message.”

The PFKG and GIRI will collaborate and share best practice guidance including design guidance, quality alerts, knowledge sharing webinars and events. The PFKG continues to produce peer-reviewed knowledge shares covering a wide range of subjects associated with the design, specification and installation of Passive Fire Protection systems.

To find out more information about the Passive Fire Knowledge Group (PFKG) visit www.pfkg.org

To find out more information about the Get It Right Initiative (GIRI) visit https://getitright.uk.com

Should I sign a Contract for Design, in whole or in part?

Should I sign a Contract for Design, in whole or in part?

FIS is seeing a concerted attempt to increase work administered under Contractor Design Portions (CDP).  This is an area of growing concern for the sector as it pushes more risk into the supply chain without adequate controls to co-ordinate the design development process effectively.

If you are being confronted with a contract that transfers Design Liability, the first questions to ask is:

What are you being asked to design?

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Construction Leadership Council Welcomes New Co-Chair

Construction Leadership Council Welcomes New Co-Chair

The Construction Leadership Council has today welcomed Minister Sarah Jones MP as she takes up the position of Co-Chair, alongside Mark Reynolds. The Minister – appointed as Minister of State for both the Department for Business and Trade and the Department for Energy Security and Net Zero – will join the Construction Leadership Council Board, and will work closely with Mark Reynolds and Richard Robinson to ensure the construction sector is a key part of supporting the government’s mission to kickstart economic growth, and get Britain building again.

Industry Minister Sarah Jones said:

“The construction sector is vital to our economy, supporting thousands of jobs in every part of the UK, and will be at the heart of our mission to deliver growth and get Britain building again. “I look forward to working closely with the Construction Leadership Council to champion the sector as it builds the infrastructure we need, and ensure its net zero ambitions deliver for both the workforce and our economy”.

Mark Reynolds, CLC Co-Chair and Chair and Chief Executive of Mace Group, said:

“This Government has already been very clear about its scale of ambition around infrastructure delivery and growth – and the construction industry clearly has a crucial role in realising those ambitions. The CLC, working in partnership with Government, provides crucial leadership to the sector. We’ve already had some productive and insightful conversations with the Minister, and I look forward to working closely with her over the coming years.”

FIS CEO Iain McIlwee has already been in contact with Sarah Jones MP.  In this correspondence FIS has welcomed the new Construction Minister and urged the Government not to waste the opportunity of change and to take a holistic approach to “Getting Britain Building”.  FIS suggested Government lean on the principles outlined in the FIS Blueprint for Better Construction and reform procurement, contractual and payment practices to drive commissioning of projects to support the much needed investment in training and modernisation that will ensure they deliver full value to our economy and communities.

CPA Analysis of Construction Industry Projections for 2024 and 2025

CPA Analysis of Construction Industry Projections for 2024 and 2025

The data provided by the Construction Products Association (CPA) indicates that total construction output is projected to decrease by 2.9% in 2024 before a rebound of 2.0% in 2025, which is slightly more pessimistic than anticipated three months earlier.

The downward revision in the projections is mainly attributed to the delay in recovery in the two largest construction segments, namely private housing new build and repair, maintenance and improvement (rm&i).

This adjustment is a result of a drop in demand and confidence in the broader housing market post-Easter due to the rise in mortgage rates. Nevertheless, the forecasts for the other significant construction sectors remain consistent with those from three months ago, as numerous companies engaged in industrial, commercial refurbishment and fit-out, or involved in major infrastructure projects, continue to witness strong levels of activity.

CPA - Industry Forecast (Summer 2024)

FIS members can access the full report in our market data section of the member benefits.

Material Supply Chain Group Statement

Material Supply Chain Group Statement

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 we head into the summer holiday period, the latest report from the Construction Leadership Council’s Material Supply Chain Group (formerly Product Availability Group) shows little change from preceding months.

Meeting in the wake of the King’s Speech, the group welcomed the new government’s planning reforms, but wants to see further details and specific plans to boost housing and construction and stimulate key sectors of the industry.

Currently there are good levels of product availability across the board, but this is a direct result of demand remaining subdued across most sectors.

It is difficult to see the market improving before the turn of the year, and suppliers have adjusted capacity to meet current demand.

Looking ahead, some members of the group expressed concern over suppliers’ ability to quickly increase output to meet any potential spike in demand.  As stated in our last report (June 2024), the key to this is accurate forward forecasts and longer lead ordering times.  Manufacturers can ramp up production in 2-3 months but require forward knowledge of orders to do so.

Concerns were also expressed about a shortage of labour, particularly in areas requiring new skills, such as the installation of heat pumps.  The effect of these shortages are likely to be further exacerbated when construction activity increases.

The CLC will be campaigning for joint engagement with government. The group would like to have round table discussions with ministers, to identify touch points with government that need addressing, in order to plan effectively for the future.

The CLC’s continuing advice to everyone involved, particularly housebuilders and SME contractors, is to plan in advance, work closely with your supply chain and communicate your requirements early with suppliers, distributors and builders’ merchants.  As we learned during the pandemic, collaborative, ongoing communication throughout the whole supply chain is mutually beneficial and essential to a healthy, productive UK construction industry.