by Oscar Venus | 1 Aug, 2024 | Main News Feed
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.
by Oscar Venus | 26 Jul, 2024 | Main News Feed
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.
by Oscar Venus | 26 Jul, 2024 | Main News Feed
The Office for National Statistics released data on construction output, new orders, and output prices for May 2024.
- Estimated monthly construction output increased by 1.9% in volume in May 2024 following a 1.1% decline in April 2024 (revised from 1.4%).
- The rise in monthly output was driven by growth in new work (2.7%) and repair and maintenance (0.8%). Warmer weather was cited as a factor contributing to the increased output in May, with the Met Office confirming in their Monthly Climate Summary that May 2024 was the warmest on record.
- Eight out of nine sectors experienced growth in May 2024. The main contributors to the increase were a 2.8% rise in total new housing, infrastructure new work up by 3.5%, and non-housing repair and maintenance growing by 2.1%.
- Construction output is estimated to have decreased by 0.7% in the three months leading to May 2024, with new work falling by 0.9% and repair and maintenance by 0.3%.
by Oscar Venus | 26 Jul, 2024 | Main News Feed
The Department for Business and Trade (DBT) has confirmed that the draft legislation to amend the Reporting on Payment Practices and Performance Regulations to introduce new metrics on retentions has been withdrawn.
This is as a result of the General Election, which means there is now insufficient time for the legislation to be completed before the intended commencement date of 1 October 2024, and DBT is working with the new Ministers to confirm a revised date.
New metrics on the value of invoices paid and disputed invoices will still come into force as planned from 1 January 2025. In Scotland, Scottish Government have issued a new Construction Policy Note (CPN) on retentions that look at tightening requirements of reporting retention policy, but does not put any onus on recording levels of retention held.
Commenting on this delay, FIS CEO Iain McIlwee stated:
“This is disappointing as a huge amount of work went into getting this reform laid down and to be thwarted at the 11th hour by a snap election and drawn out parliamentary process is frustrating. That said, to our mind more could be done and we will be bringing our recommendations about automatic release linked to prescribed dates and liability limited to scope of works to the new Construction Minister at the earliest opportunity”.
The FIS has laid down a number of recommendations to reform retention in our Blueprint for Better Construction here
by Oscar Venus | 25 Jul, 2024 | Employment, Labour, Main News Feed
With new home building targets and a pent up pipeline of high rise residential and commercial projects, the respite from labour shortages in the sector are likely to be short lived. FIS is exploring two interventions that can support members in finding work ready people.
How can you get involved in Bootcamps?
FIS Bootcamps will initially target trade roles. The programme involves an period of intense training to get people site wise and trade aware before letting them loose on site. These are similar to the successful Build Back model that FIS ran several years ago, but funding is more flexible and can be tailored more effectively for the businesses offering work experience.
To get these off the ground FIS will be collaborating with training providers and the Department for Education. The programme is zero cost to employers. The funding provided through the Department of Work and Pensions (DWP) covers the initial training and induction of the candidates – the employers involved need to offer work trials and/or employment. The process identifies and recruits candidates from the local area and will include self-employed Green CSCS Cardholders, prison leavers and job seekers. The Bootcamp presents an great opportunity to tap into the local labor market and support your recruitment as well as assist with delivery of Section 106 and equivalent social value requirements. The training locations span across London, Essex, Suffolk, Greater Manchester Combined Authority, West Yorkshire Combined Authority, and North East Mayoral Combined Authority. The aim is to onboard over 100 new Drylining candidates in England between September and January 2025 through these bootcamps based on cohorts of 12 candidates .
Your support for this initiative is crucial. Whilst no commitment to employ candidates is required, we will not be starting cohorts without employer support and we would ideally like to involve you from the candidate assessment stage.
If you are interested and can think you can support a drylining home building, taping and jointing or commercial drylining bootcamp let us know. You can set up a dedicated cohort (if you can commit to 12 work placements) or you could commit to supporting a smaller number and we can look to collaborate with other employers. To stress you will not be expected to fund the training or employ unsuitable candidates, but you will be required to offer work trials.
If you want to find out how FIS Bootcamps can work for you please contact Beena Nana.
Making use of Sector Based Work Academies
Sector-based work academies (SWAP) are another DWP Funded programme that can support individuals transitioning into a new field of work. They provide training and education for those currently receiving unemployment benefits. The goal is to equip them with the skills needed to apply for jobs in a different sector. Academies are tailored to meet the immediate and future recruitment needs of employers, ensuring the workforce is prepared to support business growth.
FIS are working with West London College and DWP to deliver SWAPs in the area.
A key component of the SWAP model is the provision of a guaranteed job interview, work experience, or employment, enabling members to efficiently recruit candidates
Recruiting through a SWAP has many benefits, such as:
- Employers get access to candidates who have undergone relevant pre-employment training tailored to the specific needs of the job role.
- Trial Period for Candidates
- The work experience component of SWAP allows employers to assess candidates’ suitability and fit for the role in a real-world setting before making permanent hiring decisions.
- By providing tailored training and work experience, SWAPs help ensure candidates are well-prepared for the job, which can lead to higher retention rates.
- SWAPs often focus on helping unemployed individuals, including those from underrepresented groups, re-enter the workforce, enhancing workforce diversity.
- Participation in SWAPs demonstrates a company’s commitment to supporting local employment initiatives, which can enhance its reputation within the community.
West London College have put together a short video detailing what the SWAP includes.
Please get in touch if you can support and are able to offer work experience or employment and keen to get involved in the SWAP.
FIS has a dynamic Skills Board that helps to drive our work in this space. If you would like to join the Skills Board or have a colleague who could help target our collective effort, please do consider getting involved. Find out more here.
by Oscar Venus | 18 Jul, 2024 | Main News Feed
The King’s speech is the opportunity for a new Government to set out their stall and lay before Parliament a programme of legislation that the new Government intends to pursue in this parliamentary session.
The speech set down that “Securing economic growth will be a fundamental mission” and it is clear that the new Government do recognise the importance of construction in this, particularly housebuilding with the King adding “My Ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high quality infrastructure and housing”. Whilst this doesn’t differ greatly from statements made by successive governments, it is encouraging to see it balanced with recognition that “They will also pursue sustainable growth by encouraging investment in industry, skills and new technologies.” To unlock growth we to review of how procurement is managed to support investment. Successive Government have demanded Industry does, if this Government fails to listen and act this will be more empty wishes – we can’t deliver without the right support from the top.
The Speech heralds the arrival of new Construction Minister Sarah Jones MP – the revolving door of Construction Ministers has not helped support consistency in policy and regulation (5 in 10 years is not evidence of the commitment to construction that we need!).
Another notable appointment is that Angela Rayner Deputy Prime Minister is confirmed as Secretary of State for Housing, Communities and Local Government an takes charge of the re-named Ministry of Housing, Communities & Local Government (MHCLG) and will be overseeing the development of the Building Safety Act and corresponding Building and Construction Products Regulations.
In terms of further details, Bills that particularly impact the finishes and interiors sector are:
- Planning and Infrastructure Bill ‐ The Bill will speed up and streamline the planning process to build more homes of all tenures and accelerate the delivery of major infrastructure projects.
- Skills England Bill ‐ Establishing ‘Skills England’, a new partnership centred around employers designed to ensure the supply of skills, as well as reforming the Apprenticeship Levy.
- English Devolution Bill ‐ Giving new powers to metro mayors and combined authorities to support local growth plans.
Read the Full Script of the Kings Speech here
The FIS will be working closely with specialist construction bodies and using our Manifesto: Blueprint for Better Construction to advise the Construction Minister and new MPs on the levers and opportunities to improve construction.
