by Iain McIlwee | 23 Feb, 2023 | Labour
Whilst the future of Government Immigration Policy remains somewhat unclear, through the CLC, FIS was asked to respond to the Migration Advisory Committee’s interim review of the construction occupations in the Shortage Occupations List (SOL).
We have responded directly focussing specifically on the status of shortages in the finishes and interiors sector and supported the response from CLC which has called for 17 new occupations to be added to the SOL carpenters, painters and decorators, piling rig operatives, dry liners, ceiling fixers, plasterers, roofers, and scaffolders. The outcome of this interim review is expected in March, with a full review of the SOL due to be undertaken later this year.
To view the FIS response which includes our underlying data click here this drew on data collected throughout the year including our Skills Pulse Survey, this is survey is still open and if you have a few minutes to complete the more data the better.
by Iain McIlwee | 23 Feb, 2023 | Building Safety Act
The Higher‐Risk Buildings (Key Building Information etc.) (England) Regulations, which introduce the requirement for Principal Accountable Persons to register Higher‐Risk Buildings, will come into force on 6 April 2023. Existing Higher‐Risk Buildings must be registered before October 2023 and the Regulations set out the specific information that will need to be provided to the Building Safety Regulator in an electronic format within 28 days of applying to register a building.
A significant amount of information will be required, including the materials used in the structure, roof and external walls; the number of staircases; the fire and smoke control equipment in the building; and the type of evacuation strategy. Detailed guidance from the Building Safety Regulator is expected to be published shortly with full implementation of the Building Safety Act completed by October 2023.
Commenting on this incoming requirement, FIS CEO, Iain McIlwee stated:
“This is an important development and underpins the need for better information management in the sector. For our members, the critical takeaway is that we need to ensure that we are documenting effectively decisions and recording as built.
This hunt for live information has uncovered problems and we are starting to see a growing number of legacy claims hit the press. Within these Design Development elements in the contract are front and centre and proving critical. For projects moving forward, clarification and qualification of design details needs to be an element of pre-construction that should happen at tender stage, not on the site under time and cost pressure.”
FIS is running a Building Safety Act session at our Conference in London on Monday 27th February where we will be looking at common problems, what the inspector will be looking for and how we deliver the Golden Thread. We also have a detailed introducton to the Building Safety Act here that includes a number of tools designed to support compliance, including our new Guide to Developing a Competency Management Plan and Quality Management Toolkit.
For advice and guidance on spotting traps and understanding design liability issues (including how to avoid being the accidental designer) visit the FIS Contractual and Legal Toolkit.
by Iain McIlwee | 22 Feb, 2023 | Material Shortages
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 Product Availability working group
The past month has seen yet more improvements in the balance of product demand and supply, with good availability for most construction products and prices no longer as volatile.
While demand has slowed in recent months, work in every major construction sector, apart from commercial, remains above pre-pandemic levels.
The slowdown has allowed brick manufacturers to rebuild stocks to their highest levels since May 2021. While there are some exceptions, manufacturers are reporting up to 8 weeks supply for most brick types at current demand levels.
The availability of gas boilers has also improved. With their supply chains returning to normal levels, availability increased by over 20% in January 2023 compared with January 2022.
Wholesalers in the electro-technical sector report their number one operational challenge is still “product availability and price issues” with longer lead times experienced for solar products including inverters, batteries and mounting systems.
In addition, the problems in the supply and pricing of EV chargers linked to regulatory changes, reported in detail in our January statement, remain a major concern. Installers should check the provenance with their wholesalers and request a Statement of Compliance and, if applicable, an Enforcement Undertaking.
Currently, there are large stocks of most grades of timber in the UK. The exceptions being birch plywood and Siberian larch cladding, which come from Russia, but substitute products are available.
As reported last month, price inflation has largely stabilised with some suppliers deferring price increase as demand slows. Gas prices appear to be easing and many larger energy intensive manufacturers have likely hedged a high proportion of their energy costs for the year ahead. Nonetheless, the impact on manufacturers from high energy costs often takes months to feed through to product prices – especially for energy-intensive products and materials – so the volatility from late 2022 may still be felt into the spring. Inflationary pressures on other costs, especially labour, continue and may well impact prices later in the year.
The Product Availability Group is monitoring potential impacts from the earthquake in Turkey that could disrupt supply chains. While nothing major has been reported to date, Turkey is one of the world’s largest exporters of raw iron bars and Turkish ports are key connections for steel rebar and structural steel global trade. There may be longer term ramifications, for both materials and labour, when rebuilding begins.
To take part in the latest FIS Wage Rate and Productivity Survey, click here (results are only shared with participants)
For all the work FIS is doing around inflation and availability, including recommended contractual terms click here
by Clair Mooney | 21 Feb, 2023 | Skills
The CITB Strategic Plan will set out where they focus their efforts from 2024-2028 and they are seeking feedback about where CITB should prioritise investment.
This is your chance to tell them about what matters to you and the support that you need. By sharing your views, you will help shape CITB future priorities and the support they provide.
Complete our short online survey to have your say.
This is an opportunity for FIS members to contribute to what CITB invest the construction industry levy in, an opportunity that should not be missed. If you would like to discuss this further, contact FIS on 0121 707 0077 or email info@thefis.org
About the Strategic Plan
CITB’s Strategic Plan 2021-25, published in September 2020, sets out the key skills challenges for construction and what CITB will do to address them.
Amid an unpredictable landscape, CITB have focused on a smaller number of priorities to help modernise construction and increase productivity, collaborating with industry, governments and further education (FE). As well as providing direct support to employers, CITB will use this period to help fix the system, making it easier to recruit workers into the industry and to access training.
The Strategic Plan supports employers to bring people into work and provide the training they need. The Plan includes expanding work experiences, creating a new pathway from FE into apprenticeships and jobs, and boosting the numbers of apprentices completing their programmes.
Highlights from the Strategic Plan include:
- Investing £110m to support apprentices and employers, on top of grant support, to increase overall numbers and completion rates.
- Support for 28,000 taster experiences and investment in Go-Construct to give people the chance to see the wide range of opportunities construction offers and how to access them.
- Using the Grants Scheme and other funding to help employers invest in training to first rebuild after the pandemic and then to modernise and raise productivity.
The Strategic Plan was developed during discussions with employers, employer bodies and CITB Board and Nation Council members.
Read the Strategic Plan here
by Clair Mooney | 21 Feb, 2023 | Market data
The Construction Products Association’s latest State of Trade Survey for 2022 Q4 revealed a quarter of mixed fortunes for the construction product manufacturing industry. Performance was split between a decline in sales for heavy-side producers and continued growth for manufacturers on the light side. Furthermore, manufacturers expect these dynamics to persist in 2023, with new build starts affected by economic uncertainty but refurbishment and activity for energy-efficient retrofit continuing apace.
In 2022 Q4, 20% of heavy-side manufacturers reported that sales of construction products declined, marking a second consecutive quarter of decline. In contrast, 27% of light-side manufacturers reported that product sales rose, which extended a run of growth to ten straight quarters.
In the Q4 survey, demand was viewed as the key constraint on manufacturers’ activity going forward. On balance, one-third of heavy-side firms, whose products tend to feed into the earlier stages of construction, anticipated a decrease in sales over the next 12 months, with two-thirds citing demand as their key concern. On the light side, a balance of 8% of firms anticipated a rise in sales during 2023.
Rebecca Larkin, CPA Head of Construction Research said: “It was a mixed bag for construction product manufacturers at the end of last year, with demand in some areas of construction knocked by renewed economic uncertainty following the Truss government’s Mini Budget, as well as early signs that historically high inflation was stalling household spending and business investment decisions. This primarily affected heavy side manufacturers, who experienced a fall in sales for products that are typically used at the earlier stages of construction as demand and confidence weakened for new build project starts. Sales growth continued for light side manufacturers in Q4, however, and is likely to have been buoyed by areas of construction that are still experiencing strong activity, namely offices refurbishments and energy-efficient retrofit such as insulation measures.”
Key survey findings include:
- A balance of 20% of heavy-side firms reported that construction products sales fell in Q4 compared with Q3, marking a second straight quarter of falling sales
- 27% of light side firms reported product sales rose, the tenth quarter of growth
- One-third of heavy-side manufacturers anticipated a decrease in sales over the next 12 months; 8% of light-side firms anticipated a rise in sales
- Fuel, energy and raw materials costs rose for all heavy-side manufacturers
- Overall costs are expected to increase over the next year according to balances of 69% on the heavy side and 62% on the light side, the lowest balances since mid-2020
Overall, the Q4 survey highlights the varied demand by the construction sector and adds to the signs pointing to a slowdown in activity across new build or sectors that are driven by consumer or business confidence, which will be partially offset by high levels of activity on commercial refurbishment and energy efficiency improvements.
by Clair Mooney | 16 Feb, 2023 | Skills
CSCS will cease renewing cards issued via Industry Accreditation (IA) from 30 June 2024, while all IA cards issued from 1 Jan 2020 will expire on 31 Dec 2024 and will not be renewed. Below, CSCS have provided responses to some of the common queries and questions around IA, as well as information on how they can be resolved.
IA was a mechanism by which workers could obtain CSCS cards on the strength of an employers’ recommendation rather than the achievement of a recognised qualification. CSCS stopped issuing new cards under IA back in 2010, but if you previously held a card under IA, the scheme rules allowed you to continue to renew.
CSCS together with our 37 partner card schemes, are bound by the Construction Leadership Council’s (CLC) requirement that all construction industry card schemes must operate with nationally recognised qualifications (usually NVQs and Apprenticeships) in place for all occupations. This requirement is particularly important when addressing the IA issue. Further details on the withdrawal can be found here.
To satisfy the Construction Leadership Council’s requirements, CSCS announced plans to withdraw cards issued under IA, which include:
- IA cards issued from 1 Jan 2020 will expire on 31 Dec 2024 and will not be renewed
- CSCS will cease renewing IA cards from 30 June 2024.
There are four ways to move off IA:
- Vocational qualifications already achieved: cardholders who have achieved the qualifications for their occupation can renew their card for the full five-year term as normal.
- Academically Qualified person card: This card is available to people who have completed certain construction related degrees, HNDs, HNCs, CIOB Certificates and NEBOSH diplomas.
- Professionally Qualified person: This card is available to competence assessed members of CSCS approved Professional Bodies of which CIOB is one.
- Not everyone needs a card: There will be IA card holders who no longer require their CSCS cards. For example, you may have moved into a management role, become a director, or rarely visit site. In these scenarios, you do not require a CSCS card.
Those unable to fit into these four scenarios will be required to register for the appropriate qualification for their occupation before their cards expire in 2024. Those without qualifications will be required to register for the appropriate qualification for their occupation before their cards expire in 2024, however this does not mean attending college. Assessments can take place on site, remotely or via a professional discussion depending on the individual circumstances.
Costs will vary depending on a range of factors such as the training provider, qualification and assessment method. However, CITB grants are available to employers to assist with the cost involved. Those impacted are advised to read up on the options available to them and follow the interactive flowcharts available via CSCS Applying For Cards Industry Accreditation CSCS would also urge employers, trade associations, awarding organisations and training providers to put plans in place to support the workers affected ahead of the December 2024 withdrawal.
George Swann Skills and Training Lead said:
“if you are an AI card holder without a qualification FIS has Training Provider members who can help get the qualification applicable to your role. Contact FIS on 0121 707 0077 or email info@thefis.org and we may be able to get you your qualification free of charge”.
by Clair Mooney | 16 Feb, 2023 | Skills
Last week saw the annual celebration of National Apprenticeship Week. The theme for 2023 was ‘Skills for Life’ and the week reflected on how apprenticeships could help individuals to develop the skills and knowledge required for a rewarding career and help businesses to develop a talented workforce that is equipped with skills for the future.
The week brought together businesses and apprentices across the country to shine a light on the positive impact that apprenticeships make to individuals, businesses and the wider economy.
To be interactive and engaged with our members, FIS published daily polls, following the themes of the day to understand members awareness of apprenticeships. Our poll results were inspiring and positive, demonstrating that FIS is working hard for its members to ensure they have the most up to date information and support on apprenticeships.
The results indicated we are getting the message out about apprenticeships, however, we could do more to influence our members in relation to those who may be hesitant to take apprentices on. 80% of businesses that took part in our poll have recruited an apprentice in the past and 57% are considering hiring an apprentice.
The FIS skills team will be proactive and follow up with those who were not quite sure about taking on apprentices (43%) to discuss benefits they bring, and any funding attached.
FIS has links with many education institutions, where member views are represented to make a change in the sector. It is good news that the Interior Systems Installer apprenticeship is preparing to be reviewed, with input from our members taken on board to ensure it is fit for purpose and adds value.
An area where a little more work is required is the awareness around T- Levels, with 55% of respondents not aware what a T-Level is. T-Levels are relatively new to the sector and FIS is on hand to offer advice and guidance to its members on how these qualifications can be integrated into their organisation to fill the skills gaps.
National Apprenticeship Week is an important tool in raising the profile of apprenticeships with schools, parents and young people who may not have considered apprenticeships as a viable career route. The week also highlights the value apprentices bring to employers. Our members who have recruited apprentices, have found great value and pride in making a difference to participants.
FIS is a great believer in celebrating success and showcasing the great benefits that apprentices bring to individuals and employers is no different. We have celebrated apprentices at our recent awards, where apprentices have won and shone a light on how undertaking an apprenticeship has enabled them to fulfil their ambitions and how they have been successful in their achievements.
by Clair Mooney | 16 Feb, 2023 | Skills
Last year, the Construction Products Association (CPA) published the document Built Environment – Proposed construction product competence standard – white paper, proposing new competence requirements for all those using or otherwise working with construction products, and is now gearing up to develop a British Standard at BSI. This standard is due to have impact on the entire supply chain, and the CPA is keen to have input in the development from small contractors as well as large to ensure its practicality and usability.
The CPA is seeking a voluntary perspective to join the development group. The project will likely last between 18 months to two years, and though meeting frequency and input will vary according to the task, it will likely have a meeting at least once a month for two hours. The CPA appreciates that SME contractors may have limited resources, so would be willing to have a conversation exploring options as to levels of contribution.
To enquire about the position, or for further information, please contact Hanna Clarke by COP 3 March 2023.
by Clair Mooney | 16 Feb, 2023 | Main News Feed
