Construction News Archive May 2002

New Construction Orders: February 2002

Orders in the twelve months to February 2002 fell by two per cent compared to orders in the previous twelve months and orders in the three months to February 2002 fell by seven per cent compared to the same three months a year earlier. Orders in the three months to February 2002 fell by four per cent compared to the previous three months, with falls in all sectors except private and public housing. This was largely due to low December orders in the infrastructure and private commercial sectors.

Private housing orders in the twelve months to February 2002 were unchanged compared to the previous twelve months. Orders in the three months to February 2002 rose by 15 per cent compared with the previous three months and rose by eight per cent compared with the same three months a year ago. Public housing and housing association orders in the year to February 2002 rose by 15 per cent when compared to the previous year. Public housing and housing association orders in the three months to February 2002 rose by 48 per cent compared to the previous three months, and by 20 per cent compared to the same three months a year earlier. All comparisons in this sector are affected by large variations due to its relatively small size.

Infrastructure orders in the twelve months to February 2002 fell by 14 per cent compared with the previous twelve months. Orders in the three months to February 2002 were nine per cent lower compared with the previous three months, and were 28 per cent lower than in the same three months a year earlier. This was due to low orders in December in the water, roads and other infrastructure sectors.

Public non-housing orders (excluding infrastructure) in twelve months to February 2002 were 12 per cent higher when compared with the previous twelve months. Orders in the three months to February 2002 were three per cent lower compared with the previous three months, but were 13 per cent higher compared to the same three months a year earlier

Private commercial orders in twelve months to February 2002 were two per cent lower compared to the previous twelve months. Orders in the three months to February 2002 were 13 per cent lower compared to the previous three months, but two per cent higher than in the same three months a year earlier.

Private industrial orders in twelve months to February 2002 fell by nine per cent compared with the previous twelve months. Orders in the three months to February 2002 were 14 per cent lower than in the previous three months, and 40 per cent lower compared to the same three months a year earlier.


DTI:The Construction Industry Learns the Winning Formula

Britain's Construction Industry met recently in a bid to find the winning formula to reform the whole industry.

The Strategic Forum released the consultation document, Accelerating Change, on 22 April. May 15th's view-sharing event was a mark of the importance placed on securing a wide response from the broader construction industry to ensure full commitment to the improvement agenda set out in Rethinking Construction.

Accelerating Change is asking the industry and its clients to provide better leadership for schemes within more closely integrated teams modelled on successful demonstration projects.
Construction Minister, Brian Wilson, addressed the conference to encourage knowledge sharing and identify barriers to change.

He said:
'At its best the UK construction industry displays excellence. But there is no doubt that substantial improvements in quality and efficiency are possible'.

'In 1998 Rethinking Construction urged the industry to learn the lessons of other sectors that had reformed their practices in order to survive in an increasingly competitive economy.'

'Today's Accelerating Change conference seeks to speed up the rate of improvement throughout the industry, to overcome barriers to change and share views on what practices are best for this diverse industry'.

Accelerating Change is happening at a busy time in construction. Brian Wilson recently addressed the annual Women in Construction conference and called for the Industry to change its macho image and recruit more women to meet the significant skills shortages the sector is set to face.

The Health and Safety Executive is also blitzing building sites in a bid to drive up safety standards.
Transforming the industry's image from one that is dangerous and restricted to white males is essential to recruiting and retaining a greater number of highly skilled tradespeople.


HSC Safety Campaign

A nationwide campaign to cut the numbers of people killed and injured in the construction industry was been launched in April at the Birmingham Bull Ring.

Between April 2000 and March 2001, 106 construction workers in the UK were killed on sites and 4,672 were injured, at enormous personal loss to their families and communities.

The construction industry employs around seven per cent of the workforce but accounts for 30 per cent of all reported accidents. In an effort to reduce these numbers, the construction industry, working with the Health and Safety Commission's Construction Industry Advisory Committee (CONIAC), has established the UK's largest construction Health and Safety campaign - 'Working Well Together' (WWT).

A key part of the campaign is the specially equipped WWT bus, which visits major construction sites around the country, promoting site health and safety amongst the workforce.

Since the bus started touring the country in 1999, more than 12,000 workers have signed up to the campaign. As well as involving workers, the bus tour has drawn sponsorship from organisations in the construction industry, including Taylor Woodrow Construction Ltd, Hilti, Scafftag Ltd, 3M Occupational Health and Environmental Safety, Ultrasun, the TUC, and the Health and Safety Executive (HSE).

After the tour's launch at the Bull Ring, the bus will move on to other venues in the Midlands, the South of England and London. A second tour later this summer will take the bus to Scotland, the North of England and North Wales. : On each tour, site workers will receive information packs containing advice on how to stay healthy and safe at work. They will also be able to test their safety awareness with fun competitions designed to get across a very serious safety message.

At the launch were two people who have had personal experiences of the devastating effects of work place accidents. Diane Salcombe from Smethwick in the West Midlands lost her brother Graham Cornforth in July last year.

Diane said: 'Graham was an experienced tradesman and was working on a roof at an industrial estate in Rowley Regis. Unfortunately the roof he was working on simply wasn't strong enough to carry him and it collapsed. Graham was a lovely man and we all miss him terribly. Employers must realise the importance of following safety procedures for the sake of their workers and their families."

Ian Whittingham from Merseyside is now confined to a wheelchair following a fall from a roof on a local site. Reflecting on his accident Ian said: "It just takes a split second for an accident to happen and change your life forever. Stop and think about what you're doing. If a job looks unsafe to you, it probably is. Step back from it and think about what you're doing. At the end of the day it's your life."

Rosi Edwards is the Head of the HSE's newly formed Construction Division for Wales, Midlands and South West and she visited the bus today. She said: I really welcome the Working Well Together initiative, it gives the workers the chance to think about how they can take simple measures to stay safe at work and introduces some fun into the message. "Go and visit the bus it if it's on your site - it's packed with useful information and safety advice and if you put its messages into action it might save your life".


INDUSTRY INVESTS – WILL GOVERNMENT DELIVER?

Construction product manufacturers are increasing their capital expenditure and raising productivity in anticipation of improved market conditions, according to the Association’s latest quarterly trade survey.

Commenting on the survey findings, the Association’s Economics Director Allan Wilén said "The industry enjoyed a strong start to 2002, with over a third of firms seeing their sales volumes rise by more than 5% on a year earlier. Expectations are high with further growth anticipated over the coming months. The industry is responding to the positive outlook by increasing its capital expenditure in a range of areas that will help improve product differentiation and raise productivity. The construction products industry’s optimism and commitment to raise capital expenditure is in sharp contrast to the rest of UK manufacturing and will offer encouragement to the Government’s initiative to raise productivity.

"The anticipated rises in both output and capital expenditure, however, are both firmly based on expectations that promised Government spending will be delivered. Delay in the implementation of promised projects would severely hit both construction growth and companies’ own investment plans."
On a less positive note, the survey has also highlighted significant cost pressures as companies are hit by rising energy costs and additional tax burdens including the Climate Change Levy. Further tax increases are now looming with the Aggregates Levy adding to costs from April and the Chancellor’s 1% increase in employers NIC hitting firms’ labour costs from next year. With the value of the Euro remaining at a low level, exports have also continued to fall as increased competition from developing countries has adversely affected export markets.

On balance more than half of firms responding to the Association’s survey for the first quarter of 2002 reported a rise in their sales volumes against a year ago, while over a third of firms had seen their sales volumes rise by more than 5%.

Expectations are positive for the year ahead with three quarter of firms expecting to increase their sales over the next twelve months and over a quarter of firms seeking to increase sales by over 5%. Light side manufacturers are especially optimistic with all surveyed firms looking to raise sales volumes.

A quarter of all firms on balance have increased their capital expenditure over the last twelve months. Looking ahead around a third of firms expect to increase their investment over the next year, with firms focussing upon areas such as product improvement, e-business and plant & equipment in an effort to improve product differentiation and raise productivity.

A complete analysis of the survey findings is available from Rita Chauhan at the CPA on 020 7323 3770 email rchauan@constprod.org.uk.

FOR FURTHER INFORMATION CONTACT:
Allan Wilén
Construction Products Association
Telephone: 020 7323 3770
Fax: 020 7323 0307
E-mail: awilen@constprod.org.uk


Health and safety inspectors to blitz construction sites across London

The Health and Safety Executive (HSE) will this month carry out a five-day London-wide construction blitz, the first of a 12 month national rolling programme of blitzes planned by HSE’s new Construction Division.

HSE inspectors will hold monthly construction site blitzes in different parts of the country during the rolling programme, in a bid to cut down on the unacceptable toll of deaths, injuries and ill health on badly run sites. Out of the 291 work-related deaths last year, 106 were on construction sites.
A team of 31 inspectors from the Construction Division will be involved in the London blitz. They will visit both small and large sites across the capital, adopting a rigorous, enforcement-led approach and will stop work on sites where poor standards are identified.

HSE’s inspector organising the blitz, Barry Mullen, said: "The number of workers killed in the construction industry is unacceptably high. Although we will concentrate on two key areas, falls from height and site welfare, we will also address other health, safety and welfare issues. We will deal strongly with poor standards and may take enforcement action, including prosecutions against those who flout health, safety and welfare law. The industry must improve its standards, if it is to meet the Revitalising Health and Safety targets it has set.

"Falling from height is the single biggest killer in construction - last year accounting for 44 per cent of all deaths in the industry. Good welfare is essential, some of the poor welfare conditions HSE inspectors encounter during site visits are not acceptable in the 21st century.

"The new division has enabled us to be more flexible with our resources so we can carry out blitzes like this. As well as using all the HSE construction inspectors in London, we are also bringing in inspectors from other regions. HSE’s Chief Inspector of Construction, Kevin Myers and other senior managers in the division, will also take part in the London blitz."

The blitz rolling programme is just one of the intervention strategies developed by the division. We are also extending an existing national press advertising campaign aimed at increasing health and safety awareness among small construction businesses to billboards in cities across the country. The adverts will encourage people to order free copies of the HSE guidance booklet The Absolutely Essential Health and Safety Toolkit for the Smaller Construction Contractor.


HOUSEBUILDING: MARCH 2002

In March 2002, it is provisionally estimated that 18,900 dwellings were started in Great Britain compared with 15,000 in March 2001. Completions numbered 13,400 compared with 13,900 the previous year. In the latest three months 49,000 dwellings were started, up 9 per cent on the same three months a year ago, while total completions at 39,000 were at the same level as a year ago.

In the latest three months there were an estimated 47,400 total starts, up 2 per cent on the previous three months, and up 8 per cent compared with the same period a year ago. On the same basis of comparison private enterprise starts were 41,700, down 1 per cent on the previous three months and up 10 per cent compared with a year ago. Total completions were 41,700 including private enterprise completions of 36,700, at the same level and up 4 per cent respectively, comparing the latest three months with the previous three months. Total completions were up 1 per cent and private enterprise completions were up 4 per cent compared with the previous year.

Figures for England show some similar trends to those for Great Britain. Total starts, 38,100 for the last three months, were down 1 per cent on the previous three months and up 7 per cent on the same period a year ago. Total completions, 33,700 for the last three months, were up 2 per cent on the previous three months and up 1 per cent on the same period a year ago.


NEW CONSTRUCTION ORDERS: MARCH 2002

Construction orders in the twelve months to March 2002 were unchanged compared to orders in the previous twelve months and orders in the first quarter of 2002 rose by two per cent compared to the same quarter a year earlier. Orders in the first quarter of 2002 rose by 18 per cent compared to the previous quarter, due to extremely high orders in the infrastructure sector. There were also rises in the public non-housing and private housing sectors.

Private housing orders in the twelve months to March 2002 rose by one per cent compared to the previous twelve months. Orders in the first quarter of 2002 rose by nine per cent compared with the previous quarter and rose by three per cent compared with the same quarter a year ago. Public housing and housing association orders in the year to March 2002 rose by 15 per cent when compared to the previous year.

Public housing and housing association orders in the first quarter of 2002 fell by nine per cent compared to the previous quarter, but rose by 18 per cent compared to the same quarter a year earlier. All comparisons in this sector are affected by large variations due to its relatively small size.

Infrastructure orders in the twelve months to March 2002 fell by three per cent compared with the previous twelve months. Orders in the first quarter of 2002 were 115 per cent higher compared with the previous quarter, and were 14 per cent higher than in the same quarter a year earlier. This was due to extremely high orders in the roads and other sectors in March.

Public non-housing orders (excluding infrastructure) in twelve months to March 2002 were 18 per cent higher when compared with the previous twelve months. Orders in the first quarter of 2002 were 14 per cent higher compared with the previous quarter, and were 38 per cent higher compared to the same quarter a year earlier

Private commercial orders in twelve months to March 2002 were three per cent lower compared to the previous twelve months. Orders in the first quarter of 2002 were six per cent lower compared to the previous quarter, and were 13 per cent lower than in the same quarter a year earlier.

Private industrial orders in twelve months to March 2002 fell by 10 per cent compared with the previous twelve months. Orders in the first quarter of 2002 were 11 per cent lower than in the previous quarter, and 27 per cent lower compared to the same quarter a year earlier.


Wilson Welcomes New Global Thinking on Tall Buildings

New international cooperation and research on tall buildings is vital, Construction Minister Brian Wilson has told experts from around the world at a summit held in London.

Mr Wilson, addressing an audience of 100 building specialists at the Global Leaders Summit on Tall Buildings held at the Building Research Establishment (BRE), said:

'There is clearly a new imperative for research on tall buildings to be better co-ordinated so that knowledge and understanding is shared. We need to ensure that best practice in planning, design and construction is more universally understood. This summit is a timely opportunity to share knowledge on structure, safety and design
issues'.

Mr Wilson added:
'The UK construction industry has shown it has the talent and technical expertise to be at the vanguard of worldwide design and construction of tall buildings. I believe the UK research base at its best is a world beater and can make a significant contribution, to not only the UK's, but also to global understanding, of safety and other issues concerning tall buildings'.

Mr Wilson highlighted the examples of the Commerzbank Tower in Frankfurt and the Arabian Tower in Dubai as good examples of British designed tall buildings that make significant contributions to their settings.


Wilson Launches Construction Sustainability Stragegy

Construction Minister, Brian Wilson, today welcomed the launch of 'Society, Sustainability and Civil Engineering', a new strategy aimed at promoting sustainable construction and improved productivity for the civil engineering sector.

Speaking at the Institution of Civil Engineers' (ICE) headquarters at the launch of the publication, Mr Wilson said:
'This sustainability strategy is an important contribution to delivering an improved construction industry. Government set the industry a challenge to develop a more sustainable industry and this strategy is a positive response to that challenge.'
The Strategy document is the result of work by five major industry bodies,Institution of Civil Engineers, the Civil Engineering Contractors Association, the Construction Products Association, the Construction Industry Research and Information Association and the Association of Consulting Engineers. It addresses the key issues of reducing waste, improving the environment, conserving resources, and responding to the needs of the construction workforce by providing training and addressing health and safety issues.

The development of sector sustainability strategies in the construction industry follows the publication of 'Building a better quality of life - a strategy for more sustainable construction' in 2000. The strategy also sets targets for measuring progress and commits the industry to reporting annually on these targets.

Mr Wilson added:
'I am pleased that the Civil Engineering sector is committed to reviewing its progress and priorities on an annual basis, and to working with its partners in other disciplines to implement its strategy. I wish it success.'


Wilson: 'UK Must Rise to the Challenge of Meeting its Environmental Targets'
'The time for action is now!'


Brian Wilson, Minister for Energy, has made clear the "real and tough challenge" for the UK to meet its environmental targets, as new figures showed a small increase in CO2 emissions in the last two years after substantial reductions during the 1990s.

Energy Trends publication shows that despite an overall 6 per cent fall in Carbon emissions since 1990, there was a slight increase for the years 2000 and 2001. This was as a result of increased use of coal in electricity generation and colder weather in the winter months.

Brian Wilson said:
'For anyone who might have grown complacent, these figures demand that we must do more to address our environmental obligations. We met the Rio target to keep greenhouse gas emissions below 1990 levels by 2000, but this is still not enough. The time for action is now.

'All sectors of the economy need to contribute to more sustainable use of energy. We need greater energy efficiency and more renewable energy. Energy companies should continue to help customers become more fuel efficient. The new Energy Efficiency Commitment (EEC), from April, will encourage greater investment in domestic energy saving measures.

'During the 1990s, our economy grew by 29 per cent, our energy use by 91/2 per cent, while our carbon emissions decreased by 6 per cent. Here is clear evidence that carbon emissions and energy consumption can be decoupled from economic growth.

'Renewable energy will also make an important contribution. The Government has now created an economic and legislative environment in which the renewables industry can flourish.

'Companies must invest in the future of this important industry. I hope to see more new and innovative ideas from small and large scale developers. And I will encourage every realistic prospect to be developed into real green electricity for homes across the UK.

'The PIU's Energy Review established that tackling climate change is the dominant theme of future energy policy. I aim to ensure that renewable energy will play its part in not only achieving our Kyoto targets but our own target of producing ten per cent of our electricity from renewable sources by 2010, and of reducing carbon emissions by 20 per cent on 1990 levels.'

The UK's Kyoto environmental target is to reduce greenhouse gas emissions by 12.5% on 1990 levels by 2010, while the UK's domestic goal is to reduce carbon emissions by 20 per cent on 1990 levels.
Mr Wilson made his remarks while visiting Renewable North West, a new non-for profit company set up by the North West Development Agency (NWDA) and United Utilities. It is part supported by the Government's fund for regional renewables development.The company, which is expected to be fully operational in summer, will lay out a strategy for developing green energy schemes by working with existing agencies and small and medium size companies which specialise in renewable energy technologies.

Mr Wilson added:
'This initiative puts the North West at the forefront of renewable energy development in the UK. It is exactly this kind of initiative which will turn the public's goodwill towards green energy into a reality. It will provide a very practical way of reaching our environmental targets.'


HSE launches new construction division

The Health and Safety Executive (HSE) launched its new Construction Division on Monday 8 April.
Led by HSE's Chief Inspector of Construction, Kevin Myers, the Division will draw together the existing construction inspectors previously dispersed within HSE's regional structure.

Kevin Myers said: "The new Division will for the first time allow the deployment of HSE's construction resource under the direct management of the Chief Inspector and his team. This will enable us to better focus our activities on achieving our ultimate objective - a significant reduction in accidents and the causes of ill health within the construction industry.

"We have developed a new intervention strategy for the Division, which builds upon and complements our traditional site-based work, particularly with our incident and complaint investigations. But we have also made some changes to our approach and emphasis in order to maximise our impact - for example, by targeting more of our interventions further up the chain of duty holders to ensure that clients and designers play their part in making change happen. We also intend to ensure that workers and their representatives are better consulted on the health, safety and welfare matters that effect them on site.

"Setting up the new Division is an important milestone in helping the construction industry achieve the demanding targets it set itself in support of Revitalising Health and Safety. The numbers of deaths, injuries and ill health in the industry are too high and this merits a focused response from HSE."

Over the course of its first year, the Division will grow to 158 dedicated construction inspectors including their immediate managers. As a result, there will be more time to work on the whole range of interventions with the construction industry.

There were 114 fatal injuries in the construction industry between 1 April 2000 and 31 March 2001, eight of which were to members of the public. A further 5046 people suffered major injuries, 317 of which were members of the public. 9920 workers in the construction industry suffered injuries that kept them off work for more than three days.

44 per cent of fatal injuries to workers in construction between 1 April 2000 and 31 March 2001 were caused by falls from height; 17 per cent - struck by moving vehicles, 8 per cent - struck by moving/falling object, 17 per cent - trapped by something collapsing/overturning, 14 per cent - other. (Health and Safety Statistics 2000/01)

Revitalising Health and Safety, published in June 2000, is a Government and HSC initiative which sets targets for the nation to reduce work-related deaths, ill health and injury in Great Britain. More details about Revitalising Health and Safety can be found on the HSE website on www.hse.gov.uk/revitalising/index.htm

The Construction industry committed to a step change in performance, which was demonstrated through setting challenging Revitalising targets and adopting action plans at the Construction Safety Summit which took place on 27 February 2001. The summit was called by the Deputy Prime Minister John Prescott because of his awareness and growing concern about the industry's poor health and safety record. Called 'Turning concern into action' it acknowledged the concern over the industry's performance, and agreed the industry had to improve.

The construction industry set the following Revitalising targets for improvement.
To reduce:
* the incidence rate of fatalities and major injuries by 40% by 2004/5 and 66% by 2009/10;
* the incidence rate of cases of work-related ill health by 20% by 2004/5 and 50% by 2009/10:
* the number of working days lost from work-related injury and ill health by 20% by 2004/5 and by 50% by 2009/10.


FMB Reports Increase in Building Workloads for Eleventh Successive Quarter

Figures published last week by the Federation of Master Builders (FMB) in its 'State of Trade Survey' for the first quarter of 2002 indicate that, for the eleventh successive quarter, the workloads of small and medium-sized builders in the majority of UK regions are still on the increase, well ahead of industry expectations expressed in the last quarter of 2001. The report illustrates that, for FMB members at least, the building sector remains buoyant in 2002 and is expected to remain so for the foreseeable future.

Commenting on the ongoing growth in the building sector, FMB Director General, Ian Davis, said: 'It is heartening to see that the building sector remains positive and FMB members are, on the whole, enjoying a period of sustained growth, despite some predictions to the contrary in the last quarter of 2001.'

Increased workloads
Figures published in the survey found that 44 per cent of all respondents indicated that their workload was higher in the first quarter of 2002 than in the final three months of 2001, with Yorkshire, Wales and Scotland reporting the most significant increases with 52 per cent, 57 per cent and 59 per cent of builders respectively enjoying an upturn in business.

The repair, maintenance and improvement (RMI) of private housing was the strongest work sector for the first three months of 2002, with private housing new build the second strongest. However, there are indications of a slight decrease in industrial building work and most types of public sector work.

Future workloads
Looking forward to the next three months of 2002, almost half of the respondents in the various regions expected a further increase in work.

Yorkshire, the South West and the East Midlands are anticipating the highest increase and all regions are generally expecting growth, with the exception of firms in Scotland, who are expecting a very slight downturn. The types of work that firms expect the greatest increase in across the board are new build and RMI of private housing, commercial work and new build and refurbishment of non-residential buildings for public sector clients.

The survey also reveals that, overall, there is no sign of work dropping off in the short-term, with 43 per cent of all builders and specialist contractors surveyed reporting an increase in the number of enquiries relating to new business, which is slightly less than at the same point in 2001. There are also wide variations regionally in the rate of increase in the number of enquiries. The East Midlands, East Anglia, South West and Wales, for example, all reported significant increases, whereas the North, Yorkshire, London, West Midlands and Northern Ireland reported negative or lower than the national average rate of growth in the number of enquires received. Areas with highest levels of enquiries are new build and RMI of private housing.

Workforce figures
The increase in workload across the building sector was accompanied by a slight increase in the total workforce of FMB respondents. This comes against the last quarter survey of 2001, where respondents had anticipated a slight fall in the workforce. Again, there are significant regional variations - for example, in the East Midlands just over half report an increase in workforce whilst just over a quarter reported an increase in workload. Conversely, in the West Midlands 45 per cent of respondents reported an increase in workload, whilst only 13 per cent reported an increased workforce and 18 percent a decrease in workforce. Looking ahead to the second quarter, almost a third of the total respondents expect to expand their workforce, with only eight per cent expecting to shed jobs.

The labour market
When asked if they felt there was shortage of labour, the overall percentage of respondents answering yes was 60 per cent. This compares to 63 per cent in the last quarter of 2001 and to 71 per cent 12 months ago. Again there were regional variations. For example, whilst 73 per cent of Scottish respondents had experienced a shortage of labour, this figure was only 40 per cent in the Northern Counties region.

Firms in Scotland had the most difficulty in recruiting direct employees, but it was those in London, the South East and the West Midlands that were most concerned about the availability of trades to work as subcontractors. Carpenters and joiners were the trades most commonly reported as being difficult to find, followed by bricklayers, plasterers and plumbers.

Commenting on the issues raised in the survey, Ian Davis added:
'Although the overall outlook for FMB remains positive, there are still some ongoing concerns such as the shortage of skilled craftsmen, unfair competition from firms working 'cash in hand', false self-employment and the increase in bureaucracy from, for example, changes to Part L of the Building Regulations (England and Wales). These are all issues on which the FMB is actively campaigning on behalf of our members.'


GO TO CONSTRUCTION NEWS PAGE

RETURN TO HOME PAGE