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Crest Nicholson, one of the UK’s leading residential developers, has announced that it will be pausing its regional expansion drive in order to focus on its core business. This decision comes as the company looks to streamline its operations and improve its financial performance in the face of a challenging market.

Analysis of Crest Nicholson’s Decision to Pause Regional Expansion

Crest Nicholson’s decision to pause its regional expansion drive is a strategic move that is aimed at improving the company’s financial performance and focusing on its core business. The UK’s residential property market has been facing significant headwinds in recent years, with Brexit uncertainty and a lack of affordable housing weighing on the industry.

This challenging market environment has led to a slowdown in Crest Nicholson’s regional expansion plans, as the company looks to focus on its core business and streamline its operations. By pausing its regional expansion, Crest Nicholson will be able to redirect resources towards its core operations, which will help to improve its financial performance and ensure that the company is well-positioned for the future.

Key Factors Driving Crest Nicholson’s Decision

There are several key factors that have driven Crest Nicholson’s decision to pause its regional expansion drive. These include:

  • Brexit uncertainty: The UK’s decision to leave the European Union has created a significant degree of uncertainty in the residential property market. This has led to a slowdown in demand for new homes, which has in turn impacted Crest Nicholson’s regional expansion plans.
  • Lack of affordable housing: The UK’s housing market is facing a significant shortage of affordable homes. This has led to a slowdown in demand for new homes, which has in turn impacted Crest Nicholson’s regional expansion plans.
  • Financial performance: Crest Nicholson’s financial performance has been impacted by the challenging market environment. By pausing its regional expansion, the company will be able to redirect resources towards its core operations, which will help to improve its financial performance and ensure that the company is well-positioned for the future.

Impact of Crest Nicholson’s Decision on the UK Residential Property Market

Crest Nicholson’s decision to pause its regional expansion drive is likely to have a limited impact on the UK residential property market. The company is a major player in the industry, but it is not the only player. Therefore, the decision is unlikely to have a significant impact on the overall market.

However, the decision will have a significant impact on Crest Nicholson’s regional expansion plans, as the company will need to redirect resources towards its core operations. This will help to improve the company’s financial performance and ensure that it is well-positioned for the future.

Conclusion

Crest Nicholson’s decision to pause its regional expansion drive is a strategic move that is aimed at improving the company’s financial performance and focusing on its core business. The UK’s residential property market has been facing significant headwinds in recent years, with Brexit uncertainty and a lack of affordable housing weighing on the industry. By pausing its regional expansion, Crest Nicholson will be able to redirect resources towards its core operations, which will help to improve its financial performance and ensure that the company is well-positioned for the future.

Contractors have been left “angry and bemused” by plans for another major hike in plasterboard prices from January.

The Construction Enquirer understands that major manufacturers have been informing the industry of price rises of more than 15% in the New Year.

That is on top of a near 100% rise during 2022.

One concerned contractor said: “The excuse for the price rises this year has been soaring demand and raw material price rises.

“But that’s not the case any more.

“We were expecting prices to actually come down but have now been hit with this.”

Another construction director added: “You only have to look at raw materials prices to see that virtually everything bar gas is coming down in price while container shipping rates are at all time lows as supply chain pressures ease as demand slows across the economy.

“This has left me angry and bemused so now I’m looking at sourcing board from abroad.

“The big players dominate the UK market and this smacks of profiteering at a time when the industry and the wider economy simply cannot afford it.”


Source: Construction Enquirer

As the construction industry continues to evolve and adapt to new technologies, one trend that has been gaining a lot of attention is the use of 3D printing and prefabricated homes. These innovative approaches to construction offer a number of benefits, including faster construction times, lower costs, and increased sustainability.

One of the biggest advantages of 3D printing in construction is the ability to quickly and efficiently produce custom-designed buildings and structures. 3D printing technology uses a computer-controlled printer to build structures layer by layer using a variety of materials, including concrete, plastic, and metal. This allows for precise construction of complex shapes and geometries, and eliminates the need for traditional construction techniques such as molds and forms.

In addition to faster construction times, 3D printing can also reduce construction costs by streamlining the building process and reducing the need for labor. It can also decrease the amount of material waste, as the precise nature of 3D printing allows for more efficient use of resources.

Prefabricated homes are another innovative approach to construction that has been gaining popularity in recent years. These homes are built off-site in a controlled factory environment, and then shipped and assembled on-site. This approach offers a number of benefits, including faster construction times, lower costs, and increased quality control.

Prefabricated homes are also more sustainable than traditional construction methods, as they can be built using recycled materials and energy-efficient technologies. They can also be easily disassembled and relocated, making them a more flexible and adaptable option for homeowners.

As 3D printing and prefabricated homes continue to gain traction in the construction industry, it’s clear that these innovative approaches will play a significant role in shaping the future of construction. Whether it’s faster construction times, lower costs, or increased sustainability, these technologies offer a range of benefits that are sure to attract attention and drive innovation in the industry.

Construction workloads have continued to hold firm despite strong headwinds in the rest of the UK economy.

Latest figures from the Office of National Statistics show construction output grew for the fourth consecutive month in October, taking the industry to nearly 5% above the pre-pandemic activity watermark.

The overall 0.8% rise in October output came from increases in both new work (0.5%) and repair and maintenance (1.3%) on the month. This was ahead of the 0.5% seen for the UK economy as a whole.

At the sector level, five out of the nine sectors saw a rise in October 2022, with the main contributors to the monthly increase seen in private new housing, and non-housing repair and maintenance, which increased 2.9% and 1.7%, respectively.

Furthermore, annual price inflation is starting to show signs of easing from the high level in mid-2022.

Mark Robinson, group chief executive at SCAPE, said: “Growth in the construction sector is encouraging to see, especially in today’s economic climate.

“However, with the UK now in recession, the industry will be conscious of the long-term challenges of inflation, labour and materials supply throughout the winter.

“Investment in public sector infrastructure has always been a key driver of output in times of downturn. That said, contractors will be mindful of the impact of real-term spending cuts. Many local authorities will still be confirming their budgets for the next year, with the most proactive already openly engaging with delivery teams to ensure important regeneration projects are scoped effectively.”


 

Source: Construction Enquirer

John Lewis Partnership has sealed a £500m joint venture deal with investor abrdn to fund and build 1,000 rental homes at three sites.

The sites include building over redeveloped Waitrose stores in Bromley and West Ealing in Greater London, as well as replacing a vacant John Lewis warehouse in Mill Lane, Reading.

John Lewis has committed to deliver 10,000 homes in the next 10 years – 5,000 of these will come from schemes on the Partnership’s own property portfolio.

It said it has already identified around 20 sites that it will extend or redevelop with build to rent schemes, and then become the landlord once housing is built.

John Lewis said the build-to-rent residential property market in the UK is forecast to double in size, with 30,000 new homes completed annually by 2026, according to research by the property firm Savills.

In London alone there is a shortfall of 75,000 rental properties.

Nina Bhatia, executive director for Strategy and Commercial Development at the John Lewis Partnership, said: “We continue to work with the local authorities and communities to evolve our plans and expect to announce more details for West Ealing and Bromley in due course, before aiming to submit our first planning applications next year.

“A first public consultation for the site in Reading is expected in 2023. Residents can expect homes furnished by John Lewis with first-rate service and facilities.”

Neil Slater, Head of Real Assets, abrdn, said: “The critical lack of quality rental accommodation in the UK needs to be addressed, so we are delighted to partner with the John Lewis Partnership to provide the required institutional investment.

“The ambitions and responsible ethos of our brands both strongly align, and our partnership should offer investors long-term returns and give residents confidence in a top-quality living experience.”


 

Source: Construction Enquirer

 

The latest roofing industry survey shows firms are hampered by a labour shortage as workloads continue to rise

The roofing industry is suffering from a profound labour shortage, according to the latest State of the Roofing Industry survey from NFRC (National Federation of Roofing Contractors) and Glenigan.

The results of the survey suggest that pipelines of work have remained strong for most so far, but other factors are making it a challenge to do business.

Over half of roofing and cladding contractors found it harder to recruit suitable labour in the third quarter of 2022.

Obtaining sufficient labour was a major challenge for contractors in Q3

51 per cent of firms reported greater difficulty finding the operatives and staff with the right skills. Only nine per cent said they had found it easier than in the previous quarter.

According to the report, roof slaters and tilers proved most difficult to recruit, with 35 per cent of those surveyed saying they were finding it hard to suitable operatives with that skillset (up eight per cent from Q2).

23 per cent reported difficulty finding built-up felt roofers, and 20 per cent had the same difficulty with general labourers. One respondent said that if they had enough staff, their firm would be able to double its current output.

Almost a third (32 per cent) said they had trouble retaining new starters, mostly in the new build and domestic repair, maintenance and improvement sectors.

Supply chain issues continued to impact costs

As expected, material prices continued to rise, with three quarters of firms (75 per cent) reporting seeing costs rise compared to the previous quarter.

The availability of materials continued to be a challenge, with a balance of 21 per cent of firms reporting increased difficulty in obtaining the necessary supplies. Concrete roof tiles proved hardest to obtain, with 24 per cent of firms reporting an issue getting what they needed.

Nine per cent of firms reported that it was difficult to obtain the necessary timber battens. There have also been anecdotal reports of fake or non-compliant battens entering the market.

Such pressures led to a majority of firms (a balance of 52 per cent of firms) increasing their tender prices during the quarter.

Labour costs were an additional challenge during the quarter—far more firms reported an increased wage bill than reported taking on more people, even including those who reported increased use of sub-contracted labour.

Market outlook was positive, despite the roofing industry labour shortage

The survey indicated that roofing contractors’ workloads grew once again during the third quarter of 2022. 44 per cent of firms reported a greater workload compared to the previous quarter, with only twelve per cent reporting a decline. Enquiries were down for firms in most sectors, but contractors were positive about the market in the short-term.

However, late payments also remained common: 54 per cent of firms had average contractual payment terms of 30 days or less, but only 21 per cent firms actually received payments on average within that time.

This can hamper cashflow for firms, who already face the challenge of having monies held in retention on top of general inflationary pressures.

James Talman, NFRC CEO, reflected on the results: ‘On the whole, the third quarter of 2022 presents a mixed picture—cost inflation, project delays and labour challenges are putting pressure on firms, yet firms are still busy, and material availability issues have eased considerably compared to a year ago.

‘Government needs to provide contractors with reassurance that they will help businesses to carry the burden of increased energy costs, and invest in training the next generation of the construction workforce so that firms are not continually hampered by a lack of operatives. It also needs to look at removing barriers to cashflow (including retentions), and all firms need to be pushed to deliver on implementing Build UK’s minimum retention standards—pledges alone will not keep SMEs afloat.

‘Firms should take up the opportunities available to recruit and retain new talent and grow their workforce. The ECO project, for example, allows NFRC to offer support to firms in England or Scotland to recruit and retain a new starter, supporting them comprehensively through the first six months, via funding from CITB. I would also encourage NFRC Members to consider making grant applications to the NFRC Charitable Trust Inclusion Fund programme, aimed at engaging talented people from diverse backgrounds into our industry.

National Highways has today welcomed the go-ahead for a major road upgrade to the A417 between Gloucester and Swindon – helping to boost the regional economy and transform journeys for millions of people.

Transport Minister Huw Merriman has given the long-awaited decision for this landscape-led highways scheme that will deliver a safe and resilient free-flowing road while conserving and enhancing the special character of the Cotswolds Area of Outstanding Natural Beauty (AONB).

The scheme will improve the connection between two dual carriageway sections of the A417 at Brockworth and Cowley, and links between the M4 and M5.

On an average day, the road carries approximately 40,000 vehicles and congestion can be frequent and unpredictable, so some motorists divert onto local roads to avoid tailbacks. This causes difficulties for neighbouring communities and local roads were not built to accommodate so much traffic.

Upgrading this section of the A417 to dual carriageway, in a way that is sensitive to the surrounding Cotswolds Area of Outstanding Natural Beauty, will help unlock Gloucestershire’s potential for growth, support regional plans for more homes and jobs and improve life in local communities.

National Highways’ Chief Executive Nick Harris said: “We’re delighted with the Minister’s decision. This means we can get going with this major upgrade, which is vital for local communities and the regional South West economy.

“We would like to thank everyone who has worked with us to help shape this vital scheme and provided valuable feedback. We will continue to work closely with local communities as we move towards the start of construction in 2023, making sure everyone is kept informed and disruption is kept to a minimum.

“This is a significant investment of £460m in our road network that will improve road safety, reduce traffic congestion and improve connectivity for road users and local communities.

“We are designing the scheme to fit sympathetically within the landscape, providing the opportunity to link habitats and support environmental sustainability, while unlocking economic growth in Gloucestershire and beyond.”

The A417/A419 provides an important route between Gloucester and Swindon that helps connect the Midlands/North to the South of England. It’s an alternative to the M5/M4 route via Bristol.

The Missing Link itself is a three-mile stretch of single-lane carriageway on the A417 between the Brockworth bypass and Cowley roundabout in Gloucestershire.

It causes many problems for road users and those who live or work in the area. Congestion can be frequent and unpredictable, so some motorists divert onto local roads to avoid tailbacks.

This causes difficulties for neighbouring communities and local roads were not built to accommodate so much traffic. Poor visibility and other factors also mean that accidents, many of which are serious, occur frequently along this section of road.

The granting of the DCO means preparatory work on the project can begin early next year with construction due to begin later in 2023.

The GB materials division of Breedon, which specialises in aggregates and downstream products including asphalt, ready-mixed concrete, and specialist building products, has succeeded in dramatically reducing instances of aggressive and inefficient driving in its fleet thanks to the installation of Lightfoot’s innovative green fleet tech. This has led to a 12.2% fall in fuel costs, a 10.9% drop in CO2 emissions, and a 24% reduction in pollution caused by vehicle idling.

Following the roll-out of Lightfoot’s trail-blazing in-cab driver coaching technology and rewards platform, Breedon is now on target to reduce fleet CO2 emissions by 1,651 tonnes over the next five years: equivalent to removing 359 passenger vehicles from the road.

In addition to cutting emissions, Lightfoot has played a key role in enhancing the safety of Breedon’s drivers. Within just one month of being fitted, instances of aggressive driving were cut by 80%, with harsh acceleration falling by 63%, severe braking by 28%, and cornering at speed by 19%.

Installed in its fleet of 380 vans, Lightfoot’s dashboard-mounted driver coaching device provides audible and visual in-cab alerts to keep Breedon’s drivers in the sweet spot of their engine.

Nigel Clamp, Head of Health and Safety at Breedon, explains: “As an organisation, we aspire to deliver society with carbon neutral concrete by 2050. We also actively support the Mineral Products Association’s ‘Roadmap to Beyond Net Zero’, which aims to remove more CO2 from the atmosphere than the UK concrete and cement industry emits each year.

“To deliver against these ambitious goals, and to hit our own Net Zero by 2050 decarbonisation targets, we are working at every level within the business to identify measures and technology that will enable us to achieve this.

“Within our fleet, we wanted to find a solution that not only enables us to hit these goals, but which also allows us to stay true to our corporate values: creating a workplace where our people feel safe, proud, and motivated to do their best.

“That’s where Lightfoot comes in”, says Nigel. “By engaging with our drivers and giving them a reason to be smoother, safer, more mindful, and more efficient, we’re not only dramatically cutting emissions, but we’re also lowering the frequency and severity of accidents on the road. That keeps our drivers safer in their daily duties and, in doing so, contributes to lower levels of vehicle wear and tear, and costs associated with vehicle downtime.”

Nigel adds: “By routinely recognising our staff, and encouraging positive competition through Lightfoot’s leagues, our drivers are motivated day-in, day-out to be better. That enhances positive competition and driver engagement in a way that has not been possible before, and provides a win-win outcome at every level; from the individual driver through to the environment. As a result, we’ve gone from just 12% of our drivers achieving Elite Driver status during the Lightfoot blind trial period, to 100% consistently hitting that target each and every week. That’s driving big fuel savings and emissions reductions.

“But that’s not all. Lightfoot’s technology also flags engine faults, MOT and tax renewal dates, and provides battery health alerts. These ancillary services allow us to operate our fleet as efficiently as possible, and deal with issues before they become a problem. Combined with impressive driver engagement levels, Lightfoot leaves traditional telematics far behind.”

Paul Hollick, MD of Lightfoot, commented: “Breedon is focused on reducing its impact on the environment.

“That’s where our driver-first, self-managed solution comes into its own, actively encouraging and sustaining better driving through reward and recognition. With Lightfoot, Breedon’s drivers are striving to be the best that they can be every time they get in their van. The outcome is reductions in CO2, and fuel use, and enhanced safety records on the road, delivering positive change one mile at a time.”

Considered revolutionary in the fleet management and telematics worlds, Lightfoot’s disruptive approach to reducing accidents has been adopted by some of the largest companies in the market, including Virgin Media, Tesco, Asda, Dixons Carphone, and South West Water.

The October construction PMIs signal momentum in the UK, as total industry activity rises at the fastest pace since May despite economic uncertainty

The October construction PMIs showed higher levels of business activity in September and the highest readings since May.

The headline seasonally adjusted S&P Global / CIPS UK Construction Purchasing Managers’ Index® (PMI®) – which measures month-on-month changes in total industry activity – posted 53.2 in October, up from 52.3 last month.

Political and economic instability were major influences on rates of activity

Civil engineering activity decreased for the fourth consecutive month(48.5), but residential work expanded to 51.2, albeit at a softer pace since September.

Commercial building was the best performing category in October with output growth reaching a five-month high.

Construction companies observed weaker confidence amongst their clients, ahead of a turbulent economic forecast and political uncertainty. Total new orders decreased in October after a 28 month period of sustained expansion.

Supply chain issues are decreasing, though costs are rising

Supply chain performance appears to be improving, as the seasonally adjusted Suppliers’ Delivery Times Index was above its pre-pandemic average, which suggested that supply shortages and transport delays have eased considerably in comparison to the low point seen last year.

Instances of longer delivery times were the fewest since February 2020.

However, data signalled another steep increase in average cost burdens across the construction sector.

Higher purchasing prices were overwhelmingly linked to greater energy costs, fuel bills and the pass-through of rising wages and was only partly offset by softer commodity price pressures.

Measured overall, the rate of input cost inflation eased slightly since September and was the lowest for 20 months.

The October construction PMI’s found that employment remains steady but slow

Rising construction output consequently increased input buying and staff hiring during October.

However, survey respondents noted that weaker demand contributed to a slowdown in the rate of job creation since September.

Higher levels of business activity were attributed to a combination of new project starts and strong pipelines of unfinished work.

Firms are relatively downbeat about their growth projections for the year ahead

Around 33% of the survey panel anticipate a rise in business activity, while 26% predict a decline.

The resulting index signalled the lowest degree of optimism since May 2020.

Many companies commented on recession worries and a drop in UK economic prospects due to rising political volatility.

Meanwhile, those reporting positive sentiment in October often cited tender opportunities in niche markets or opportunities related to infrastructure spending (especially green energy projects).

The UK is entering a recession which will stunt future growth

Tim Moore, economics director at S&P Global Market Intelligence, which compiles the survey, said: “Construction output has staged a modest recovery after the downturn seen through much of this summer, with growth hitting a five-month high in October. Commercial work was the best-performing area of activity as delayed projects moved forward, while increased house building also provided a positive contribution to overall workloads.

“However, the forward-looking survey indicators highlight that growth will be harder to achieve in the coming months as rising borrowing costs, economic uncertainty and cost constraints all had a negative influence on order books in October. The reduction in total new work was the first since May 2020 and this fuelled increased concerns about longer term tender opportunities.

“Business optimism regarding the year ahead slumped in October and was by far the weakest since the early pandemic months. Construction firms cited concerns about a broad-based decline in client demand due to cutbacks on non-essential spending among clients, although some noted that growth linked to green energy projects, planned infrastructure spending and success in niche markets could help to offset the UK economic headwinds.”

Rising at the fastest rate in six months

Dr John Glen, chief economist at the Chartered Institute of Procurement & Supply, said: “The construction sector offered a small improvement in output compared to September, maintaining its place in growth territory and rising at the fastest rate for almost six months. However, this positive result offered little in terms of comfort even though purchasing activity also rose and supply chain performance returned to near-normal levels, the sector remained under pressure from all sides.

“New business levels dropped for the first time since May 2020 so this momentum in output levels mostly came from projects in hand or those delayed rather than fresh assignments. Job creation was maintained so builders were able to complete unfinished work, but salary demands along with higher energy costs stripped away margins with inflationary pressures still high.

“The housing sector lost some of its momentum creeping closer to the no-change mark and sitting in a precarious position as the recent interest rate rise will impact on affordability rates for new homes in the months ahead. The UK is entering a recession and higher borrowing costs are intensifying these challenges, which combined to drag down builder optimism about the year ahead to its lowest level since May 2020.”

Industry thoughts on the October construction PMIs

Fraser Johns, Beard finance director said: “Against a backdrop of continued economic uncertainty, it’s positive to see momentum within the UK construction sector, with activity continuing to rise. This resilience is thanks in large part to commercial building, and certainly mirrors the developments and projects we’re working on here at Beard.

“While supply chain pressures may have softened ever so slightly and recruitment improved, there’s still challenges on the horizon such as prolonged inflation impacting both material and energy costs. With the higher cost to borrow and tighter access to credit, it doesn’t come as a surprise to see a drop in confidence or the number of new orders, which looks likely to continue over the coming year.

“As ever, forging strong relationships and maintaining an open dialogue between all stakeholders will be absolutely vital in navigating the challenges we all face. It’s important we remain adaptable to deal with the obstacles in our path and to prepare ourselves for a possible drawn out recession, albeit shallower than previously feared.”


 

Source: pbc Today

 

Hardstaff Barriers has developed a unique solution to manufacture precast concrete barrier foundations offsite, speeding up the installation of vehicle restraint systems (VRS) by more than three times.

The innovation supports environmental, social and corporate governance (ESG) efforts – reducing the amount of time that workers are required on-site and significantly lowering the impact on the environment.

Experts behind the new concept will be sharing details of the solution at Highways UK, at the NEC in Birmingham, on November 2 and 3, at stands H12 to H15 in Hall 1.

Impressed by the many benefits of the solution, the Smart Motorway Programme (SMP) Alliance M40/M42 project team was keen to include it in the central reserve upgrade scheme on the M40/M42, in the West Midlands.

While precast concrete barriers are routinely manufactured off site, the foundations that host the barriers are usually created in situ at the roadside, using a less efficient, traditional approach.

However, determined to meet ESG objectives such as removing wet trades from sites, increasing offsite manufacture and reducing installation times, the SMP Alliance project team, Hardstaff Barriers and CR Civil Engineering worked together to bring the new method to fruition.

The innovative concept was put to the test during a physical rehearsal with the SMP Alliance on the M40/M42 site compound, to assess whether Hardstaff’s Rebloc RB80_XA rigid precast concrete barrier could be easily and effectively installed on the precast concrete barrier foundation.

The trial concluded, beyond doubt, that the foundation could be delivered to achieve the required barrier specification and alignment requirements – with no grouting of the barrier or follow-on works required.

The offsite precast concrete barrier foundation manufacturing method offers a wide range of ESG and sustainability benefits, including:

  • Quick and efficient on-site barrier installation (more than three times faster than the traditional approach)
  • The potential to install over 750 metres of barrier in a single shift
  • Shorter construction times
  • Considerable cost savings
  • Reduced traffic to and from the construction site
  • Reduced disruption to the route and to traffic
  • Removes weather dependence to enable consistent reliable delivery
  • Reduced workforce required at the roadside, reducing the risk to road worker safety and wellbeing
  • Reduced site waste, therefore protecting the environment

Nigel Bullock, Solutions Manager at Hardstaff Barriers, said: “This unique solution has highlighted significant productivity, safety and sustainability improvements over the traditional approach, also delivering cost and programme improvements on the scheme.

“Above all, it provides a standardised solution which is repeatable on future schemes, allowing consistent and reliable results.”

Hardstaff Barriers will be exhibiting at Highways UK, offering expert advice and support on the new precast concrete foundation solution, as well as on its range of other VRS products and services.

Hardstaff will be exhibiting alongside other leading VRS manufacturers and suppliers from Hill and Smith Ltd, including Asset VRS, Hill and Smith Barriers and Varley and Gulliver.