CPA Weekly Notes – Issue No. 741 FOR MEMBERS ONLY 25 November 2016
November 28 2016 CPA News
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CPA Weekly Notes – 25 November 2016 Issue No. 741 FOR MEMBERS ONLY
28/11/2016
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Issue No. 741
FOR MEMBERS ONLY
25 November 2016
Economy
- According to the ONS, UK GDP growth in 2016 Q3 was unrevised from the preliminary estimate of 0.5% quarter-on-quarter and 2.3% year-on-year.
- Business investment increased 0.9% in Q3 compared with the previous quarter but decreased 1.6% compared to a year earlier, according to the ONS.
- According to the CBI’s Industrial Trends Survey for the three months to November, 4% of firms, on balance, reported an increase in output volumes. Looking to the next three months, a balance of 24% of firms expect output volumes to grow, the highest balance since February 2015. Alongside improved expectations for the next quarter, manufacturers anticipated average selling prices to rise sharply and at their fastest pace since January 2014 over the next three months, as a result of the weaker Sterling exchange rate.
- In October, public sector net borrowing excluding temporary effects of financial interventions (PSNB ex) was £4.8 billion, according to the ONS. This was £1.6 billion lower than in October 2015, when it was £6.4 billion. Public sector net debt (PSND ex) was £1,641.6 billion in October 2016, equivalent to 83.8% of GDP. This compares to £1,590.7 billion, or 84.3% of GDP, 12 months earlier.
- The British Bankers Association reported that the number of mortgage approvals for house purchase decreased 9.9% on an annual basis in October but was 5.6% higher on a monthly basis. The value of these loans was 5.8% lower than a year ago but 8.5% higher compared to September. The number of loans for re-mortgaging increased by 0.3% year-on-year, but fell 0.8% month-on-month. In terms of value, loans approved for re-mortgaging increased 3.8% year-on-year and no growth was reported on a monthly basis. Overall, the monthly figures chime with other survey indicators that suggested an improvement in housing market sentiment during the month.
Housing
- In October, the number of property transactions in the UK totalled 97,640, according to HMRC, an 8.0% decrease from a year earlier, but 1.0% higher when compared to September. The underlying weakness in annual growth is likely to still be reflecting the effects of the stamp duty changes in April.
- In England, private housing starts totalled 33,420 in 2016 Q3, 8.4% higher quarter-on-quarter and 15.8% higher than 2015 Q3, according to DCLG. Private completions increased 8.3% from Q2 to 30,560 and were 10.3% higher than one year earlier. Public housing starts totalled 5,310, 6.0% lower than Q2 and 18.4% lower than in 2015 Q3. On a quarterly basis, public completions decreased 1.9% to 6,720 in Q3 and fell 7.2% on an annual basis.
For further information contact amandeep.bahra@constructionproducts.org.uk.
Association Activities
CPA response to 2016 Autumn Statement
The Chancellor of the Exchequer Philip Hammond presented his first Autumn Statement to Parliament on 23 November 2016, overall the CPA welcomed the government’s commitment to infrastructure, innovation and housing investment. Dr Diana Montgomery, Chief Executive of the Construction Products Association, added: “We have discussed many of these policy measures directly with government over the past 12 months and they will help the UK prepare for the challenges ahead through this inevitable period of uncertainty. The key, however, will be how these announcements feed through to delivery on the ground and our members will only have the confidence to make further investments when this is the case.”
View the CPA’s full statement here.
CPA Meetings
CPA Chairman John Sinfield (MD, Knauf UK and Northern Europe) and CPA Chief Executive Dr Diana Montgomery, along with other senior executives from CPA company members, attended a briefing of the Construction Leadership Council, focused on the Council’s work streams and strategy.
CPA Deputy Chief Executive Peter Caplehorn met with Construction Products Europe members to discuss the strategy for the year ahead. The meeting also included a presentation from Wienerberger’s Paul Surin re the digitalisation of the construction products industry. Paul contributed to the CPA’s recent Future for Construction Product Manufacturing report.
CPA attended another Construction Products Europe event at which presentations were given on six EU funded research and policy initiatives relating to construction and demolition waste, resource efficiency of buildings and application of circular economy principles in construction. CPA commented that any initiatives concerning measurement or compilation of product data information needs to sit clearly with the existing legal requirements and standards. For further information contact jane.thornback@constructionproducts.org.uk.
Draft CPA Guide to EU Regulations and Directives
Following the EU Referendum vote in June 2016, the CPA has drafted a guide to help members begin to understand the legal landscape of EU legislation relevant to construction products manufacturers and distributors. This guide (a working draft) outlines two main subjects:
- The process of EU Legislation becoming UK law, including the types of legislation and their impact on the UK; and
- The regulations and directives affecting the UK, including climate change, emissions, energy use, H&S, and products.
Questions can be directed to either Duncan King, Technical Manager, Duncan.King@constructionproducts.org.uk, or Jeff May, Head of External Affairs, Jeff.May@constructionproducts.org.uk.. To view the document, click here.
Call for Sponsors: CPA Spring Lunch – 11 April 2017 (London)
The CPA will host its annual Spring Lunch on Tuesday, 11 April 2017 at the Dorchester Hotel in London, following the AGM. Tickets will go on sale via the CPA website in early 2017 – watch this space for notifications. The CPA will not take advance reservations for Spring Lunch tickets.
A limited number of sponsorship packages for the lunch are still available. The highly anticipated event is a rare opportunity to promote your organisation to a network of senior figures across the construction supply chain, as well as influential political and media contacts. The remaining available spaces for sponsorship are expected to fill before the New Year, so we recommend getting in touch as soon as possible. If you are interested in sponsoring the Spring Lunch, please contact Simon.Frame@constructionproducts.org.uk.
CPA report: The Future for Construction Product Manufacturing
CPA recently published this report which analyses how through a combination of digitalisation, automation and optimised manufacturing-led supply chains, the sector can grow 60% by 2025, assets can be delivered over 30% cheaper and 40% quicker, and the trade gap can be reduced to 50% by 2025 whilst supporting employment growth in the sector and wider economy. This report illustrates how the vision can be delivered by linking BIM (Building Information Modelling), Industry 4.0 (smart factories) and intelligent assets through optimised supply chains and a circular UK construction economy. To read either the executive summary or full report, please click here.
Next SCC meeting – Friday 02 December
The Sustainability Policy (SCC) meeting is on Friday morning 2 December. The agenda includes discussion about the incorporation of environmental product declaration (EPD) information into digitalized form and available for BIM, as well as updates on the work programme for the changes to be considered for EPD to incorporate more robust End of Life scenarios. If you would like to attend please rsvp to julie.mills@constructionproducts.org.uk.
Relevant Authorities Workshop #3 – 05 December (London)
Our third workshop on project data management and templates will take place on 5th December from 13.00 – 17.00.The workshop will be held at the Building Centre, 26 Store Street, London WC1E 7BT in the Vincent Suite C. Further events will be organised throughout 2017. For more information, please contact julie.mills@constructionproducts.org.uk.
Flooding Review #2 – 12 December (London)
Our second workshop on resilience and flooding will take place on the 12th December from 13.00 – 17.00. This workshop is intended to explore and showcase products that answer the key questions in response to flooding issues. We also hope to develop a little further the issues and themes raised at our initial discussion. We will also build on the recommendations of the Bonfield review. For more information, please contact julie.mills@constructionproducts.org.uk.
Other Areas of Interest
BSI issues its draft Circular Economy Framework Standard for open consultation – BS8001
The proposed Framework Standard aims to be a guide for implementing the principles of the circular economy in organisations; it applies to any sector. The consultation will remain open until 15 January and we will have it as an agenda item on the CPA Sustainability meeting on 2nd December. Find the document here. Also, a reminder that CPA with BRE produced a detailed Knowledge Resource on Circular Economy in Construction which gives lots of helpful links and thoughts on issues and challenges for embedding circular economy principles into construction. Find it easily available on the CPA website here. For further information contact jane.thornback@constructionproducts.org.uk.
Exporting is GREAT guide
The UK Trade and Investment Government Department have released their latest Exporting is GREAT export guide, with information covering a “10-point plan to exporting”. To download the free guide, click here.
Parliamentary and Government Update
Parliamentary update
Westminster weekly business
The finalised Westminster business document for the week commencing Monday, 28 November 2016 can be viewed here.
Plans, Reports, Consultations and Statements
Call for Evidence: Smart, Flexible Energy System
The government and Ofgem are asking for views on developing a smarter, more flexible, and user-friendly energy system which could lower the energy bills of Great Britain’s homes and businesses. A wealth of innovative technologies and services could deliver substantial savings, improve the reliability of GB’s electricity supply and support the move to a low carbon energy system. The responses to this document, as well as wider engagement, will help shape a plan that government expect to publish in spring 2017. This plan will set out the specific actions it plans to take to remove barriers, improve price signals, catalyse innovation, and shape roles and responsibilities in the shift to a smart, more flexible energy system which meets the needs of consumers and businesses now and in the future. To learn more or respond to the call for evidence, please click here.
SAP 2016 Consultation
On 16 November BEIS released their consultation on the proposed changes to SAP 2012. A copy of the consultation document SAP 2016 can be viewed here.This consultation closes on 31 January 2017. If anyone has any queries about this work please contact Neil Witney directly on buildingheat@beis.gov.uk.
The draft specifications for the new version of SAP and supporting technical papers are available here.A software implementation of the proposed SAP methodology has been prepared to assist consultees in understanding how the proposed changes, as and when adopted, would work in practice and can be found here.
So that CPA can submit a response based on the general consensus of the membership, please can you cc duncan.king@constructionproducts.org.uk with your individual replies by Friday 20 January 2017.
Please note that any future changes to Building Regulations to adopt any changes arising from this consultation will be the subject of separate consultations and decisions by the individual Devolved Administrations.
CPA in the News
– Agg-Net: Industry response to Autumn Statement
The Construction Products Association said that, overall, it was encouraged by the announcements made in the Autumn Statement and the positive impact that the delivery of these will have on UK construction product manufacturers and distributors.
– Building: Waiting on the White House
Could having a property developer as US president be good for UK construction, or will Trump’s protectionist approach spark trade wars and global recession? For now, the industry will just have to keep its nerve, writes Joey Gardiner.
– Financial Times: UK pins post-Brexit hopes on boosting infrastructure
Infrastructure was placed at the heart of ministers’ post-Brexit economic plans with a pledge to raise the proportion of national income spent on transport, internet and energy projects to 1.2 per cent.
– RIBA Journal: Tales of the unexpected
“Construction, as an industry, is extremely complex and ‘facts’ are hard to trust at the best of times” writes Brian Green as he takes a look at some of the latest construction survey data and forecasts.
– Voltimum: The Construction Products Association present their Construction Market Overview November 2016
The Construction Products Association’s latest construction forecasts gives a mixed picture for construction over the next two years, due to the impacts of the uncertainty following the EU referendum.
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