CPA Weekly Notes – Issue No. 742 FOR MEMBERS ONLY 2 December 2016
December 05 2016 CPA News
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CPA Weekly Notes – Issue No. 741 FOR MEMBERS ONLY 25 November 2016
05/12/2016
CPA Weekly Notes – Issue No. 742 FOR MEMBERS ONLY 2 December 2016
Issue No. 742 Download .pdf HERE
FOR MEMBERS ONLY
2 December 2016
Economy
Economy
- The Markit/CIPS PMI for manufacturing was 53.4 in November, down from 54.2 in October. The latest reading was above the no-change mark of 50, indicating that manufacturing activity expanded for a fourth consecutive month, underpinned by strong domestic and export demand. Similar to October’s survey, the weak Sterling exchange rate continued to bolster export competitiveness, leading to increased new orders. However, the negative impact of the exchange rate on higher costs remained an issue for manufacturers over the month.
- The Markit/CIPS PMI for construction was 52.8 in November, up from 52.6 in October. The latest reading was above the no-change mark of 50, indicating that construction activity expanded due to increasing business activity and incoming new work, which rose at its fastest rate since March 2016. The continued recovery in construction activity in November was led by residential building work and renewed growth in commercial work, with firms reporting a resumption of projects that were delayed following the EU referendum result. Furthermore, respondents reported that input cost inflation rose at the highest pace in more than five-and-a-half years, continuing the trend seen in recent months.
- According to the Bank of England, the Sterling/US Dollar exchange rate averaged 1.24 in November. This was 0.8% higher month-on-month but a depreciation of 18.2% on an annual basis. Against the Euro, the Sterling averaged 1.15, a 3.1% increase compared to October but 18.6% lower than a year earlier.
- In November, UK house prices increased 4.4% on an annual basis and 0.1% on a monthly basis, according to Nationwide. The average house price was reported at £204,947. Despite the continued slowdown in house price growth and the uncertain economic outlook, Nationwide reported improved demand in recent months supported by solid conditions in the labour market and historically low mortgage rates.
Housing
- In October, the number of mortgages approved for house purchase decreased 3.3% on an annual basis but rose 6.2% compared to September, according to the Bank of England. The value of these loans was 1.6% lower than a year ago but increased 7.2% month-on-month. The number of loans for remortgaging increased 2.1% compared to September and 9.4% year-on-year to 43,513, the highest number recorded since October 2008. The value of these loans increased 2.2% on a monthly basis and 10.1% on an annual basis. The latest figures confirm the upward trend in mortgage approvals reported in recent data from the BBA. Furthermore, the strong growth in remortgaging activity was largely driven by the record-low interest rates, which are continuing to encourage borrowers to refinance.
For further information contact amandeep.bahra@constructionproducts.org.uk
Association Activities
Revenant Authorities Workshop 3
A reminder that next Monday the 5th December a further Relevant Authorities Workshop will be held at The Building Centre’s Vincent Suite from 1.30- 5.00pm. This will cover the continuing progress of the LEXiCON data standard system. Work has been going on at pace and the software, website and processes are being developed for use. We will show the latest developments and give an update on all aspects.For more information, please contact julie.mills@constructionproducts.org.uk.
Flooding workshop 2
Our next flooding workshop will take place on the 12th December in The Building Centre’s Vincent Suite 1.30-5.00pm. We are to cover the post review progress and developments focusing in particular on products and the product arena. Volunteers to present and showcase products are welcome. We will also look at feedback on the review so far. Update on progress on actions. For more information, please contact julie.mills@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 economy approach. To read either the executive summary or full report, please click here.
Other Areas of Interest
BIM Level 2 explained
The BSI recently released a new information pack to help industry understand BIM Level 2. Government requirements mean construction suppliers tendering for centrally-procured government projects must be working at BIM Level 2. As a minimum, they require fully collaborative 3D BIM. The requirement has been introduced to drive the adoption of BIM processes to encourage benefits including reduction in CAPEX, delivery and operational costs, reduced risk, improved carbon performance and predictable planning. A copy of the guide can be downloaded here.
CBI report – Understanding the drivers of productivity across the UK’s regions and nations
The CBI’s new project, “Unlocking Regional Growth” launched yesterday, draws on ONS data to identify the four main drivers of regional productivity differences across the UK:
– Educational attainment of young people at 16 and skills
– Transport links that widen access to labour
– Improved management practices
– Higher proportion of firms that innovate and export.
The report aims to identify what drives growth and productivity in the UK and solutions to address the disparity. Further information, and a copy of the full report, can be found here.
CLC launch focus themes for the construction industry
The road ahead for the Construction Leadership Council (CLC) was unveiled earlier this week at an industry leaders’ briefing to share the vision of the joint industry and government group. Opportunities identified where the industry can achieve growth through competitive collaboration included digital, manufacturing and whole-life performance. A full press statement can be viewed here and a comment piece by Simon Rawlinson is available here.
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.
Parliamentary and Government Update
Parliamentary update
Westminster weekly business
The finalised Westminster business document for the week commencing Monday, 5 December 2016 can be viewed here.
Plans, Reports, Consultations and Statements
Government Road Investment Statement
Following the Autumn Statement on 23 November, the Secretary for State for Transport set out further details of road investment, which can be found here.
Review of the Homes and Communities Agency
The Homes and Communities Agency – the national housing, land and regeneration agency and the regulator of registered social housing providers in England – has recently published the results of a wide-ranging review to help improve its efficiency and provide greater focus to its housebuilding work. The report can be found here.
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.
Parliamentary Questions
Business, Energy & Industrial Strategy:
Lord Taylor Of Warwick (non-affiliated): What measures they are taking to encourage the growth of the construction industry? The Ministerial response can be viewed here.
Royston Smith (Con, Southhampton): How and by what criteria he evaluates the effectiveness of the spending of government grants to cavity wall insulation providers? The Ministerial response can be viewed here.
Department for Communities and Local Government:
Steve McCabe (Labour, Birmingham, Selly Oak): What steps he is taking to ensure that local authority planning departments have sufficient resources to carry out their enforcement and other duties? The Ministerial response can be viewed here.
Department for Education:
Karin Smyth (Labour, Bristol South): What steps she is taking to improve the take-up of apprenticeships by women in construction, IT and engineering? The Ministerial response can be viewed here.
CPA in the News
– Architects’ Journal: ‘Hard’ Brexit could cost construction 214,000 jobs
The report found that a ‘soft’ Brexit could see the industry lose out on 136,000 workers – around 78,000 fewer than in the hard Brexit scenario, writes the AJ’s sister title Construction News.
– Construction News: Autumn Statement: Can fresh investment overcome economic slowdown?
Announcements on affordable housing and shovel-ready infrastructure may be welcome but can they deliver what the industry and the UK needs as the economy feels the pinch?
– Construction News: ‘Hard’ Brexit could cost construction 215,000 jobs, warns Arcadis
The British construction industry could lose out on almost 215,000 workers if there is a ‘hard’ Brexit, according to research from Arcadis.
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