CPA Weekly Notes Issue No. 744 FOR MEMBERS ONLY 16 December 2016
December 19 2016 CPA News
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CPA Weekly Notes Issue No. 744 FOR MEMBERS ONLY 16 December 2016
19/12/2016
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Top News
CPA meets Ministers from the Department for Exiting the EU and the Department for Business, Energy & Industrial Strategy
CPA Chief Executive Dr Diana Montgomery was invited to join a meeting chaired by DExEU Minister David Jones with the BEIS Minister for Industry and Energy, Jesse Norman and chief executives from the supply chain to discuss the opportunities presented by the UK leaving the EU. Issues covered were around delivery, investment, skills and the contracting procurement process. David Jones was keen to understand what impact Brexit might have on the delivery of the National Infrastructure Plan and how immigration controls and trade deals might impact supply of labour or resources. The Minister encouraged all meeting participants to write to him with real examples of opportunities and risks – CPA will be pulling together suitable input in the new year.
The meeting was the latest in a line of roundtable discussions, as Ministers from the Department for Exiting the EU (DExEU) travel across the country to find out how the UK’s exit will affect different sectors. Dr Montgomery commented afterwards: “The construction products manufacturing and distribution sector, comprising more than a third of total UK construction turnover, is keen to continue partnering with government and maintaining stability and economic growth for the long-term. We appreciate the government’s ambition to consult with industry and allow us to convey our views, concerns and solutions to the challenges ahead. Today’s meeting has been both positive and productive.”
Construction Leadership Council Seeks Evidence, Best Practice, Demonstrator Projects re “Innovation in Buildings”
The Construction Leadership Council (“CLC”) was created in 2013 to work between industry and government to identify and deliver actions to improve efficiency, skills and growth in UK construction. The Council is comprised of 12 senior representatives of the construction supply chain, including Mike Chaldecott (General Delegate and Regional CEO, Saint-Gobain UK and Ireland) who was appointed to represent all UK construction product manufacturers and distributors. The Council is presently delivering on a series of workstreams, of which Mr Chaldecott is the lead on “Innovation in Buildings”, which focuses on embedding innovative construction techniques to improve productivity and capacity in the construction industry, and the quality and whole-life performance of buildings.
Mr Chaldecott is asking CPA members to contribute to this worksteam by sharing evidence, best practice and demonstrator projects. To contribute, please contact Jade Lewis (Director of Advocacy for Saint-Gobain), who is assisting Mr. Chaldecott’s work on the Council: jade.lewis@saint-gobain.com. Please note that Mr Chaldecott and Ms Lewis are acting in this capacity as representatives of the CLC, not Saint-Gobain. To learn more about the CLC and its various workstreams, please click here.
Economy
Economy
- Annual CPI inflation was 1.2% in November, compared with a 0.9% increase in October, according to the ONS. Transport, clothing and footwear and recreation and culture were the categories posting the largest price increases. Annual RPI inflation was 2.2% in November, up from 2.0% in the previous month.
- According to the ONS,
- The unemployment rate was 4.8% in the three months to October, down from 4.9% in the three months to July and lower than a rate of 5.2% recorded a year earlier, according to the ONS. The employment rate was 74.4% in the period August to October 2016 which was an increase from 73.9% in the same period a year earlier.
- Average total weekly earnings across the whole economy increased 2.8% year-on-year in October, according to the ONS. Earnings in manufacturing increased 2.1% year-on-year and in construction, earnings were 8.6% higher on an annual basis. Excluding bonuses, wages in construction rose 4.1% year-on-year in October.
- According to the ONS, the volume of retail sales increased 5.9% year-on-year in November, and was 0.2% higher than in October. The rise in sales was broad-based but led by a 29.0% annual increase in non-store retailing. By value, retail sales also rose 5.9% in annual terms and were 0.5% higher compared with October.
- In October, according to the ONS and Land Registry, UK house prices rose 6.9% year-on-year, compared to a 7.0% increase in September. By nation, house prices increased 7.4% in England, 4.4% in Wales, 4.0% in Scotland and 4.5% in Northern Ireland. By region, annual house price increases in England were driven by rises in the East of England (12.3%), the South East (9.1%) and London (7.7%). Overall, the average UK house price in September was £217,000. The lowest was £124,000 in Northern Ireland and the highest was £474,000 in London.
Housing
- According to the Council of Mortgage Lenders
For further information contact rebecca.larkin@constructionproducts.org.uk
Association Activities
CPA office closed over Christmas
The CPA office will be closed over the Christmas break from 26 December-2 January, inclusive. If you have an urgent inquiry during the period, please contact Jeff May (Head of External Affairs) at Jeff.May@constructionproducts.org.uk.
CPA Sustainability Policy Group (the SCC) Meeting Dates for 2017
The quarterly meetings will be on the mornings of 23 Feb, 18 May, 21 Sept & 30 Nov at the CILIP meeting rooms close to the Building Centre. Meeting times are 10.30 to 13.00.
CPA Workshop – Digitalisation and Sustainability Information, 8th February 2017, 10.30 to 13.00.
This half day event will look in more depth at the issue of including sustainability information (EPD, responsible sourcing etc) in Product Data Templates (PDT), a key element of the digitalisation of product information. There will be a presentation explaining the whole digitalisation concept and process and then three short presentations from members describing their thinking on the topic as they have considered what and how to include sustainability data in the PDTs. There will be the opportunity for a lengthy discussion and query session. This event is an action emanating from the SCC December 2016 meeting. If you would like to attend the meeting please rsvp to Julie.Mills@constructionproducts.org.uk.
Circular Economy thinking in Construction Conference, Friday 20 January, Building Centre, 10.00 to 16.00.
This one day event will provide an opportunity to hear about the many activities and initiatives taking place by many actors across the construction lifecycle to move towards more circular economy thinking. This is the second conference on the topic convened by the CPA, Innovate’s Knowledge Transfer Network, BRE and the Green Construction Board. If you would like 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.. Apologies the web link listed in last week’s Weekly Notes was broken, a working link to view the document can be found here.
CPA report: The Future for Construction Product Manufacturing
CPA recently published a 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
National Infrastructure Commission publishes its report into 5G and telecommunication technology
The Commission’s central finding has called on government to play an active role to ensure that basic telecommunications services are available wherever we live, work and travel, and our roads, railways and city centres must be made 5G ready as quickly as possible. The full report can be viewed here.
EU Directive – Reduction of national emissions of certain atmospheric pollutants
We have seen a news report (click here to view)that the UK has agreed to adopt new EU legislation on air quality which sets ceilings for five harmful pollutants – sulphur dioxide (SO2), nitrogen oxides (NOx), non-methane volatile organic compounds (NMVOC), ammonia (NH3) and particulate matter (PM2.5). These limits will come into force on 31 December 2016 and will apply each year from 2020 to 2029 with stricter reductions agreed from 2030. The UK has agreed to these targets despite BREXIT. This will gives rise to an interesting situation because the Directive has to be transposed into UK law by 30 June 2018. Annex II gives the percentage reductions for each of these harmful pollutants for individual Member states. A copy of the pre-published Directive can be viewed here.
Innovate UK Funding Opportunity: Infrastructure System
Businesses can apply for a share of £15 million to support projects to develop new integrated infrastructure solutions and business models. Proposals could be in a number of areas:
- smart infrastructure that improves functionality, capacity, productivity, resilience, and sustainability and reduces costs and risk of failure
- smart solutions for energy systems
- innovations in the civil nuclear market
- reducing costs for offshore wind
- improving efficiency in the transport network
- holistic solutions to challenges in urban areas
- Water and energy efficiency in homes – new rebate schemes and enhanced product labelling, large scale retrofit programmes to deliver lower water consumption, reduce household bills and cut emissions
- Water and the circular economy – tools for water and wastewater reuse, to extract the maximum value out of our use of water
- Water technology, innovation and jobs – citizen science projects, better links between academia and the water sector, an incubator for water efficient products, leading to jobs and economic growth.
Recommended Reading: IPPR report re “The State of the North”
The Institute for Public Policy Research have published a report – The state of the North 2016: Building northern resilience in an era of global uncertainty – which addresses the three key issues – Brexit, industrial strategy and local economic resilience – that will build business confidence amid unpredictable times, and offers a comprehensive assessment of the strengths and weaknesses of each LEP area in the region.
Waterwise consulting on its Water Efficiency Strategy for the UK
Waterwise, an independent, not for profit organization, in collaboration with the water sector, has issued a draft “Water Efficiency Strategy” for the UK aimed at providing a guide for organisations planning to undertake water efficiency actions. They also hope that it will help shape
policy and regulatory frameworks to deliver water efficiency measures that benefit society, economy and the environment. Topics covered include:
The consultation closes on 31 January 2017. For more information click 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, 19 December 2016 can be viewed here.
Plans, Reports, Consultations and Statements
Report: “Planning Reform Proposals”
Reforms aimed at making the planning process quicker and simpler to use, to support house building, are high on the Government’s agenda. A Housing White Paper is expected to contain a number of reforms in January 2017. This House of Commons briefing paper – Planning Reform Proposals – sets out the main Government planning reform proposals and those changes in the process of being made in respect of England.
Report: “Steel Pipeline and New Procurement Guidance”
Business Secretary Greg Clark and Cabinet Office Minister Ben Gummer published changes to government procurement guidance to make it easier for UK steel manufacturers to plan and bid for upcoming government contracts. This updated guidance can be viewed here.
Report: “Building the new private rented sector”
This House of Commons briefing paper – Building the new private rented sector: issues and prospects (England) – sets out measures taken by the Government, and policy proposals from those within the private rented sector, to increase the supply of privately rented properties in England.
Consultation: Packaging waste: changing business targets for paper, steel, aluminium and wood
DEFRA want to know what you think about their plans to introduce new business targets under the Producer Responsibility Obligations (Packaging Waste) Regulations. The regulations require producers of packaging to make sure that a proportion of the packaging they handle is recovered and recycled. The proposed changes would set new targets for overall recovery and recycling between 2018 and 2020. It will also set new material specific targets for paper, steel, aluminium and wood. For further information and to respond, click here. The deadline is 06 January 2017.
Consultation: Heat in Buildings – The Future of Heat
BEIS is running a consultation that asks for views on options for raising domestic boiler standards. The government is also seeking evidence on the costs and benefits of wider domestic and non-domestic central heating system performance improvements. The consultation will close on 27 January 2017. For more information 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.
Consultation: Apprenticeship Levy
HMRC has opened its second consultation on the Apprenticeship Levy. This consultation “seeks comments on the draft regulations made under the powers contained in the legislation to provide for the payment, collection and recovery of the apprenticeship levy, as well as other matters relating to its operation.” The CPA will be responding, and asks for input from members, addressed to Jeff.May@constructionproducts.org.uk. To learn more or respond directly to HMRC, click here. The consultation runs until 03 February 2017.
Consultation: Amending environmental impact assessment regulations
This DCLG consultation invites comments on proposals for implementing amendments to the European Union Directive on environmental impact assessment in so far as the Directive applies to the town and country planning system in England, and to the nationally significant infrastructure planning regime established by the Planning Act 2008. To learn more or to respond, please click here.
Recommended Reading: The impact of technological change on future infrastructure supply and demand
The National Infrastructure Commission has been tasked with putting together a National Infrastructure Assessment (NIA) once a parliament. This paper — The impact of technological change on future infrastructure supply and demand – forms part of a series looking at the drivers of future infrastructure supply and demand in the UK. Its conclusions are designed to aid the Commission in putting together plausible scenarios out to 2050. It will also form part of the evidence base for the Commission’s new study, which will look at using new technology to improve infrastructure productivity.
Parliamentary Questions
Tom Blenkinsop (Lab, Middlesbrough Sout & East Cleveland): What steps he is taking to (a) expedite the Government’s application to the European Commission to exempt energy-intensive industries from the indirect costs of the Renewables Obligation and small-scale Feed-in Tariffs and (b) ensure that legislation on this exemption is in place before financial year 2017-18? The Ministerial response can be viewed here.
Questions for the Department for Communities and Local Government:
Neil Coyle (Lab, Bermondsey & Old Southwark): What steps his Department is taking to ensure that companies comply with UK regulations when importing potentially hazardous products for the construction sector? The Ministerial response can be viewed here.
Lord Herman Ouseley (Cross Bencher): What assessment they have made of the level of take-up, and effectiveness, of (1) the Help to Buy, (2) the Starter Homes, and (3) other shared ownership, schemes? The Ministerial response can be viewed here.
CPA in the News
– Building: 2016 untangled – part one
Even people who like surprises are likely to end 2016 wondering if there isn’t something to be said for ‘boring and predictable’. The Building team reports on the rollercoaster highs and lows of one of the weirdest years on record.
– Building: CPA/Barbour ABI Index: A mixed picture
November’s index is down but consumer spending is providing support
– Construction: Brexit Minister Holds Meeting With Industry Leaders
Brexit Minister David Jones has held a meeting with global infrastructure leaders to discuss opportunities presented by the UK leaving the European Union.
– Foreign Affairs: Building post-Brexit Britain: David Jones meets infrastructure experts
Brexit Minister David Jones has held a meeting with global infrastructure leaders to discuss opportunities presented by the UK leaving the European Union.
– Gov.uk: Building post-Brexit Britain: David Jones meets infrastructure experts
Leaders from the world of infrastructure met to find out how the Government is laying the foundations for successful Brexit negotiations.
– The Construction Index: Foreign-owned businesses dominate construction’s Brexit talks
Government ministers responsible for negotiating the UK’s withdrawal from the EU sought advice from construction industry representatives this week.