News 11
Rising costs threaten building recovery
INCREASES in material and labour costs could pose a serious threat to the fragile recovery in the building industry, warns the Federation of Master Builders (FMB). The FMB’s latest State of Trade Survey of member firms shows the net balance for workloads, expected workloads and enquiries in the third quarter of 2013 was positive across nearly all parts of the UK for the second quarter in a row.
In particular, the private new build and residential repair and maintenance sectors saw a marked improvement, and overall 42% of small builders saw their workloads increase. However, material costs, wages and salaries are all expected to continue rising over the next six months, with the result that many building companies may have to put up their prices. Brian Berry, chief executive of the FMB, said: “Britain’s builders have endured some of the most testing economic conditions in living memory and the lean years have taken their toll. Construction SMEs have battled to maintain staffing and capacity while trying to keep prices competitive. Material costs have remained high throughout 2013, and further increases could snuff out this recovery in its infancy, especially if companies that have cut their profit margins to
the bone to beat the recession are now forced to pass on those costs to their customers.” Mr Berry added: “The Government’s ‘Help to Buy’ scheme is having a positive impact on the housing market, helping create demand for more privately built houses which is having a knock-on effect for the home repair and refurbishment sector. However, there is a danger smaller house builders won’t benefit from this upturn because of barriers they face to market entry.
“Limited access to finance, the costs of regulation and a shortage of small sites for development are the key barriers for many smaller house builders.
“Also, the Green Deal is not proving attractive to householders, with the result that small building companies aren’t benefitting from any new work to upgrade existing homes.
“If Britain is to make its housing stock greener and more energy efficient, then we need to see a reduction in the level of VAT charged on all domestic building work. “This would make it more affordable for homeowners and landlords to get essential repair and maintenance work done, and ensure the upturn in the building sector is not stifled before it has properly begun,” Mr Berry concluded.
Visit ACR News online at
www.acr-news.com
Our strength is our service
Quality engineering products for NH3, CO2 and other refrigerants from leading European manufacturers
• Open Refrigerant Pumps • Hermetic Pumps NH3/CO2 • Pressure Vessels • Surge Drums • Liquid Receivers • Economisers • Oil Recovery Systems • Chilled Water/Brine Chillers • Ammonia Spray Chillers • High Pressure Floats • Stop Valves NH3/CO2 • Ball Valves
• Electronic and Pneumatic Control Valves • Liquid Level Transducers • Flap Indicators • Oil Separators • Circular Welded Plate • Heat Exchangers • Shell & Tube Condensers • DX Chillers • Brazed Plate • Heat Exchangers • Capillary Hose • Leak Detection Equipment
RNLI/Nicholas Leach
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44