NEWS & APPOINTMENTS
Building services sector is ‘turning the corner’
Mechanical, electrical, and plumbing (MEP) contractors are increasingly optimistic about their future growth prospects, according to a new report from the Building Engineering Services Association (BESA).
The Association’s latest annual
Top 30 Mechanical and Electrical (M&E) Contractor report, produced in partnership with the construction consultancy GHCS/GH Engage, found the sector’s largest companies in good spirits despite most experiencing severe difficulties over the past few years. Collective turnover is up by 16% on last year and most reported robust growth prospects for the next two to five years.
The 5th edition of the report did
reflect on the string of high-profile insolvencies suffered by the sector recently, notably Michael J Lonsdale, and continuing consolidation across the sector. However, it also found senior managers in a more hopeful frame of mind, with most firms saying they had “turned a corner”. The UK M&E contracting market is worth approximately £20 billion and
constitutes around a fifth of the UK construction sector’s GDP. Those interviewed for the BESA report said that value was likely to increase over time as building engineering services became increasingly sophisticated and technology driven. Gokhan Hassan, managing director of GHCS/GH Engage, said the report showed that the industry was “heading in the right direction”, but he warned that financial headwinds would persist for the next two to three years.
Tough
BESA’s chief executive officer David Frise agreed that market conditions remained “tough”, and that profitability was still “relatively low”, but he praised many of the sector’s larger firms for refocusing their businesses on high value, fast growing sectors, such as data centres, research, and healthcare, and for “avoiding low bidding as much as possible”. Growing pressure on clients to meet net zero targets and greater investment in
refurbishment and retrofit of the existing building stock were also contributing to better market conditions, according to the report. However, investors are still treating construction-related businesses with caution.
“The sector is seen as ‘risky’ and cash poor by the money markets and shifting that
perception will take some time,” said Frise. “However, our report and the interviews with leading contractors demonstrate that most large MEP firms have a strong foundation for progress and are focused on reducing their exposure to risk, which should go down well with insurers.”
BESA also believes that project bank accounts will play a larger part in industry financing over the next few years as more clients recognise how they can be used to insulate them from risk while ensuring better cash flows through supply chains. The report also revealed that more MEP firms were being asked to take on the role of principle contractor on large multi-million pound projects because the building services elements account for an increasing proportion of the overall value. Abdul Tantouch, head of content at AMA Research, said the M&E contracting market had demonstrated “significant resilience” having rebounded from a 12% decline in 2020 caused by the Covid-19 pandemic. “The sector has not only recovered to pre-pandemic levels, but is now on a trajectory
of robust growth,” he added. “This is being driven by the integration of innovative practices and technologies aimed at advancing towards net zero carbon emissions.”
Trends
Tantouch said the market was expected to achieve a value of almost £21 billion next year, supported by key trends such as increased demand for data centres and green energy solutions. Minimum Energy Efficiency Standards (MEES) legislation is also expected to fuel further
growth as commercial building owners and managers look to avoid ending up with unlettable ‘stranded assets’. This will lead to more MEP contractors working directly for end clients, according to the report. Along with promising UK-wide GDP growth in the first quarter of this year, another key development is the easing of inflation pressures. While material and labour prices remain at historic highs, pricing stability has returned making it easier for companies to plan. However, most of the firms interviewed said it would take time to adapt to the biggest change to building safety regulations in a generation in the shape of the Building Safety Act. The industry also has some major problems around productivity and skills that will have to be addressed if growth is to be sustained, according to BESA, which emphasised the importance of increasing the level of digital skills in the workforce and improving diversity. “The financial stability of our largest firms is important because it feeds down through supply chains and has a direct impact on the profitability of thousands of smaller, specialist contractors,” said Frise. “It is, therefore, heartening to see our top 30 in a better place following the extraordinarily challenging conditions created by the unprecedented combination of the pandemic, Brexit, and the war in Ukraine.”
Appointments
Clivet, continued growth
Clivet Group UK recently welcomed four new starters to shore up the sales and support functions, working under Kevin Harrison-Ellis, Head of UK Sales, and the service department. Samuel Powell joined Clivet Group UK
recently as Sales Support Engineer. Samuel has developed his experience within an HVAC company. He started as an Application Engineer, then become a technical support engineer and finally a technical manager. In this new journey in Clivet, Samuel will work with Kevin Harrison-Ellis and the sales team with the goal to drive our business forward. Want to know something more about him? He is completely obsessed with football. Paul Williams joined Clivet UK recently as Pre-Sales Engineer. Paul started his career as a Service Engineer and after several years he moved to a sales role, taking care of distributors and always within the HVAC sector. In his new journey in Clivet, he will work with Kevin Harrison-Ellis and the sales team with the goal to enhance our pre-sales department. Want to know something more about him?
He loves everything outdoors and spending time with his family. Kirsty Smyth has joined recently as South Central Sales Manager, working with Kevin Harrison-Ellis, and brings a huge wealth of experience with her. Jade Guest joined the team as Service Coordinator. Jade has developed her experience within a recruitment company focusing on engineering profiles. In this new journey in Clivet, Jade will work with Lucy Cleary and the service team with the goal to support our service department. Want to know something more about her? She loves water sports and painting.
Mr Harrison-Ellis said: ‘I am delighted to welcome Kirsty, Samuel and Paul to the External Sales team and Jade into the Service Department. With these latest additions we have a really strong, diverse and outstanding group, they add experience and knowledge to what is already a great team. ‘I am looking forward to working with them all to continue the success and growth of Clivet Group UK for many years to come.’
Elta Trade appoints national manager
Lee Aris has been appointed as national manager for Elta’s dedicated residential ventilation division, Elta Trade. Born in the UK, Lee moved to Australia in 2017, and in 2020, he was appointed to help establish Idealair’s Melbourne branch and build a team of ventilation and air distribution experts. Based in Kingswinford, West Midlands, Lee will be expanding Elta Trade’s reach in the UK and ensuring that electricians, plumbers, and homeowners working on air movement around the country have compliant equipment available for purchase at a local stockist. Lee said: “It’s brilliant to be back in the UK and working with Elta Trade to ensure that tradespeople handling air management systems in residential properties have the necessary equipment and assistance on hand. Since its launch last year, Elta Trade has expanded its reach considerably and I aim to continue this through my work. “We know that damp, mould, and indoor air quality is a constant challenge contractors face in their day-to-day jobs, and we’re here to help make sure tradespeople can remain compliant when installing a ventilation system into a residential property.”
Priva appoints new general manager
Building automation technology leader Priva has appointed Jonathan Feaver to the role of General Manager for its Priva UK & Ireland business.
Jonathan, who has spent the last 12 years in the building
controls sector, brings vast industry experience to the role. Prior to joining Priva, he spent seven years in senior leadership and business development roles at Honeywell, where he represented Honeywell’s partner channel BMS brands including Trend Controls, CentraLine and Ex-Or. Jonathan’s appointment underpins Priva’s growth aspirations for the UK and Ireland markets. His focus is to drive growth across the Priva product portfolio - particularly in the large commercial buildings sector. He also brings particular expertise and experience that will accelerate the growth of Priva’s industry-leading portfolio of cloud-based solutions Priva Digital Services (PDS). Commenting on his new role, Jonathan says: “I am extremely pleased to have this opportunity to work with the highly experienced UK team to open up new opportunities and conversations and bring the Priva brand to new audiences.”
4 BUILDING SERVICES & ENVIRONMENTAL ENGINEER JUNE 2024 Read the latest at:
www.bsee.co.uk
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 |
Page 45 |
Page 46
