NEWSROUND
CPA: Housing continues to drag construction down
The Construction Products Association is forecasting that construction output will fall by 2.9% this year, steeper than the 2.2% forecast three months ago. The sector’s recovery is now forecast to be in 2025, with growth
of 2.0% and a further rise of 3.6% in 2026 as the lagged impacts of lower interest rates combine with sustained real wage growth, improving consumer and business confidence, as well as greater economic and political certainty as the new government develops its spending plans. After last year’s double-digit fall, private housing output is forecast to fall by a further 7.0% in 2024, followed by a rise of 6.0% in 2025. Private housing rm&i, the second-largest construction sector, is equally as dependent on a fall in interest rates to stimulate the housing market and, particularly, home moves that drive an increase in home improvements. Output is now forecast to fall by 6.0% this year, with 2.0% growth in 2025 signalling the start of the sector’s recovery.
PMI finds activity picking up
Growth has accelerated in the UK construction sector with the second half of the year getting underway; July saw much faster increases in both activity and new orders , according to the headline S&P Global UK Construction Purchasing Managers’ Index™ (PMI), which rose sharply to 55.3 in July from 52.2 in June.
The reading extends the current sequence of growth to five months, and was the fastest rate of expansion since May 2022. All three categories of construction saw activity increase in July as work on housing projects returned to growth.
The fastest expansion, the sharpest in almost two-and a-half years, was in civil engineering thanks to increasing levels of new orders. New business expanded for the sixth month running, and at a pace that was the strongest since April 2022. Alongside a general improvement in demand, there were reports that customer confidence had strengthened, making them more willing to release previously paused projects. Rising workloads meant both purchasing activity and employment rose more quickly, with staffing levels up for the third consecutive month, and at a solid pace that was the fastest for a year. A strong rise in purchasing activity was the most pronounced in almost two years. Construction firms remained strongly optimistic that activity will expand over the year.
Elkins goes to Selco and GB Distribution
Grafton has appointed Frank Elkins as chief executive officer of Selco and GB Distribution. He joined Grafton on August 5 2024, succeeding Howard Luft, current Selco CEO, who will leave the business for a new position by the end of August after six
and a half years in the role. Elkins will also assume overall responsibility for Grafton’s trade distribution business in Great Britain. Until last year, he worked for Travis Perkins plc for 12 years in a number of senior roles including group chief operating officer.
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Harman and Carter to speak at BMF Conference 2025
Harriet Harman KC, former Deputy Leader of the Labour Party, will be a keynote speaker at the BMF All Industry Conference 2025, in Barcelona next June. Also appearing on stage will be John Carter, CEO of Stark Building Materials UK. Harman held cabinet positions in both the Blair and Brown Governments, serving twice served as Interim Leader of the Labour Party, and was the first woman Labour politician to answer Prime Minister’s Questions. John Carter, formerly the CEO at Travis Perkins, joined the STARK group executive committee following its acquisition of Saint Gobain Building Distribution (SGBD) in 2023.
John Newcomb, BMF CEO said: “Harriet Harman has had the most incredible career in
politics and seen huge changes during that time. It is fitting that she will share her thoughts on the current political scene. She follows in the footsteps of other political heavyweight speakers including Michael Portillo (2013), Alistair Campbell (2015), Paddy Ashdown (2017), John Prescott (2019), John Bercow (2021) and Alan Johnson (2023).
“We are delighted that John has agreed to take part in next year’s Industry Forum. The BMF All Industry Conference is renowned for bringing together leading figures from across the industry to share knowledge.”
Hitchcock & King in administration
Builders and timber merchant Hitchcock & King which trades from six branches across south and south west London appointed Steve Absolom and Nick Holloway from Interpath Advisory as Joint Administrators on 31 July 2024. The company, with branches in Ashford, Burgh Heath, Fulham, Hammermsith, Streatham and Twickenham, has been trading for over 50 years, but faced difficult trading conditions in recent times, including the impact of rising costs and decreasing margins.
The Administrators say that the directors had explored options, including selling, but a solvent solution was unable to be found. The business will continue to trade for a short period in order to sell the remaining stock and explore other options for the broader business. Although 37 of the Company’s employees have been retained in the short term to assist in trading, a further 27 have been made redundant. Absolom, who is managing director at Interpath Advisory, said: “Whilst Hitchcock & King will remain open for business in the short term to clear through the stocks of building supplies, there’s no doubt that this is an extremely sad day for this long-running family business and its team of hard-working, loyal employees.”
www.buildersmerchantsjournal.net August 2024
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