TIMBER
According to Timber Development UK, these records are likely to include: ¡ Random checks of sizes and images the supplier marks appearing on each piece; ¡ links from these marks to the QA certificates in the purchase records; ¡ and records of non-conformance and corrective actions implemented by the supplier Looking forward, merchants who operate supplying materials on credit should be aware of the potential insolvencies of construction companies as highlighted by the Construction Leadership Council’s Product Availability working group.
Working group co-chairs John Newcomb, CEO of the Builders Merchants Federation, and Peter Caplehorn, CEO of the Construction Products Association expected insolvency numbers to rise in response to material cost
rises and a slowing demand for construction services.
“The key risk going forward, given the substantive rise in insolvencies, is to what extent sharp cost rises and slowing demand over the next six months will exacerbate the rise in insolvencies,” the statement said. As the Trading Director of a leading timber supplier, my advice to everybody looking to purchase timber products is to be aware of the importance of buying quality. Merchants or customers looking to protect margins shouldn’t do so at the sacrifice of quality or safety.
By using reputable suppliers who guarantee quality standards, merchants and contractors will be better able to protect their liabilities and subsequently manage costs more effectively. BMJ
GOVERNMENT MUST PROVIDE STABILITY
The Government needs to provide economic stability, says Timber Development UK CEO David Hopkins, following the Construction Product Association’s sharply downgraded forecast for construction output in 2023.
T
he war in Ukraine, COVID-19, Brexit and unprecedented political instability have left the construction industry facing the prospect of an extremely difficult year in 2023, with the Construction Product Association (CPA) predicting a 3.9% decline in overall output in 2023, and a staggering 9% decline in private housing, driven by raising interest rates and wage decline.
In the short term, it is vital for the Government to provide certainty for the sector and support a stable pipeline of construction projects to allow businesses to plan ahead and invest in their own production and innovation. With this in mind, we welcome Michael Gove’s recent confirmation of the Government’s target to build 300,000 houses a year. Even if the number seems unobtainable at present, it sends the right message to investors about the future.
The government should also consider bringing forward infrastructure projects to bridge gaps in demand and consider
26
away. Nor will housing needs lessen over the coming years, and the chronic skills shortage within the construction industry will still be there when demand returns. The fact is, the Government needs to prioritise investment decisions now to support a return to growth later.
This means taking action now to promote construction careers and upskill the sector on green methods of construction, continued investment in construction innovation and a renewed focus on ensuring quality outputs in areas such as building safety and energy efficiency.
We have seen many chaotic decisions over the past decade which have contributed to the crisis now: Brexit policy effectively ejected a significant portion of the construction industry workforce, while the decision to shut down gas storage has left us at the mercy of world events. Regulatory confusion in areas such as the shift from European CE to UKCA marking amidst the adoption or rejection of EU laws has also added to instability at a time when the industry needs as much clarity about the future as possible.
Labour’s proposal to commission build-to- rent housing to address social housing needs, while providing a continued pipeline of house building.
Crucially, we are also calling on the Government to announce plans to support businesses through the energy crisis to avoid rising bills shutting down construction businesses altogether.
Looking beyond this, we need to recognise that the climate emergency is not going to go
We implore the Government to work to provide certainty and stability in as many areas as possible so the construction sector can prepare for a brighter future beyond the immediate economic outlook.
At Timber Development UK, we will continue to provide our members and the wider timber industry with market data, updates and statistics to support them through the coming year, as well as lobbying Government and promoting the timber industry – and the advantages of timber as a low-carbon building material – at the very highest levels. BMJ
www.timberdevelopment.uk
www.buildersmerchantsjournal.net December 2022
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