NEWSROUND


Housebuilding recession hits construction output


Construction output is forecast to fall by 2.1% this year thanks to falls in the two largest sectors, namely private housing new build and repair, maintenance and improvement.


According to the latest forecasts from the Construction Products Association output will then rise by 2.0% in 2025 in line with falling interest rates and a general economic recovery, which, in turn, could ease challenges in the housing and rm&i sectors. The recent disruptions in the Red Sea,


LBS buys DG Heath


South Wales’ independent builders’ merchant LBS has bought D G Heath, a timber merchant in Pontarddulais, Carmarthenshire.


D G Heath has been trading for 38 years as a family-run business and will continue with the name; two of the directors are remaining post-acquisition, along with 24 staff members.


The LBS Group now comprises 10 brands and 51 branches: 19 LBS merchant branches; 16 Total Plumbing Centres; 9 LBS Kitchen & Bathroom Showrooms; dedicated Civils and Drainage business; Roofing Supplies Specialist Talbot Timber: a timber and roof truss supplier and manufacturer; LBS Home & Garden Centre; Renewables Centre; UK Build and DG Heath.


however, could add further risk of supply issues such as delays and accelerating cost inflation. Private housing suffered a double-digit fall last year after a spike in mortgage rates hit housing market demand. Many house builders have reported a fall of around 25-35% in demand. The lagged effect of higher mortgage rates is likely to continue to affect property transactions this year with private housing output expected to fall by a further 4.0%. A gradual fall


in interest rates in 2025 should boost demand with private housing output expected to rise by 4.0%.


Private housing rm&i continues to be on a general downward trend, with discretionary household improvements spending hit by rising cost of living and falling consumer confidence. In addition, fewer property transactions last year led to a decline in refurbishment activity from new homeowners who typically make cosmetic


JD Pipes expands


JDP (John Davidson Pipes) has announced the major expansion of its Colchester branch, which now spans a total area of 5,250sq m, incorporating the previous site and an additional 2,250 sq m.


The branch now features extensive storage and warehouse facilities, ensuring a streamlined and efficient operation. This not only allows for greater stock levels but also


improvements within the first six to nine months of moving in. Smaller project work is likely to continue to remain flat in the first half of this year as household spending remains tight, whilst the continued fall in property transactions in the first half of this year is likely to hit larger project work for the remainder of 2024. This is likely to be partially offset though by strong activity on energy-efficiency retrofit such as insulation and solar photovoltaic work. Overall, private housing rm&i output is expected to fall by 4.0% in 2024 before growth of 3.0% in 2025.


In infrastructure, which is the third-largest construction sector, activity remains strong down on the ground.


Colchester branch by 75%


provides the opportunity to house a more diverse range of products including concrete drainage items, septic tanks, and sewage treatment plants.


Paul Harrod-Welch, JDP’s network manager for the Southeast, said: “We are excited to be expanding our Colchester branch by a huge 75%, adding over 2,000 square meters. This investment significantly increases our stock holding capacity and


Lord Callanan visits Cemex


The UK minister for energy efficiency and green finance Lord Callanan visited the Cemex Rugby cement works in Warwickshire to gain an insight into the actions needed to decarbonise the UK’s “dispersed” cement plants. The Mineral Products


Association (MPA) and Cemex, hosted the visit to highlight the challenges and opportunities for decarbonising dispersed plants like Rugby, which are located too far from other large production


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plants to be included in one of the net zero industrial clusters.


Lord Callanan said: “We have a strong cement industry here in the UK which is vital to our infrastructure, housing and urban regeneration. The Government has recently published its blueprint for a carbon capture industry, to assist important sectors such as cement manufacturing to reach net zero


enables us to hold a broader range of civils and drainage products on-site, meeting the diverse needs of our customers.” In addition, an electric vehicle (EV) charging point has been installed at the front entrance, catering to the needs of JDP’s increasingly environmentally conscious customers.


while supporting our construction needs. It was excellent to hear from leaders here in Rugby, a cement heartland in its own right, about the impact of this work.”


www.buildersmerchantsjournal.net February 2024


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