THE MONTH Construction output uneven at close of 2017


UK construction companies showed an uneven recovery in business activity at the end of 2017, according to the seasonally adjusted IHS Markit/CIPS UKConstruction Purchasing Managers’ Index® A robust rise in residential building contrasted withfalling work on commercial projects and stagnating civil engineering output. There were positive signals for the near-term business outlook, with new order growth reaching a seven-month high and job creation the strongest since June. However, intense supply chain pressures continued across the construction sector,while input cost inflation


picked up from November’s14- month low.


The Index posted 52.2 in December, down from 53.1 in November but above the 50.0 no-change threshold for the third month running. As a result, the latest reading signalled a moderate expansion of overall output at the end of 2017. Survey respondents


indicated that house building remained a key engine of growth, with residential work expanding for the 16th consecutive month in December. In contrast, latest data indicated a moderate fall in commercial construction, thereby continuing the downward trend seen since


July. Civil engineering work stabilised during the latest survey period, which ended a three-month period of decline. December data pointed


to resilient demand for new construction projects, as highlighted by the fastest upturn in new order volumes since May. Anecdotal evidence cited an improved flow of enquires in recent months, alongside a gradual upturn in clients’ willingness to commit to new work. The prospect of greater workloads ahead resulted in stronger rises in employment and purchasing activity during December. Robust demand for construction products and materials contributed to


another sharp lengthening of suppliers’ delivery times at the end of 2017. Tim Moore, Associate


Director at IHS Markit and author of the IHS Markit/CIPS Construction PMI® said: “Total new orders picked up at the fastest pace for seven months in December, which provides a positive signal for construction workloads in the short-term. However, firms indicated that longer term business confidence is still subdued, largely reflecting concerns about the domestic economic outlook. The balance of companies expecting growth in the year ahead remains among the weakest recorded by the survey since mid-2013.”


Superglass makes £37m investment in Stirling


Insulation manufacturer Superglass is to invest £37m in its manufacturing facility in Stirling, Scotland to double capacity from 27,000 tonnes to 60,000 tonnes annually within two years.


The investment will include a 187-tonne furnace and curing ovens, replacement cooling, cutting and milling equipment and an automatic packing system. Building work will start early this year.


The investment will deliver a significant growth in new full-time jobs over the next 18 months to accommodate and fulfil the increased capacity.


These jobs will be created across the breadth of the organisation, but primarily in the operations team, product marketing and innovation. Ken Munro, Chief Executive Officer of TechnoNICOL UK, Ireland and USA which owns the Superglass business, said: “TechnoNICOL’s backing is a real vote of confidence in Scottish manufacturing, both in terms of the quality of the work we do here and the expertise of the workforce. It is a validation of our strategy within Superglass over recent years and very personally satisfying for me to see further


consolidation of the initial investment at our regional headquarters. It is also an important milestone in the total transformation that this business has experienced over the last three years – we have delivered a £10M improvement in profitability over this period and significant double digit sales growth in the current year. “With this investment, we will have spent close to £50m on this site since the acquisition of Superglass and this is a further statement of intent regarding the operation’s long-term future. It’s also one of the biggest single inward


investments made in Scottish manufacturing for a long time and is an exciting time for the business. We have huge growth ambitions and this investment will certainly help propel us towards achieving those goals.”


Selco reaches 60 Wolseley ponders pulling plug on BCG


Selco will open its 60th branch in February. The new Selco Builders


Warehouse branch will be on Osbaldwick Link Road, in York and will further strengthen the merchant's presence in the area, complementing the existing Selco branches in Bradford and Leeds. Selco, part of the Grafon


Group, will have doubled the size of its trade-only business over a five year period.


4


Wolseley UK, whose UK brands include Plumb Center, Drain Center, Climate Center and Burdens, has put forward a proposal to close down its BCG distibution business. It has informed staff at its distributor brand BCG that it has begun proceedings to look at closing down the business, as part of a wider restructuring plan that the group announced last year.


The closure of the business,


which distributes heating, bathroom and kitchen products to second line retailers and merchants, is still is subject to consultation, with the company currently speaking to employees and no firm decision yet in place. However, the company is not believed to be looking to sell the business.


The company is also


proposing the closure of its Leamington Spa National


Distribution Centre along with swingeing cuts to the Support Services.


In September 2016 the company announced that, as part of a “turnaround and repositioning strategy” almost 800 jobs were at risk and that 80 branches and one distribution centre would close. To date, Wolseley UK has closed 38 Plumb Center branches, which has resulted in 200 redundancies.


January 2018 BMJ


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