THE MONTH
NMBS postpones 2020 conference
April construction output nosedives to lowest level in last 23 years
The construction industry saw output plummet in April on the back of the coronavirus pandemic, according to the momthly Construction Purchasing Managers Index.
The builders merchant industry conference for 2020, the NMBS All Industry Conference, has been postponed due to the continued effects of the coronavirus pandemic.
Originally due to take place in Sorrento from 18th – 21st June, the event will be rescheduled for 16th-19th June 2022.
NMBS managing director Chris Hayward wrote to delegates to inform them of the decision which has been taken after guidance from the UK & Italian authorities and working closely with both First Event and the Hilton Sorrento Palace Hotel.
“The NMBS team always look forward to this event and were really excited to be running and hosting the prestigious industry event in Sorrento, however based on all guidance and feedback, for the safety of all involved we have taken the decision to postpone the event,” Hayward said.
NMBS will be offering refunds for all delegates’ bookings, including any extras such as additional nights, upgrades or activities. There will also be the option to transfer bookings to the 2022 event. Changes to booked flights will need to be taken up directly with the airline.
Hayward continued: “By committing our booking to 2022 it shows our support for this great location and country which is going through a very tough time at the moment as many other countries are. However when we all emerge from this current situation, we are as confident as we were when we first booked Sorrento that it is a great place to host the NMBS All Industry Conference.”
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The headline figure fell from 39.3 in March (a score of 50 indicates no change) to just 8.2 in April. The previous record low was 27.8 in February 2009.
All three main categories of construction work saw record falls in April, with declines in house building (7.3) and commercial activity (7.7) double that for civil engineering (14.6).
The lower volumes of output were almost exclusively attributed to business closures during April, with many respondents citing complete stoppages of activity on site.
The survey also highlighted a severe impact on supply chains, with closures at builders’ merchants and manufacturing production
facilities resulting in supply shortages. The lengthening of average lead times for the delivery of construction products and materials was at its steepest level since the survey began in 1997. Around three-quarters of the survey panel reported longer delivery times from suppliers during April, with a lack of availability for safety products also frequently reported by construction companies.
Meanwhile, staffing dropped sharply in April, with employees often placed on furlough until work on site could recommence with social distancing measures. Business expectations for the year ahead equalled the survey- record low seen in October 2008. Construction firms widely noted concerns beyond simply reopening sites, including cash flow difficulties across the supply chain, rising costs and severely reduced productivity. Tim Moore, economics director
BMF welcomes new furlough plans
The Builders Merchants Federation (BMF) has welcomed the May 11 announcement of an extension to the furlough scheme which will provide the building materials sector and construction in general with a more flexible programme for a structured return to work as site activity ramps up.
The Builders Merchants Federation (BMF), has been actively pressing for a more flexible programme from the Government, as a member of the Construction Leadership Council, which is co-ordinating the industry’s response to the Covid-19 crisis.
John Newcomb, BMF CEO said: “A survey of our members last week found almost 90% in favour of the job retention scheme continuing beyond the end of June, with furlough support continuing beyond the end of June, with a large majority (70%) favouring the phased withdrawal the Chancellor now plans.
“However, we would want to see flexibility in the way employees can be brought back into the workforce, with an element of part-time working allowed as part of the scheme and continued shielding permitted for vulnerable employees and those with caring responsibilities.
“As the industry returns it is critical that safety has the highest priority. Our new branch operating guidelines are helping more and more merchants to trade safely and support builders and contractors as they return to site.”
www.buildersmerchantsjournal.net May 2020
at IHS Markit, which compiles the survey, said: “The rapid plunge in UK construction output during April stands out even in a month of record low PMI data for the manufacturing and service sectors. Widespread site closures and business shutdowns across the supply chain meant that vast swathes of the construction sector halted all activity in response to the covid-19 pandemic. “The prospect of severe disruption across the supply chain will continue over the longer- term and widespread use of the government job retention scheme has been needed to cushion the impact on employment.”
Ufemat postpones
conference The 2020 Ufemat Congress, which brings together builders merchants, building materials suppliers and trade bodies from across Europe, and was set to take place in London in Octo- ber has been postponed due to Covid-19.
The decision was taken by Ufe- mat Secretary General, Marnix Van Hoe and Ufemat’s current President, John Newcomb, the Chief Executive Officer of the Builders Merchants Federation which is hosting the event. Ufemat’s Conference Programme is now scheduled to take place in
London on 15-17 April 2021.
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