Keyline asks: ‘What is the future for Construction?’


With the government starting to communicate its plan to ease restrictions, Keyline Civils Specialist recently conducted a survey to investigate how the ongoing crisis is continuing to affect construction businesses, both big and small. The results suggested that while concerns are varied, a key issue is that many are unsure of what the future holds for the sector.


The research was carried out between the 28th April and the 2nd May 2020 questioning business owners and contractors working in the housing, commercial, infrastructure, industrial, retail and public sectors how they have been adapting to allow work to continue despite the challenges.


• 58% of respondents said they will keep to the same level of staff furloughed. Of the remainder, only 4% were looking to furlough more staff while 38% were planning to bring staff back from furlough.


• To continue safe working


10% on top of what was intended; while a further 52% predict a delay of 20% or more on intended delivery date. Together, these figures indicate that while a number of UK contractors (excluding Scotland) have returned


practices, 51% of respondents have made working hours more flexible, while 30% are able to continue without amending their working hours.


Working safely is at the top of the agenda across the supply chain, with manufacturers re- configuring their operations, merchants working to new guidelines and construction workers continuing to maintain the two-metre distance, even on site.


When it came to the current completion time of projects results were mixed. 29% of respondents are confident in completing projects on time or as intended. 19% anticipate a short delay of


Grafton reports on Covid-19 impact


Builders merchant group Grafton has issued a trading update, in which it reports that business in the year to mid-March 2020 was broadly in line with its expectations as branches generally operated at close to normal levels of activity. However, the impact of Covid-19 began to bite over the second half of March and intensified following the introduction of Government restrictions leading to national lock downs. The majority of Grafton UK branches and manufacturing plants were closed on 24 March 2020 and the distribution business in Ireland was significantly scaled down on 28 March 2020. On the same date, trading in the Woodie’s DIY, Home and Garden business was suspended except for on-line transactions.


The update stated that the UK distribution business was trading at around ten per cent of normal


volumes up until the first week of May, when many of its branches returned to more extended operations, gradually expanding their offering over the next weeks. Leyland SDM, Grafton’s specialist decorating merchant is operating most of its branches in Central London on a collection basis, with the Irish distribution business trading from all branches during restricted trading hours at around 15 per cent of normal volumes. The company says it is taking appropriate actions to manage its cost base while protecting jobs and ensuring that businesses are strongly positioned for a phased return to trading as restrictions in the UK and Ireland are relaxed. Job retention scheme arrangements have been made for almost 9,000 people in the UK and Ireland out of a total workforce of circa 11,000 in the two countries.


May 2020 www.buildersmerchantsjournal.net


to work this week, activity is still reduced and delayed in some areas. However, with the return of a number of larger housebuilders and manufacturers to site or production, along with the recommissioning of HS2, this would suggest that on a wider scale there is movement on construction sites as well as demand on the supply chain. In light of a number of sites reopening, Keyline asked whether the level of confidence in the future of their business had changed.


An element of uncertainty in how to proceed was reflected, with 62% maintaining their level of confidence in the future of


their business and 17% feeling more optimistic than previously. However, in contrast to this, 21% are now less confident in their business going forward. Generally, those with concerns fell into four categories: •


access to materials •


Those restricted by the Those affected by


maintaining site safety rules •


were currently shut down •


finding new projects


Some respondents even highlighted that while they wanted to work, they were unable to source PPE equipment as their normal suppliers had to prioritise providing for the NHS. While many confirmed they are working within the HSE and government guidelines, one telling comment received highlighted the difficulties met when trying to adapt working hours: “We informed our Local Council of this intention and were informed they would not allow a change to site working hours, so we are unable to do that.”


Boiler Scrappage Scheme can stimulate the local economy, says EUA


A new Boiler Scrappage Scheme can stimulate the local economy and generate higher tax receipts, according to the CEO of leading trade body the Energy and Utilities Alliance, who has written to the Chancellor, following the Bank of England’s latest forecast, that Covid19 will result in a 14 per cent fall in national income this year.


The paper calls for the re- introduction of the scheme, used previously to help grow the economy following the impact of the 2008 financial crisis. EUA’s CEO, Mike Foster, said: “The Chancellor will be looking for ways to help the economy recover from the Covid-induced collapse. We are reminding him of a tried and tested scheme,


offering great value for money – bringing in more than it costs, that could be up and running in a few months.”


“Our paper suggests that a Boiler Scrappage Scheme, limited to 200,000 units, will have an initial outlay of £80 million, with a payback within the same financial year of £92 million and a regular increase in VAT each year after that.”


He says that the scheme would support UK boiler manufacturers, merchants, installers and consumers. In addition, air quality improvements of over 80 per cent and over 150,000 tonnes of carbon reductions will be achieved when replacing old G-rated boilers with new A-rated products.


5


Those who had sites that Those with difficulty


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36