THE MONTH Activity declines at second-sharpest pace in a decade
The UK construction sector remained firmly stuck in a downturn at the end of the third quarter. Building activity fell at the second-fastest rate since April 2009, only narrowly outpaced by June’s decline.
A historically steep drop in new orders was also registered, while firms trimmed employment at the fastest rate since the end of 2010 due to unfavourable demand, client hesitancy and low confidence. Although there was a marginal pick-up in optimism, the level signalled by survey data was still historically weak. The headline seasonally adjusted IHS Markit/CIPS UK Construction Total Activity Index posted 43.3 in September, down from 45.0 recorded in August and thereby
Roman expands
Over the last 6 months Roman has increased its main shower enclosure manufacturing site from 90,000 sq ft to 140,000 sq ft. The production lines were expanded from 5 to 8 lines in the main factory. Adjoining the main site, Roman has rented 2 buildings for its solid surface shower tray manufacturing and Corian fabrication for bathroom structures, vanity units and basins.
These buildings totalled 24,000 square feet. Roman has now purchased the adjoining buildings which more than doubles the space for each with a total of 56,000 sq ft.
signalling a more severe downturn in building activity across the UK. Moreover, the deterioration was the second-strongest since April 2009 and broad-based across all three broad categories of construction work.
As has been the case since March, commercial activity was the worst-performing segment. Here, the contraction gathered pace and was marked overall. Meanwhile, civil engineering activity dropped at a similarly sharp rate that was the fastest in close to a decade. A fourth successive monthly decrease in residential building was also signalled.
Latest survey data highlighted further demand weakness in the UK construction sector. Having
Tinhay Building Supplies joins NBG
National Buying Group (NBG) is adding to its list of partners with Tinhay Building Supplies.
In 1999, Tinhay began trading in the South West and now operates out of three branches in Lifton, Launceston and Tavistock. Robert Sorrell, managing director, said “There are so many reasons that we joined NBG but perhaps the biggest is to give ourselves the buying power of a bigger brand. Joining the existing partners means that our clout will be multiplied by 87 and we’re excited to see how that will take the business forward.”
fallen at the steepest rate since March 2009 last month, there was little sign of any recovery in September as new work inflows dropped similarly.
The strong dip in sales
coincided with a further tapering of purchasing activity by UK construction companies in September.
Buying levels declined at the joint-fastest rate since January 2010 due to lower operational requirements and increased efforts to contain costs.
Nevertheless, input prices continued to rise at a strong rate during September. The rise in costs was partly linked to greater fuel expenses and higher supplier charges for certain raw materials. However, the rate of inflation
eased to a three and-a-half-year low in line with deteriorated input demand.
Looking ahead, UK construction firms were mildly optimistic that output volumes would pick up over the coming 12 months, although the level of business confidence was weak by historical standards.
Competitive pressures, Brexit uncertainty and concerns towards the economy led to a subdued year-ahead outlook.
In line with weak optimism, further cost-cutting efforts were apparent as employment was reduced in the UK construction sector during the latest survey period. The fall in staffing levels was the sixth in as many months and the strongest since 2010.
MKM MKM Building Supplies will open
five new Scottish branches within 12 months.
The investment follows
exceptional financial performance from the company’s Scottish branches, which are growing 5% quicker than MKM’s other UK outlets and averaging a 10% higher turnover per year than other UK-wide counterparts. To date this year MKM has opened branches in Kilmarnock, Elgin, Dundee and Aberdeen. Executive chairman David Kilburn said the Scottish market has “huge potential” for the company.
Digby sets out for growth with Felixistowe relocation
Family run supplier of natural stone and porcelain hard landscaping products, Digby Stone is relocating its Felixstowe site in Suffolk, further up the road to a site double the size of their current site but remaining within Felixstowe Port.
Along with the company’s Halesowen site this new larger
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site will enable Digby Stone to accommodate the ranges of new products due to be launched in the future and further grow sales with their customers. It will also ensure that with larger stocks the right stock is available at all times. The company remains committed to a merchant only policy and to assist in that has
appointed a new experienced area business manager to help their customers grow their sales. Steve Clutterbuck has worked within the merchant industry for over 20 years and brings with him a wealth of experience to help Digby Stone’s merchant customers grow their sales of products in the landscaping
sector. He will be working with Digby’s Andy Williamson. The company said: “Whilst others are waiting to see what will be, we are planning for both ours and our customer’s future with these investments. We are excited about the future and the growth of both new products and existing ones”.
www.buildersmerchantsjournal.net October 2019
He added: “Scotland offers huge potential for MKM and we intend to build upon our success here with further expansion. “There is understandably a degree of economic uncertainty with Brexit on the horizon and a possible second referendum in Scotland, however the underlying feeling in our industry is one of confidence.
“What works particularly well for us in Scotland is that geographically the regions are fragmented and diverse, and in many cases resilient to change.” He continued: “We see a bright future for MKM in Scotland.”
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