THE MONTH
UK construction industry gets July boost
The UK construction market was higher in July 2018 than in June, showing the fastest increase in residential work for just over two- and-a-half years.
That’s according to the latest seasonally adjusted IHS Markit/ CIPS UK Construction Purchasing Managers’ Index® (PMI®). New business was up, which increased employment levels and confidence, and, although delivery lead times lengthened again, input cost pressures fell.
At 55.8 in July, (up sharply from 53.1 in the previous month,) the index showed the fastest rise in overall construction output since May 2017 (above 50 is the point at which it gets better rather than worse). Survey respondents saw demand improve, higher volumes of new project starts and, in some cases, a degree of catch-up from the bad weather earlier in 2018. House building did best, with the latest upturn the strongest since December 2015. Commercial work also picked up at the fastest pace for just over two and-a-half years.
Tim Moore, Associate Director at IHS Markit and author of the
index said: “July data reveal an impressive turnaround in the performance of the UK construction sector, with output growth the strongest for just over one year. While the recent rebound in construction work has been flattered by its recovery from a low base earlier in 2018, there are also signs that underlying demand conditions have picked up this summer.
Meanwhile, the Construction Products Association’s latest Construction Trade Survey for 2018 Quarter 2 shows that during the quarter, 20% of heavy side product manufacturers and 6% of civil engineering firms returned to growth, whilst the proportion of firms reporting an increase in Q2 activity rose for main contractors, light side product manufacturers and SME builders.
New order data shows that the catch-up will continue in the coming quarters, driven by private housing, public housing and infrastructure, three sectors that account for £60 billion of output annually.
Rebecca Larkin, Senior Economist at the CPA, said:
“Order books at the start of the year had suggested there was scope for catching up with some of the work lost in the opening three months and the survey confirms the industry made a tentative start in Q2.
However, new growth will be skewed towards the housing and infrastructure sectors – both privately and publicly funded – which remain dependent on programmes of government support and investor confidence in an environment of increasing economic uncertainty.” Key survey findings include:
on balance, 15% of main building contractors reported that construction output rose in the second quarter of 2018 compared with a year ago 6% of civil engineers, on
Ibstock invests at Lodge Lane
Ibstock Brick has invested £7.6m at the home of its Stafford Slate Blue brick - to boost production by up to 8m bricks a year.
Lodge Lane in Cannock opened in 1991. The investment project, which included a new kiln, started in January 2017 with the factory being fully commissioned by the end of March this year. The factory makes four types of blue brick - the most popular being the Staffordshire Slate Blue Smooth - in 65mm, 73mm and solids. The factory also has a
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specials department which makes a variety of different shaped bricks including sills, plinths, bullnose, and chamfered.
Whilst blue bricks will be the main manufacturing focus, Lodge Lane an also make red bricks. Factory manager Richard Hall says the investment is a real commitment to the future of blue brick manufacturing. He say: “The new kiln gives us increased capacity and the ability to produce up to 28 million bricks every year. It is the boost that the site
www.buildersmerchantsjournal.net September 2018
balance, reported a decrease in workloads during Q2 On balance, 23% of SME contractors reported increased workloads in Q2 compared to three months earlier Main contractors reported that order books were higher in private new housing, public new housing, private industrial and R&M sectors 11% of civil engineering firms reported an increase in new orders in Q2, on balance 27% of SMEs and 33% of specialist contractors reported an increase in enquiries in Q2 Overall costs increased for 75% of civil engineering contractors, 60% of specialist contractors and for 73% of heavy side product manufacturers.
AkzoNobel buys Doves Decorating business
AkzoNobel’s Dulux Decorator Centre business has bought Surrey-based Doves Decorat- ing Supplies. With four stores in Caterham, Dorking, Redhill and Reigate AkzoNobel takes its total number of Dulux Decorator Cen- tres in the UK to 216.
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