Welcome to this month's edition of the Marketing Newsletter. Amongst other things we have details of the Green Deal consultation, some information on the housing market and within our market activity report a link to the government's infrastructure plan.

Key focus in recent weeks has been the Chancellor's Autumn Statement. Most of the content was pre-announced   so no real surprises to the industry which has been busy lobbying over recent months. General response from the construction industry has been positive; the industry received more attention than is usual and there are initiatives with the pension funds to bring new investment into construction. But there was also disappointment as most of the shovel-ready projects promised to kick start the economy are more than a year away and as the Construction Products Association points out they do little to reverse the fall in public sector capital spending from £62bn in 2010/11 to £45bn in 2013/14. This is reinforced by the latest Office for National Statistics figures which show that new orders fell by 2.5% in October 2011 compared with the month before and were down 2.7% compared with a year earlier. The largest increase was in infrastructure and the largest fall in public non housing.

However the governments infrastructure plan has been published and it is important to remember that infrastructure does not mean just civil engineering. For example, EDF make the point that during construction of each of their new nuclear power stations they will be building many facilities including offices and accommodation, with employment for about 4,500 construction people at the peak.

On a more positive note, RICS latest housing market survey shows that demand rose in November for the third month in a row. Housebuilder Berkeley Group announced a 64% increase in pre-tax profits and a 20% increase in revenue. Travis Perkins also announced its preliminary end of year results with group turnover up 5.5%.

After some delays the Green Deal consultation is now available, but with a short period for review which closes on 18^th January 2012. Comprising 26 documents, with 238 pages and 63 questions in the main document there is a lot of information to absorb. The executive summary also misses some important points hidden in the body of the consultation.

The objectives of the Green Deal are admirable, but the focus of the consultation seems to be on the mechanism of operation with limited attention paid to implementation including the process for approving products and systems or certifying installers. Some time frames are included which would seem ambitious unless significant resource is made available. Particular points to note are:

• A process for manufacturers and suppliers to submit their products will not be available until March 2012.
• Calculation of the Golden Rule is extremely cautious, this could discourage homeowners from using the Green Deal.
• No details are given as to how Green Deal Installers for different systems (e.g. Cavity wall insulation, Photovoltaics, Biomass boilers) will be differentiated.
• There is no Government mechanism identified to encourage take-up. Green Deal Providers are expected to sell it to householders.
• Despite a commitment to allow fair access for sole traders and SMEs, the nature of the Green Deal Provider means that they will need to be significant organisation, relegating the smaller companies to the role of second tier suppliers.

Competitive Advantage are writing a briefing document for TRADA. If you would like to receive a copy please email me or see the updated section on our website.

The FMB has recently published its report Tackling the Housing Crisis which identifies that the number of small SME housebuilders is at its lowest point since 1982. In addition to making recommendations to improve the market the report includes some useful statistics on market size as well as forecasting trends and prospects in the housing market.

Also just published are latest details of the Homes & Communities Agency's £4.5 billion Affordable Homes Programmefor 2011 to 2015 listing successful bidders to construct 80,000 homes.

I will be presenting my paper Taking Sustainability to the Consumer with some updates to reflect the Green Deal consultation at an evening event jointly organised by CIMCIG and TARGET in Leeds on 26^th January 2012. Open to all, cost is only £10, see the website for details.