|
Construction Market Activity - January
The latest Office of National Statistics figures show that there was a 0.2% increase in construction output in November compared to October. When compared to November 2010 it is 1.6% lower. In view of the various question marks over the ONS figures in recent months it is probably best to view this as a flat second half for 2011. In their recent State of Trade Survey the Construction Products Association found that heavy-side manufacturers had suffered more than light-side manufacturers, possibly reflecting the fall off in new projects. The latest State of Trade survey from the FMB also reports that workloads continued to decline in the final three months of 2011. There is expected to be no let-up in the first three months of 2012, with just 14% of respondents anticipating an increase in workloads whilst 44% expect a further decline.
Looking ahead the Construction Products Association paint a gloomy picture with output in 2012 expected to fall by 5% and remain flat throughout 2013. The only positive sectors are energy and infrastructure (with the £32.7 bn HS2 rail link confirmed), both of which are expected to show significant increases in activity. This view is broadly supported by Experian who expect a slightly greater drop in 2012 but some recovery in 2013. One difference of opinion is private housing, with the CPA expecting only 1% growth, Experian 5% and Glenigan predicting 20% growth.
In their trading update Persimmon have been positive with upwards of 50% improvement in profitability expected. They maintained the level of completions in 2011 and have forward sales at a higher level than this time last year. In their trading statement Taylor Wimpey have also announced over 80% profit improvement in the second half of 2011 with completions up by 2% for the year. They said the first weeks of 2012 have continued the encouraging pattern of the second half of 2011. Galliford Try also published their trading update, reporting a 59% increase in completions for 2011 in this principally southern based business. While remaining optimistic for 2012 they did not give any details |
|
Regulations & Initiatives - quick update
The following items will help you keep up to speed with technical developments.
Revisions to SAP
The Standard Assessment Procedure (SAP) used to assess the energy performance of residential buildings is being reviewed by BRE who are inviting comment on the proposed changes. These will be incorporated in SAP in time for the introduction of the 2013 edition of Part L of the Building Regulations. SAP will also be used to help deliver the Green Deal, the Energy Company Obligation and the Renewable Heat Incentive.
Private Finance Initiative
The government's response to the Treasury Select Committee's report on PFI has now been published. Here are some key points:
- The government recommends that in future PFI projects are scored in the same way as capital expenditure.
- They agree that PFI projects should only be approved on the basis of delivering value for money and terms for this assessment are under review.
- The Government is considering further measures to reform PFI and improve the way in which private finance is used to deliver public infrastructure.
Red Tape Challenge
The government's initiative to reduce red tape has now reached Housing and Construction. This initiative invites members of the public to submit ideas for reducing unnecessary regulation. If you have any suggestions, go to the Red Tape Challenge website. |
|
Construction Media Index - reduced price for 2011 report
Last year we published the Construction Media Index, the only impartial report on traditional and digital communication channels in the construction industry.
We have been busy researching the market again and will be previewing some of the findings at the CIMCIG seminar Communicating with Construction Industry Decision Makers being held at The Building Centre in London on 15th February. In addition to the preview of the CMI there will also be the chance to hear suggestions from some of the construction industry's leading communications agencies, supported by case study examples.
Until the 2012 edition of the Construction Media Index is published in March we have reduced the price of the 2011 reports, visit our website for more details. |
|
What's being said - a round-up of useful marketing items
This is a new feature in our newsletter, a roundup of useful marketing items, mainly drawn from industry blogs. We'd like to hear from you with suggestions of blogs to watch.
First is a mention of the Competitive Advantage blog. This month I've published an article on specification selling called Making people your USP.
If you are looking for marketing inspiration take a look at the CIMCIG blog where there are a series of articles by winners of the recent Construction Marketing Awards. As well as suggesting ideas they make a good reference if you are looking for a communications agency, as it's the industry's top agencies which win these awards. You could also take a look at the CMA award book. |
