UK construction growth softens amid political uncertainty

UK construction activity weakened more than expected last month as uncertainty surrounding the general election result led to businesses postponing big spending decisions, according to a recent survey.

The IHS Markit construction managers’ index (PMI) came in at 54.8 in June, this is down from 56.0 the previous month. June was predicted to have a PMI of 55.0, showing that there is definitely uncertainty surrounding the industry.

A PMI reading of 50 and above indicates growth for the industry and the construction sector has exceeded this level for 10 consecutive months now.

However, June’s data revealed weaker growth momentum across the UK construction sector.

Construction professionals’ expectations for growth during the next 12 months were at their lowest level yet this year, said IHS Markit. It seemed building companies were the least optimistic about their growth prospects, with a number of firms citing delays in decision making amongst clients, partly linked to heightened economic uncertainty.

Tim Moore, senior economist at IHS Markit, said the slowdown reflected “weaker rises in commercial building and civil engineering activity,” whereas residential housebuilding “continued to increase at one of the fastest rates since the end of 2015”.

Sam Tombs at Pantheon Macroeconomics pointed out that the average level of the PMI in the second quarter was consistent on past form, with quarter-on-quarter growth in construction output of about 0.5% in Q2.

“The official measure of output in April, however, was 1.5% below its Q1 average, so unless the data are revised significantly the construction sector likely dragged on GDP growth in Q2.”

He felt the sector was still struggling to regain its pre-referendum momentum. With the PMI remaining above its 12-month average of 51.6m it is a long way below its 59.6 average seen between 2014 and 2015.

He noted the number of construction firms reporting delays in obtaining raw materials had also increased, which suggested supply constraints will affect the pace of growth in future.

Despite the uncertainty the general election has posed on the construction sector, we are busier than ever. Take a look at our current vacancies, or get in touch with one of our expert construction consultants on 01489 774 010.

Mind the Skills Gap

There’s been a lot of talk over the past few years about the growing skills gap within the engineering and construction industries. Although the rail industry is experiencing its highest level of investment since the Victorian era, the skills gap is still apparent.

What should be an exciting time for the rail industry could end up posing an air of uncertainty due to the lack of skilled workers to complete projects. With an ageing workforce, a need for new skills and technologies, and a lack of diversity compared with other sectors, rail is heading for a significant skills shortage.

It’s estimated that in conventional rail, the number of engineering and technical workers will need to grow by 900 by 2020. In high speed rail, this figure is closer to 7,200 workers in the same timeframe.

So, what exactly can we be doing to help bridge the growing skills gap and keep the rail sector on track?

Train our future

One thing that we are already seeing is the increase in apprenticeship schemes across the rail industry. Although this is not an instant fix to the current skills gap, it will dramatically increase the number of young people entering the profession, giving us the foundation for a strong future workforce.

Educate and Encourage

Apprenticeships are great, but what use do they have if we are not encouraging the next generation to take them? We need to be educating and encouraging the younger generation towards STEM related subjects.

A career in rail can hold a whole range of different paths and opportunities, and this needs to be properly communicated to young people. Let’s shout about the exciting projects that are planned for the future and inspire the young workforce to want to be part of it.

Transferrable skills and experience

As demand for highly skilled workers continues to rise, employers and recruiters will need to start looking elsewhere for candidates. Whilst there are certain skills specific to sectors, there are plenty of others that are easily transferrable.

Engineers who have a strong mix of analytical and vocational skills could take on a role within vehicle and signaling engineering, and for more design based roles, those who have mechanical and electrical experience with a strong grasp of engineer principles would excel.

Invest in the existing workforce

Within many industries, technological advancements have had a huge impact on the staff and their jobs. Rail is no different. As technologies and systems change and develop, it is vital to ensure we are investing in the training of our current workforce alongside this.

Investing in the training of those already in the industry will not only benefit the staff, due to new employment opportunities from their growing skill set, but it will help bridge the skills gap by ensuring workers are trained to the best of their ability.

Despite the growing skills gap, our expert rail team are seeing no shortage of positions available on new and exciting projects. If you would like to see what roles we currently have live, head over to our website or get in touch with one of our expert consultants on 01489 774 010.

Why Hinkley Point C is needed

Hinkley Point C has had its fair share of scrutiny over the last few months. It seems costs are rising, which, in turn, could lead to unwanted delays. With all the negative press we are seeing, it is easy to forget the real benefits of Hinkley Point C.

Building Hinkley Point C was never solely about providing low carbon electricity to millions of homes; it’s aim was to power our economy, both now and in the future. It is becoming a vital part of our plan to tackle a legacy of under-investment in the UK’s energy infrastructure and build sector, which will be fit for the 21st century.

For most, Hinkley Point C is the first nuclear power station to be built in their generation. The project is so large that North Cumbria and Somerset have both opened a Nuclear College to cater for the 25,000 new job opportunities that are being created off the back of its build.

Not only will Hinkley Point C create a host of jobs, it also has many positive benefits to our economy. The £18bn cost of Hinkley Point C is being covered by EDF, which is 85% owned by French government, and China General Nuclear Power Corporation, which has agreed to take a 33% stake in the project.

Following the result of the recent general election, Brexit terms remain unconfirmed, so it is important we look at things like imported energy. Hinkley will ensure the UK is less reliant on this, and will provide energy for up to 6 million homes for 60 years. Many argue that this fact alone justifies the large cost of the build.

Despite the negative press and concerns around the project, Hinkley will be a significant step forward in our transition to a low-carbon future. It will act as a milestone in our efforts to reduce emissions and to meet our climate change commitments in the most cost-effective way.

Highfield are a trusted recruitment supplier to the Hinkley Point C project. If you are interested in working on the project, head over to our dedicated Hinkley Point C page and take a look at the latest available jobs.

Alternatively, if you would like a confidential chat with one of our expert nuclear consultants, give us a call on 01489 774 010 today.

What is the Thames Tideway Tunnel?

The Thames Tideway Tunnel (aka ‘super sewer’) is London’s proposed solution to the sewage overflows into the River Thames. It will be a 7.2m diameter, 25km-long tunnel, up to 65m below ground.

The tunnel will create potentially the biggest sewer network in Europe. However, not everyone is happy about the ‘super sewer’. Environmentalists say it could cause significant disruption over a decade, and that cheaper, green alternatives should be considered, including “living” walls and roofs to drain rainwater back into soil and not into the sewers.

Why do we need it?

Currently in Central London, we have a combined sewer system – storm water runoff and waste water enter the same sewers. This is fine until it rains; heavy rain sees the sewers filling up quickly, and the dirty water needs somewhere to go. Instead of flooding out streets and bathrooms, the sewers are designed to flow over into the Thames.

There are 57 combined sewer overflow sites on the Thames. In the 19th century when engineers first designed the sewers, these were only overflowing around 12 times a year. Now this happens about 60 times.  The combined sewers are polluting the Thames, and London is in breach of the EU Urban Waste Water Directive.

How will the super sewer work?

The Tideway Tunnel will work by intercepting sewage from 34 of the current combined sewers before it overflows into the Thames. The combined sewer system discharge points will connect to the tunnel under the Thames. The dirty water will now be stored in the super sewer before being pumped in to the Beckton Sewerage Treatment Works. Once the water has been treated, the clean water can be released to the river.

thames tideway

How long will the project take?

It should take four years to build the tunnel, and the whole project should be completed by 2023.

thames tideway london

The Thames Tideway Tunnel is set to create more than 4000 jobs whilst the tunnel is being built, with serval thousand more jobs in the supply chain and the wider economy. At least 25% of employees will live in the boroughs where the work sites are located, with the wider economic benefit spreading across the UK.

International Women in Engineering Day – June 23rd

Every year the Women’s Engineering Society (WES) celebrates the amazing achievements of female engineers and promotes the vast amount of career opportunities that are available to the female workforce as well as men. This year the event is going international on June 23rd to increase the awareness and raise the profile of the exciting industry to women in engineering.

According to recent statistics shared by WISE, just 9% of the engineers currently employed in the UK are women. When you compare this to other countries it is significantly lower. For example, France and Spain have 17% of their engineers made up of females, Denmark 16% and Germany 15%, some eastern European countries even have around 20% women in STEM careers.

Highfield fully support women in engineering and work with local schools to inspire the next generation of engineers, both male and female, as we recognise fully the benefits of a diverse workforce.

Keep your eyes on our twitter tomorrow to see us celebrate the achievements of some incredible women engineers, or drop us a tweet @highfieldrec if you have a female engineer you would like to celebrate.

Construction industry digests implications of a hung parliament

Following the result of a hung parliament on the 9th June, construction industry representatives have been quick to offer insight and wisdom into the implications of the 2017 general election. The results have seen Theresa May and the Conservative Party take the most seats, however leaving no overall majority.

Early reports have claimed that the alliance between the Conservatives and the DUP would see the Northern Irish party support the government on major announcements like the Budget and the Queen’s Speech, but retain an open vote on other issues.

This has provoked uncertainty amongst many, which is something business and investors are not keen on.  Concerns are being aired as major projects, such as HS2, could face political delays, or worse.

Carolyn Fairbairn, director general of the Confederation of British Industry, called on the government to ensure it does not “put the brakes on business” but instead enables all regions of the UK to prosper.

“We need meaningful progress on a modern industrial strategy by the end of the year, with real change on the ground on skills, infrastructure and innovation” she said.

Richard Laudy, global head of infrastructure at Pinset Masons has also expressed concerns on how this could impact the skills shortage within the construction industry, “Whatever the wider political ramifications of a hung parliament might be, this looks like a bad result for the UK’s infrastructure as we head into another period of political uncertainty. The UK desperately needs to attract investors if it is to improve its ailing infrastructure, yet the political uncertainty in which we now find ourselves is precisely what puts off investors and will make our infrastructure problems more difficult to solve. There must also now be a real fear that the government will be distracted away from addressing questions such as the UK’s skill shortage, as it seeks to shore up its own position. The UK needs an additional 36,000 workers every year to meet the current demand for infrastructure, and the government needs to address this. The problem is immediate and acute and will not be solved by reskilling or apprenticeships alone. There needs to be an open conversation between government and industry, recognising the need to collaborate, map the skills required to deliver our infrastructure and provide for this within any post-Brexit immigration system.”

In contrast, Will Waller, market intelligence lead at Arcadis, struck a more optimistic tone, saying: “Despite the disquieting election result, UK construction has clearly weathered the preceding year of uncertainty relatively well and there is therefore reason to have hope that it can continue to do so, with clear long term investment opportunities transcending relatively shorter term tumultuary for many investors.”

But will the industry see any kind of stability in a fragile coalition that Theresa May has cobbled together with the DUP? Henry Fordham, director of Bellis Homes, commented: “If we can gain the stability we have been craving for, the housing market can slowly push on. You can definitely see a fear factor with purchasers, especially at the higher level, when it comes down to final decision making. Labour policy on general taxation (especially land) to me seems like a hit on homeowners. However, housing policy from both parties seems to be a far cry from reality, to achieve the one million new homes by 2020 target from the Conservative party is not achievable at the current rate.”

With the results being pretty fresh, it is hard to say exactly how it will affect the construction and infrastructure industry, but what we do know is the impact of this result on both the permanent and flexible labour markets has the potential to be significant.

How do you think the recent election results will impact the industry? We love to hear your thoughts so get in touch with us on Twitter, Facebook or Linkedin and tell us what you think. Alternatively get in touch with one of our expert consultants on 01489 774 010 for an informal, confidential chat.

What makes a company a great place to work?

Does your company give you the opportunity to win weekend breaks away, dinner up The Shard or even regular fun team drinks? Do they take you out to the races, treat you to pizza “just because” or provide champagne on every work anniversary? What about getting your birthday off work as an extra treat?

If the answer to these questions is a ‘no’ then you’re not alone – it seems that not nearly enough companies these days are rewarding their staff for all their hard work. However, research shows that those companies who do invest in such perks are the ones who gain the most loyalty, productivity and enthusiasm from their staff.

As we have been recently shortlisted as Employer of the Year in the South Coast Business Awards, we feel we have a good idea of what it takes to make a business a great place to work. Take a look at our top tips to make your workforce feel loved… because after all, a little love goes a long way.

Leadership & Management

What your staff think about the senior leadership within the company truly matters! Inspiring, engaging and approachable leaders will bring out the best in your team. At Highfield, our two Directors sit amongst the team allowing everyone to get the best support and guidance possible. With such a strong senior team it is hard not to succeed.

Training & Progression

Everyone wants to feel like they are cared about and supported with their goals. Invest in your employees’ training and progression and not only will this improve their skills and efficiency, but they will feel valued, in turn improving loyalty and determination. We support our employees through apprenticeships and specialist recruitment qualifications, because we believe personal and professional development are imperative.

Team

Working with or for a team can have a huge impact on people’s moods and productivity. Team bonding and a well-managed team will significantly improve morale and everyone’s sense of belonging. At Highfield we promote a friendly, relaxed and supportive atmosphere. Whether it’s helping each other out, or spending lunch breaks beating each other at table tennis, everyone encourages each other to do well.

Incentives

Want your staff to work to the best of their ability? Targets and incentives sure help this. We set weekly, monthly and quarterly incentives for our staff and have seen productivity and results shoot through the roof.

Innovation & Development

It’s the people that help shape your company. Therefore, it is vital to listen to what they want and take on board innovative ideas. We are always looking at ways we can introduce new ideas and concepts that will improve the business and help our staff and our clients. We send out regular staff surveys and hold regular reviews where all employees have the opportunity to suggest any new ideas or concepts they think would be beneficial to the business.

London’s Skyline Growing Fast

London’s impressive array of skyscrapers has grown significantly in recent years. To see just how much London’s skyline has changed, NLA’s Tall Building Report, released in March this year, reveals just how many towers have sprung up in 2016, and what is still in the pipeline moving forward.
Here are the most impressive headlines from the report:
– 2016 was an impressive year for tall buildings, with 26 being completed, many more than any other survey year. We are set to see a further increase in the amount built over the next two years.

london building

– There are currently 455 tall buildings in the development pipeline.
The majority of these new towers are residential, as the chart below shows. 30% of the new homes in London currently under construction are in such buildings. If the current predicted pipeline of residential buildings were to get the go ahead, this would give London an impressive 100,000 new homes.

london skyline
24 of London’s 33 boroughs have a tall building pipeline. But this is not to say the others have no pipeline at all, as they may be set for smaller buildings.

london building skyline
The level of current construction activity for tall buildings has remained consistent this year (91 under construction compared to 89 last year). In terms of geographic allocation, the number of boroughs containing tall buildings under construction also remains almost constant.
The borough experiencing the most growth of tall buildings under construction continues to be Tower Hamlets, with Lambeth, Newham and Greenwich also experiencing significant tall building construction activity.
Although London clearly has the most mature market for tall building development in the UK, it will be interesting to see over the next few years if this demand for tall buildings continues through other cities throughout the UK.

7 things that will happen during your first month in recruitment

Graduates, so you’ve decided a career in recruitment is for you. A lucrative, busy and exciting job is right around the corner. But let us break you in gently and prepare you for what, without a doubt, will happen during your first month in recruitment.

You’ll gear yourself up to make the best call yet…and you’ll get their voicemail

The thought of your first few calls can be daunting, and you’ll no doubt do a load of prep to make sure you well and truly boss your first call. You psych yourself up and the phone will ring and ring and ring…until voicemail. But once you’ve finally got that call out the way, and nailed it, the rest of them will soon come naturally.

You blow your commission in the first weekend

You’ve worked extra hard to earn the extra pounds in commission. Pay day comes and you are pleasantly surprised. What’s this, you’re going out to celebrate your successful month? Don’t be surprised when next week comes and you feel like a student again. Your first commission pay is an exciting moment and it is far too easy to blow it on celebrations and luxury items you’ve had on your wish list. So, make sure you keep up the hard work and the commission continues to flow in.

You hear every excuse possible for interview no shows

You start off your career as a young, slightly naive, trusting recruiter. Unfortunately, that won’t last long. Interviews get cancelled, and even worse interviews get cancelled 5 minutes before. The excuses you here will shock you at first, from the likes of ‘I’ve just put my casserole in the oven’ to ‘I’ve somehow just got on a plane.’ – but by the end of the month no excuse will shock you.

You’ll realise memorising a tea round for 10 people will never be something you can master

Recruiters love their tea and coffee, in your first week in recruitment it is wise to step up and get involved in making the round, it’s a sure-fire way to make friends. Don’t worry if you put 2 sugars in Tom’s coffee when he actually asked for tea no sugars – this is a mistake that you’ll probably keep making. Remembering a tea round for 10 thirsty recruiters is a skill that takes years to master.

Your confidence will grow at rapid speed

Starting any job out of uni can be a nerve-racking experience, you’re out of that student bubble and in to the working world, learning a ton of new skills. Chuck yourself in the deep end, get stuck in and don’t be afraid to ask for help when you need and by the end of the month you will be calling candidates and filling jobs with confidence.

That CRM that frazzled your mind 4 weeks ago? Now you’re a pro

Your first week of recruitment will feature many stresses around your company’s chosen CRM. With the right training and using it the right way, by the end of the week it will soon become your recruiting best friend!

You’ll settle in super quickly – fellow recruiters are mostly a friendly bunch!

When it comes to making friends, us recruiters know how to make you feel welcome. Within no time you’ll feel at ease and be right in the middle of the office banter.

Have you survived your first month in recruitment? Is there anything else we should add to the list?

If you’re looking to get into recruitment we have many exciting opportunities for graduates and trainee recruitment consultants – view our current vacancies or give us a call on 01489 774 010 for an informal chat.

Hinkley Pont C: strike averted as bonus talks continue

Good news for Hinkley Point C as the threat of industrial action by workers has been averted due to an interim pay deal.

It has been agreed that construction workers on the £18bn Hinkley Point power station site will receive temporary bonus payments of up to £4 an hour while wage talks continue.

Working supervisors and craft grades will get an extra £4 an hour, skilled worker grades £3 per hour while general workers will receive an extra £2 an hour. The interim payments were agreed by representatives of EDF Energy, BYLOR, the Kier-Bam join venture and Unite the union.

Unite officer, Jerry Swain, said the interim agreement was “crucial” in providing a “breathing space” and “creating the opportunity for a long-term solution”.

“I am pleased that following consultation with our stewards and members that we have been able to agree a clear path forward,” he said.

“And that the prospect of industrial action, which is always a last resort, can be taken off the agenda in order to allow the panel to deliberate.”

All parties involved have agreed to take part in a collective differences panel that will seek to identify an agreeable long term settlement of the bonus issue. As part of the agreement, interim bonus payments will apply until the end of August.

The positive news for Hinkley Point C is that no industrial action will be considered while these interim arrangements are in place, or until the collective differences procedure has been exhausted.

If you are interested in working on Hinkley Point C and want to see what positions we have available head over to our dedicated HPC page to find out more about the project and view the latest roles.

Highfield are a Certified Carbon Neutral Business