Market Reports

Market Activity Report – December 2015

22.12.15

The ONS have released their Output in the Construction Industry October 2015 and new orders Q3 2015 figures. Output increased by 0.2% in October compared to September 2015, with all new work increasing by 1.2% and repair and maintenance decreasing by 1.5%. New orders were estimated to have increased by 0.8% compared with Q2 2015, but showed no growth when compared with Q3 2014.

Commenting on the latest ONS figures, the Construction Products Association say that the figures clearly highlight contrasting fortunes, with a rise in private housing of 2.3% in October and a sharp fall for public housing. The latest CPA construction forecasts expect total construction output to rise 3.6% in 2015 and 3.8% in 2016. This reflects a downward revision since the summer forecasts due to a slowdown in housing and commercial activity in Q3 2015. 

The government published a joint Spending Review and Autumn Statement at the end of last month, with some important points for the construction industry. The government’s plans for housing now include a total of 400,000 new ‘affordable’ homes by 2020, with support for starter homes and shared ownership schemes. Further information has been provided on plans to introduce an Apprenticeship Levy from April 2017, to help fund the creation of 3 million new apprenticeships by 2020. A storify of reactions to the spending review and autumn statement has been created by BIS.

The latest quarterly breakdowns of cumulative sales under the Help to Buy (equity loan) scheme have been released. These figures show that to 30 September 2015 62,569 properties were bought via the scheme. 81% of these sales were to first-time buyers, with an average purchase price of £217,999.

The Markit/CIPS UK Construction PMI registered 55.3 in November, down from 58.8 in October but still well above the neutral value of 50.0. This showed the slowest expansion of business activity for seven months, with output growth at its weakest since mid-2013, except for the pre-election slowdown seen in April this year.

The Nationwide House Price Index reports that in November 2015 house prices increased by 0.1%, with annual house price growth slowing to 3.7% in November 2015 down from 3.9% in October 2015. The Halifax House Price Index reports that in November 2015 house prices decreased by 0.2%, and house prices in the last 3 months (September – November) were 1.4% higher than the preceding 3 months.

The 2015 London Commercial Market Contractors Survey by Aecom, shows that leading contractors are concerned about London’s house price boom beginning to slow and are starting to move away from residential schemes. The survey also found that contractors are being more selective and opting for more low-risk projects due to a continued rise in cost inflation.

-ENDS-

Notes:

This report has been compiled by Michael Prince, Market Analyst at Competitive Advantage Consultancy Ltd. Joining Competitive Advantage Consultancy in 2012 as a graduate in economics from Kingston University, Michael’s role as Research Analyst involves data analysis, business and market forecasting, researching and writing reports; Michael also co-ordinates Competitive Advantage’s programme of webinars. Since joining, he has developed their online information gathering options, allowing them to offer cost effective methods of information gathering. He is also responsible for maintaining their personalised client forecasting models.

For more information about Competitive Advantage Consultancy Ltd please visit www.cadvantage.co.uk

 


 

MARKET ACTIVITY REPORT – NOVEMBER 2015

23.11.15 

The ONS have released their Output in the Construction Industry September and Q3 2015 figures, showing that in Q3 2015, output was estimated to have decreased by 2.2% compared with Q2 2015 and between Q3 2015 and Q3 2014 estimated output decreased by 0.1%. In September 2015 estimated construction output decreased by 0.2% compared with August 2015 due to a fall in all new work of 2.4%, offset by an increase in repair and maintenance of 3.8%.

The Markit/CIPS UK Construction PMI registered 58.8 in October, down from 59.9 in September. This is still well above the neutral value of 50.0, marking two-and-a-half years of sustained output growth across UK construction, helped, in contrast to ONS figures, by the fastest rise in new work for 12 months. However, the pace of growth remains weaker than seen on average in 2014, but the latest result is still above the pre-election low of 54.2 seen in April 2015.

Commenting on the latest ONS figures, the Construction Products Association say that although construction output has fallen in Q3 2015, medium term prospects still remain bright, this fall in output is the first annual fall since Q1 2013, and skill shortages have been a key issue recently hindering construction growth.

Global Construction Perspectives have published their report Global Construction 2030. The report predicts that the UK construction market will become the world’s 6th largest by 2030, but to do so $6.2 trillion needs to be spent on UK construction over the next 15 years.  Worldwide output is predicted to increase by 85% into 2030, driven by growth in China, India and the US. 

Reinforcing the often stated view that London construction is separate from the remainder of the UK, Deloitte have published a report Supporting Development, Enabling Growth which shows that in 2013 there were 11 central London boroughs which contributed 7% of total UK construction.

Savills have released their latest Total Commercial Activity Index. The research shows that on balance 12% of commercial developers reported growth in September 2015 compared to August 2015, which points towards commercial activity growth picking up.

The Key Note Market Report which evaluates the housebuilding industry in the UK over a 5-year review period between 2010 and 2014 has been released. Total value of new housing output in Great Britain grew by 30.4% in the review period showing that recovery in UK housebuilding is now underway.

The Nationwide House Price Index reports that in October 2015 house prices increased by 0.6%, with annual house price growth increasing to 3.9% in October 2015 up from 3.8% in September 2015. The Halifax House Price Index reports that in October 2015 house prices increased by 1.1%, and house prices in the last 3 months (August – October) were 2.8% higher than the preceding 3 months.

With the government’s spending review this month, the chancellor has committed £100 billion in infrastructure spending by 2020, which includes launching the National Infrastructure Commission and full funding for the £15 billion Roads Investment Strategy. The review is also to include nine new prisons across England and Wales to replace outdated Victorian jails, which will be sold off to free up space for around 3,000 homes and raise funds to pay for the building programme.

Skanska UK have reported Good performance and a strong order book by recording an operating profit of £24.8m in the first 9 months of 2015, and £1.299.5m of orders being booked in the same period.

Atkins UK have released their financial results for the 6 months to 30th September 2015 which shows that they have delivered good results. They report operating profit to have increased 11.3% from 53.0m in 2014 to £59.0m in 2015, and that revenue for the 6 months rose by 8.8% to £904.6m.

- ENDS -

Notes:

This report has been compiled by Michael Prince, Market Analyst at Competitive Advantage Consultancy Ltd. Joining Competitive Advantage Consultancy in 2012 as a graduate in economics from Kingston University, Michael’s role as Research Analyst involves data analysis, business and market forecasting, researching and writing reports; Michael also co-ordinates Competitive Advantage’s programme of webinars. Since joining, he has developed their online information gathering options, allowing them to offer cost effective methods of information gathering. He is also responsible for maintaining their personalised client forecasting models.

For more information about Competitive Advantage Consultancy Ltd please visit www.cadvantage.co.uk

 


 

 

NEW RESEARCH INDICATES CONSTRUCTION PRODUCT MANUFACTURERS NEED TO DO MORE TO MEET THE NEEDS OF ARCHITECTS DESIGNING WITH BIM

10.11.15

Recent research, Adoption of BIM by Architects 2015 reflects the views of 100 leading architects, gathered during September 2015 by Competitive Advantage Consultancy Ltd. The research explores how architects are using BIM, the software they use and what they expect from manufacturers. One of the findings demonstrates:

  • Only 37% of respondents could name a manufacturer that they consider provides good content and support to users of BIM

With the government’s deadline for implementation now only 6 months away it is important for manufacturers to have a clear BIM strategy. The research Adoption of BIM by Architects 2015 aims to inform BIM strategy for construction product manufacturers, so that they can invest effectively to provide leading technical support and engage with architects.

Takeaways from the report Adoption of BIM by Architects 2015 include:

  • 70% of leading architectural practices will be using BIM by 2019 for all projects
  • Almost half of architects say they do not require BIM for all products
  • 34% consider that when BIM is used a Contractor is more likely to stay with the specification.
  • The majority of respondents first look on the manufacturers’ website for BIM objects. Yet BIM hosting sites are the preferred location for sourcing BIM objects

“As the industry is still learning to use BIM it is difficult for the manufacturer to know what support they should provide. It is to be hoped that BIM will enable greater collaboration between manufacturer and the design team at an earlier stage in the design process. Our research provides insight into the level of BIM adoption, software used and preferences for BIM content by leading architects. It also provides detail of those manufacturers that are perceived to provide good BIM support. This is valuable information for those seeking opportunity through BIM. ”

Chris Ashworth, Managing Director, Competitive Advantage Consultancy Ltd

 

More about the Adoption BIM by Architects 2015 research:

Competitive Advantage Consultancy Ltd researched 100 leading architects practices during September 2015, to provide answers and insight to:

- The adoption and use of BIM by architects 
- Software preferences and content required by architects 
- The stage of design when the change is made from placeholder to manufacturer data 
- Content and support required from manufacturers 
- Where to host BIM objects 
Alongside the report a listing of the architects’ practices interviewed, detailing their level of BIM adoption, software used and preferences for BIM content is provided.

 

The report costs just £350 + VAT and is available to purchase online at:.

http://cadvantage-knowledge.co.uk/shop/adoption-of-bim-by-architects-2015/

www.cadvantage-knowlege.co.uk