In this article, we are going to learn more about the construction business in the United Kingdom, which has been doing poorly for some months due to the rise in the cost of construction, which has slowed the expansion of buildings. Each year, SeAH intends to build between 100 and 150 monopiles. At Redcar’s Teesworks, they are in the process of constructing a brand new factory called the Offshore Wind Monopile Factory. The Brymor Group has been saved from administration by a Hampshire-based investor, which has acquired the company. The major businesses owned by brothers from west Cork who emigrated to the United Kingdom in order to build a construction empire have been sold in transactions estimated to be worth 510 million euros.
As construction costs rise, UK housebuilding slows.
The UK’s construction industry saw its poorest performance in nine months in June, according to the latest PMI survey. Residential housebuilding activity dropped for the first time in two years.
The S&P Global/CIPS UK Construction Purchasing Managers’ Index (PMI), which measures month-on-month changes in total industry activity, noted that commercial work was also affected as businesses cut spending.
The UK construction PMI fell to 52.6 in June from 56.4 in May, the slowest growth since September 2021. Above 50 means growth.
The bleak UK corporate environment and worsening consumer demand from the cost of living issue slowed building growth in June, said S&P Global Market Intelligence’s Tim Moore.
In the pandemic years, the construction sector held up well compared to other sectors, with PMI scores reaching the 60s in 2021.
Due to the economic slump, boosting new business is uncertain. Inflationary pressures, supply chain interruptions, and labor and material shortages could hinder sector growth.
According to the ONS, construction has the most bankruptcies in the UK. In April alone, 400 SMEs went bankrupt, up over 50% from January 2020, before the outbreak.
Fix Radio, the UK’s only national radio station for builders and the trades, anticipates that building growth will slow and eventually stop.
According to their research, the construction sector’s slowdown might weigh heavily on new entrants who are trying to stay afloat, with 40% of young sole traders stating their business is about to fail.
Fix Radio found this is largely because they lack entrepreneurial mentorship and direction; 27% want to scale their business but lack the skills and resources to do so.
35% of young tradesmen say they are experiencing the worst stress and anxiety of their lives, highlighting the need to increase support for younger employees and business owners.
“The UK construction sector is experiencing a huge skills gap,” stated Fix Radio host Clive Holland. “Experienced craftsmen deserted the field in droves during the epidemic, and efforts to recruit young people are failing.”
“According to government estimates, the number of young people undertaking apprenticeships plummeted by over 10% last year, while the Construction Products Association estimated that over 220,000 workers departed the industry since summer 2019. The lack of expertise will raise building costs; wages rose 6% last year.
“The construction sector ignores this problem. Construction enterprises and trade associations must engage with the education sector and government agencies to achieve agreed goals.
UK’s Offshore Wind Monopile Factory Construction Begins
Original Source: Construction Starts on Mammoth Offshore Wind Monopile Factory in UK
SeAH, a subsidiary of South Korean pipe producer SeAH Steel Holdings, is building the new facility at Redcar’s Teesworks. It will construct 100 to 150 monopiles per year.
The monopiles will be shipped from the facility to Teesworks’ under-construction South Bank Quay before being installed in the North Sea.
The new GBP 400 million offshore wind plant on Teesside will produce 750 direct employment and 1,500 indirect jobs in the supply chain during development, according to SeAH.
SeAH Wind says this is the first private-sector-funded project at a UK Freeport.
SeAH Wind gained planning authority for the UK XXL monopile factory this month and announced building would begin in July.
The corporation planned to build the factory at Able Marine Energy Park (AMEP) on the South Bank of the Humber, but switched to Teesworks this year. Unknown.
The 40-metre high, 800-metre long skyscraper, part of Teesside’s Freeport, would lie on a 90-acre site and offer 1.13 million square feet of factory space for producing monopiles up to 120 metres long, 15.5 metres in diameter, and 3,000 tonnes.
The factory will have a 93,324-square-meter main monopile manufacturing building, a 3,873-square-meter administration office, a repair station, a paint facility, site-specific power stations, and staff welfare facilities designed by Ashton Smith Associates.
“Today is a historic day. Since 2017, we’ve struggled to secure all of Teesworks’ land and get it remediated and investor-ready. Mayor Ben Houchen welcomed SeAH Steel Holdings President & CEO Joosung Lee and Business Secretary Kwasi Kwarteng MP to Teesworks to mark construction.
“With SeAH’s new facility sitting on our doorstep, it’s a fantastic opportunity to reflect on Teesside’s success. Six years ago, this location seemed doomed; now it’s at the centre of a new industrial revolution. A cleaner revolution bringing thousands of well-paid, high-quality employment to Teesside, said Redcar MP Jacob Young.
“As I’ve indicated, this green manufacturing facility meets our aspirations for Teesworks,”
Investors safeguard the future of Brymor Group
Original Source: Investor secures future for Brymor Group
Portchester Equity rescued Brymor Group from administration.
Brymor, one of the UK’s largest independent construction enterprises, blamed cashflow troubles on the COVID-19 outbreak.
Portchester Equity bought the Brymor Group, including Brymor Construction Limited, on Friday.
Portchester Equity came in when pandemic cashflow concerns caused the group to appoint administrators.
Stephen Morton and his wife Jan founded Brymor in 1987. Its annual revenue is £75m.
This year, the firm was hired to develop a state-of-the-art gym at Southampton FC’s Staplewood training base.
Recent major projects include the £27m Horizon Cruise Terminal at Southampton Port and the £11.1m Montefiore Halls of Residence redevelopment.
Brymor Group made £625,000 before taxes in the year ending 31 March 2020. Brymor Construction lost £166,000 before tax on £66.1m in revenue.
Morton said in the business’s annual report that Brymor had a “difficult year” that affected operational and financial performance. Extra costs and uncertain market circumstances due to COVID-19 forced the company to take a cautious approach to work in progress.
Postponing a big contract and refusing “onerous” requirements on another increased its reliance on residential and government or local authority-led projects, which have lower profits, he said.
Construction News asked Brymor about the acquisition’s impact on current staff.
Mark Thistlethwayte owns Portchester Equity and Welborne Land Limited, the Welborne Garden Village developer north of Fareham.
It invests between £3m and £10m in profitable UK firms.
Most crucial is selecting management teams with whom to cooperate long-term, it stated.
Brothers from West Cork sell UK construction empire for €500m
Two brothers from West Cork who relocated to the UK to create a construction empire have sold their primary firms in agreements worth an estimated €510 million.
Tim and Tom O’Connor have never courted the limelight, even though they have regularly appeared on the Sunday Times Rich List for Ireland. They founded O’Connor Utilities in 1994, consolidating and growing a huge construction and services operation specializing in work for major utilities in the north of England, including electricity, gas, water, and telecoms.
The brothers, now in their 60s, worked hard to develop a company that currently employs over 3,000 personnel and contractors across the UK and earned about £300 million in the financial year to April 2022.
The O’Connor brothers have maintained strong links with Cork. In October 2017, when electricity and other utilities across Cork were badly damaged by record winds of up to 156km/h, O’Connor Utilities sent overhead line repair teams by road and ferry from the North of England to Cork to help repair power lines and restore services.
Their OCU Group has been bought by UK private equity firm Triton Partners for slightly under £400m. The brothers reportedly sold other smaller enterprises in other deals to boost cash.
Tim and Tom O’Connor, founders of OCU, said, “It is a sad moment as we say farewell to many friends among our colleagues, customers, and suppliers, without whom the business would not have achieved the success it has.”
“However, we leave behind an amazing management team that, with Triton Partners’ support and CEO Michael Hughes’ leadership, will ensure more good times ahead for the business. We wish you future success. “
The brothers have reportedly set their sights on a peaceful existence, which could see them spend more time in West Cork.
Summary of today’s construction news
Overall, we have discussed that there was a decline in residential construction for the first time in the previous two years. For months, the UK construction industry has been struggling due to rising construction prices, which have slowed the building pace.
SeAH Wind is constructing the Offshore Wind Monopile Factory in Redcar’s Teesworks. Also, according to SeAH, the new GBP 400 million offshore wind facility on Teesside would create 750 direct jobs and 1,500 indirect jobs in the supply chain throughout development.
Brymor Group has been acquired by Hampshire-based investor Portchester Equity, saving it from going into administration. One of the biggest independent construction firms in the UK, Brymor, announced this month that it intended to hire administrators and cited COVID-19 pandemic cash flow issues as the cause of its difficulties.
O’Connor brothers Tim and Tom migrated to the UK to build a building empire and sold their major enterprises for an estimated €510 million. They formed O’Connor Utilities, a construction, and services company, in 1994, merging and expanding an enormous construction and services operation focusing on work for major utilities in the north of England including electricity, gas, water, and telecoms.