In the following section, you will learn more about how the double-digit inflation rate contributes to the construction industry’s failure. Construction industry professionals from the United Kingdom attended a free lunch and educational event that was hosted by the software business FlowForma. In addition, we will look at how the company Hiab has collaborated with five businesses from the United Kingdom to create the next generation of drawbar vehicles to offload building materials by crane. The statistics provided by the Health and Safety Executive demonstrate how hazardous the building industry in the United Kingdom is.
Why are all building businesses failing? Figure illustrates construction costs rising DOUBLE the rate of inflation
Home construction expenses are doubling as building companies fail.
Residential building costs rose 10% in the year to June 2022 as timber and metal prices soared, the Cordell Construction Cost Index found.
It was nearly double the 5.1% inflation rate, the fastest since 2001.
New South Wales building expenses rose 10.1% in the last fiscal year.
In Australia’s most populous state, this was the biggest building cost increase since 2000.
Before the pandemic in 2018-19, a new Australian home cost $320,200, ABS data shows.
In May, the average cost of building a new house in Australia was $435,374 based on the 9,687 homes approved for development.
CoreLogic’s construction cost estimating manager John Bennett said Australians will wait longer for a new home.
A scarcity of labor and materials delays completion, leaving builders subject to market swings and holding costs.
Bushfires till 2020 have decreased timber supplies, boosting building expenses.
‘Prices for timber products are still rising faster than typical,’ the Cordell report noted.
Structural steel, reinforcing, fastening, and fencing are also pricey.
High gas prices, exceeding $2 a litre, and labor shortages (unemployment at a 48-year low of 3.9%) are also adding to building expenses.
Rising gasoline, freight, and electricity prices are cited as problems by suppliers, according to the Cordell research.
In the residential construction sector, worker availability and overheads affect costs.
The availability of labor influences build delays, leaving builders vulnerable to market swings and holding costs.
Construction companies have gone bankrupt due to supply chain issues, notably Probuild in February.
The building giant’s South African parent company WBHO warned the Johannesburg Stock Exchange it couldn’t profitably build apartment complexes because of Australia’s Covid border controls and lockdowns.
Probuild wasn’t the only company to go bankrupt; Wulfrun Construction, Western Point Construction, Condev, Hotondo Homes in Hobart, Pivotal Homes, and Solido Builders also did.
Flowforma to hold free lunch-and-learn at The Ivy
Original Source: Flowforma to host free lunch and learn event at The Ivy
Construction experts in the UK can attend a free lunch and learn hosted by industry software company FlowForma.
The interactive lunch-and-learn event at The Ivy in London on July 21, 2022 will focus on how construction companies are generating value with process automation.
Process automation in construction improves production rates, delivery times, health and safety, and project overheads.
Real-life examples of how UK and worldwide construction organizations digitized their business processes to improve productivity, project delivery, and reporting will be shared. Attendees will learn how to apply the same procedures to drive digital transformation in their own businesses.
The event hosts are FlowForma’s Paul Stone, Product Strategist, and Shay O’Connor, Head of Solutions.
- Market intelligence on building process automation
- Share processing challenges and obtain professional feedback.
- Learn why agile automation is the new normal in business.
- Digitize fast with no-code process automation
- This lunch and learn has limited spots, so book early to ensure your spot among construction leaders in the UK.
UK-first reveal of next-generation 28t construction trucks
Hiab has partnered up with five UK enterprises to develop the next generation of drawbar vehicles for crane offload of building items. Two prototypes are presently in operation at H&H Celcon Borough Green plant.
National transport provider RT Keedwell Group and its long-term client H & H Celcon wanted to lessen the environmental impact of its trucks inside the M25.
Working with Massey Truck Engineering, who managed the project, the firm engaged specialist help in each area, including multinational truck manufacturer Renault Trucks and local dealer Renault Truck Commercials, and world leading producer of on-road handling equipment, Hiab.
“Borough GREEN” trucks combine a Renault Trucks C380 62 lift axle rigid drawbar combination with a lighter-weight day cab for this payload-sensitive sector. Additional weight reduction adjustments at the bodybuilder, including the elimination of the passenger seat, achieved a 28t payload in a construction brick truck employing a 26t drawbar combination for the first time.
RT Keedwell Group’s Stuart Keedwell said:
“We set out in 2019 to design the next generation of drawbar cars utilizing the brightest minds in the business. Three years of study, development, and collaborative creativity have resulted in two exclusive trucks on London’s roads.
The lightweight chassis and unique design of these vehicles make them more efficient and profitable by allowing customers to carry more cargo. We’re pleased so far and look forward to tracking performance in the future months.
Hiab’s remote-controlled X-Hiduo 158B-2 loader cranes were chosen for their speed and revolutionary Hiab HiConnect technology, which delivers real-time equipment usage, operating, and condition data.
HiConnect delivers data to actively optimize performance and safety and reduce unnecessary downtime. Web-based dashboards with clear and simple overviews provide status monitoring, service planning, and help improve the operation of each unit and operator.
John Abbott from Hiab says:
“At Hiab, we build and future-proof our solutions to satisfy our clients’ present and future demands, so to be involved in such a forward-thinking initiative has been a true privilege.”
Massey explored ways to make the vehicle as low emission as possible, including using hydrotreated vegetable oil (HVO) as fuel for the Renault Trucks efficient 13 litre DTi Euro VI engine, decreasing carbon emissions by more than 90%.
Ian Roberts, Massey Truck Engineering MD, said:
“It’s been a tremendous road to get to where we are with the Borough GREEN machines — Hiab and Renault Trucks are great partners owing to their desire for innovation.”
RT Keedwell teamed with Traffic Angel to build a unique drawbar camera system that gives the driver a 360-degree vision while driving. Cameras on the wagon and main unit offer a split-screen view as needed. The system boosts Keedwell’s focus on pedestrian and on-site safety.
“These vehicles are one-of-a-kind, with a 28t payload and 26t drawbar combo. There is nothing like them in the UK.”
The vehicle’s weight reduction, when considering all of the unique upgrades, gives it a significant increase in load carrying capability over the current norm and a reduction in delivery cost, which was utilized to offset the increased HVO cost.
We’re happy with what’s been created, and on behalf of RT Keedwell Group and H & H, we’d like to thank Massey Truck Engineering, Renault Trucks, Renault Truck Commercial, Hiab, and Traffic Angel for their efforts and ideas.
New findings indicate construction is UK’s deadliest business
Original Source: Construction is UK’s deadliest industry, new figures show
Health and Safety Executive data shows 30 of the 123 work-related deaths in 2021/2022 happened in the industry.
The data cover April 2021 to March 2022, when pandemic restrictions were relaxed and the economy returned to normal.
Sarah Albon, HSE chief executive, said, “While Great Britain is one of the safest countries to work, [the] results show we must continue to ensure safety remains a priority.”
Every loss of life is a tragedy, and we’re committed to making workplaces safer and holding employers accountable as part of our mission to protect people and places.
Agriculture, forestry, and fishing, as well as manufacturing, each contributed to 22 deaths.
The three most prevalent causes of mortality across all sectors are falling from height (29), being struck by a moving vehicle (23) and being struck by a moving object (18).
The HSE also issued annual asbestos-related death figures. In 2020, 2,544 persons died from mesothelioma, a cancer associated with exposure to a fibrous material used as insulation. This was in line with prior years.
According to the HSE, current deaths from cancer reflect exposure from decades ago, and annual deaths are likely to reduce in the next decade.
Summary of today’s construction news
Today, you’ve learned more about how much the cost of building a home has risen as building companies go out of business. The Cordell Construction Cost Index reported that residential building costs grew 10% in the year to June 2022 as timber and metal prices rose. The cost of structural steel, strengthening, fastening, and fencing, which includes high gas prices, freight costs, and energy costs, is also expensive. In addition, a lack of labor and resources slows completion, exposing builders to market fluctuations and holding costs.
On the other hand, the interactive lunch-and-learn event at The Ivy in London on July 21, 2022 will focus on how construction companies generate value through process automation. The use of process automation in construction enhances productivity, delivery timelines, health and safety, and project costs. The event is hosted by the world’s leading process automation specialist, Paul Stone, the Product Strategist, and Shay O’Connor, the Head of Solution.
RT Keedwell Group collaborated with the five UK companies to develop a new generation of 28-ton construction trucks, which have a lower environmental impact than their predecessors. Because they are satisfied with the outcome, they refer to it as one-of-a-kind.
30 of the 123 work-related deaths in 2021/22 occurred in the construction industry, as you have discovered above, according to Health and Safety Executive data. Falling from height (29), being struck by a moving vehicle (23), and being struck by a moving object (10) are the three most common causes of death in all sectors (18). In 2020, 2,544 people died from mesothelioma, a cancer linked to exposure to a fibrous material used as insulation. This was in line with previous years. Agriculture, forestry, fishing, and manufacturing all contribute to the death toll, with a combined total of 22 deaths in these sectors alone.