In today’s news, we will look into how, in order to get Britain constructing, Starmer needs to reject the Nimby-bashing that Labour is doing. At the same time, the UK’s efforts to improve energy efficiency are being threatened by a shortage of “green collar” construction workers and by rising wages. APS also strongly recommends that the government of the United Kingdom make the training of skilled construction workers a top priority. In addition, the building supplies company SIG has reduced its earnings forecast in response to the slowdown in construction activities.
To Reconstruct Britain, Starmer Must Reject Labour’s Nimby-bashing
Original Source: Starmer must reject Labour’s Nimby-bashing to get Britain building
The world’s slowest clock is in Lier, Belgium, where one dial revolution takes 25,800 years. Just what we need to measure British infrastructure construction speed. Why can’t we if the Victorians and others can?
One factor is rarely acknowledged. The majority of our people are crammed into a four-sided shape between Liverpool, York, Dover, and Bristol. It is five times denser than Spain or France, with 44 million people, or 80% of the English population, living and working here.
Land and natural beauty are valuable, thus people will strive to preserve them. Density has raised property prices and made consent harder than in other countries. Even grudging consent frays with more individuals. Policy should begin with this reality.
There’s more red tape and impediments than ever. The 2011 Localism Act promised to give people authority. The then-Department for Communities and Local Government stated: “Trying to improve people’s lives by imposing decisions, setting targets and demanding Whitehall inspections simply doesn’t work. It is bureaucratized.” How was it?
We gained bureaucracy. Whitehall lost control, but “The Blob” took over. An amateur police force of activists, quangos, and NGOs with lawyers wields actual power. Any official or agency that approves development risks lawsuits. Before Blair, court reviews were unusual. The 1975 applicant count was 160. In 2011, 11,200 existed. Blocking is a basic NGO tool.
The government failed to exclude houses from Europe’s nutritional neutrality criteria, which the Home Builders Federation claimed prohibited 145,000 new dwellings. The House of Lords rejected the plan due to our waterways’ poor condition. Why are rivers dying? Obviously, another failure. Despite population growth, water providers neglected to improve infrastructure.
One you may not know. Mobile UK reported this week that London lost 7% of its mobile network sites in a year. Under Notices to Quit (NTQs), mast locations are removed but not replaced.
However, your signal is poor, not that 7pc of London has become not-spots. A quarter of planning officers left between 2013 and 2023, according to the Royal Town Planning Institute. They don’t want to ruin your day.
However, supply-siders who could be productive have retreated into fury. Nimby (not in my backyard) has become a catchall term, like Trotskyists denouncing “capitalism” for everything. That’s like whining about damp water on a busy island.
Demand, not supply, drives high rents and home prices, so voters see supply-side wheezes as gas-lighting. Daniel Johnson coined the term “human quantitative easing” in The Telegraph to characterise increased immigration to fill low-wage positions without considering the long-term impact.
Migration Watch believes that 15–18 Birmingham-sized cities must be constructed by 2046. That won’t happen. Why should communities endure inferior amenities and services when the state negligently lost control over its borders? The Liz Truss government collapse eroded supply-side reform trust.
Smart wonks should leave housing to better campaigners and focus on national infrastructure and economic growth. Would Labour help?
The Labour manifesto’s 300 planning officer proposal is absurd. Labour may be less concerned about the green belt, and new settlements are politically more appealing than sprawl.
Supporting the subsidy-sucking renewable lobby requires downgrading much of the infrastructure it demands. The Infrastructure Commission head, Sir John Armitt, has completely integrated into Whitehall. He supports the subtractive logic of net zero, shutting down the gas network and erecting many additional pylons to connect idle wind farms.
This isn’t his job. In actuality, the new government will be as restricted as the old.
The bottom line is energy, which is impeding more progress than an army of Nimbys. The Greater London Authority advised developers that the electricity system was full and could not build new houses west of London until 2035. Data centres along M4 had all the power.
Starmer, the patron saint of lawfare, is an expert at creating legal loopholes and traps for NGOs.
Though his heart urges “build”, his intellect says “judicial review”. Though he wants to build, his career has been spent finding ways to halt it.
Rising Salaries and Lack of ‘green Collar’ Construction Workers Imperil UK Energy Efficiency
Original Source: Lack of ‘green collar’ construction workers and spiralling wages threatens UK energy efficiency drive
Lack of competent ‘green collar’ construction workers threatens UK decarbonisation goals and drives up yearly salary to around *£134,000 (US$168,000).
London insulation professionals and solar and heat pump installers earn £70 (US$88) per hour, up 22% in a year.
These skills, which are critical to the energy transition, are paid 2.5 times more than normal construction labourers in the capital, who earn £28 (US$35) per hour.
As workforce costs reach record highs, Turner & Townsend, a worldwide professional services organisation, reports a scarcity of skilled construction workers in all UK areas.
The company’s International construction market survey (ICMS) 2024 research shows rising expenses for green contractors. Despite working outside London, these specialists earn £47 (US$59) per hour, twice the rate of normal labourers.
Low construction worker supply and rising pay inflation jeopardise the UK’s net-zero aim. All nine UK regions reported skills shortages, and 78% said this lack is already affecting programmes ‘major’ or ‘large’.
Low-carbon development is not immune to labour cost increases and skills shortages. Average UK construction wages rose 13% from £36 (US$44) per hour in 2023 to £42 (US$50) in 2024.
London is the 10th most costly building market worldwide, up from 14th in 2023. Average capital building prices rose to £3,503 (US$4,473) per m2 from £3,024 (US$3,862) in 2023.
Despite high labour costs and salary inflation for some trades, UK construction inflation is declining year-on-year, with the research forecasting 3.0% in 2024, down from 4.2% in 2023.
This projection will cheer the sector, which has been hit by the COVID-19 pandemic and energy price shocks.
Turner & Townsend UK real estate managing director Chris Sargent said:
We’re seeing the growth of UK green specialists. Our outdated and inefficient building stock makes construction essential to attaining our net-zero targets and modernising our homes, offices and public buildings. Without workers, this is impossible. For the green transformation, the sector requires hundreds of thousands of new skilled personnel.
The role may appeal to many and attract these needed abilities with high remuneration. But green construction cannot afford to be priced separately from typical work. We must invest today in establishing and educating a pipeline of talented personnel and employ innovative digital tools to increase productivity and outcomes to make net zero realistic and cheap.
ICMS evaluated 91 global markets, including nine UK regions: London, Manchester, Bristol, Leeds, Edinburgh, Birmingham, Glasgow, Newcastle, and Belfast.
The US continues to lead the world in building costs, with six cities in the top ten. New York is the most costly market to develop at £4,536 (US$5,723) per m2.
The report examines supply chain disruption and geopolitical tensions’ effects on nearshoring. Manufacturing investment is rising, especially in emerging markets like Malaysia, Indonesia, Nigeria, Brazil, and Mexico. Labour shortages continue to drive inflation in all but three of the 91 markets surveyed.
APS Encourages the UK Government to Promote Construction Worker Training
Original Source: APS urges UK Government to prioritise development of skilled construction workers
Before the UK General Election, the Association for Project Safety released its Micro Manifesto, urging the next government to train qualified construction workers.
In its Micro Manifesto, APS proposes five changes to the construction industry’s safety relationship with the government.
The group wants to cooperate with the next government to help the construction industry address issues including skilled worker shortages.
These five questions are examined below.
1. Construction worker skill development
There is a shortage of competent labour to satisfy all major party manifesto housing targets. Both Tory and Labour pledges show this deficiency.
A qualified workforce is needed to securely build 1.5+ million homes over five years.
To address this issue, the APS recommends extensive training and meaningful apprenticeships to produce a qualified workforce.
Training institutes and schools should receive funds coupled with production targets.
2. Selected and planned immigration
Current domestic workforce is insufficient to accomplish crucial housing requirements in the short term, said APS members.
Thus, skilled construction workers from overseas should be recruited through a planned and targeted immigration programme.
This five-year strategy is similar to the Australian model.
The APS advises fast-tracking visas for qualified immigrants with building experience under a new process.
3. Long-term construction workforce development
For skilled construction workers, many UK training programmes are insufficient.
Apprenticeship programmes must be improved and expanded to ensure a skilled workforce for future projects.
APS suggests the government work with industry leaders and educational institutions to create effective programmes for contemporary construction approaches.
4. Planning with environmental protection
The projected fast-track planning on brownfield areas and abandonment of nutrient neutrality are further APS issues.
To prevent pollution, all building projects must follow strict environmental protection requirements.
Every new construction project should undergo rigorous environmental impact studies. Some municipal governments have done this, but with government support, it may be scaled up.
5. Building retrofits
Retrofitting to meet modern housing needs is overlooked in favour of new developments.
A realistic retrofit strategy to increase building energy efficiency is needed to advance retrofitting.
The APS wants the government to subsidise retrofit incentives for homeowners and businesses.
The incoming administration should train construction workers.
APS urges the next UK government to improve domestic training and introduce selective immigration (visa) incentives to build a skilled workforce.
Sustainable growth requires balancing new housing with environmental regulations and retrofitting.
Building Materials Company SIG Reduces Earnings Estimate Amid Building Slowdown
Original Source: Building supplies firm SIG cuts profit outlook amid lull in construction work
Following the bleak investor update, the London-listed company’s share price fell by over 10% on Monday morning.
Building materials company SIG downgraded its earnings forecast for the year due to sluggish European building demand.
Following the disappointing investor report, the London-listed company’s share price fell by over 10% on Monday morning.
It reported a 7% drop in sales in May and June compared to the same time last year.
This performance, along with the expectation that conditions may not improve over the second half of the year, means the firm forecasts an underlying annual profit of £20 million to £30 million.
Analysts predicted £43 million annual earnings.
SIG distributes insulation, flooring, roofing, and equipment internationally from Sheffield.
It blamed a wider drop in building and construction work, particularly in France and Germany.
It also reported a decrease in its UK interiors sector, but increased demand in Poland, Ireland, and UK exteriors.
For slowing sales, SIG trimmed expenses and modernised portions of the business.
The company had reported spending £9 million on personnel redundancies and warehouse closures last year.
SIG anticipates its second-half financial performance to improve as it benefits from cost-saving and productivity efforts.
However, it warned of weak European market circumstances and demand improvement.
Summary of today’s construction news
Overall, we discussed that people will make every effort to protect land and natural areas because of their monetary value. Compared to other nations, density has increased property costs and made consent more difficult to get. With more people involved, even reluctant consent becomes tangled. This reality should be the starting point for policy. More obstacles and bureaucracy are in the way than before. The promise of delegated power was made in the Localism Act of 2011. Making decisions, establishing goals, and requiring inspections from Whitehall to improve people’s lives just doesn’t work, according to the former Department for Communities and Local Government. Bureaucratization is the word. Is that all? At the same time as the shortage of qualified “green collar” construction workers is driving up annual salaries to about *£134,000 (US$168,000), it is also jeopardising the UK’s decarbonisation targets. Turner & Townsend, a global provider of professional services, has reported a severe shortage of qualified construction workers across the whole of the United Kingdom, even as wages hit record highs. In addition, the Association for Project Safety called on the next government to provide training for certified construction workers in its Micro Manifesto, which was released before the UK General Election. To improve the connection between the government and the construction industry in terms of safety, APS suggests five adjustments in its Micro Manifesto. There was a more than 10% drop in the share price of the London-listed company on Monday morning after the dismal investor update. As a result of slow construction demand in Europe, SIG, a building materials firm, lowered its earnings outlook for the year. The stock of the London-listed firm dropped more than 10% on Monday after the investors were let down by the preliminary report. May and June sales were down 7% from the same period last year, according to the company.
