In today’s construction news, read about the manifestos and heard all the promises for the betterment of the nation, but if Keir Starmer’s party secures a supermajority, it will be crucial to see if he can maintain unity within his party and lead from the front. Meanwhile, the building industry shifts its attention to the next government as the nation gets ready to cast ballots in the general election of 2024 tomorrow. Lastly, in light of the increasing unpredictability surrounding future large-scale public transit contracts, Ferrovial Construction UK is looking to diversify.
Construction Would Suffer from a Labour Supermajority
Original Source: Could a Labour supermajority be bad for construction?
We’ve read the manifestos and heard all the promises for the country, but if Keir Starmer’s party wins with a supermajority, the key will be if he can keep their party together and singing from the same hymn sheet.
People in power may change things quickly, as history shows. A major fear is party infighting. Will members start to oppose themselves without opposition?
Take industrial wealth strategy initially. It wasn’t a Labour priority, but you’d expect it would pass as a terrific initiative once in power. Party infighting might turn it into opposition to chances, delays, and no development.
The same goes for the projected investment in clean, homegrown energy production with GB Energy, owned and powered by the British people. It could create thousands of employment and advance clean, renewable power. Please avoid internal opposition to constructive actions.
Maintaining attention
The manifesto’s 125-page Change document, which outlines planning measures to force local governments to create more housing and reduce green energy barriers, impressed me.
Labour may focus too much on workers’ rights, which could dilute its wealth creation goal. Can they integrate both disciplines to satisfactory levels? Drivers will be as crucial as projects.
Supermajorities mean less accountability, but will the party hold itself accountable as the country needs? The promised green agenda is a no-brainer, so we need support. How would they cooperate to move Celtic Sea and Tidal Range projects quickly?
We cannot squander time on in-party political fighting at the expense of forward-thinking advances like these, especially those that have been on the table for a long time.
We also need them to work together promptly and proactively improve the sector, such as UK procurement. Will Treasury reconsider strike prices to enable strong UK content in the supply chain to maximise value for the country? While the party finds its feet and voices, we must move the sector forward.
Whichever candidate wins, I hope they keep their building industry commitments. Education and skills must remain a priority as we fight the skills crisis, and projects must be approved fast. Political benefit between members at the country’s expense is not worth the time.
It will be easy to vote on July 4, but how it will influence the construction industry is unknown.
Construction Prepares for 2024 General Election
Original Source: Construction industry braces for General Election 2024
As voters prepare for the 2024 General Election tomorrow, the building industry looks ahead to the new government.
Polls from 2 July indicate a 40% Labour majority in the 2024 General Election, with the Conservatives winning equal or less votes than the Liberal Democrats.
Nigel Farage’s Reform UK party might win seven seats and the Greens two of their four targets.
Work and pensions secretary Mel Stride told ITV’s Good Morning Britain today: “What I’m saying is very clear, which is that all the polls are pointing to one very clear conclusion tomorrow: a Labour government with a huge, huge majority.
“However, I agree with Boris that it is not too late to ensure that we have an opposition, Conservative MPs who can hold that government accountable.”
Housing, planning, and net zero are UK construction sector priorities.
Sutcliffe CEO Sean Keyes
With the General Election in May, I spoke about housing, the economy, and the NHS, which affect us as a business. These concerns matter to voters, as seen over the past six weeks. Since both parties have pledged to build more houses, I will hold the incoming administration accountable for solving the housing situation quickly.
“That said, be it the NHS’s mismanagement or the lack of social housing investment, these issues directly impact people’s quality of life, so I hope the new government takes them seriously and prioritises them for the nation.”
Starship co-founder and CEO Dave Dargan
As we may see a government transition, this General Election is crucial to the country’s destiny. Whether it’s fixing the housing crisis or creating a comprehensive strategy to meet sustainability goals, the next administration should be as ambitious as their manifestos.
“But it’s not just a numbers game; I believe the construction industry can solve many of the country’s issues, such as improving the quality of life for the general public, generating employment, promoting sustainable development, and addressing social issues through affordable homes.”
Steve Malkin, Planet Mark CEO and founder
Climate action will be crucial throughout the next five years of government. We’ve ignored net-zero in policymaking for too long, perceiving it as a barrier.
We must now lead. The future government must create an exciting change story and offer the resources to support it. This is crucial for SMEs that have no emissions reduction timeframe or government support.
Planet Mark policy & corporate development director Andrew Griffiths
Andrew co-founded the Carbon Accounting Alliance and is an elected Institute of Directors member.
We are approaching many critical climatic tipping points. The next administration must identify net zero as an investment opportunity to create a cleaner, healthier, and wealthier society.
“To provide emissions transparency, the new Government must first set a policy-driven deadline for businesses to report at least Scope 1 and Scope 2 emissions annually. It must also promote green sector education and training to meet business demands for carbon emissions assessment, reduction, and strategy.
Ferrovial Construction UK Intends to Enter New Markets
Original Source: Ferrovial Construction UK eyes expansion into new sectors
Ferrovial Construction UK wants to diversify amid uncertainty about large-scale public-sector transport contracts.
The Spanish giant’s UK construction unit is exploring new growth sectors like water and power transmission amid concerns about the UK pipeline of large infrastructure work after HS2 phase 2’s cancellation.
As Ferrovial’s UK construction business reported record turnover up 7% to £527m and a return to pre-tax profit in 2023 after a £30m loss, Karl Goose, managing director for the UK & Ireland, announced the plan to diversify into new geographies with a greater presence in Ireland and infrastructure sector work.
Most of the firm’s £5.5m pre-tax profit came from £7.6m interest on robust cash levels of £189m.
Ferrovial lost £1.2m in 2022 due to Silvertown Tunnel project issues in East London, which accounted for large contingencies.
Goose said: “We are confident that 2024 will return us to industry profitability norms.
“We are continuing to deliver against our strategic objectives which form part of the overall global business plan and have made strong progress in diversifying our revenues, with early successes across some wide-ranging joint venture projects.”
He said the firm would use its Spanish parent group’s expertise to expand into water and power after diversifying in the UK.
Ferrovial Group has strong water businesses in Spain and Portugal, and we want to extend this knowledge to the UK as part of our diversification plan.
We also have energy companies focused on transmission that we can use in the UK.”
The EKFB joint venture’s HS2 work should boost growth in the near term.
Looking ahead Ferrovial is preparing to launch its £107m, 4.5-year Norwich Western Link road design and build contract.
The project includes 6.1km of dual road and seven buildings, including a 670m viaduct over River Wensum.
In partnership with Laing O’Rourke, it completed its other significant civils project on Thames Tideway.
Over the year, orders fell from £795m to £648m.
Summary of today’s construction news
In summary, instead of standing still or perhaps feeling as though we’re regressing as the party finds its feet and its voices, we should be pushing the industry forward.
I want to have faith that the winner of the election will fulfil their commitments to the building industry.
Meanwhile, in the July 2 polls, Labour is expected to win a forty percent majority in the 2024 general election; the Conservatives are expected to receive as many votes as the Liberal Democrats; Nigel Farage’s Reform UK party could win up to seven seats, and the Greens are expected to win two of their four targeted seats.
Lastly, part of Ferrovial Group’s diversification plan is bringing this experience to the UK. Ferrovial Group has strong water businesses in Spain and Portugal. We have energy companies in the UK that focus on transmission. Forward-looking In order to begin construction on its 4.5-year, £107 million design and build contract for the Norwich Western Link road, Ferrovial is making preparations.
