In today’s UK news, it is quite evident that the construction industry is not impressed with the highly-touted industrial policy that the government has presented for consultation yesterday. While this is going on, a recent analysis conducted by Costain indicates that the construction industry may potentially save billions of dollars by utilising connected and autonomous plant (CAP). Furthermore, what does the future hold for the building industry now that ISG has been discontinued? Despite the challenging nature of the built environment sector, Gleeds global chair Richard Steer FCIOB finds some advantages. On top of that, at a ceremony that was organised by Babcock, a British company that provides services in the fields of aerospace, defence, and nuclear engineering, the third Type 31 frigate for the Royal Navy, HMS Formidable, was cut for the first time.
Labour’s Construction Industry Policy Fails
Original Source: Labour’s industrial strategy falls flat for construction
The construction industry is clearly unimpressed by the government’s highly-touted industrial policy, which was released for consultation yesterday.
An initiative to “ease the investor journey and create long-term, inclusive, secure and sustainable growth” is proposed in Invest2035, the United Kingdom’s contemporary industrial policy. In the spring of 2025, along with the expenditure review, the final industrial strategy will be released.
Eight chosen industrial areas are the focus of the strategy*. These include digital technologies, sustainable energy, creative industries, defence, and “advanced” manufacturing. Building anything, be it complex or simple, is not going to be done.
Within the construction business, this has, quite predictably, not gone over well.
The lack of mention of the construction sector as an industry for growth in the new government’s industrial strategy, according to Brian Berry, chief executive of the Federation of Master Builders, is deeply concerning. This comes at a time when the UK is facing a housing and skills crisis, which are preventing the economy from reviving and endangering long-term market confidence. There seems to have been a lack of consideration for the people who will be physically performing the labour in the rush to reconstruct Britain. The government should not lose sight of the basics that fuel growth while it seeks to attract large, innovative investments. The construction sub-sector should not be seen as an afterthought in the strategy, and this can be achieved through the engagement. If the government is serious about fostering economic growth, it must prioritise the construction industry.
For Berry, the government’s recent announcements—including plans for major planning reforms, an ambitious goal of 1.5 million new houses, and the creation of Skills England—are all positive developments. Without substantial funding to address the underlying issues, however, the feasibility of these ideas is uncertain. Ministers’ views on the sector’s importance to the UK economy as a whole are called into question by the new industrial plan. Our industry, together with services and manufacturing, should be a cornerstone of economic expansion.
Chief executive Sean Keyes of the Liverpool-based civil engineering firm Sutcliffe shares this disapproval.
Keyes emphasised that the industry that lays the groundwork for Britain’s future cannot be ignored. Investors will have a clear 10-year plan to select Britain, thanks to the government’s emphasis on eight important growth industries, as revealed in the industrial strategy. This will demonstrate the UK’s ability to compete and win on a global stage, providing stability and confidence. The omission of construction, a vital industry that supports our economy and helps build our infrastructure, is worrisome.
When it comes to housing and the infrastructure that these vital industries depend on for growth, construction is the lynchpin. There is a serious risk that the government’s plan won’t be successful unless the importance of construction is acknowledged. Not only does this leave out a key component of GDP, but it also hinders the sector’s ability to create jobs, innovate, and build the kind of resilient infrastructure that an economy needs to thrive in the future. The industry that will lay the groundwork for Britain’s future must not be ignored.
Another group that feels ignored by the new industrial policy paper are the individuals who produce construction equipment like diggers and dumpers.
Construction Equipment Association operations director Viki Bell expressed disappointment that the industry hasn’t received more attention, stating that it is a logical fit for renewable energy and sophisticated manufacturing.
Our industry spends a hefty £250 million a year on research and development, supports more than 44,000 employment, and brings in more than £15 billion in sales. Sustainable advancements like battery storage and hydrogen fuel are crucial to the shift to clean energy, and we’re at the forefront of this movement within our industry.
Costain Says CAP Might Save UK Builders Billions
Original Source: CAP could save the UK construction industry billions, say Costain
An updated Costain analysis estimates that the construction sector might save billions of dollars by using connected and autonomous plant (CAP).
A paper detailing CAP’s ability to save billions was published by Costain for the Department of Transport.
According to the paper titled “Connected and Autonomous Plant: Market Analysis,” CAP is “a collective term for leading-edge construction equipment that leverages interconnected digital technologies and autonomous functionalities to optimise construction processes.”
Productivity could be enhanced by using CAP.
Adopting CAP would result in financial, safety, environmental, and performance gains, according to the research. According to the analysis, implementing CAP would boost the industry’s value by £417 billion, with £356 billion going towards the construction sector as a whole and £61 billion going towards economic expansion.
Full adoption of CAP, with most tasks on worksites being autonomous and fully integrated AI managing most machinery—this is the report’s bold view of the future. Site personnel will be of a higher calibre, with design and supervision being their primary responsibilities.
Improvements in efficiency and sustainability would provide a much-needed boost to the building industry, according to many. There will be a £10 billion savings in fuel and energy expenses and a CO2e reduction of 19,300 kt if CAP is implemented.
To accomplish these objectives, scaling up is necessary.
Investment in infrastructure, especially transport, is acknowledged as a means to national development and wealth, according to Jonathan Willcock, managing director of transport at Costain. Nevertheless, this investment needs to prove its worth and optimise productivity in order to withstand the numerous conflicting demands on public spending.
“In the next few decades, the UK economy stands to benefit greatly from connected and autonomous plant, which has the ability to revolutionise the efficiency of construction operations. Crucially, the technology will also generate more high-skilled employment opportunities and promote safer and more environmentally friendly methods of working.
“We need to change our mindset to embrace this technology and drive positive change if we want to scale up and see the benefits faster. CAP is already being deployed on projects across the country.”
How will Building Proceed After ISG’s Demise?
Original Source: After ISG’s demise, what now for construction?
Gleeds global chair Richard Steer FCIOB finds positives in a tough built environment market.
Construction is struggling. In May 2024, 17% of UK firms closed were in our industry, which had the most insolvencies.
The collapse of ISG, the UK’s fifth largest contractor, reveals how susceptible built environment workers are. Before this, Lendlease Group left the UK due to a ‘complex market landscape’. We anxiously await the first Labour budget.
However, there are benefits.
According to S&P Global’s latest UK Construction Purchasing Managers’ Index, September construction volumes rose at the quickest rate since April 2022. The industry activity balance rose from 53.6 in August to 57.2, above neutral for the seventh month.
Survey respondents reported strong demand for renewable energy infrastructure and increased big project activity. Lower borrowing costs and domestic political stability increased commercial building and client expenditure.
Rising business confidence
S&P reported a three-month high in business confidence in May, while Deloitte’s latest CFO survey found rising optimism among CFOs in some of the UK’s largest companies. After the general election, UK CFOs’ appetite for business risk-taking rose to its highest level in four years, according to its Q2 report.
However, many of these surveys were collected before the new Middle East conflict raised oil prices and sank the global economy. Like ISG, we should not underestimate the fragility of our UK situation. The building industry in this country has had many setbacks in the last decade, and sustainable recovery takes time.
I grudgingly accept the Construction Products Association’s estimate that the industry will shrink in real terms this year before growing 2% next year and 3.6% in 2026.
Get ready for growth
Short-term prospects are difficult, but green shoots should be celebrated.
Even a slow recovery is better than greater decline. The industry must anticipate and prepare for a recovery. This time should be spent ensuring we have the people, skills, and technology we need.
UK’s Third Type 31 Frigate Begins Construction
Original Source: Construction starts on UK’s third Type 31 frigate
The third Type 31 frigate for the Royal Navy, HMS Formidable, was cut at a ceremony hosted by Babcock, a British aerospace, defence, and nuclear engineering services provider.
Official shipbuilding for the vessel commenced on October 9, 2024, with the ceremony held at the Rosyth facility in Scotland.
In the massive assembly hall constructed specifically for them, the Type 31 frigates Formidable, HMS Venturer, and Active are all currently taking form.
The last unit has been installed to the first Type 31 Frigate, HMS Venturer, which is currently being structurally completed in the Rosyth assembly hall alongside HMS Active.
The five ships that make up the Inspiration class are all named after ships that have served in the Royal Navy in the past.
Current boats use 180–200 sailors, whereas Type 3 frigates only need 120 sailors, or 60% of the personnel, according to Babcock.
A 57mm main gun with programmable ammunition, two 40mm Bofors guns, the Sea Ceptor air defence missile system, a 4D radar, one of the navy’s largest flight decks, and a large hold to fit mission-specific equipment—such as diving gear, minehunting supplies, drones, or disaster relief supplies—are all standard on all five ships of the Inspiration class.
After the launch of HMS Venturer next year, the finished Formidable portions will be transferred to the assembly hall. Campbeltown and HMS Bulldog are the last two ships in the five-ship class.
To make Britain strong internationally and safe at home is a priority for this government. According to Minister of the Armed Forces Luke Pollard, these frigates will serve as the backbone of the Royal Navy’s fleet, safeguarding our troops and discouraging aggression.
One of the main features of the Type 31 program is the opportunity to collaborate with the UK government to gain various export prospects, which will help the UK economy and jobs even more. The Indonesian and Polish governments have already exported Arrowhead 140, the Type 31’s basis design, and both countries’ programs are already in the works.
Summary of today’s construction news
Overall, we discussed Invest2035, the modern industrial policy of the United Kingdom, proposes an initiative to “ease the investor journey and create long-term, inclusive, secure and sustainable growth.” Release of the final industrial strategy and expenditure review is scheduled for the spring of 2025. At the same time, Costain issued a report for the Department of Transport outlining how CAP can save billions. In the research study entitled “Connected and Autonomous Plant: Market Analysis,” CAP is defined as “a collective term for leading-edge construction equipment that leverages interconnected digital technologies and autonomous functionalities to optimise construction processes.” In addition, the building industry is having problems. Among the most bankrupt industries in the United Kingdom in May 2024, ours accounted for 17% of all firm closures. Nevertheless, the most recent UK Construction Purchasing Managers’ Index from S&P Global indicates that construction volumes increased at their fastest rate since April 2022 in September. An increase from 53.6 in August to 57.2 in September brought the industrial activity balance over neutral for the seventh consecutive month. Major project activity has surged, and there is a high demand for renewable energy infrastructure, according to the survey. Commercial construction and client expenditure were boosted by lower borrowing costs and domestic political stability. In addition, the vessel’s official shipbuilding ceremony took place at the Rosyth site in Scotland on October 9, 2024. Formidable, HMS Venturer, and Active, three Type 31 frigates, are all now being built in the enormous assembly hall that was built for them. Currently, in the Rosyth assembly hall alongside HMS Active, the first Type 31 Frigate, HMS Venturer, is being physically completed with the last unit inserted.
