The construction industry has been through a rough few years, with some of the top businesses going out of business, Brexit looming, and now Covid-19. Can the industry finally start to recover?
In this article, we look at the positives that are upcoming for the industry, such as an investment from the government and the gradual easing of restrictions for the industry. Are these moments of light enough to save the construction industry?
Recovery is coming
The first good sign for the construction was seen in the HIS Markit/CIPS Purchasing Managers’ Index (PMI) rating. Used to highlight global economic trends in the manufacturing and service sectors, June’s record jump of 11.4 index points was a five-month high — and a statistic that shows a correlation between lockdowns easing and economies starting to recover.
It’s important to remember the global index does not just look at the UK, so we must look closer to see how the construction industry is doing in the UK.
The Office for National Statistics (ONS) reported that the construction output has dropped by 40 per cent in April 2020. The pandemic caused a 41.2 decrease in new work and a 38.1 per cent drop in repair and maintenance.
The fall in the amount of work has been the biggest drop since records began a decade ago, and they represent a financial hole of £5.1 billion. May’s figures show a small sign of improvement for construction output, with an 8.2% increase — compared to April’s figure — being accredited to the easing of lockdown restrictions.
But, the ONS admits that it is hard to work out the exact impact of coronavirus because of how unpredictable the virus is, and that it still may have a number of waves to come.
Safety must be a priority
It will take a while before the industry will reach the levels it was before the pandemic. Plus, another important aspect to consider when letting people back to work onsite is the health and safety of working conditions.
There are not only the normal health and safety regulations that now must be followed. There is the additional pressures of social distancing and extra hygiene guidelines.
In the meantime, there have been new regulations brought in such as the Building Safety Bill which contains new reforms for the building and fire safety system. This deals with how safe a building is once the structure has been finished. There is now also the Construction Leadership Council’s Site Operating Procedures during COVID-19 are aimed at protecting workforces from the virus.
The Building Safety Bill has been brought in after the Grenfell Tower disaster and the Construction Leadership Council Site Operating Procedures has changed many times during the pandemic due to information updating all the time.
These new regulations are needed to advance the industry and allow it to move forward in the right direction.
The two regulations are not directly connected, but they can still work together to protect people. Without the Safety Bill, you run the risk of unsafe buildings built in an unsafe way, and without the guidelines for working during COVID-19, you can’t implement the new ways in which buildings have to be built, all the way from design to completion.
Life on a construction site can be hard. There are lots of on-site facilities that are needed during a constructive project, like offices, canteens, drying rooms, toilet blocks, and storage spaces in a number of different sizes and layouts. These facilities are usually contained within a storage container.
If Covid-19 guidelines are not followed correctly, then there is the threat of closure. So even though workers are close together they must follow social distancing.
To help you, there has been a safe working programme designed by industry specialists. CovCert is an online programme designed to provide employees with an understanding of how to work safely and minimise the risks from COVID-19.
It is a collaboration between two industry experts, Green Hat Consulting and Sphere Solutions. This will help educate the industry and make sure everyone is following the correct regulations.
Andrew Warring, managing director of Green Hat Consulting, explained the course: “CovCert is aimed at employees who are returning to work on construction sites. The courses are intended to raise Covid-19 awareness and provide employees with the knowledge required to minimise the risk of transmission and infection within the workplace, as well as providing an induction for new employees and informing on up to date guidance.”
This advancement is great in helping workers who may have been nervous about coming to work with the new regulations confident again, which will therefore benefit the business and the sector.
Help from the government
To help with the economic loss due to the pandemic, the government was given a go-ahead for a £1.3 billion investment. The move is part of the government’s plan to deliver upgrades to local infrastructure and boost skills to help trigger a green economic recovery.
The money from the government means that 45,000 homes will be built which will create around 85,000 new jobs. It will also reduce the CO2 emissions level by 65 million kgs in England. It’s a perfectly timed boost for an ailing industry desperate for a helping hand to kickstart its recovery.
Overall, there are small indications that the industry is starting to recover, but there is still work to be done to get fully through the pandemic. With such an unpredictable virus and landscape for the world of construction, it’s important that small steps are made as frequently as possible to avoid another decade in the doldrums.
Andrew Thompson, Managing Director of Glamorgan-based Mobile Mini, who supply storage containers and portable site accommodation to the construction industry, said: “It is clear that the Government stimulus such as Build Build Build, coupled with the announcement of the removal of red tape within the planning permission process and the support with stamp duty, has further ignited a confidence within the construction sector.
“There is a real and tangible air of determination to not only recover lost ground, but also a true British bulldog spirit to beat COVID-19. This is evident within the demands of our business and the strength of our pipeline, which is why we have recently invested over £2m in additional products.
“There is no doubt that the furlough scheme has given businesses breathing space to adapt and rebuild, however, the UK supply chain is still restricting that growth and rebound opportunity. If we can accelerate the supply chain recovery to meet the country’s demand for construction, then we will undoubtedly see an impressive ‘V recovery’”.
Sources
https://ihsmarkit.com/research-analysis/pmi-hints-at-initial-return-to-growth-as-countries-ease-covid19-restrictions-July2020.html
https://www.ons.gov.uk/businessindustryandtrade/constructionindustry/bulletins/constructionoutputingreatbritain/may2020
https://www.gov.uk/government/publications/draft-building-safety-bill
https://www.constructionleadershipcouncil.co.uk/news/site-operating-procedures-version-4-published/
https://www.mobilemini.co.uk/storage-containers/container-hire/
https://www.pbctoday.co.uk/news/health-safety-news/social-distancing-construction/74432/
