Lee Rowley is the new Construction Minister, making him the 9th Construction Minister in the last 5 years and the UK currently averages 1 construction minister every 7 months... #ukconstruction#construction
... Looking over the longer-term, Lee Rowley is also the 20th Construction Minister in the last 20 years, averaging 1 every 13 months. The lack of stability in the position is a long-term problem but it has clearly got worse in the last 5 years... #ukconstruction#construction
... Unfortunately, government views the Construction Minister position as a 'stepping stone' position whereby, if you succeed then you get promoted to a higher-profile position or if you fail you get relegated (back) to the backbenches.... #ukconstruction#construction
... However, the lack of importance government places on construction long-term & the Construction Minister position hinders its own objectives given that many of its key pledges such as... #ukconstruction#construction
... Net Zero, 'Levelling Up' (whatever that actually means) & 300,000 net additional homes per year etc. are heavily reliant on construction industry & long-term investment in skills, capacity, digitalisation & decarbonisation to enable them.... #ukconstruction#construction
... Whilst the Construction Minister changed in the reshuffle, the Housing Minister didn't (although the Secretary of State for MHCLG did). The charts of Housing Ministers in the last 10 & 20 years are below... #ukconstruction#construction#ukhousing#housing
... & whilst the change in housing ministers is marginally less bad than for construction ministers, the constant change (& inexperience of new housing/construction ministers) makes consistent, coherent long-term policy... #ukconstruction#construction#ukhousing#housing
... less likely & makes policy makers more likely to focus on short-term 'sticking plaster' measures & PR 'announceables' that grab positive headlines without addressing policies needed to deal with long-term structural issues... #ukconstruction#construction#ukhousing#housing
... or long-term policies that incentivise upfront industry investment for a long-term rate of return in improvement, whether that is on safety, quality, value, efficiency or capacity & skills to meet government priorities... #ukconstruction#construction#ukhousing#housing
... so the construction industry business model focus continues to be on business models that sub-contract activity, cost & risk whilst maximising current rates of return. #ukconstruction#construction#ukhousing#housing
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According to the ONS, construction output fell 1.6% in July 2021. It has fallen for 4 consecutive months & is 2.5% lower than in January 2020 although note the ONS appears to have issues estimating private housing output... #ukconstruction#construction ons.gov.uk/businessindust…
Looking across the sectors, the main contributors to the 1.6% fall in total construction output in July were private housing (-7.5%) & private housing repair, maintenance & improvement (rm&i) whilst the largest rise was in industrial (warehouses)... #ukconstruction#construction
Looking at the evolution of construction output in the key sectors since Covid-19, infrastructure continues to go from strength to strength whilst industrial is rising sharply from a low base as warehouse projects are finally coming through &... #ukconstruction#construction
The key point from today's National Audit Office (NAO) report into the debacle that was the Green Homes Grant. BEIS initially announced it would retrofit 600,000 homes & yet it failed to even do 10% of that... #ukhousing#energyefficiency#netzero nao.org.uk/wp-content/upl…
... & the critical point is if government is really serious on energy-efficient retrofit there needs to be realistic long-term policies with time to gain momentum with financial incentives to give households the incentives to spend & also... #ukhousing#energyefficiency#netzero
Construction output in April 2021 was 2.0% lower than March's recent peak (that was above pre-Covid-19 levels). Comparisons with a year ago are irrelevant given April 2020 was the nadir during the initial lockdown but... #ukconstruction#construction ons.gov.uk/businessindust…
... as a more appropriate reference point construction output in April 2021 was 0.4% lower than in January 2020, pre-Covid-19 so it remains a 'V'-shaped recovery for construction output so far compared with a 'W'-shaped recovery for UK GDP... #ukconstruction#construction
Looking how the key sectors have evolved since January 2020, pre-Covid-19, there remains a distinct difference between the sectors in which activity is considerably higher than pre-Covid-19 (private housing rm&i & infrastructure), in contrast to... #ukconstruction#construction
UK construction products imports volumes from the EU in 2021 Q1 fell by 16.1% compared to 2020 Q4 & were 0.8% higher than a year ago whilst construction products exports to the EU in 2021 Q1 were 48.6% lower than in Q4 & 28.7% lower than a year ago BUT... #ukconstruction#brexit
... note some very important caveats. These are inappropriate reference points given that 2020 Q4 was distorted (artificially high) due to stockpiling & 2020 Q1 was distorted (artificially low) due to an impact from initial lockdowns... #ukconstruction#brexit
... A more appropriate reference point would be to compare with the average of 2016-18, prior to any Brexit deadlines in 2019 & 2020. Given the stockpiling in 2020 Q4, it is also worth while using the average of Q4 & 2021 Q1... #ukconstruction#brexit
UK construction employed 2.16 million people in 2021 Q1, which is 14,817 (0.7%) higher than in Q4 but it is still 154,429 (6.7%) lower than in 2019 Q4, pre-Covid-19 & 270,782 (11.2%) lower than the recent peak in 2019 Q1... #ukconstruction#construction ons.gov.uk/employmentandl…
... & interestingly, male construction employment continued to fall in 2021 Q1 (by 10,717 vs Q4 & 180,237 vs 2019 Q4, pre-Covid-19) & this was offset by a rise in female employment in 2021 Q1 of 25,534 (9.0%) vs Q4 & 25,808 (9.1%) vs 2019 Q4... #ukconstruction#gender
... which, on the plus side means that UK construction employment in 2021 Q1 had its highest proportion of females on record (albeit still a low proportion compared with the population). However... #ukconstruction#construction#gender
THREAD: Construction output in March 2021 was 5.8% higher than in rain-affected February & 6.0% higher than in March 2020 according to the ONS. Output was also higher than pre-Covid-19 & at its highest level since September 2019... #ukconstruction ons.gov.uk/businessindust…
... On a monthly basis, construction output in March 2021 was 5.8% higher than rain-affected February with increases in almost every construction sector & the largest rises public housing (+16.7%), private housing (+9.4%) & private housing rm&i (+7.7%) whilst... #ukconstruction
... on an annual basis, construction output in March 2021 was 6.0% higher than a year earlier although it is worth noting that construction output from 23 March 2020 was affected by the social distancing restrictions during the initial lockdown... #ukconstruction#construction