Construction News Round-Up - July 2024
United Kingdom & Ireland Construction News
Glenigan predicts post-election boost for UK construction
Glenigan’s new UK Construction Industry Forecast 2024 - 2026 predicts a post-election boost for the sector due to reduced political uncertainty and faster policy decisions.
Despite near-term challenges like slow economic growth and high interest rates, a modest increase in project-starts is expected in late 2024, with further growth in 2025 and 2026.
Easing borrowing costs should improve public sector activity and investor confidence. Growth is anticipated in private housing, retail, hotel, leisure, office refurbishments, and logistics, driven by improved affordability and economic prospects under the new Labour government.
New UK construction minister appointed
Sarah Jones, MP for Croydon West, has been appointed as the UK’s new construction minister, although official confirmation is pending.
She becomes the 26th person to hold this brief in the 21st century. Jones previously served as shadow housing minister and successfully proposed amendments to the 2021 Fire Safety Act following the Grenfell Inquiry.
Before her political career, she worked at Shelter and helped to deliver the 2012 Olympics.
UK output rises again in June despite housing drop-off
UK construction activity grew for the fourth consecutive month in June, registering 52.2 on the S&P Global UK Construction PMI, indicating sustained improvement. Commercial work and civil engineering saw upticks, while housing activity decreased after a short increase.
Companies have responded by increasing employment at the highest rate since August 2023. Despite election uncertainty impacting new order growth, confidence has remained strong.
Easing inflationary pressures and improving supply chain conditions boosted momentum and confidence for the year's second half.
Construction News Awards 2024 winners announced
The Construction News Awards 2024 winners were announced on 11 July in London. Hosted by comedian Russell Kane, the event celebrated outstanding work in the construction sector, with 24 awards given across various categories.
Mace won Contractor of the Year (over £500m) for the fifth consecutive year, while Hochtief-Murphy JV won Contractor of the Year (under £500m) and two other awards. Align JV, Tilbury Douglas, and Willmott Dixon also received multiple recognitions.
Minister Peter Burke welcomes publication of 'Ireland's Competitiveness Challenge 2024'
‘Ireland's Competitiveness Challenge 2024’ report, published by the National Competitiveness and Productivity Council, highlights Ireland's strong international competitiveness driven by economic growth, a skilled workforce, and inward investment.
Minister Peter Burke praised the SME support package and the upcoming roundtable discussion on competitiveness. The report offers 20 recommendations for enhancing competitiveness and productivity, focusing on both immediate and long-term challenges.
Australia & New Zealand Construction News
Labor's national executive bans donations, cuts ties to CFMEU construction division
Labor's national executive has cut ties and blocked donations from the CFMEU's construction division due to allegations of underworld infiltration. The executive has suspended the division's affiliation with the ALP's NSW, Victoria, South Australia, and Tasmanian branches.
ALP national secretary Paul Erickson stated that these sanctions could extend to other branches if needed. The Australian Council of Trade Unions has also suspended the division, supporting the appointment of an administrator.
Despite calls for de-registration, Prime Minister Anthony Albanese is instead advocating for the administration to effectively combat corruption.
Digitalisation addresses lack of diversity in Australian construction sector
Despite ongoing improvements, women still represent only 12% of the construction workforce in Australia. Low female participation has historically hindered sector progress, but technology is increasingly driving positive change.
Many organisations, like Hansen Yuncken, are investing in digital tools to attract and retain diverse talent. Initiatives like the Hansen Yuncken Women in Construction (HYWIC) program are also being implemented to promote gender equality within organisations.
New research shows confidence boost among Australian construction leaders
Kennards Hire's third annual Construction Confidence Check survey reveals 93% of construction business leaders view Australia's industry as stable, up from 81% in 2023.
The survey, involving over 410 leaders, shows that cost-saving measures and increasing tech investments are boosting industry optimism.
Opinion: It’s time to straighten up Australia's building sites with a strong regulator
Labor politicians and union leaders have expressed shock at the presence of organised crime on construction sites, as revealed by The Age's investigation. Despite prior warnings, the issue has persisted, with calls for stronger regulation.
The federal opposition proposed banning individuals with over 10 criminal offences from union leadership, citing CFMEU conduct. This opinion piece advocates for re-establishing the Australian Building and Construction Commission (ABCC) with increased penalties and strong investigative powers to combat corruption and intimidation within the construction sector.
New Zealand will radically ease zoning rules to try to relieve its stubborn housing shortage
The New Zealand government has announced it will ease zoning restrictions to alleviate its housing shortage, hoping to flood the market with land for homes and overriding local councils.
Housing Minister Chris Bishop has also announced reforms to allow more development and mixed-use projects, aiming to meet long-term growth projections. While addressing affordability and availability, concerns remain about urban sprawl and infrastructure funding.
Clea Boyd-Eedle