After years of recession, the future is looking bright for the nation’s builders, says Julia Evans, chief executive of the
National Federation of Builders(NFB).
Today the
NFBhosts its Principal Contractors' Group Annual Conference to discuss the future – skills, access to finance, public procurement and the industrial strategy for construction will all be on the agenda.
Construction is 8% of the country’s GDP. “Why shouldn’t it have government attention?” asks Evans.
The Construction 2025 strategy, put together by industry and Government, sets out how they will work together to promote the success of the sector.
“The strategy should have stretching and challenging targets, be aspirational and look to the future,” says Evans.
According to BIS, the UK has world-class expertise in architecture, design and engineering, and British companies are leading the way in sustainable construction solutions. The global construction market forecast to grow by over 70% by 2025.
Evans, who spoke to Central Lobby ahead of today’s conference, has noticed a “sea change” in the last six months.
“If I was talking to members a year ago they would have felt themselves to be in the depths of the recession,” she explains.
“Members are getting a lot more inquiries and a lot more orders. This change in the industry is incredibly welcome, but there are still expectations about very tight margins.
“Bids are still coming down to the cheapest rather than best value. The perspective for the future is it to educate clients. Our members have proper health and safety training, and their staff is at the cutting edge of construction. But this downward pressure on margins affects the quality of the build.”
Evans says that risks a return of ‘cowboy’ builders in the market.
An upsurge in orders has also led to concerns about capacity in the market.
“Demand is still way below supply and I am very concerned about that,” says Evans.
“The amount of capacity dramatically reduced due to the depth and severity of the recession.
“We get anecdotes from members about a shortage of bricks and scaffolding, and people having to book domestic builders months ahead.”
Evans and the
NFBworked closely with Government on the Construction 2025 strategy.
“The coalition is managing things in a very difficult context, with massive cuts, so investment in things like house building has been very welcome,” she explains.
Evans is supportive of the Help to Buy, but warns that such support schemes “are only a tiny part of what motivates people to buy a home or enter the market”.
She also calls for “coherence” on the Green Deal and retro-fitting.
And while there are many more apprentices, she warns a skills shortage is coming.
“We need to think creatively about less traditional ways of bringing young people into the industry.”
Another area where more needs to be done is the “efficiency and appropriateness” of some public sector procurement.
“Our members will tell you about the resource required simply to compete, never mind building, particularly through frameworks that are seen as prohibitive,” she says.
One simple change would be a standard Pre-Qualification Questionnaire across the public sector.
Evans hopes to put all of these points to the new housing minister, Kris Hopkins, when he meets with the NFB.