Public Sector

October 2015

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Education Pg 10-12 Health Pg 13-15 Social Housing Pg 16-17 Urban Regeneration Pg 18-19 OVER A QUARTER OF THE GOVERNMENT CONSTRUCTION PIPELINE DISAPPEARS October 2015 ■ News ■ Floors, Walls & Ceilings ■ Kitchens, Bathrooms & Washrooms ■ Lifts & Stairs ■ Acoustic & Sound Insulation ■ Education ■ Health ■ Social Housing ■ Urban Regeneration Public Sector READER ENQUIRY 1 With more than a quarter of its projects disappearing s i n c e D e c e m b e r 2 0 1 4 , more needs to be done to improve the consistency and accuracy of the UK Government construction pipeline, according to analysis published by KPMG. The report, UK Government Construction Pipeline - KPMG Analysis, indicates that there is a total decrease of 886 (28%) construction and infrastructure projects since the previous pipeline analysis in December 2014 (from 3,148 to 2,262 in August 2015), relating mainly to the Defence, Justice and Police sectors (860 projects alone relate to these sectors). KPMG understands that the remarkable decrease in the number of projects is largely due to potential projects being removed from the pipeline to avoid pre-empting decisions in the forthcoming Spending Review. There are also a number of projects that have been completed since the December 2014 iteration. Most of the decrease in value attribute to projects completing mainly in two sectors: £6.7 billion decrease i n T r a n s p o r t p r o j e c t s - relating to spend already incurred on a number of o n g o i n g p r o g r a m m e s , i n c l u d i n g C r o s s r a i l ; £ 2 . 8 billion decrease in Housing and Regeneration projects – relating to the completion of Decent Homes Backlog projects and a number of Affordable Housing projects a n d p r o g r a m m e s a l s o completed. The analysis went on to reveal that 1,784 projects did not specify a construction start date, further raising questions about the completeness of the data. Richard Threlfall, KPMG's UK Head of Infrastructure, Building and Construction said: "It is clear that more needs to be done to improve the consistency and accuracy of the Government's construction pipeline. "A stable pipeline would give the construction industry good visibility of future demand and the ability to plan and invest for that demand. It would lead to effi ciencies for the Government and hence for the taxpayer. Instead we have a pipeline whose data is so incomplete, and which The construction industry is starting to move out of its recent stupor, according to figures released by industry analysts Glenigan. The September Glenigan Index shows that private sector construction starts have returned to growth, though the impact of election delays still hangs over the public sector starts. However stasis across the public sector is still weighing on construction starts, and non- residential starts as a whole were down 9% on a year earlier. The value of new education, PUBLIC SECTOR LAGS BEHIND health and other community and amenity schemes starting was well down on a year earlier during the three months to August. Allan Wilén, Glenigan's Economics Director , said: "The uncertain and hard to call election continued to cast a shadow over the construction industry for much of the summer. Indeed a scarcity of public sector projects is continuing to weighing on new activity, leaving non-residential starts 9% down on a year earlier during the three months to August." Construction Youth Trust has launched a new campaign aimed at encouraging young people to look at careers in the built environment. P a r t i c u l a r l y f o c u s i n g o n changing the misconception that construction careers are aimed only at men, the campaign aims to get young people talking about which careers are best for them. The charity is hoping more CONSTRUCTION CHARITY LAUNCHES #NOTJUSTFORBOYS CAMPAIGN y o u n g w o m e n w i l l s t a r t to look at the hundreds of careers options the industry has to offer too. Working with young people between the ages of 14-30, Construction Youth Trust provides access to training and employment to those who lack adequate entry level training, where there is a local skills need, in deprived communities and with specifi c social groups. building specifi cation fluctuates so wildly and erratically that the industry can place no detailed reliance on it. "I hope that we will get a clearer picture in November when the Spending Review is published. I hope the Government will recognise that what this industry most needs is long-term certainty and stability in demand, to provide it with the confi dence to invest in technology and its workforce. "Our growing economy is creating a welcome uplift in private sector demand, but the Government should not use that as an excuse to cut back its own investments, create another hiatus, and send ripples of uncertainty through the industry." C o n s t r u c t i o n Y o u t h T r u s t Executive Director, Christine T o w n l e y s a i d a b o u t t h e c a m p a i g n : " W e w a n t t o get everyone talking about c a r e e r s i n c o n s t r u c t i o n . The industry has a great opportunity to inspire and recruit the next generation of tradesmen, tradeswomen and professionals and we need to show them that women can succeed in the industry." Construction Youth Trust h a v e j o i n e d f o r c e s w i t h CITB and their Go Construct campaign to ensure young people have all the resources they need to get their career started. 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