N ews: CIOB economic report

How construction can be an economic catalyst for the regions, see p18-20

CIOB: Construction influence ‘almost double’ estimates

NEW STUDY DEMONSTRATES CONSTRUCTION’S VALUE TO THE UK ECONOMY IS FAR GREATER THAN PREVIOUS ESTIMATES SUGGEST

Construction’s economic influence in the UK is almost double that of officially recorded figures.

That’s according to a new report entitled The Real Face of Construction 2020, published by the Chartered Institute of Building (CIOB).

Official figures from the Office for National Statistics (ONS) suggest that construction accounts for around 6% of economic output in the UK and employs 2.3 million people. But the report said that the ONS’s “narrow” definition of the industry ignores the work of architects, engineers and quantity surveyors, as well as manufacturers dedicated to the sector and other companies that support construction, such as builders’ merchants and plant hire providers.

The CIOB report says construction GDP is almost double ONS estimates

Once all aspects of the design and construction process are included, construction GDP could be close to double in size, the report argues.

Meanwhile, the report has also u n c o v e re d w i d e v a r i a t i o n s i n performance and output at a regional level in construction since 2013. The CIOB said this indicated the need for careful and integrated policymaking at local, regional and national level.

The report includes regional data examining the number of construction businesses, output from the industry, stock of buildings, number of people employed by sector, annual earnings and key projects in the area.

Better measure needed The CIOB is calling for a better measure of the construction industry that includes all aspects of the design and construction process, not just the assembly on site. The report also draws on research that gauges the public’s attitude towards the industry and the built environment. It makes the point that the UK construction industry has not reached its full potential and will only do so if it operates in an environment with a clear vision, with an understanding of different regional needs, and with a focus from policymakers armed with good quality data and information.

Caroline Gumble, chief executive of the CIOB, said: “The quality of our built environment affects every member of society; our work influences productivity and wellbeing at home and at work. It is both far reaching and lifeshaping. Our purpose for this report is to help educate policymakers about the true value of the built environment and the need to work in closer partnership with the industry to realise its full potential, particularly at a regional level where it can rebalance local economies and offer people a quality career unlike many others.” ●

Skanska, Mace, BAM among firms on 'kit of parts' project

Some of construction’s biggest players including Skanska, BAM, Kier, Vinci, Mace and Mott MacDonald are working towards building new schools and hospitals from a ‘kit of parts’ within 10 years.

The Construction Innovation Hub named the firms as those that would take forward its flagship Platform Design programme.

A central plank of the Hub’s fouryear government-backed programme to transform UK construction, Platforms will enable new buildings to be designed and configured using a pre-defined ‘kit of parts’.

The construction businesses will be supported through the programme by manufacturing, building performance and digital specialists from the three partners of the Hub – the Manufacturing Technology Centre (MTC), BRE and the Centre for Digital Built Britain (CDBB). The Platform participants will develop and refine their products, technologies or services which will then be installed and showcased on a proof-of-concept building, demonstrating how these solutions can be applied across projects like schools, hospitals and prisons. Construction Innovation Hub programme director Keith Waller described the Platform Design programme as “a game-changer for construction” which would drive “improved productivity and performance”.

MMC programme director at the Infrastructure and Projects Authority (IPA), Will Varah said: “There is a strong alignment between the IPA's P-DfMA (Platform Design for Manufacture and Assembly) approach and the Hub's Platform programme. “We look forward to working together to deliver a more sustainable and productive way to meeting our ambitious investment programme.”

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