V IEWPOINT THECURRENT CLIMATE

For many plant hirers and fleet managers supply chain issues have dominated the agenda for far too long.

There is, however, some encouraging signs that the market may well be returning to more sustainable trading conditions, where demand can be satisfied and pressures on costs are eased.

It's not just in machine availability where some consistency is much needed, however, because Whitehall’s vacillating approach to infrastructure spending is causing concern in certain quarters. In particular, the announcement that the Birmingham to Crewe leg of HS2 will be delayed by two years to cut costs.

The Construction-plant Hire Association has already expressed its disappointment that the Chancellor’s decision comes in the wake of previous Whitehall reassurances on large building projects. Not only does it make the prospect of High Speed 2 ever amounting to its original ambitions more doubtful, it equally casts an uncertain hue on any future commitments to the kind of capital spending that is a key driver of growth, not just for the construction industry but the economy at large. The noises on nuclear might be more encouraging but these are not likely to see ground broken for the foreseeable.

At the same time, even with current levels of activity, plant sales remain robust, and many firms that have been deferring the decision to refresh fleets are now in a position to do so – not least because they can now source the necessary machines. In that context the announcement of a full capital expensing scheme for the next three years in the Spring Budget was welcome. It is hoped that this will be a permanent fixture and will extend to the rental sector.

These are relatively small measures in the right direction because there’s a much, much bigger picture, of course, and it’s driven by climate change. A UN report that implored the world to act now on “everything, everywhere all at once,” most certainly includes the construction sector. Contractors have made huge strides in recent years on environmental governance, and even bigger leaps are to come.

What should also be recognised are the business opportunities that the green economy can now realise. Manufacturers have already devoted many billions to the research and development of cleaner drivetrains – and now the age of diesel is indubitably coming to an end. What comes next is still a matter of debate, but what is clear is that we are set on a sustainable path. What is equally becoming apparent is that the journey can be made smoother with adequate government support.

If you take the example of the red diesel rebate the big stick of removing it –and increasing costs to contractors and plant hirers by a significant margin in the process – has not been complemented by very much carrot. Battery powered equipment is still at a premium and, as you move up the weight scale, there’s still very little choice beyond diesel.

There are, of course, some easy wins, such as reducing idling and cleaner fuels, whilst telematics solutions can improve utilisation levels, but a government subsidy on biofuels, for instance, could go someway to mitigating the aforementioned price implications. One of the reasons that HS2 – a government funded scheme – has witnessed the escalating costs that have resulted in a postponement to part of the build is those very hikes in fuel, a reality which makes the addressing the issue even more sensible.

Editor LEE JONES ljones@hamerville.co.uk

Editorial Assistant

EDWARD KELLY ekelly@hamerville.co.uk

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DAVID MOLLOY dmolloy@hamerville.co.uk

Group Advertisement Manager

CRAIG JOWSEY craig@hamerville.co.uk

07900248102

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JACOB TATUM jtatum@hamerville.co.uk

07825773737

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PAUL FITZGERALD pfitzgerald@cpnonline.co.uk

07917324995

Magazine Designer

GEMMA WATSON

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CAROL PADGETT

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If the construction industry is to meet its net zero targets it needs to do it with out undue damage to the contractors, plant hirers and manufacturers that drive its growth and prosperity With the benefits of sustainability in terms of winning additional work already well embedded in the sector, relatively small but targeted measures from Whitehall could make for significant returns. Total Average Net Distribution 8.329 July 2021 –June 2022

The publishers and editor do not necessarily agree with the views expressed by contributors, nor do they accept responsibility for any errors of translation in the subject matter in this publication.

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