CIC Cascade

The Rt Hon Nick Raynsford MP has been appointed as the new Chairman of CIC. Having served as its Deputy Chairman for the past year he now starts a two-year term as Chairman. Stuart Henderson, the former Chairman of CIC now becomes Deputy Chairman.

Addressing the CIC Council meeting Nick Raynsford thanked Stuart Henderson and spoke about some of the challenges and opportunities facing the construction industry:

“A benign economic environment is fundamentally important to the construction industry. I can well remember the dire consequences of the stop/go pattern that characterised the British economy in the 60s, 70s, 80s and early 90s, when the construction industry suffered disproportionately from being used as an economic regulator and when long-term planning, training and partnering were made well-nigh impossible by a lack of confidence in the future. Even within the generally much more favourable context in which we are now operating, confidence can easily be damaged by short-term changes of direction or reviews of investment decisions as the recent unhappy experience of major PFI procurement in the Health Service has demonstrated.

So, we need a context in which the industry can plan with confidence and can develop skills, the production lines, the partnerships and the long-term relationships that are vital to a truly successful industry. This depends both on a generally favourable economic climate that facilitates and indeed encourages private investment and on consistent programmes of public sector procurement to provide the necessary infrastructure to support an expanding economy and a growing population. We all know how important the public sector is, accounting for at least 40% of the total workload of our industry and providing continuing investment at times when demand in the private marked has slackened. The contribution which the unprecendentedly large procurement programmes in sectors such as health, education and the railways has made over the past few years should not be underestimated.

One of the real advances of recent years has been the close co-operation between public and private sectors both in terms of financing new development (the PFI) and in generating mixed developments (for example mixed communities with some housing for market sale and some for social needs). Partnership is indeed crucial to future success and will certainly be put to the test in some of our major projects in the coming years. The 2012 Olympics and Para-Olympics provide a good illustration of both the opportunities and the challenges.”

Read the full text of Nick Raynsford’s speech

2. UK construction industry needs 348,000 new recruits by 2010

The Construction Skills Network report 2006, published recently by ConstructionSkills, forecasts that 348,000 more employees will be needed for the construction industry by 2010 to meet expected demand - an average of 87,000 new recruits per year.

In the most comprehensive set of reports ever published for the industry, the Construction Skills Network lifts the lid on predicted construction demand UK-wide and provides detailed analysis of expected workflow and project type, and forecasts for the occupational skills requirements region by region between 2006 - 2010.

The Construction Skills Network confirms the good news that the UK construction industry will continue to experience strong growth, with construction output expected to rise by 12.7% by 2010. By identifying exactly how many new recruits in each trade will be needed over the next five years to meet additional demand and account for industry leavers, the report also provides the industry with the information needed to ensure that every construction programme can be resourced and delivered.

Although, at 11,090 new recruits every year, the highest annual skills requirements UK-wide is for workers with wood trade skills (e.g. carpenters and joiners), there is also expected to be a high demand for managers, clerical staff, architects, engineers, and other design and technical professionals. In total, the number of "white collar" workers the industry needs to recruit every year to 2010 is forecast to be over 36,400 - almost 50% of the annual workforce requirement (see fig 1).

The report found that construction growth is expected to shift from the North to the South and East (see fig 2), driven by strong growth in the new build sector that includes some £36 billion of large (£100m+) projects, including the Kings Cross redevelopments, ports projects at Shellhaven, Felixstowe and Harwich, East London Line extension, Victoria Station redevelopment and the Olympics and Thames Gateway construction programmes.

The East of England is set to experience the highest rate of employment growth with an increase of 18.6% by 2010, with London at 11% and the South East at 14%.
Growth in the North is expected to slow: construction employment in the North West is expected to grow by 5% between 2006 and 2010, the North East by 6%, Yorkshire and Humberside by 6% and Scotland by 8%.
Wales and Northern Ireland will also see strong growth. Construction industry employment in Wales will rise 12%, driven in part by the £3.2 billion Welsh Quality Standards Scheme, and a 13% increase in Northern Ireland can be attributed primarily to the large public investment programme planned for the region over the next 10 years.

Contrary to popular myth, the indications from the data at this stage are that delivering the Olympics programme will not impact on the successful completion of regional construction projects. Although the Olympics programme is high profile, has a value of around £2.5billion over the next seven years and will need an average workforce of 5,000 each year (peaking at 9,300 in 2010), it is not enough on its own to significantly boost output. The Construction Skills Network estimates that the Olympics programme will account for only 0.2% of the UK 's total construction workforce between now and 2010.

The report also provides insight into the different types of construction project the new recruits will be needed to work on (see fig 3). It reveals that:

Private output growth is expected to exceed publicly funded construction programmes.
Public house building is forecast to see the strongest growth of any sector as government and private house builders seek to deliver higher levels of affordable and key worker housing, particularly in London and the South East.
Robust growth is expected for the commercial sector, accounted for by the continued recovery for the offices market and further increases in PFI/PPP health and education work.
Infrastructure output is also forecast to be above the industry average, driven by projects such as the widening of the M1 and M25, the five year national water and sewerage AMP programme, nuclear decommissioning and, of course, works for the Olympic Park and Village.

Sheila Hoile, Skills Strategy Director, CITB-ConstructionSkills comments: "The Construction Skills Network provides the construction industry with its first truly authoritative basis for planning recruitment strategies, education and training mechanisms and funding delivery. For contractors and consultants, the data can be used to inform what type of building they should be designing and constructing for the client, and how best to avoid high labour costs. And it gives Government the tools to decide where it needs to focus policies and funding to avoid skills shortage and wage inflation."

"ConstructionSkills is already successfully bringing young people, apprentices and graduates into the construction industry and I'm pleased to say there is no shortage of applicants to the industry. One of the biggest challenges is to ensure that new and existing workers have the right qualifications, but we cannot do this alone. We call on the industry to help us build for the future by making investments in training, taking on apprentices and working with us to qualify the largest workforce in the UK."

Phil Hope MP, Parliamentary Under Secretary of State for Skills, comments: "Raising skill levels is absolutely essential to sustained economic success. The Construction Skills Network is an excellent example of the sector skills planning we have introduced under our skills strategy. We want industry setting the pace, identifying the skills challenges and opportunities and driving a demand led system which puts the right training provision in place and effectively targets our investment in training."

David Adamson, Smarter Construction Director, Office of Government Commerce, comments: "The Construction Skills Network is an extremely valuable tool for our scenario planning and will also help us to identify and plan for regional, trade and sector pinch points. We are grateful to the construction industry for providing data which will become vital in effectively managing public sector demand and securing best value from our procurement".

The Construction Skills Network, created in 2005, represents a radical change in the way research, data and information on the future employment, skills and training needs of the construction industry is collected and produced. Created by ConstructionSkills, the Sector Skills Council for Construction, with the technical expertise of Davis Langdon and Experian, it draws in the knowledge and experience of Government, Sector Skills Councils, construction companies, education and training providers, regional agencies and customers across the UK. This unique collaboration means the Construction Skills Network provides, as near as possible, a consensus view of the current and future skills and training needs of the industry.

For more information about a career in the construction industry go to www.bconstructive.co.uk. A full copy of the ConstructionSkills Network report, including figures 1, 2 and 3 can be downloaded at http://www.constructionskills.net.

3. CSCS Card Price Increase

Following the announcement in March, from 1 July 2006 a CSCS card will cost £25 (including VAT). This price will apply to every card.

After 10 years, without a price rise, it has become necessary to increase the cost of a CSCS card. This is due to increased costs, over the 10 year period. It also introduces a simpler pricing structure.

A CSCS card which shows the cardholder has a minimum standard of health and safety awareness and is professionally competent still provides excellent value at under 10p per week (for a five year card).

For further information visit http://www.cscs.uk.com/

4. Tenth Architecture Week: 16 – 25 June

2006 marks the tenth anniversary of Architecture Week, the annual national public celebration of historical and contemporary architecture in the UK, which this year takes place from 16 – 25 June.

The week aims to explore architecture and the built environment via the arts and culture in an entertaining and informative way, with a rolling schedule of activities organised and co-ordinated through Arts Council England, Royal Institute of British Architects (RIBA) and Architecture Centre Network offices across the country.

This year’s theme is ‘The Power of Ten’ and the week will showcase over 500 events across the UK - many organised on the idea of 10 - featuring celebrated architects and celebrities, exhibitions, talks and tours.

Highlights include: open-air bus tours of London with an architectural expert; talks by artists, architects and psychoanalysts; a massive selection of inspiring architecture exhibitions; and even the annual chance to get an architect to redesign your home!

The National Portrait Gallery, Science Museum, Kew Gardens, Whitechapel Art Gallery, Freud Museum, South London Gallery, Habitat’s new Regent Street store and The Lighthouse (Scotland’s National Architecture and Design Centre) have all committed to hosting events.

Full details can be found at www.architectureweek.co.uk

5. Geospatial Engineering Surveyor Award 2006

This prestigious biennial award will be presented to the geospatial engineering surveyor who is judged to have made an outstanding contribution in any of the following specialisms, either individually or through team leadership; engineering surveying, land surveying, photogrammetry and remote sensing, hydrographic surveying or cartography and visualisation.

THE CANDIDATE

A candidate will have, within two years prior to the closing date for nominations, made an outstanding contribution in any of the following ways; working in a senior position with the responsibility for co-ordinating all aspects of surveying/setting-out on a major, high-profile construction project, involvement in developing new methods/techniques either specific to a particular project or generally, contribution to academic research that will have significant impact on the future of any aspect of the geospatial engineering surveying disciplines or have made a lifetime contribution to the profession.

THE PRIZE

The winner of this award will be presented with the Institution’s Richard Carter Prize, which comprises a gold medal, a cheque for £1,000.00 and a certificate to commemorate their achievement.

NOMINATION PROCEDURES

The closing date for receipt of nominations is 5pm on Friday 1 September 2006 and the winning candidate will be announced in Autumn 2006. The prize will be awarded at the Institution Dinner on 27 October 2006 at Cracksford Hall, The Wirral.

For further information or to obtain a copy of the nomination procedures and nomination form, please contact: ICES Admin, Dominion House, Sibson Road, Sale, Cheshire, M33 7PP UK

Tel: +44 (0)161 972 3100 Fax: +44 (0)161 972 3118 Email: admin@ices.org.uk or download from the Institution’s website: www.ices.org.uk

6. CIOB launches new Publication - “Making Money from Sustainable Homes"

The CIOB and PDM Consultants, part of Paul Davis and Partners have joined together to publish “Making Money from Sustainable Homes” by Elliot Carter.

A lunchtime drinks reception to mark the launch of this innovative publication is to be held on Tuesday 27 June at the Building Centre London, where a free copy of the publication will be made available to attendees.

To register to attend this event please contact CIOB by Tel: 01344 630763 Fax: 01344 630 770 by 18th June

7. Government plans for a Local Better Regulation Office - take part in discussions

Last year the Government launched its plans to set up the Local Better Regulation Office (LBRO). A single body aimed at reducing burdens on business while maintaining/improving consumer and worker protection, by supporting local authority regulatory services within the areas of trading standards and environmental health.

The Department of Trade and Industry (DTI) want to hear your views, and are inviting you to contribute to the discussion about how LBRO could take this programme forward. DTI is holding an event for businesses and their representatives on the afternoon of 27 June in London starting with lunch at 12.30pm. If you would like to attend this "LBRO Business Summit" please send your name, organisation and contact details together with any dietary requirements to: lbro.project@dti.gsi.gov.uk by 23 June 2006.

Places are limited and will be allocated on a first-come, first-served basis.

Further information on LBRO can be found at www.dti.gov.uk/consumers/enforcement/lbro/index.html

8. A stark warning for the future

Delegates attending the Institute of Plumbing and Heating Engineering’s (IPHE) Centenary Conference and Exhibition were left in no doubt that renewable energy must be top of the agenda for the plumbing and heating industry in the future.

Professor Bill McGuire from University College London gave a hard-hitting presentation on the greenhouse effect and climate change. According to research carried out by Benfield Hazard Research Centre, the future looks bleak for life on Earth if we don’t halt the amount of CO2 emissions polluting the atmosphere.

Professor McGuire said that our planet is facing the greatest mass extinction of animals and plants for 65 million years. It is also anticipated that there will be widespread desert expansion and in Africa and Asia there will be an increase of 200 million people at risk of starvation through drought. The professor said that renewable energy is critical, microgeneration is the direction to take.

Graham Blandford, marketing manager for Viessman, also covered climate change in his talk. Escalating energy costs and the decrease in fossil fuels means we have to look to other options for our energy needs. His presentation included using wind turbines, hydro and waves, biomass, solar thermal & photovoltaic, heat pumps and Micro CHP.

Managing director of Worcester, Bosch Group, Richard Soper warned that because we now have to import gas, security of supply could pose a major problem for the future. Richard believes in leading by example and has already had a heat pump and solar water heating system installed in his own home.

John Thorp, director of Energy Centre for Sustainable Communities was also worried about gas supplies in the future. He said that by 2020 it is calculated that half of the world’s gas will be coming from countries that are currently perceived as relatively unstable, either in political or economic terms. He added that energy prices are predicted to triple in the next 5 – 10 years.

Around 400 delegates, partners and children attended the conference, which was held at The Palace Hotel, Torquay, 1st – 4th June.

9. Events

The events page of the CIC website is frequently updated visit the events page for details.

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