The UK construction industry experienced its sharpest contraction in over five years during July, marking a continued decline across all major sectors. The S&P Global UK construction purchasing managers’ index (PMI) dropped to 44.3 from 48.8 in June, signalling a significant slowdown in activity. Any reading below 50 indicates a contraction in the sector.
The downturn was driven by a slump in housebuilding, which had briefly shown signs of recovery in June, as well as weaker performance across civil engineering and commercial construction. The survey highlighted that civil engineering experienced the largest decline, particularly with public-sector projects seeing reduced activity.
Firms across the industry faced delays on job sites, lower volumes of new work, and a lack of confidence from consumers. The latest figures also revealed a continued decrease in employment, marking the seventh consecutive month of job losses. Many construction businesses are now freezing recruitment and cutting back on material purchases as they prepare for a difficult outlook.
Despite these challenges, analysts expect some recovery in the coming months. Potential interest rate cuts from the Bank of England could ease borrowing costs, and government investments are expected to help stabilise the market.
The Bank of England has cut interest rates to 4%, in line with market expectations.
The Monetary Policy Committee (MPC), which sets monetary policy to meet the 2% inflation target, has voted by a majority of 5 to 4 to reduce Bank Rate by 0.25 percentage points, rather than maintaining it at 4.25%.
East Midlands Chamber director of policy and insight, Richard Blackmore reacted: “With the extent of challenges firms face every day – staffing costs up due to higher National Insurance contributions, the National Living Wage also up while inflation remains well above the government’s 2% target – a lower interest rate will do little to alleviate tough trading conditions.
“For businesses looking to borrow, the 0.25% cut in interest will be welcome but that’s only one obstacle eased within a very difficult climate. For nearly a third of East Midlands firms to have said in our Quarterly Economic Survey they expect their profitability to worsen in the months ahead and 4 out of 10 anticipating having to push their prices up, you can see just how fragile confidence is.
“While we’ve seen some recent welcome steps from the government, addressing things like late supplier payment in their recent strategy for small businesses, the concerns raised throughout our survey – corporate taxation and inflation top the list – clearly indicate that much greater support is needed for firms.
“Growth is not enabled by making trade harder and with the Autumn Budget fast approaching firms need assurance they are not going to be hit with tax hikes.”
North Northamptonshire Council has launched a new initiative to help local businesses understand and reduce their energy use and environmental impact.
Funded through the UK Shared Prosperity Fund (UKSPF), the programme will support organisations to design their own decarbonisation plans and access grants that will help them shift to more sustainable practices and save money.
North Northamptonshire Council has appointed Urban Foresight, a strategic innovation consultancy, to deliver the programme.
Participating organisations will receive free access to a user-friendly platform to measure their carbon footprint and develop a Carbon Reduction Plan (CRP).
The programme aims to support 50 businesses and 25 community groups to complete carbon footprint assessments, and 20 businesses and 15 community groups to progress to CRPs aligned with the latest public procurement requirements, enhancing their ability to compete for private and public sector contracts and providing a pathway to decarbonisation.
A structured series of workshops will also be delivered to build capacity and ensure that CRPs are not only developed but are also actionable.
Cllr Ken Harrington, the council’s executive member for assets, waste and environmental services, said: “With more and more businesses looking at carbon reduction measures, it is important that we use the funds available to us to support them.
“Schemes like this encourage businesses to look to the future, think about their carbon footprint and complements wider environmental work in North Northants.”
A social landlord has appointed a new member to its board.
Platform Housing Group has welcomed Jane Porter as a non executive director and sits on the group audit and risk committee.
Jane – who has worked in housing for more than 30 years – is an experienced non executive director and a recognised sector influencer having served on regulatory advisory groups and holding board roles at Settle and Citra Pathways.
During her time in housing leadership, Jane has been recognised for driving transformation, strengthening governance and delivering services that put customers first. As former chief operating officer at Southern Housing, Jane led operations for more than 79,000 homes, with responsibility for major business functions and a £500m budget.
Earlier this year, Jane was awarded the Lifetime Achievement Award at the Women in Social Housing event, or WISH.
Jane said: “I’m thrilled to be joining Platform Housing Group at such a pivotal time for the housing sector. Platform’s commitment to delivering for customers, investing in communities and embracing innovation aligns strongly with my own values.
“I look forward to working alongside my Board colleagues to support the Group’s ongoing transformation and ensure we continue to put residents at the heart of everything we do.”
Elizabeth Froude, CEO at Platform Housing Group, said: “We’re delighted to welcome Jane to the Board. Her extensive experience and deep understanding of the sector will be a valuable asset as we continue to strengthen our governance and drive forward our ambitious strategy.
“Jane’s insight, customer focus and commercial acumen make her a great fit for Platform and we’re excited to work with her as we look to the future.”
With the nomination deadline (Friday 15th August) drawing nearer for the East Midlands Bricks Awards 2025, local leaders are encouraging businesses to enter.
The 10th annual celebration of the property and construction industry is the perfect way for firms to raise their profile, reward teams, spotlight successes and promote the work they are completing, all while reaching Business Link Magazine’s audience of over 60,000 business readers and connecting with respected professionals.
It’s an opportunity to showcase exceptional new commercial and residential developments, those demonstrating a leading position in sustainability and design excellence; gain recognition as outstanding developers, architects, contractors, and agents, as well as for significant deals; and ensure efforts in corporate social responsibility are rewarded, from eco initiatives to charity work, to social value schemes.
Making a nomination is completely free – with finalists also winning free tickets to the awards ceremony.
See what local leaders had to say below:
Megan Powell Vreeswijk
Megan Powell Vreeswijk, Chief Executive of Marketing Nottingham & Nottinghamshire, said: “For 10 years, the East Midlands Bricks Awards has helped to champion businesses that define our region through innovation, ambition, and resilience in the built environment sector.
“These businesses help to shape our communities and drive economic growth across Nottingham & Nottinghamshire. I encourage organisations across Nottinghamshire and the wider East Midlands to enter the Bricks Awards and showcase the incredible work happening here – let’s put our region firmly on the map.”
Mike Denby
Mike Denby, Director for Inward Investment and Place at Invest In Leicester, said: “The East Midlands Bricks Awards are a great way to highlight the innovation and high standards of Leicester and Leicestershire’s construction industry, a sector that we are incredibly proud of.
“That’s why Invest in Leicester is encouraging all our partners and businesses to get involved, as celebrating these achievements will motivate future projects that will ultimately benefit our residents and the wider economy.”
Cllr Liam Kelly, Executive Member for Growth, Lincolnshire County Council, said: “Lincolnshire’s property and construction sectors have a real impact on communities across the county, from vital infrastructure schemes to extra care housing developments – all while supporting thousands of jobs across the local economy. There’s a lot to be proud of, and I hope that Lincolnshire’s fantastic businesses step forward to get the recognition they deserve at this year’s East Midlands Bricks Awards.”
Scott Knowles
East Midlands Chamber Chief Executive Scott Knowles said: “Property and construction are significant drivers of growth and despite having had to overcome tough challenges like higher National Insurance contributions or the skills shortage making recruitment hard, the East Midlands can be proud of the impressive scale of modernisation to our towns and cities.
“Whether Nottingham’s Island Quarter, Derby’s Castleward Urban Village, Leicester’s Waterside or Ashton Green projects, you don’t have to look far to see progress. The Bricks Awards showcase the people and firms that are to thank for shaping how our urban spaces and architecture will be seen for future generations and it’s right we recognise that work.”
John Forkin
John Forkin, Managing Director at Marketing Derby, said: “This year, in particular, Derby has seen some major regeneration projects come to fruition, including Vaillant Live and Derby Market Hall – and later this year, we will see the opening of the University of Derby’s Cavendish Building, which will be the new home of its Business School.
“There is so much great work going on in the built environment and we would really encourage companies to consider applying to these awards.”
Nottinghamshire County Councillor, James Walker-Gurley, Cabinet Member for Economic Development and Asset Management, said: “The property and construction industry is vital to our local economy and one to be proud of in Nottinghamshire and the region.
“The industry generates skilled jobs, investment and contract opportunities for the supply chain. And with the STEP fusion prototype powerplant due to be built right here in our county, this will bring many more lucrative opportunities.
“So I would encourage everyone to get nominating for these awards and help celebrate this industry.”
Councillor Nadine Peatfield
Councillor Nadine Peatfield, Leader of Derby City Council, Cabinet Member for City Centre, Regeneration, Strategy and Policy, Deputy Mayor of the East Midlands, and keynote speaker at this year’s East Midlands Bricks Awards, said: “2025 is a landmark year for Derby. We’re not just planning, we’re actively building a vibrant and welcoming city for everyone to enjoy. This vision has been brought to life thanks to the crucial partnerships with our talented development partners.
“The East Midlands Bricks Awards is a fantastic opportunity to celebrate the exceptional skills and expertise within our region’s property and construction sector, and I’m very excited to see their achievements recognised.”
To nominate your (or another) business/development for the East Midlands Bricks Awards, please click on a category link below or visit this page. Entry is free – with finalists also winning free tickets to the awards ceremony.
Categories include:
All finalists will have the chance to take home the Overall Winner award, which this year comes with a grand prize of a year of marketing/publicity worth £20,000, with the opportunity to split or gift the marketing to a charity of your choice.
Nominations will close on Friday 15th August.
New for this year, all entrants will also have the chance to be featured on our dedicated nominee showcase on the East Midlands Business Link website, providing space for marketing your achievements.
Winners will be revealed at a glittering awards ceremony on Thursday 2nd October (4:30pm – 7:30pm) at the famous Trent Bridge Cricket Ground – an evening also offering an opportunity to establish new connections with property and construction professionals from across the region over nibbles and complimentary drinks.
Attendees will additionally hear from keynote speaker Councillor Nadine Peatfield – Leader of Derby City Council, Cabinet Member for City Centre, Regeneration, Strategy and Policy, and Deputy Mayor of the East Midlands.
The East Midlands Bricks Awards 2025
What: The East Midlands Bricks Awards 2025
When: Thursday 2nd October (4.30pm – 7.30pm)
Where: Derek Randall Suite,Trent Bridge Cricket Ground, Nottingham
Keynote speaker: Councillor Nadine Peatfield – Leader of Derby City Council, Cabinet Member for City Centre, Regeneration, Strategy and Policy, and Deputy Mayor of the East Midlands
Tickets: Available hereDress code: Standard business attire
Thanks to our sponsors:
REFLEKT Clothing, a sustainable clothing manufacturer based in Leicestershire, has received over £14,000 in funding from First Enterprise under the British Business Bank’s Start Up Loans programme.
The brand, founded by Daniel Williams, designs and manufactures all its garments in the UK, operating with sustainable first practices, such as small batch production, low impact dyes, OCS certified organic cotton, and biodegradable packaging.
The funding will be used to create further brand awareness through advertising, improve the website and manufacture more menswear to keep up with a growing demand for products – there has been an increase of more than 100% in the past 12 months.
Petra Eddison, business advisor, First Enterprise, said: “It was inspiring to see Daniel’s passion and dedication to REFLEKT Clothing and producing sustainable, high-quality menswear. Helping him through the loan application was a pleasure, and I look forward to seeing the business continue to grow.”
Revenues are up and profits are down at Ibstock, the manufacturer of building products, according to results for the six months ended 30 June.
Group revenues increased by 9% to £193m, driven by significant volume growth in Clay, where revenue grew by 12% to £134m. Revenue in Concrete was also marginally ahead of the prior year at £60m (2024: £59m).
Meanwhile, statutory profit before tax came in at £8m, dropping from £12m in the same period last year.
The business noted that the first half “reflected a period of strong volume growth, with profitability…tempered by steps to activate core network capacity to meet recovering demand.”
Joe Hudson, CEO, said: “The new-build residential market showed encouraging signs of recovery in the first half of theyear, but activity is still well below normalised levels. As we plan for a period of further market growth, we have invested in restoring core capacity to meet demand. Whilst this has impacted margins in the first half, it will ensure we are able to benefit fully from the recovery as the market progresses.
“With both our core and diversified platforms now substantially in place to meet growing demand, I am confident in our ability to deliver on our medium-term revenue goalsalongside improvements in profitability and returns driven by margin focus and significant operational leverage through the recovery cycle.”
Vistry Group has exchanged contracts to expand its Western Gate community in Harpole, near Northampton. The addition of 233 new homes brings the total build to 1,070 of the planned 1,900 properties at Norwood Farm.
The 233 additional homes will be built across a mix of tenures, with 83 affordable homes, 80 PRS properties, and 70 open market homes. This announcement follows West Northamptonshire Council’s approval of reserved matters for phase two of the development, allowing Vistry to start building 278 family homes.
On this portion of the development 139 homes will be available on the open market and with 139 will be affordable properties through Vistry’s partnership with Platform Housing Group.
In addition, Vistry has secured its first contract with Zen Housing, an affordable home provider, who will own and manage 18 affordable properties.
Andrew Harvey, managing director of Vistry South Central Midlands, said: “I am thrilled to announce the completion of contracts for an additional 233 mixed-tenure homes at Western Gate and our first contact with Zen housing.
“This brings the total to 1,070 of the 1,900 new properties planned at Norwood Farm. Our commitment goes beyond house building, with £9 million allocated to bolstering services for both new current residents.”
John Okell, investment director at Zen Housing, said: “The contract for the additional homes coincides with receiving reserved matter to start work on a further 278 properties for the affordable and open markets.
“This clearly shows Vistry’s dedication to meeting housing needs by building homes across multiple tenures to an exceptional standard, creating a thriving and sustainable community.
“We are delighted to mark the start of our partnership with Vistry Group on this phase of homes at Western Gate. These 18 high-quality affordable homes reflect our commitment to delivering sustainable, well-connected communities.
“Executing the deal in just five weeks ahead of completions in August highlights the strength of collaboration between our teams. We look forward to supporting the wider Norwood Farm vision through tenure-diverse, community-focused delivery.”
Phase one of this scheme to build an initial 439 properties is well under way.
Superior Wellness, a leading manufacturer of hot tubs and swim spas, has secured a £2.3 million funding package backed by UK Export Finance (UKEF) and NatWest Bank. This financial support will enable the company to expand its export activities in key international markets including the USA, Canada, Europe, and the Middle East.
The General Export Facility (GEF) will assist Superior Wellness in scaling its distribution network and supporting its working capital needs, ensuring continued growth while securing cash flow. The investment comes as the company continues its rapid expansion, particularly in North America, where it has increased its market share and opened a new warehouse in South Carolina.
As part of its growth, Superior Wellness has created 15 new positions at its Chesterfield headquarters and five new roles at its South Carolina site, bringing its global workforce to over 140 employees. The company’s portfolio includes brands such as Platinum Spas, AquaSolus, HEKLA saunas, and Chill Tubs ice baths.
UKEF’s support aims to help UK businesses grow internationally, with a focus on sustainable export growth and job creation both at home and abroad. The funding aligns with the government’s efforts to stimulate regional growth through export-driven initiatives.
Leicester College is constructing a new Electrotechnical Workshop and Test and Inspection Lab at its Freemen’s Park Campus in the city.
The new facility will provide T Level, Technical Level 2, and evening Level 2 and 3 programme learners with greater exposure to a broader range of industry-standard materials, tools and equipment, significantly enhancing their knowledge, skills and behaviours in preparation for employment.
The building of the new facility, refurbishing an existing sports hall, is scheduled to be fully operational by September 2025.
Nick Allen, programme area manager at Leicester College, said: “It’s widely accepted that the UK electrical industry is experiencing an increase in demand for skilled electricians but faces a significant skills shortage.
“By establishing this new facility, Leicester College is providing access for learners to state-of-the-art electrical equipment that will boost their expertise and, consequently, their employment opportunities.”
Darren Roome, director of curriculum – construction at Leicester College, said: “The new Electrotechnical facility will provide the next generation of students with access to excellent teaching, learning and assessment opportunities.
“Equipped with a purpose-built workshop and the latest test and inspection technologies, the experienced teaching team will be well-positioned to deliver an enriched educational experience. It’s an exciting development for both staff and students.”
The new labs will be equipped with modern training and assessment rigs supplied by Test Rigs UK Ltd.
Phillip Hague, company director at Test Rigs UK, added: “Test Rigs UK Ltd are so privileged to work in partnership with Leicester College to produce and supply these products.
“The training and assessment rigs will allow the next generation of learners to practise and train in a safe, simulated environment allowing realistic testing and fault-finding practices to be learned and hopefully taking those skills with them into their future work as electricians in the industry.
“Test Rigs UK Ltd was set up for this very reason and to be a major player in this industry, and to be recognised by such an establishment like Leicester College is an honour. We look forward to seeing the learners in action on these rigs.”
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