The construction industry is one of the largest and most important sectors in the UK economy. It employed over two million people and contributed £115.5 billion to GDP according to the latest figures for 2021. A spike in demand in the housing market during the tightest grip of the COVID-19 pandemic led to renewed demand for construction, but rising interest rates and the cost-of-living crisis has slowed the rate of house purchases. Is this reflected in the construction industry? UK construction figures in 2023 Figures from the Office for National Statistics (ONS) show that construction output in the UK increased by 1.6% in June 2023 – the third consecutive monthly increase, following a strong performance to start the year. The growth in construction output is being driven by a number of factors, including: · The government’s £100 billion infrastructure investment plan providing funds for construction projects · An ongoing need to build more homes to meet demand from a growing population · The growth of the renewable energy sector driving demand for new facilities The impact of growth on construction sites The growth in construction activity is generally having a positive impact on construction sites. There is more work for contractors, which typically results in increased employment and wages. However, the increased activity has resulted in a growing scarcity and price of many raw materials, which has been a significant challenge for firms to overcome in recent months. Some specialised roles are also experiencing a shortage of skilled workers, which can slow jobs down. One of the challenges facing construction companies is the need to find adequate site accommodation for workers, especially on large-scale projects. Site accommodation hire companies are playing a vital role in providing adequate facilities for workers, helping to keep construction projects on track and help firms meet their health and safety obligations. Can supply chains keep up? The growth in construction activity is putting substantial pressure on supply chains. There are shortages of materials and labour, which is driving up prices and delaying projects. Russia’s invasion of Ukraine is also having a negative impact on supply chains, as it has disrupted the global trade of commodities such as steel and timber. Construction companies are working to mitigate the impact of supply chain disruptions by placing early orders for materials or finding viable alternatives. How construction companies are adapting The construction industry is adapting to the challenges of growth by: · Investing in new technology, such as improved site equipment to decrease delays · Autonomous plant machinery increasing efficiency The construction industry is facing a number of challenges, but it is also undergoing a period of rapid change. The industry is becoming more technologically advanced and efficient, and firms are also becoming more responsive to the needs of their clients as a result.

With the East Midlands Bricks Awards 2023 set to take place next week (Thursday 28 September), there’s not long left to secure your seat at the prestigious event. The awards recognise and celebrate those behind the changing landscape of our region – the very best companies, teams, individuals and projects – showcasing the exceptional work carried out across the East Midlands over the past 12 months. They also present a prime opportunity to network with the leaders of property and construction businesses from across the East Midlands. Attend the glittering awards ceremony at Trent Bridge Cricket Ground to see who takes home the title of Contractor of the Year, Developer of the Year, Commercial Development of the Year, Residential Development of the Year, Sustainable Development of the Year, Deal of the Year, Most Active Agents of the Year, Architects of the Year, Excellence in Design, Responsible Business and of course Overall Winner.

Tickets can be booked here.

The event, which will begin at 4:30pm and continue until 7:30pm, will also feature Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council, as keynote speaker. Complementary drinks and canapés will be served on arrival. Dress code is standard business dress.  

Shortlist for the East Midlands Bricks Awards 2023

Most Active Estate Agent – sponsored by OMS

BB&J Commercial

Mather Jamie

FHP   Commercial Development of the Year – sponsored by MKM

HBD – Power Park, Nottingham

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Bolsterstone Group Plc, Chesterfield Borough Council – One Waterside Place, Chesterfield   Responsible Business of the Year – sponsored by Press for Attention PR Cawarden G F Tomlinson Aspbury Planning Limited   Residential Development of the Year – sponsored by Sterling Commercial Finance

Phoenix Brickwork UK Ltd – St Marks student accommodation, Lincoln

Elms Developments – Elms Phase Two Ltd

St James Securities, Grainger – The Condor, Derby

  Deal of the Year – sponsored by Mather Jamie

Rushton Hickman Limited – Branston Locks deal

Bassi Group Nottingham Ltd – Job saving Pizza Hut takeover

Rigby & Co – Aida Factory deal

  Developer of the Year – sponsored by Ward

Chevin Homes

Clowes Developments

Brackley Property Developments

  Architects of the Year – sponsored by Blueprint Interiors

IMA Architects

Matthew Montague Architects

Influence Landscape Planning and Design

  Excellence in Design – sponsored by Cawarden

Chevin Homes – Amber Farm

Marchini Curran Associates – Phoenix cinema and art centre

Trident Construction Services – Lark Hill Retirement Village refurbishment

  Sustainable Development of the Year – sponsored by Viridis Building Services Ltd

HBD – Power Park, Nottingham

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Elms Developments – Elms Phase Two ltd

  Contractor of the Year – sponsored by RammSanderson Cawarden

EE Smith Contracts

Bowmer + Kirkland

  The Overall Winner, sponsored by Streets Chartered Accountants, will also be announced at the ceremony, who will be awarded a year of marketing/publicity worth £20,000.  

A Nottingham consultancy has been appointed a Framework Agreement Supplier by the NHS Shared Business Services. Dice Consulting Engineers has been named as a supplier on NHS Shared Business Services’ Healthcare Planning, Construction Consultancy and Ancillary Services (HPCCAS) framework agreement. The consultancy has been named on Lot 3, Civil & Structural Engineering, and will be offering civil and structural engineering services. They’ll also be able to provide the public sector with their in-house pre-planning services which covers areas including flood risk, geotechnical investigations, air quality, and acoustics. The framework runs from the 14th August 2023 until the 13th August 2027 and is open to local authorities, emergency services, higher education, NHS, and the wider public sector. NHS Shared Business Services (NHS SBS) was created in 2004 to deliver corporate services to the NHS and ease the pressure on NHS employees, patients, and suppliers while providing taxpayers with value for money. They manage over 40 framework agreements which cover a wide range of clinical and corporate goods and services. Commenting on the agreement, director, Wayne Oakes said: “This has been a primary target for the business. We revisited our entire business strategy at the start of 2022 to shift our focus away from private developer led projects and focus more towards public sector opportunities. “We identified this NHS SBS Framework as our number one priority to enable us to secure public sector projects in our own right. A large amount of work was undertaken behind the scenes to acquire various industry recognised accreditations in order to enable us to meet the requirements of the SQ stage of the bid. “As part of this process we also set about to complete our ISO 9001 and 14001 integrated management systems accreditations and recently achieved our Stage 1 assessment, with the Stage 2 assessment scheduled to be undertaken in December.” Director Jon Svikis believes the framework will help the consultancy develop pre-existing relationships and generate new opportunities and work streams through direct appointments with end clients, local authorities, NHS Trusts, and Higher Education providers. Jon said: “The team at Dice have successfully delivered a wide range of healthcare projects previously through the existing NHS SBS framework agreement, which includes backlog maintenance schemes, new hospital extensions, and Emergency departments just to name a few. The team also has extensive experience in the refurbishment of existing healthcare estates. “Some of the clients our team members have worked with include University Hospitals of Leicester NHS Trust, Barnsley Hospital NHS Foundation Trust, North Lincolnshire and Goole NHS Trust, Kier Construction, Vinci Construction, Sheffield Teaching Hospitals NHS Trust. Our team has also delivered numerous projects with higher education providers using the framework. “The framework will help us get access to more healthcare projects. Dice currently works with various local authorities delivering numerous projects across the education, commercial, and leisure sectors.” Director and co-founder Raj Somal said: “This framework win is of huge importance to the business as it will enable us to continue with our sector diversification strategy. “We are eager to extend our engagement within the public sector due to the strategic advantages it offers for our business resilience and sector diversification.” He continues: “The public sector projects often provide a stable and predictable stream of work, which can act as a buffer during economic fluctuations and uncertainties in the private sector. This steady flow of projects enhances our overall business stability and minimises potential revenue volatility. “By establishing a stronger presence in the public sector, we not only fortify our business but also position ourselves for long-term growth and sustainability in a broader range of construction endeavours.”

Business Link can now reveal the shortlist for this year’s highly anticipated East Midlands Bricks Awards – THE event for Property & Construction in 2023. Showcasing the outstanding work of those behind the changing landscape of our region, the Bricks Awards features a diverse range of categories and a glittering awards ceremony that will host many of the region’s industry leaders. This event is also an ideal opportunity to celebrate and network with the very best in the business. The awards ceremony announcing the winners will take place on Thursday 28th September, at the famous Trent Bridge Cricket Ground. Book your place at the awards now to avoid disappointment! The event will begin at 4:30pm and continue until 7:30pm, with plenty of time for networking and celebrating. The occasion will additionally feature Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council, as keynote speaker. Complementary drinks and canapés will be served on arrival, sponsored by Nicholas Associates. Dress code is standard business dress.  

Shortlist for the East Midlands Bricks Awards 2023

Most Active Estate Agent – sponsored by OMS

BB&J Commercial

Mather Jamie

FHP   Commercial Development of the Year – sponsored by MKM

HBD – Power Park, Nottingham

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Bolsterstone Group Plc, Chesterfield Borough Council – One Waterside Place, Chesterfield   Responsible Business of the Year – sponsored by Press for Attention PR Cawarden G F Tomlinson Aspbury Planning Limited   Residential Development of the Year – sponsored by Sterling Commercial Finance

Phoenix Brickwork UK Ltd – St Marks student accommodation, Lincoln

Elms Developments – Elms Phase Two Ltd

St James Securities, Grainger – The Condor, Derby

  Deal of the Year – sponsored by Mather Jamie

Rushton Hickman Limited – Branston Locks deal

Bassi Group Nottingham Ltd – Job saving Pizza Hut takeover

Rigby & Co – Aida Factory deal

  Developer of the Year – sponsored by Ward

Chevin Homes

Clowes Developments

Brackley Property Developments

  Architects of the Year – sponsored by Blueprint Interiors

IMA Architects

Matthew Montague Architects

Influence Landscape Planning and Design

  Excellence in Design – sponsored by Cawarden

Chevin Homes – Amber Farm

Marchini Curran Associates – Phoenix cinema and art centre

Trident Construction Services – Lark Hill Retirement Village refurbishment

  Sustainable Development of the Year – sponsored by Viridis Building Services Ltd

HBD – Power Park, Nottingham

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Elms Developments – Elms Phase Two ltd

  Contractor of the Year – sponsored by RammSanderson Cawarden

EE Smith Contracts

Bowmer + Kirkland

  The Overall Winner, sponsored by Streets Chartered Accountants, will also be announced at the ceremony, who will be awarded a year of marketing/publicity worth £20,000.  

James Pinchbeck, partner at Streets Chartered Accountants, considers the importance of family businesses focusing on fortitude. One of the key characteristics of many family businesses is their often-exceptional resilience to cope with the challenges faced. Whilst in the past such challenges may have included one-off situations, even a crisis, we now seem to have moved to a time where we appear to have a number of challenges affecting or impacting businesses. Whilst typically the quality or mindset of resilience might have served them in good stead in the past, perhaps it’s time now for family and owner managed businesses to focus more on fortitude. Being resilient, that is bouncing back or persevering, might be good in the short term, but perhaps fortitude, having the motivation, drive and determination to succeed might be better in the longer term. All businesses, including family ones, have and are dealing with the impact of recent and current events, be it Brexit, the pandemic or the conflict in Ukraine. We should really take into greater account and consideration the growing impact that environmental changes are having in terms of extreme weather conditions, floods and fires, which previously were rare and uncommon to now being more typically the norm and sadly an everyday occurrence. In light of these events businesses, like all of us, are seeing rising costs, pressures on cash and the cost of finance. Whilst household incomes are being squeezed, so too are business margins and working capital. Like many families, family businesses will no doubt be focusing on the finances, cutting their cloth accordingly and looking after the pennies, even make do and mend. A focus on maintaining margins, safeguarding working capital, effective debt collection is also bound to be given greater importance.  So too is any decision around any capital investment or new or re-financing. Perhaps though the area not being focused on is developing the motivational mindset, drive and determination not only to work through the situation but to come out of it stronger. A lack of focus could be down to too great a focus on the here and now, more the operational day to day challenges as opposed the medium to longer term strategy. Whilst a work ethic is commendable and can be often harnessed and shared by all, employees, managers and directors alike also need, even crave, a sense of direction and purpose along with a game plan. Such a plan need not be a long-winded business plan, it could and perhaps more ideally needs to be short with a clearly and easily communicated direction of travel to include strategic intent and vision along with measurable outcomes – even rewards. Ideally such a plan should inspire, even excite those charged with making it happen, creating goals and aspirations. As ever and not least in challenging times effective business communication is often key to success. This should not just be for the family members engaged in the business, it should include the wider workforce. Certainly, in times of uncertainty or change, there is a real danger communication becomes less or less effective. Given the challenges faced, perhaps it might be worth as a family business reviewing how the running of the business and decision-making affects or impacts you and the wider family. With growing pressures, it might be good to review individuals’ roles and responsibilities, when, where and how you consider or discuss the business. You may also want to consider the need for and benefit of seeking external advice, or taking on a Non-Exec Board member or Chair to draw on their knowledge and experience. Whilst previous generations may have weathered the storm and have been resilient, the pace of change along with the impact of more global events outside our control really do seem to point to family business owners needing to draw on their fortitude.   See this column in the September edition of East Midlands Business Link Magazine here.