“The UK lags below” – not a term usually heard but it seems to be true where the construction industry is concerned. According to a business newspaper, “The UK is lagging behind several other major European nations on the delivery of new-builds, in relation to its population size, analysis has found.” In some areas, construction of new buildings has increased whereas, in others, the opposite has happened. Even in a county like Kent, the number of new-builds differs in each town. Estate agents in Sittingbourne can clarify and confirm the areas which have seen an increase in new constructions.
Construction projects are limited to a single time and purpose. A team gathers to create a distinctive construction on an available site under certain conditions. There are various reasons why the UK is behind in new-build performance. Some of them are as follows:
The pandemic caused by the Covid outbreak is the major cause of delays.
Labour shortage: Many staff had to self isolate which caused a deficiency of workers. Even small numbers of people staying away from work have impacted building projects. Also, due to an ageing workforce, much skilled staff have retired and fewer younger ones are entering the field.
Delivery of materials: Delays in the delivery of construction materials has consequently led to delays in the completion of projects. As the representative of one construction company aptly said, “Door frames have gone from six weeks to six months. How is it we can build a house quicker than we can get hold of a door?” Not having enough HGV drivers is another cause for delays in delivering materials.
Low supplies: Essential building materials such as cement, steel and roof tiles are in short supply. So are bricks, steel lintels, paint, coatings and sealants.
Rise in costs: When supplies dwindle, the cost automatically rises. With steep increases in the cost of materials, it has been difficult for the construction industry to accommodate new-builds at affordable prices.
Energy prices: Ofgem (Office of Gas and Electricity Markets) has announced energy price rises in April 2022. Construction firms will suffer as a result, since the impact will be felt by those high energy industries like steel, concrete and cement. On the plus side, most manufacturers have energy forward contracts, allowing purchase or sale at a specified price on a future date. They are used for hedging which can cause a delay between rising energy costs and product costs. However, they will need to ascertain the impact once the current contract periods end.
Demand vs Supply: The ever-present high demand in the property market against the lack in supply is due, in part, to the changing trend for accommodation caused by lockdowns and working online from residences. The demand soared as more people wanted more spacious accommodation, with outdoor areas as well for a garden and relaxation. This led to a dearth in the supply of material to provide the same. Supply chain problems and challenges were the results. The supply vs demand ratio in terms of labour including lorry drivers has also led to the lag in new-build performance. Labour rates have increased along with the demand.
Climate change and meeting environmental policies: Climate change has affected the environmental policies for methods of construction. Net-zero, with the cutting of carbon emissions, decarbonising energy demands, carbon-efficient methods of construction and ensuring that buildings can sustain extreme climatic conditions has had its effect on the industry. The costs involved are high, when trying to make the most carbon-intensive construction materials greener and with low-carbon concrete and steel alternatives. High technology levels will be required to attain this.
Offsite construction: “It involves the manufacture and preassembly of components, elements or modules before installation into a final location.” The advantages of efficiency and quality of offsite construction may deflect from the disadvantages. However, technology and capital are required. As many of the construction firms in the UK are small companies, with workforces highly skilled in their traditional training methods, a changeover to offsite construction would involve retraining, investing in a factory and adopting offsite techniques which many may not be able to afford.
Conclusion: The decline in the supply of materials and the high costs involved seem to be the main cause for the lag in the new-build performances in the UK. Quoting from https://commonslibrary.parliament.uk/research-briefings/cbp-9350/, “Broadly, the UK’s current supply chain issues stem from global shortages of materials, staff shortages and transport delays occurring at the same time as sharp spikes in demand, particularly for consumer goods and construction materials.” Added this, with the Russia-Ukraine conflict, additional shortage of materials could occur, which would cause further increases in energy prices. However, despite all the cons listed, the “bricks and mortar” industry has managed to survive all challenges, which hopefully will include the ones mentioned above as well.