Construction firms’ ability to recruit enough skilled staff is the only thing holding back the industry, KPMG has said in response to the latest Markit construction PMI figures.
The latest survey of construction purchasing managers showed construction output expanded in August at its fastest pace since September 2007.
KPMG UK head of infrastructure, building and construction Richard Threlfall said the results were further evidence that sentiment across the construction industry had shifted, and that the positive outlook was helping drive construction output.
“It is particularly encouraging to see the improvement not only in the residential sector but in the commercial and civils sub-sectors as well,” he said.
“The only thing that is holding the industry back now is not a lack of demand, but the ability of businesses to recruit sufficient experienced staff.
“While there’s been a lot of scepticism as to how quickly the market would recover, history suggests that once the mood changes, construction demand will rocket.
“Time to hold on to your hard hats.”
Markit’s August reading of 59.1 was up from 57.0 in July and above the ‘no change’ level of 50 for the fourth consecutive month.
Chartered Institute of Purchasing & Supply CEO David Noble said: “A new dawn is breaking in construction.
“The industry recorded the fastest pace of growth since 2007 in August, leaving the dark days of recession behind.”
Respondents said that the amount of public infrastructure work had grown in addition to the widely reported rise in housing demand.
The amount of new work also grew at its fastest rate since March 2012 and construction employment rose for the third month in a row.
The majority of construction firms were confident about the year ahead, with 46 per cent expecting a rise in work and 10 per cent a reduction.
They said their confidence derived from improvements to the wider economy, which had made their clients more willing to spend.
The results echo those of the Construction News Barometer survey of the views of top contractors’ chief executives, chairman and directors, which found that the industry’s leaders are hopeful turnover will return to pre-recession levels by 2015.
However, they were worried that a shortage of skilled staff and rising costs could temper the recovery.
Mr Noble said: “Builders have seen a step change in recent months and are now starting to show their true potential to the UK economy.
“Nowhere is this more true than in new business, where growth is at its second-strongest rate in almost six years, leading to more jobs and increasing confidence.
“Robust expansion can be seen in all three sub-sectors: housebuilding is rising at a rate not seen since mid-2010, commercial growth is also strong, but it is the strongest growth in six years recorded in civil engineering that is a real cause for optimism and a sure sign the sector has overcome its previous difficulties.
“This new direction brings new challenges, not least the prospect of additional work and insufficient capacity to meet demand. How the sector navigates these tensions and manages the supply chain could come to define its performance over the coming months.”
Delivery times for materials lengthened by the highest amount since June 2007, reflecting the strongest level of purchasing since March 2012.
Markit senior economist Tim Moore said: “The latest construction purchasing managers index figures are yet another indication that the UK economy has performed impressively over the summer months.
“A steep upturn in civil engineering activity suggested that public sector demand has joined residential building as a key driver of construction output growth during August.
“With overall output levels now rising at the fastest pace for around six years, it seems highly likely that the construction sector will provide another positive contribution to UK GDP in the third quarter of 2013.
“New public sector infrastructure spending looks to have started making an impact on the ground, and this was a contributory factor behind the sustained construction sector job creation seen in August.”
Michael Conroy Harris, construction lawyer at law firm Eversheds, said: “After encouraging signs last month, the latest figures should continue to inject some much-needed confidence into the industry.
“While optimism around housing is rightly cautious as there is the risk that we might be looking at a bubble, it’s heartening to see an upturn in another sector and the increase in civil engineering activity suggests some strength and depth to the recovery.”
Category Archives: Uncategorized
London Bridge Station Design Revealed
Detailed designs for London Bridge station have been delivered by the HyderWSP joint venture to the main contractor.
Work is already underway on side to deliver the transformation as part of the £6 billion Thameslink Programme.
So far, three platforms have been demolished and associated track removed.
HyderWSP has now delivered more than 250 detailed architectural drawings to shape the stations redevelopment.
Four years of Crossrail Construction
Quote
This is an amazing photo that Crossrail tweeted this week of the humongous gaping cavern 40 meters beneath Stepney Green. The posed photo op was in honour of the 4 year anniversary since Crossrail started construction. Time flies when you’re burrowing under the streets of London.
Market Conditions & Interview Tips
It has certainly been a very busy start to the year for us at Intersect the first quarter of 2013 has flown by.
The infrastructure sector continues to gain momentum and with the budget out the way it is good to see that the investment will continue in our sector creating many more jobs and opportunities.
We have noticed an increased demand for permanent employees amongst our clients, which is hopefully a sign of confidence creeping back.
On the subject of jobs I thought it would be a good opportunity to share some useful interview tips. You can avoid almost all interview mishaps if you put in the right preparation before hand. Here are my top tips.
1) The Role
Make sure that you understand what the actual role /vacancy is and that you are armed with a mental list of your top selling points. These should be well thought out (not just text book) and realistic and you should be able to talk about them with ease. This will ensure the interviewer is aware of your advantages over others.
2) The Company
There is nothing worse than going to an interview with little of no knowledge about the hiring company. Make sure you know their history, size, profitability and can talk about the markets in which they operate.
Do your homework ahead of time so you are ready to say why you want to work at that job and for that company.
3) Company Culture
The work environment will most certainly have a huge impact on whether you love your job or hate it. It is good practice to address the work culture with your interviewer to make sure your values align.
4) Industry Knowledge
This is a hugely important aspect that can make you stand out from other applicants
Show off your knowledge of the industry. Talk about recent newsworthy events or the company’s newest projects. Thoroughly understanding your industry proves your passion for the field. In addition, having this knowledge suggests you have a deeper level of expertise than the average candidate.
5) Past experiences
Your past experiences demonstrate how you would perform if you were offered the job. So, you want to be prepared to describe past experiences where you had a big impact. Make sure that you have tangible examples that are relevant to the demands of the job on offer.
When talking about previous jobs always be positive and do not over explain your reasons for leaving, make sure that you are can demonstrate a forward step in your career at any moves you may have made.
6) Examples of Your Work
If possible and appropriate take a portfolio or a visual representation of your past work. It not only shows off your accomplishments, it also gives you added value. While a portfolio may not be essential for many positions, having physical representations off your work that you can share upon request will make you look good because you went that extra mile.
7) Well Thought-out Questions
You must have questions at the end of the interview! Generally speaking hiring managers are disappointed if you don’t.
Well thought out appropriate questions help show your desire for the job. They can also give you more insight into the role, which may not have been addressed during the more formal portion of the interview.
A good example could be to determine what future prospects are available or what the hiring managers expectations of your achievements would be within the first 6 – 12 months.
8). Next steps
It is good practice to ask what the next stage of the interview process is.
In most cases a second interview will be required, it could also be that you will know the outcome for a few weeks. By asking about these next steps, you’ll know what to expect and gain some peace of mind. You’ll also show your enthusiasm for this position.
Hopefully these tips will help you to make sure that the interview process runs as smoothly as possible, go though this check list before your next interview.
Finally remember first impressions count!
Wear your smartest suit and greet your interviewer with a firm handshake.
Always maintain good eye contact throughout and leave on a positive note.
If you are interested in making a career move Intersect can help you achieve your goals. We recruit on behalf of leading employers in the construction an infrastructure sector. Visit our site www.intersectglobal.co.uk give us a call on 020 76820668 or email your CV to info@intersectglobal.co.uk
Quantity Surveyors & Infrastructure Sector
As a new year gets underway there are some positive signs to be seen in the construction industry and from speaking to clients and candidates it seems many share a degree of optimism for what 2013 has install.
Whilst our sector is still experiencing many tough challenges many of our clients in the infrastructure sector are recruiting both permanent and freelance commercial and operational staff. During January Intersect filled a number of vacancies on rail, highways and water related projects. The demand is very much at the senior end of the market where our clients are seeking experienced professionals.
Infrastructure Leads demand for Quantity Surveyors
A report published this month by the largest recruitment agency Hays says it has seen a rise of around 30 per cent in vacancies for Quantity Surveyors compared with two years ago, especially in infrastructure and for affordable housing projects.
Recruitment activity in infrastructure and private housing is not especially surprising given they are two of the few sectors expected to grow this year.
The rise in demand for QSs working on affordable housing is more surprising given the savage cuts in public spending but it seems work is coming through as the is a pipeline of investment that will be going live in the next 12 months. A number of local authorities and councils have major investment plans while that investment is not as great as it was perhaps a few years ago its still healthy and is driving recruitment.
Intersect currently have vacancies for Senior Quantity Surveyors, Project Managers and Planners for a range of leading infrastructure main contractors and consultancies.
If you would like to enquire about any of these roles or would like to speak to one of our consultants about helping you make a career move please get in touch.
Employment Trends during 2012
As the year draws to an end and we all look forward to the Christmas break it seems like an opportune time to report on some employment trends over the past year and look forward to what the industry may have install for us during 2013.
Looking at our activity during 2012 Intersect have seen a considerable rise in the amount of vacancies for both permanent and freelance jobs compared to 2011. A large number of these vacancies have been as part of company growth particularly from consultancies and contractors involved in infrastructure and rail projects in the Capital.
Our observations are backed up by a report published last week by
The Recruitment Employment Confederation and KPMG which provides the most comprehensive guide to UK Labour market drawing on original survey data provided by recruitment consultancies.
Some of the key findings are:
Upturn in staff placements continues: November being the second successive monthly rise in perm staff placements with the rate of growth picking up the fastest in 19 months.
Overall vacancies increased at a faster pace in November with growth at a 19 month high. Data showed that a robust demand from private sector employers offset weak demand from the public sector.
Strongest increase in revenues generated from temp / freelance worker since March 2011.
Pay pressures remain weak: Although salaries are seeking a moderate rise the rate of inflation was sharpest for 14 months.
The availability of Temporary Staff increased in November where as availability of permanent staff remained static.
Public Sector demand for temporary staff rose last month but a further contraction in demand was indicated for permanent workers.
Demand rose for seven categories during November with the exception of the hotel and catering industry – the good news for our sector is that the sharpest rise was indicated for the Engineering and Construction market.
Kevin Green the REC Chief Executive commented “recruiters are reporting another monthly increase in the number of people placed in both permanent and temporary jobs, and its beginning to look like an accelerating trend. Employer confidence is bouncing back with business feeling more encouraged to hire, which bodes well for the New Year. The reductions in corporation tax and investment in big infrastructure projects announced in the Autumn Statement should help boost confidence even higher and encourage more job creation in 2013″.
Bernard Brown, Partner Head of Business Services at KPMG comments “Twelve Months ago employment prospects were bleak. Today however the negative outlook has been replaced with cautious optimism as employers gradually gain confidence to make decisions about the vacancies they want to fill”.
Summary
The last quarter of 2012 has seen the jobs market in the UK improve and whilst the construction and engineering sector still has a long way to go to fully recover there are some positive signs that we feel should be focussed on rather than talking ourselves into another recession. Many of the vacancies we have on the books are still proving very tough to fill particularly for Quantity Surveying, Planners, Cost Managers and Commercial Managers which indicates employer demand is outstripping supply of workers in these specialist disciplines.
With government pledges to increase investment in our sector and employer confidence improving we look forward to continuing the upward trend next year that we have seen through out 2012.
As well as the vacancies listed on our website wwww.intersectglobal.co.uk Intersect are also recruiting for a number of other commercial & operational vacancies on aviation, heavy civil engineering, rail. utility, highways and energy projects.
If you would like to enquire about any of these roles or would like us to assist you with your next career move please give us a call on 020 76820668.
UK Out of Recession & Market Conditions
The largest single boost came from the service sector, which increased by 1.3 per cent after a decrease of 0.1 per cent between Q1 and Q2.Production industries also grew, increasing by 1.1 per cent after a modest decrease in the previous set of figures.
The Civil Engineering Contractors Association welcomed the figures, but warned that they masked an underlying fragility in construction. Director of external affairs Alasdair Reisner said: “The whole of the UK has been waiting for the country to emerge from the double-dip recession. As such, today’s news is welcome as it indicates a return to much-needed growth.”
The table below shows quarterly construction growth over the past 12 month and year on year fluctuations from 2007 – 2011
Quarterly construction growth:
2011Q3 | 2011Q4 | 2012Q1 | 2012Q2 | 2012Q3 |
-0.5 | 0.2 | 5.9 | -3.0 | -2.5 |
Year-on-year construction growth
2007 | 2008 | 2009 | 2010 | 2011 |
2.1 | -2.7 | -13.5 | 7.9 | 2.6 |
Despite what the 2012 Q2 & Q3 figures above indicate Intersect have noted that throughout September and October we have had visible increases in activity with our clients, compared to July & August which are historically the quietest recruitment wise.
We are pleased to see the Infrastructure sector benefiting greatly from further major contract awards from Crossrail and continued investment on frameworks across the Capital’s overstretched Rail Network.
Whilst the market is clearly still unstable and overall employers confidence still a far cry from how it was prior to 2007 there are promising signs with official UK unemployment figures falling and talk from both political parties recognizing the important part that the construction sector can play in delivering long term economic recovery and growth.
During the course of 2012 we are pleased to see the number of vacancies rise significantly both for freelance and permanent positions. Within our specialist divisions there are also less immediately available candidates in the job market. We all hope that 2013 brings further investment to major infrastructure schemes and that the private sector also sees banks lending again giving it a much needed boost.
Intersect are currently recruiting on behalf the UK’s leading Civil Engineering Contractors and Consultancies. We have fantastic career opportunities available for Quantity Surveyors, Cost Managers, Commercial Managers and Project Managers. To apply for any of our roles please visit our website www.intersectglobal.co.uk
Market Conditions & Good news for Crossrail
With the great sporting summer of 2012 gone and construction restrictions lifted across Central London and the London Underground network the construction industry is beginning to gather momentum again. We have noticed an increase in recruitment activity across in the infrastructure sector in the South East on rail, energy, highways, aviation and water related projects. The last quarter of year is historically our busiest and 2012 looks like it will follow the trend of previous successful years.
More good news for the industry in the way of government funding through the UK Guarantees initiative has just been announced. Crossrail’s £1 billion rolling stock has been confirmed by Danny Alexander as the first scheme to receive government support through the UK Guarantees initiative.
Speaking at the Liberal Democrat conference yesterday, the chief secretary to the Treasury, said the government needs to secure the rolling stock for the ‘biggest infrastructure project in Europe’.
Rolling stock being delivered largely through the private finance initiative is being considered as the first scheme to be underwritten by the government balance sheet.“We need to make sure the rolling stock is delivered on time. Right now there’s difficulty raising the necessary private funding.“Crossrail will be the first project to qualify for a new government guarantee – and it will be the first of many across Britain I’m sure.”Mr Alexander said it has come after the government has ‘rebuilt the confidence in the nation’s ability to pay its way in the world’.
More good news for the industry is that the Thames Tideway Tunnel is also being tipped for a UK Guarantee. John Cridland, Confederation of British Industry Director-General, said today: “I welcome the first announcement of the use of UK Guarantees to underpin the funding of new Crossrail trains.
“This is an important step forward, and I hope to see more announcements as quickly as possible.”
The stock and depot contract is the largest single contract Crossrail will let. It is due to be awarded in spring 2014 in time to provide stock in May 2017 on the Great Eastern Main Line into Liverpool Street.
The £1bn cost of rolling stock and depot is not included as part of the overall £14.8bn of Crossrail funding. In February, Crossrail’s Sponsors (Department for Transport and TFL) said private finance will meet a substantial part of the £1bn cost.Government announced that they would provide a grant contribution of up to £350m, aimed at easing financing costs for bidders and the public purse. The rest is coming through the PFI.
Crossrail will pass through 37 stations from Maidenhead and Heathrow in the west, central London to Shenfield and Abbey Wood in the east.
We have excellent working relationships with many of the contractors responsible for delivering Crossrail projects. If you are interested in current or future jobs on this prestigious project or other infrastructure / civil engineering projects please get in touch.
With the great sporting summer of 2012 gone and construction restrictions lifted across Central London and the London Underground network the construction industry is beginning to gather momentum again. We have noticed an increase in recruitment activity across in the infrastructure sector in the South East on rail, energy, highways, aviation and water related projects. The last quarter of year is historically our busiest and 2012 looks like it will follow the trend of previous successful years.
More good news for the industry in the way of government funding through the UK Guarantees initiative has just been announced. Crossrail’s £1 billion rolling stock has been confirmed by Danny Alexander as the first scheme to receive government support through the UK Guarantees initiative.
Speaking at the Liberal Democrat conference yesterday, the chief secretary to the Treasury, said the government needs to secure the rolling stock for the ‘biggest infrastructure project in Europe’.
Rolling stock being delivered largely through the private finance initiative is being considered as the first scheme to be underwritten by the government balance sheet.“We need to make sure the rolling stock is delivered on time. Right now there’s difficulty raising the necessary private funding.“Crossrail will be the first project to qualify for a new government guarantee – and it will be the first of many across Britain I’m sure.”Mr Alexander said it has come after the government has ‘rebuilt the confidence in the nation’s ability to pay its way in the world’.
More good news for the industry is that the Thames Tideway Tunnel is also being tipped for a UK Guarantee. John Cridland, Confederation of British Industry Director-General, said today: “I welcome the first announcement of the use of UK Guarantees to underpin the funding of new Crossrail trains.
“This is an important step forward, and I hope to see more announcements as quickly as possible.”
The stock and depot contract is the largest single contract Crossrail will let. It is due to be awarded in spring 2014 in time to provide stock in May 2017 on the Great Eastern Main Line into Liverpool Street.
The £1bn cost of rolling stock and depot is not included as part of the overall £14.8bn of Crossrail funding. In February, Crossrail’s Sponsors (Department for Transport and TFL) said private finance will meet a substantial part of the £1bn cost.Government announced that they would provide a grant contribution of up to £350m, aimed at easing financing costs for bidders and the public purse. The rest is coming through the PFI.
Crossrail will pass through 37 stations from Maidenhead and Heathrow in the west, central London to Shenfield and Abbey Wood in the east.
We have excellent working relationships with many of the contractors responsible for delivering Crossrail projects. If you are interested in current or future jobs on this prestigious project or other infrastructure / civil engineering projects please get in touch with Intersect Global on 020 76820668 or email info@intersectglobal.co.uk
Engineering & Technical Market Overview
With first stage of the London 2012 Olympic Games finished and all the athletes and spectators gone our City returns to relative normality. There has been such a buzz in the air and it seems the fantastic achievements by Team GB have really lifted the spirits of the nation.
In this blog we are focusing on the Recruitment and Employment Confederation (REC) and KPMG Report on Jobs published this month as it provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.
These findings are based on the Engineering and Technical Sectors
Market Conditions
Staff appointments fall at slower pace:
Although there were further reductions in both permanent and short-term staff appointments during July, in both cases the rates of decline eased slightly since June.
Growth of vacancies eases:
The number of vacancies available to jobseekers continued to increase during July, but the latest improvement was the least marked for six months.
Further improvement in candidate availability:
Recruitment consultants indicated that the availability of staff continued to rise in July. Solid improvements in both permanent and temporary/contract staff availability were recorded.
Vacancy data showed that higher demand from private sector employers offset a further decrease in public sector demand. By category, one of the strongest rise for permanent staff was signalled in the Engineering sector.
Institution responds to 22 per cent rise in UK car manufacturing:
Philippa Oldham, Head of Manufacturing at the Institution of Mechanical Engineers said in response to the 22% rise in UK car manufacturing:
“The rise in UK car manufacturing figures is very welcome and shows that the UK can still be a manufacturing powerhouse. But while some industries like car and aerospace manufacturing are bucking the trend and seeing strong growth, recent figures show that UK manufacturing as a whole is still shrinking.
“The success of UK car manufacturing should motivate Government to take urgent action to support manufacturing so that we can see other industries become UK success stories.
“Government needs to work with industry and other political parties to develop a detailed manufacturing and industrial strategy with cross-party support. Industry needs this certainty and also needs greater access to capital investment in order to invest in new production plants, machinery and training.”
More students must study STEM courses at A-level:
The Institution of Engineering and Technology (IET) says that an extra 200,000 engineering professionals will be needed by 2020. Currently, the UK is only producing 25 to 50 per cent of the engineering graduates that the economy needs.
Stephanie Fernandes, IET Principal Policy Advisor for Education and Skills said: “Whilst entries for STEM subjects have risen, it is important that young people continue their studies into higher education; the country needs more people studying science and engineering subjects at university and taking up jobs in this sector.
“We are at risk of stifling economic growth if we do not encourage more students to study STEM subjects which are crucial to increase the output of UK plc.”
There is huge demand for engineers. The IET’s skills survey for 2012 shows that over the next year, 58 per cent of companies are planning to recruit compared to just 36 per cent in 2011.