The SME construction industry is still being hit hard by the effects of the recession.
The FMB’s latest State of Trade Survey results from the final quarter of 2010 reveal that 47 percent of FMB members expect their workloads to fall during the first quarter of this year and a third of businesses are expecting to cut their staffing levels in 2011.
These distressing figures at least caught the attention of the media which meant I had a treble media whammy being interviewed for BBC Breakfast, BBC Radio 4’s “Today” programme and BBC Radio 5 Live breakfast last month. The Times also covered our survey as did Construction News and Grahame Barn, FMB Scotland Director, was interviewed on BBC Radio Scotland’s “Good Morning Scotland” too.
CREATING GROWTH IN CONSTRUCTION
Against this rather gloomy background I have now written to the Chancellor of the Exchequer ahead of the Budget on the 23 March to outline six specific policy actions that the Government could take to help the construction sector return to growth. These are covered in the External Affairs section but they are all focussed on the need to create growth in the construction sector. We all know that the Government’s efforts are being focussed on reducing the deficit but a simple measure such as simplifying and promoting the current VAT exemptions for the installation of all energy savings materials would be a boost to a hard pressed building trade. And let’s not forget that investment in the construction industry offers a real return to the Treasury because for every £1 spent on construction output this generates a total of £2.84 in total economic activity. Investment and not cuts in construction would mean that the Chancellor would be building the real foundations for a sustained economic recovery.
FMB AT THE HEART OF THE GREEN DEAL
Talk about the Green Deal finance package is beginning to hot up and I’m pleased to let you know that the FMB is right at the heart of the current decision making. The Government has set up forums to advise on delivery and the FMB has secured representation on two these of groups - the ‘Green Deal Capacity and Innovation Forum’ chaired by Paul Morrell, Chief Construction Adviser and the ‘Green Deal Installer Qualification and Accreditation Forum’ chaired by David Strong. The journey over the next eighteen months is not going to be easy.
There is real concern that householders won’t find the Green Deal finance package sufficiently attractive to take up. Unless there is demand in the market the Green Deal will fail, a view expressed in the Department for Business Innovation and Growth Team report, ‘Low Carbon Construction', which is calling for a suite of measures beyond Green Deal finance to ensure success.
Then of course there is the need to ensure that only accredited builders carry out Green Deal work so that the UK avoids a repeat of what happened in Australia where cowboys builders had access to the market and undermined Australia’s national retrofit programme. To overcome this problem the FMB is currently working on its application to the Department for Communities and Local Government (DCLG) to become a Competent Person Scheme operator which we hope will be approved at the end of the year.
