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How Could Brexit Impact the Construction Industry?
The referendum taking place on the 23rd June is looming ever close and will see Britain make the decision whether to remain in the European Union. Businesses across the country are prepping for the possibility of either decision, with politicians making cases for both; but how exactly does BREXIT affect the Construction industry?
The impact of the decision to leave the European Union could be detrimental to the continuing success of the Construction Industry. Naturally, the idea that the UK may no longer be a part of the European Union is causing concern among Industry leaders. A survey taken recently by Smith and Williamson found that 85% of construction executives favoured the ‘remain’ campaign – a huge margin compared to the remaining 15% who felt that Brexit will have little negative effects.
Concerns
Fears have been raised that investment into the UK’s industry from external sources will slow down and potentially decrease. A spokesperson from Industry leader, Rider Levitt Bucknall, suggested that many of the major regeneration schemes in the UK may not have happened without external funding from the EU. According to CBI, ‘the annual turnover within the construction industry constitutes of £47 billion’; with the threat of reduced funding opportunities, could this have a significant impact on the future of the construction industry’s success?
The Home Builders Federation has expressed its concerns that skilled labour forces from outside the UK would drastically slow down as a result of Brexit. Research shows that 10% of the construction industry workforce is drawn from outside the UK, particularly from Eastern Europe. Brexit could have a profound effect on this; despite the current heavy focus on training of UK nationals within the industry, the shortage of skilled workers would still be significantly low in relation to what’s needed for the expected building output. Any renegotiation of treaties between European countries could take years, by which time the damage may well have been done.
'Scare mongering'?
However, Persimmon Homes takes a neutral stance on this matter, saying that their work force is predominantly UK based and so this apparent implication of Brexit would have little effect on their company.
Keeping this in mind, CBI states that the UK construction industry is ‘the second most domestically focused major UK sector’ behind the government. CBI explains that even materials produced and manufacturing for the purpose of building are done so domestically. With business matters being dealt with largely in the UK, Lord Bamford, the chairman of JCB, believes that the ‘remain’ campaign is in fact ‘scare mongering’. According to the Building Specifier, Lord Bamford believes that the UK isn’t likely to put up trade barriers, regardless of the decision.
While there have been many pros and cons published in recent literature across all industries and unions within the UK, it seems that the majority of the UK’s construction industry leans towards remaining in the EU.
The referendum will have a staple position in Britain’s history regardless of the decision we make; but whichever you decide, ensure an informed decision on all accounts.
Written By Kayley Loveridge
Sources:
http://www.buildingspecifier.com/how-will-brexit-affect-the-construction-industry-two-views/
The Building and Construction Industry vs. The Environment - A Brief Analysis
Concerns for the Environment and the Earth’s conservation are becoming increasingly significant in the successful progression of global corporate industries - especially in construction.
With a huge percentage of pollution that can be attributed to building on a global scale reaching 50% in Land fill waste; Ozone depletion and climate change gases, it is pivotal that the building industries move forward in implementing preventative measures to decrease catastrophic effects, not only on an environmental level, but also on a more human level.
Particular stand out area’s for concern and in urgent need of addressing include the profound impact that the building industry has had on:
The over production of carbon dioxide in the atmosphere
The manufacturing of materials specifically for the purpose of building and building interiors can carry huge upstream CO2 emissions from roofing; building shells; service systems (including plumbing, conveying and electrical installations) and interiors and finishes. This CO2, on smaller scales coming from furnishing and finishes internally, can harm the working organic systems in humans - think: the respiratory system. On its larger counterpart, it attacks the Ozone layer and therefore the Earth’s natural ecological system.
The hydrological system
The close relationship between commercial and residential expansion and agricultural intensity has, in fact, exceeded the limit of the land to absorb and intake rainfall. Simultaneously, the damaging effects of CO2 and other toxins on climate change has significantly increased rainfall on a whole, resulting in: severe flooding on a global scale and its subsequent effects on the quality of human life.
Waste and Pollution
The built environment introduces harmful and toxic pollutants (particularly, and worryingly, mainly from non-renewable energy sources) to workers from: material manufacturing and handling and sewage production. Little consideration towards excessive waste from inappropriate material and use has contributed to global warming; contributed to by non-thoroughly considered estimations and procurement at pre-development stages.
BREEAM, or, the Building Research Establishment Environmental Assessment Method, is the longest standing method of assessing the sustainability of buildings. It is the governmental legislation put in place for Building design and construction which ultimately tries to stabilise excessive pollution and increasingly forces large construction companies to be considerate of the environment. It adheres to a scoring system which must be achieved by construction companies before a development can progress, judging on:
- Energy
- Pollution
- Land-use and Ecology
- Water
- Health and Wellbeing
- Transport
- Materials
- Waste Management
More and more developers and contractors are now taking precautions and measures in the predevelopment stages of construction in order to achieve the desirable BREEAM status, and to reduce the effects during and after building.
The planning phase is crucial to the successful sustainability of the buildings in question. Developers and contractors consider the protection of biodiversity (trees/ponds etc.) to improve and sustain the Earth’s natural ecosystem, and thus improving the health of the atmosphere.
Carefully designed structures are also a huge contributing factor to the building’s sustainable qualities. By minimising the waste of materials as normally acquired through incorrect estimates and indulgent purchasing, the risk of pollutants is also greatly reduced. There is also a lot to be said about companies who are able to optimise passive energy use during construction, particularly in reducing electrically fuelled lighting and heating by using solar panels to generate such, organically.
Written by Kayley Loveridge
Sources
- http://www.cmpbs.org/sites/default/files/ad5-life_cycle_balance.pdf
- www.designbuidlings.co.uk
- The Impacts of Costruction and the Built Environment –Briefing Note produced for Willmott Dixon by WD Re-thinking Ltd
- http://www.breeam.com/
February Resolutions
Happy New Year! Okay, okay. It’s definitely a little late for that, but we’ve been a busy bunch here at the Ashbrittle office, and we wish you the best, all the same.
January has flown by and this month saw our consultant Aaron get a year older, taking the opportunity in this new year, along with the rest of the team to help you take on your new year’s resolutions, diving in head first into sourcing the best candidates for the top construction developers and tycoons around the globe.
We know that keeping New Year’s resolutions can be difficult, particularly when the nights draw in at 4pm and bitter winds are constantly against you in your bid to get fit in the great outdoors. We admit that it is far more appealing to curl up in your duvet on the sofa in front of the tele than to freshen up that resume to champion your excellence to shiny new prospective employers - but that is where we come in!
The construction industry is more abundant than ever; with a constant ebb and flow of client’s needs for the best construction professionals, from site managers to Quantity Surveyors, we invite you to make use of our impressive catalogue and pursue your ultimate career goals.
Making 2016 the best year of your life is as achievable as ever. Imagine that this year, is the year you take on that leading role, with your management team reporting back to you or the year you jump from trainee level to recognised professional. Imagine it, create it.
This year is yours, and we’d be proud to represent you on your path, so join us in making February resolutions a reality and get in touch!
Written By Kayley Loveridge