Industry News

Construction buoyant despite Brexit fears and ONS stats, show BMF Statistics

There are few signs that Brexit has negatively impacted the construction industry according to the latest figures from the Builders Merchant Building Index (BMBI). 

As shown by the BMF Statistics, timber and joinery products are among the best performing products, reporting a 11.8% sales increase. 

Overall like-for-like sales (allowing for two extra trading days) were up 2.8%. Year to date sales grew 5.4%.

ONS statistics, released today, suggest construction output decreased by 1.5% in August.  Whilst these are a different and broader measure of the construction sector, the contrast with BMBI figures, which relate to building materials, is startling.  

BMF Managing Director, John Newcomb, commented: "We are surprised by the ONS figures as they do not reflect what we see happening in the building materials industry.  We believe that the BMBI figures more accurately show the strength of the sector as they correlate to future output.  Put simply, for a brick to be laid, it first has to be supplied and purchased."

“There is lots of speculation on the impact of Brexit on the economy as a whole and on construction, so we are very encouraged to see sales growth of over 13% in August, which shows that our industry is still strong and in robust health”.

Below you can find a summary table of BMBI statistics for August 2016 and year to date.  

 

[News URL: http://cti-timber.org/content/construction-buoyant-despite-brexit-fears-and-ons-stats-show-bmf-statistics]

Building materials market growing strongly, BMF KPI Report shows

The Builders Merchants Federation (BMF) has issued its 2016 Key Performance Indicators Report.

The publication gives a picture of how builders merchants’ businesses fared during the twelve months ending April 2016.

According to the report, the building materials market during the period of this report has experienced strong growth. The BMF Sales Indicators reported that for the 12 months ended April 2016 compared with the previous 12 month period, total sales by merchants had increased by 6.2%.

Compared to April 2015, output in the construction industry decreased by 3.7% in April 2016. The underlying pattern as suggested by the 3 month on 3 month movement in output in the construction industry decreased by 2.1%. There was a decrease of 3.3% in all repair and maintenance compared with the same period last year; housing and non-housing repair and maintenance reported decreases of 4.2% and 2.5% respectively.

However on the year, total housing increased by 0.9% compared with April 2015. The main contributor was private new housing which increased by 5.8%, offset by public new housing which decreased by 20.7%. This was the 12th consecutive period of year-on-year decreases in public new housing. 

John Newcomb, Managing Director of the BMF, commented: “Economic and political uncertainty in the run-up to the EU referendum was expected to cause a slow-down in the construction sector. However, sales data from our builders’ merchant members is telling a very different story. 2015/16 sales were up on last year and the merchant market experienced an 8.4% increase between April 2016 and April 2015. We are confident that our members will continue to perform strongly, and the BMF will work with the Government to ensure the best outcomes for our members as the Brexit deal is negotiated.”

To request a copy of the report, contact Richard Ellithorne, BMF Membership Services Director, at richard.ellithorne@bmf.org.uk.

 

[News URL: http://cti-timber.org/content/building-materials-market-growing-strongly-bmf-kpi-report-shows]

BMF opens first Regional Centre of Excellence in Nottingham

The Builders Merchants Federation (BMF) has opened its first Regional Centre of Excellence as part of a localisation programme designed to strengthen the organisation’s regional presence and add to the support it offers members in their geographic area.

The BMF will establish up to 24 Centres of Excellence, two in each of its twelve regions, in the coming months.

The first Centre of Excellence is at The Green Energy Centre at John A Stephens in Nottingham. Opened just ten years ago, the £2m centre will be used as a regional hub and centre for BMF training in the East Midlands.  As such it will host regional meetings and forums as well as training courses for members in that area.

The BMF will be run its first Regional Training Programme, comprising three different training courses, at the Green Energy Centre In November. The next East Midlands Regional Meeting will also be held there.

Sites for BMF Centres of Excellence have already been identified in Scotland, Northern Ireland, North West, Eastern, South West and West Midland Regions.  Details of these will be announced at Members Day on 21st September.

Commenting on the new initiative, BMF MD, John Newcomb said: “We have been working with members to identify appropriate spaces as regional hubs where local groups can come together for meetings and training.  The Green Energy Centre is a superb example and I’m sure it will play an important role in servicing the needs of our members in the East Midlands.”

Mr Newcomb added: "Localisation is an important strategy for the BMF going forward. With a network of Regional Centres of Excellence alongside our enhanced Regional Management team we are in an excellent position to engage with our growing membership on their home ground.” 

 

[News URL: http://www.cti-timber.org/content/bmf-opens-first-regional-centre-excellence-nottingham]

BMJ / BMF Young Achiever Award: Call for entries to close in few days

Entries for BMJ / BMF Young Achiever Award will close on Monday 1 August 2016.

The award was launched by the Builders Merchants Journal (BMJ) along with the Builders Merchants Federation (BMF) in 2013 to recognise and encourage the achievements of younger members of staff within merchanting.

Sponsored by SCA Timber and Bostik, the award was joined in 2014 by the Young Supplier Achiever Award to recognise that suppliers play a huge part in the success of a business relationship. 

The winner will receive a cheque for £2,500 and trip to Sweden, courtesy of SCA Timber, the runner-up an iPad, courtesy of Bostik. 

To download the entry form click here.

 

[News URL: http://www.cti-timber.org/content/bmj-bmf-young-achiever-award-call-entries-close-few-days]

BMF urges new government to discuss Brexit impact on Construction Industry

The Builders Merchants Federation (BMF) is leading calls for urgent talks with the government over the impact of Brexit on the construction industry. 

Following the appointment of the new Prime Minister, Theresa May and her Cabinet, the BMF has written to key Ministers to highlight the urgency and importance to the UK economy and jobs of the construction sector in the context of Brexit.

The BMF has welcomed the new Prime Minister’s early pledge that the new government will prioritise housebuilding, which is recognition of both the importance of the sector and the current uncertainty in the economy.  

BMF has called for a clear plan from the new Prime Minister and the Government that includes:

  • Assurances of continued support for housebuilding, investment in infrastructure to unlock sites, and further reforms to speed up the planning process
  • Recognition of the importance of investing in apprenticeships and other skills development in the industry to build a workforce for the future, taking account of the impact of the possible end of free movement.
  • Guarantees that the construction industry will be consulted about the impact of the transition to operating within a potential UK only framework, including new product standards and a possible return to the emphasis on the British Kite Mark
  • Confirmation that the BMF along with other key industry bodies, including the FMB and the CPA, will be consulted and involved in a dialogue with the government as Brexit talks and negotiation develops.

BMF MD John Newcomb said: “Construction is hugely important for the UK economy and it is vital that the industry is prioritised and consulted by the government as Brexit plans develop.  We want to hear concrete commitments from the government to support housebuilding.  It is also critical that we are involved in planning for the potential end of free movement, so that we have the skilled workforce ready that we will need for the future."

"We have had very constructive relations with David Cameron’s government and we are looking forward to working closely with the new government”.

 

[News URL: http://www.cti-timber.org/content/bmf-urges-new-government-discuss-brexit-impact-construction-industry]

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