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Business

Construction output falls

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RISING costs and uncertainty relating to Brexit are to blame for the sharp drop in output growth in January 2019, the Federation of Master Builders (FMB) has said in response to the latest Purchasing Managers’ Index data (PMI).

The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index incorporates survey results provided by construction firms throughout the country.

A reading above fifty suggests the construction sector is expanding, while a reading below fifty suggests the construction sector is in contraction.

The January 2019 PMI data revealed a fall from 52.8 in December to 50.6 in January, against the neutral reading of 50.0. January data pointed to a loss of momentum for the UK construction sector, with business activity growth grinding to its weakest for ten months.

All three categories of construction output recorded weaker trends than those reported in December.

Residential work was the strongest performing area, although the latest expansion was only modest and the slowest seen since March 2018. Civil engineering activity increased marginally, with the rate of growth much softer than December’s 19-month high.

Commercial work was the weakest performing area of construction output in January. Latest data indicated a decline in work on commercial construction projects for the first time in ten months. Anecdotal evidence suggested that Brexit-related anxiety and associated concerns about the domestic economic outlook continued to weigh on client demand.

New business growth eased to an eight-month low in January.

Construction firms widely commented on softer demand conditions and longer sales conversion times, reflecting a wait-and-see approach to spending by clients. Concerns about the near-term outlook for new projects resulted in more cautious staff hiring policies at the start of 2019. The latest survey pointed to the slowest rise in employment numbers since July 2016.

However, construction firms remain positive about the outlook for business activity in 2019. Around 41% of the survey panel anticipate a rise in output, while only 16% forecast a fall.

Optimism had, however, fallen month on month. Large-scale civil engineering projects were cited as a key source of optimism, while Brexit uncertainty was the most commonly cited concern.

Tim Moore, Economics Associate Director at IHS Markit, which compiles the survey: “UK construction growth shifted down a gear at the start of 2019, with weaker conditions signalled across all three main categories of activity.

“Commercial work declined for the first time in ten months as concerns about the domestic economic outlook continued to hold back activity.

“The latest survey also revealed a loss of momentum for house building and civil engineering, although these areas of the construction sector at least remained on a modest growth path.”

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply said: “The sector suffered a sharp drop in output growth in January, and the softest rise in purchasing volumes since September 2017, as Brexit continues to hamper progress and dampen client confidence.

“The biggest shock came in the form of job creation which has managed to suffer the slings and arrows of Brexit highs and lows with solid hiring since the referendum result. Employment rose at the slowest rate since July 2016 and with optimism also in short supply, the sector only needs a small nudge to tip it closer to a recession.”

Commenting on the results, Brian Berry Chief Executive of the FMB, said: “The latest PMI data show a slowdown in growth in construction with business activity growth easing to its weakest for ten months. The ongoing political uncertainty is partly to blame for this setback.

“Political uncertainty is the enemy of construction firms that rely on the spending power of homeowners to commission home improvement projects. The UK is set to leave the EU next month, and yet we are still none the wiser about what the future holds. Given these intense headwinds, it should not be surprising that the sector suffered such a sharp decline.”

Mr Berry continued: “Alongside the political uncertainty, the cost of doing business is also rising for construction firms up and down the country. Material prices have been rising steadily since the depreciation of sterling following the EU referendum.

“Looking ahead, material prices are expected to continue to cause a headache for the construction industry with recent research from the FMB showing that 87% of builders believe that material prices will rise in the next six months. What’s more the construction skills crisis means that key trades are extremely difficult to recruit and the upshot of this is rising wages in construction.

“Tradespeople know they can command higher salaries than they did previously as workers are scarce, and this means a squeeze in margins for firms. This will only worsen if the post-Brexit immigration system that the Government has planned goes ahead.

“If the sector isn’t able to draw upon crucial EU workers of all skill levels, who have so far served to mitigate this shortage, the slowdown of growth will continue.”

Business

The Range to open Haverfordwest store this week

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New home and garden retailer takes over former Homebase site

A MAJOR new retail store is set to open in Haverfordwest this week, bringing a fresh option for shoppers and garden enthusiasts alike.

The Range, a popular UK home, leisure, and garden chain, will officially open its new store at Springfield Retail Park on Fishguard Road on Friday (Apr 25). The store has taken over the former Homebase unit, which closed its doors in March last year after a clearance sale emptied its shelves.

The Pembrokeshire store is one of more than 50 former Homebase locations being transformed by The Range’s parent company, CDS (Superstores International), as part of a national expansion. CDS acquired around 70 sites across the UK and Ireland, aiming to safeguard approximately 1,600 jobs following Homebase’s financial collapse.

Customers in Haverfordwest can expect a wide selection of products across homeware, DIY, and seasonal gardening, with the store also boasting a new Homebase-branded garden centre.

The Range has confirmed that the new Haverfordwest branch will be a dog-friendly store, with special offers on opening day including free goody bags for the first 50 customers through the door – and even treats for the first five dogs to visit.

“We’re excited to welcome shoppers to our newest store,” said a spokesperson for The Range. “Come and explore a wide range of products, exclusive offers, and the brand-new Homebase Garden Centre.”

Although social media posts suggest an official opening time of 9:00am on Friday, the store is expected to open its doors slightly earlier at 8:30am. Opening hours for the weekend are listed as 8:30am to 8:00pm on both Friday and Saturday, and 1:30pm to 4:30pm on Sunday (Apr 27).

Regular hours have yet to be confirmed, but are expected to be similar to The Range’s Carmarthen store, which opens from 8:00am to 8:00pm Monday to Saturday, and 10:30am to 4:30pm on Sundays.

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Business

Ashmole & Co partner marks 30 years with firm

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IAN BADHAM, a long-standing partner at Ashmole & Co, is celebrating three decades with the accountancy firm this month.

Ian, who is based in the Haverfordwest, Tenby and Cardigan offices, joined the firm in 1995 as an ACCA Trainee Accountant after graduating with a degree in Accountancy and Finance from Bristol University. A decade later, in 2005, he became a Partner and has since played a key role in developing the firm’s presence in west Wales.

Reflecting on the changes over the past 30 years, Ian said: “When I started, there was just one computer with internet access in the entire office. Everything was paper-based. It’s been incredible to see the shift to a digital office environment.”

Ian lives in Penally, near Tenby, and takes great pride in supporting the next generation of professionals. “As a firm in west Wales employing over 100 staff, it is very rewarding to be able to provide quality jobs for local people. Seeing our staff grow in their careers means a lot to me.”

He added: “Being a first point of contact as a trusted adviser to our clients is a key part of my role. We are here to support them through both good and challenging times. The Covid pandemic was probably the most difficult period in my career, as we worked around the clock helping businesses access support. It was tough, but also one of the most rewarding parts of the job.”

In addition to his work across multiple offices, Ian is also a family man. He and his wife Claire have two sons. Their youngest plays rugby for the Scarlets and Carmarthen Quins, and much of Ian’s spare time is spent travelling Wales to support him. Ian recently became a grandfather and is now also enjoying ‘grandad duties’. When time allows, he enjoys golf, sea rowing and kayaking around Pembrokeshire.

Ashmole & Co, Chartered Certified Accountants, is celebrating its 125th anniversary this year. It is one of the largest accountancy and auditing practices in south Wales, operating from thirteen offices including Swansea, Ammanford and Llandeilo.

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Business

Preparations underway for Tenby pedestrianisation scheme

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PEMBROKESHIRE COUNTY COUNCIL is once again preparing for the annual Tenby Pedestrianisation scheme.

The scheme is due to start on Monday July 7 and finish on Friday September 12 and run between 11am – 5.30pm each day.

The scheme will again see the Walled Town divided into three zones, each of which will have varying degrees of vehicle access.

Full details of the scheme and the on-line application form will be available from Thursday May 1st on the Council’s website at https://www.pembrokeshire.gov.uk/tenby-pedestrianisation

Residents and business within the Walled Town are encouraged to complete the application process as soon as possible after the documents go live.

This will ensure that there is sufficient time for the application to be processed and additional checks made should further information be required.

Permits will be issued approximately seven to 10 days before the scheme start date.

Please note that paper application forms and guidance notes will no longer be delivered to residents and businesses within the Walled Town and requests for permits will be required to be submitted online.

In order to ensure the ongoing success of the scheme permit holders are encouraged to continue to plan journeys outside of the scheme hours of 11am – 5.30pm as far as is practical.

Email Tenby.pedestrian@pembrokeshire.gov.uk for further information.

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