Business

Construction output falls

Published

6 years ago

February 6, 2019

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

Cardigan shop wins St David’s Day competition

Published

1 day ago

March 15, 2025

Tom Sinclair

CARDIGAN Curiosities has won the St David’s Day shop window award for the Cardigan division, an accolade presented by Menter Iaith Ceredigion.

High Street businesses and Guildhall shops embraced the festivities, decorating their windows in a vibrant display to celebrate the national day of Wales and the arrival of spring. The event, which highlighted the Welsh language, saw enthusiastic participation from across Ceredigion.

To mark the occasion and show appreciation for the community, Cardigan Curiosities is offering the chance to win an exclusive piece of local artwork. The prize is a one-of-a-kind watercolour painting of the nave of St David’s Cathedral, created by a Pembrokeshire artist. The framed artwork measures 74×95 cm.

To enter the competition, participants must:

Visit the Cardigan Curiosities Facebook or Instagram page
Like the competition post
Comment with their favourite Welsh word

The winner will be drawn on March 20 by “Ddraig Goch” from inside a dragon egg, with the announcement made that evening on social media.

For those interested in viewing the artwork or the decorated shop window, Cardigan Curiosities is located at 32A Cardigan High Street and is open Thursday to Sunday, from 10:00am to 5:00pm.

Business

Calling all creatives, join this month’s advice and networking drop-in!

Published

3 days ago

March 13, 2025

Tom Sinclair

CREATIVE WEST WALES and Pembrokeshire’s Business Team will join forces at a drop in session this month to celebrate and support the region’s amazing creative industries.

Established companies, freelancers or those considering a new start-up, are invited to visit the Bridge Innovation Centre, Pembroke Dock on Friday, 28^th March, 9am to 12pm to find out what business support is available from a range of organisations including Pembrokeshire County Council, Business Wales, FSB and Visit Pembrokeshire.

A networking session will offer a chance to meet fellow creatives, explore potential collaborations, and meet representatives from Yr Egin, Creative Wales and the Creative West Wales Network to find out more about assistance available for talented people in the West Wales area, especially those in the music, screen, gaming, publishing and animation sectors.

Pembrokeshire County Council’s Creative Industries Officer Anwen Baldwin said: “There is a wealth of creative talent in this area which should be celebrated and supported.

“We host a popular Business Drop In event on the last Friday of each month. It’s great to be able to focus on the creative industries this month and offer an opportunity to find out more about what support is available, discuss challenges and network with other local people from these sectors.”

If you would like to showcase your work during this event please email [email protected]

Refreshments available, register via Eventbrite Digwyddiad Galw Heibio i Fusnesau / Drop In Business Support & Networking Tickets, Multiple Dates | Eventbrite

Business

Launch of Celtic Freeport ‘vital’ for economic growth and clean energy

Published

3 days ago

March 13, 2025

Tom Sinclair

CELTIC FREEPORT AT MILFORD HAVEN AND PORT TALBOT TO DRIVE UK ECONOMIC GROWTH MISSION

THE CELTIC FREEPORT has been officially launched, bringing significant inward investment to South West Wales and taking a major step towards creating thousands of new jobs, the Welsh Government announced this week.

It also re-affirmed its commitment to £26 million of UK Government investment.

The freeport, covering the ports of Milford Haven and Port Talbot, is set to play a crucial role in the UK’s clean energy future. It spans multiple industries, including clean energy developments, fuel terminals, power generation, heavy engineering, and the steel sector.

Businesses operating within the freeport area will benefit from substantial UK and Welsh Government tax breaks and customs exemptions to encourage investment. The initiative is expected to attract £8.4 billion in private and public investment, generate 11,500 new jobs, and contribute £8.1 billion in economic value (GVA) to the region.

The freeport was launched at an event in Cardiff, attended by Secretary of State for Wales Jo Stevens and Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning.

***Secretary of State for Wales Jo Stevens on a visit to Associated British Ports at Port Talbot***

“Significant step towards a renewable energy superpower”

Jo Stevens, Secretary of State for Wales, said: “This Government has a Plan for Change focused on delivering economic growth and ensuring the UK becomes a renewable energy superpower. This announcement is a significant step towards achieving those ambitions.

“The Celtic Freeport will create up to 11,500 well-paid, highly skilled jobs and could leverage up to £8.4 billion in investment.

“The UK Government has committed £26 million to the freeport, alongside significant incentives from both the UK and Welsh Governments. I am very pleased to see two governments working in partnership to deliver for the people of Wales.”*

“A vital cog in the UK’s low-carbon economy”

Rebecca Evans, Welsh Government Cabinet Secretary for Economy, Energy and Planning, said: “The official opening of the Celtic Freeport sends another clear signal to the world that the industrial heartlands of South Wales are a vital cog in the UK’s low-carbon economy.

“We are already seeing real enthusiasm across the region and beyond to capitalise on the skills and job opportunities that this new industrial age will provide. The Welsh Government will be at Celtic’s side, offering major tax reliefs to attract business investment.

“The Freeport will also be able to use future non-domestic rates revenues to fund vital infrastructure and skills projects, benefiting Port Talbot and Milford Haven for generations to come.”

Freeport projects already making progress

Following the successful launch, Luciana Ciubotariu, CEO of Celtic Freeport, highlighted the rapid progress of key projects: “The Celtic Freeport is making significant strides forward with milestones such as planning consents for LanzaTech’s sustainable aviation fuel production plants, RWE’s Pembroke Green Hydrogen plant, and the launch of the Milford Haven CO₂ Project.

“Other major developments include H2 Energy and Trafigura’s West Wales Hydrogen project securing a hydrogen CfD, Haush establishing a green energy HQ, and the approval of wind turbine developments to expand Dragon Energy’s Renewables Park.

“These initiatives, alongside investments in battery energy storage by RWE and port infrastructure at Port Talbot, are accelerating South Wales’ reindustrialisation and driving a decarbonised economy rich in evolving and new industries.”

A cleaner, greener future

The Celtic Freeport aims to establish a green investment and innovation corridor, driving inward investment, skills development, and national decarbonisation. Key focus areas include:

Floating offshore wind (FLOW) in the Celtic Sea
Hydrogen economy and sustainable fuels
Carbon capture and storage
Cleaner steel production
Low-carbon logistics

As one of 12 Freeports across the UK, the Celtic Freeport will play a pivotal role in the UK Government’s Growth Mission, supporting the transition to green industries and creating thousands of high-quality jobs for local communities.

(Cover image: Secretary of State for Wales Jo Stevens – Speaking at the Celtic Freeport event in Cardiff)