Business
Construction output falls as productivity shrinks
THE GOVERNMENT and Parliament must break the Brexit deadlock and find a way forward warns the Federation of Master Builder (FMB), in response to the latest Construction PMI data, which shows another drop in construction output.
The March 2019 PMI data revealed an Index score of 49.7, up slightly from 49.5 in February, against the no change threshold of 50.0. This points to a sustained decline in construction output, representing the first back-to-back fall in construction output since 2016. While the residential building sector enjoyed an upturn, commercial construction was the worst performing area.
Commenting on the results, published this morning, Sarah McMonagle, Director of Communications at the FMB, said: “The construction industry is being seriously affected by Brexit uncertainty as evidenced by two very worrying sets of results for construction output in the first quarter of 2019.
“Businesses have been waiting for politicians to come to some resolution for far too long now, and it’s time that this deadlock was broken. It’s not surprising employers are finding it hard to plan for the future, when we don’t even know when, or indeed if, we’re leaving the EU. Today’s results are a reminder of just how vulnerable the construction industry is to political turmoil as confidence among consumers and contractors continues to wobble.”
Ms McMonagle concluded: “Brexit uncertainty and the construction skills shortage have created a perfect storm in our industry.
“Around 9 per cent of construction workers in the UK are from EU countries, but we know from speaking to small construction employers that many of these skilled workers are starting to return, whether that’s because of strengthening economies elsewhere, or that they simply don’t feel welcome anymore. This is compounding an already severe construction skills shortage, and I’m worried that the Government’s post-Brexit immigration system will make it even worse. For example, the system will not allow Level 2 tradespeople to live and work in the UK for more than 12 months at a time. At the same time, the Government’s figures last week show that the number of Level 2 apprenticeship starts among our domestic workforce is dropping.
“It’s quite simply not possible to build the homes and infrastructure we need without bricklayers, carpenters and plasterers. The Government and industry must work together to attract more people into the industry, by offering them high quality training with clear career pathways for progression but in the meantime we need sustained access to tradespeople of all skill levels for the industry to continue being open for business.”
Elsewhere in the economy, the Federation of Small Businesses has expressed concern at the UK’s productivity growth in Q4 of 2018 decreasing for the second consecutive quarter.
Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “Today’s data highlights yet again the impact of the political and economic uncertainty to the economy.
“Small business confidence has fallen through the floor as firms face a trying time amid a fragile economy.
“While there were some positives in the data such as a 0.4% productivity increase in services, there was a significant 1.1% decrease for manufacturing.
“Small firms are not only contending with unprecedented uncertainty, they are also dealing with a raft of new cost increases and reporting requirements.
“Rising labour costs have continued with the introduction of Making Tax Digital, fresh hikes to business rates and a further increase in auto-enrolment pension contributions.
“In order to improve productivity, key areas that must be addressed include management and leadership, broadband connectivity and the scourge of late payments.
“All this amid the ongoing uncertainty over the future of the UK’s relationship with the EU which shows no sign of reaching a resolution.
“Productivity will only continue to decline unless the Government can do more to step up and back British businesses.”
Business
Holyhead closure: Storm damage could delay reopening until March
HOLYHEAD port faces an extended closure following significant storm damage, with fears it may not reopen until March. The disruption has caused widespread consequences for trade, travel, and postal services across the Irish Sea.
The Terminal 3 berth, used by Irish Ferries, sustained extensive damage during Storm Darragh earlier this month. Drone footage revealed a ‘dolphin’ platform had fallen into the sea, exacerbating the situation and impacting the adjoining terminal used by Stena Line.
Currently, all sailings are suspended until January 15, though experts warn this date may be overly optimistic. Garrett Bridgeman, managing director of An Post, Ireland’s national postal service, said: “I don’t think January 15 looks like the date. If you look at the level of work that needs to be done and the safety checks required afterwards, February or March seems more realistic.”
Stena Line stated their priority remains resuming operations safely, while the Marine Accident Investigation Branch (MAIB) is conducting an inquiry into the incident. A spokesperson for MAIB confirmed inspectors are reviewing evidence to understand the circumstances that led to the damage.
The Welsh Government has implemented contingency plans, with additional sailings arranged from Wales and the Mersey area despite challenging weather conditions. Welsh Transport Minister Ken Skates said: “This is a challenge we have never faced before, but we’ll continue working with UK and Irish governments to support businesses and travellers.”
Increased pressure on Fishguard and Pembroke ports
With Holyhead out of action, Pembrokeshire’s ports—Fishguard and Pembroke Dock—are facing increased pressure to handle additional sailings. Stena Line and Irish Ferries have already announced extra services from these ports to help ease the disruption.
Irish Ferries has confirmed it will launch a new service from Fishguard, while Pembroke Dock is also experiencing heightened activity with extra crossings scheduled. Passengers and freight operators are urged to check ferry company websites for the latest updates.
Cabinet Secretary for Transport and North Wales Ken Skates praised the efforts of ferry operators and local authorities in managing the surge in activity at Pembrokeshire’s ports. “Both Fishguard and Pembroke Dock are playing a crucial role in maintaining the flow of goods and passengers across the Irish Sea during this unprecedented disruption,” he said.
Local authorities and Transport for Wales are working to ensure traffic flows smoothly around these ports, with additional measures in place to minimise congestion and delays.
Meanwhile, the Irish Road Haulage Association (IRHA) has expressed growing frustration with the lack of clear communication from Holyhead Port authorities. IRHA President Ger Hyland said: “We need correct and true information with a definite timeline. The piecemeal updates have been unhelpful.”
Hyland highlighted the financial toll on hauliers, with some operators facing losses of up to €3,000 per vehicle weekly. He urged ferry companies to increase their efforts to ease the crisis and called on the Irish government to explore financial compensation for affected businesses.
The situation has been escalated to UK Prime Minister Keir Starmer, with calls for direct intervention to expedite repairs and alternative arrangements. Minister of State James Lawless, who met with haulage industry leaders, acknowledged the urgent need for clarity and support.
With Pembrokeshire ports now under increased strain, stakeholders are closely monitoring the situation, awaiting updates from Stena Line in mid-January.
Business
Derelict Cilgerran house to be transformed into cafe
PLANS by a village shop owner to convert a house “in a state of disrepair” to a café to “improve the variety of community facilities” locally have been given the go-ahead.
Mrs Morris, through agent Harries Planning Design Management, sought permission from Pembrokeshire County Council to convert The Old Post House, High Street, Cilgerran, currently a four-bed dwelling, to a ground floor café, along with a first-floor flat.
The application received five letters of support, saying it would provide local jobs, support the community, promote Welsh and local food, and provide a local community hub, with three letters of objection, raising concerns about parking and traffic, and potential odours from the premises.
A supporting statement, through the agent, said: “The proposed site is currently a dwellinghouse, in current need of modernisations and renovations throughout. The site is under the same ownership as the neighbouring village stores Siop Y Pentre,” saying the proposal “can be read as an extension to the existing Siop Y Pentre”.
“Siop Y Pentre is a thriving local community village shop which acts as a village hub. The shop provides local residents with day-to-day necessities, with a focus on local, sustainable and minimal waste products,” the statement says, adding the dwelling it seeks to convert “is in disrepair and in need of internal works to make suitable for modern living”.
It went on to say: “The proposed café seeks to retain its focus on local and seasonal produce with minimal waste and would provide a welcomed opportunity for socialising, especially during the daytime. The café will also seek to employ local staff retaining a community feel throughout. As such, the principle of the café adjacent to the existing village store is considered acceptable. The site seeks to encourage a sustainable community, with development of an appropriate scale and nature.
“Further to this, the location of the development is within the settlement boundary and seeks to fulfil a need for day-time socialising environments currently lacking within Cilgerran.”
The application was conditionally approved by county planners.
Business
Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure
PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.
The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.
The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.
A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”
Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.
Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.
From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.
Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.
(Photos: Martin Cavaney/Herald)
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