12 minute read
Industry News
from ECN October 2021
112,000 UK TRADE BUSINESSES SET UP SINCE THE FIRST LOCKDOWN
Since the first coronavirus lockdown was announced on 23 March 2020, over 112,000 trade businesses have been set up in the UK, new research has revealed.
The study, conducted by IronmongeryDirect analysed over one million rows of Companies House data and found that more than one in 10 (11%) of all businesses set up during the pandemic (1,019,970) are in the trade industry.
Of the 112,047 new companies in the sector, almost a fifth (19%) focus on the ‘development of building products’, with 20,753 start-ups – more than any other trade category. Similar projects also take up the next three spots, with ‘construction of domestic buildings’ and ‘commercial buildings’ both making the top five.
Companies specialising in ‘electrical installation’ are not far behind, with 8,194 new businesses, while ‘plumbing, heat and air-conditioning installation’ firms also feature highly.
The 10 most common categories for trade businesses established since the first lockdown are:
1) Development of building projects – 20,753 2) Construction of domestic buildings – 16,278 3) Other specialised construction activities – 9,395 4) Construction of commercial buildings – 8,763 5) Electrical installation – 8,194 6) Other building completion and finishing – 8,151 7) Plumbing, heat and air-conditioning installation – 7,299 8) Other construction installation – 6,146 9) Landscape service activities – 3,685 10) Painting – 3,090 IronmongeryDirect, ironmongerydirect.co.uk
‘SYSTEMIC CHANGE’ NEEDED IN LIGHTING INDUSTRY TO ADOPT CIRCULAR ECONOMY
The lighting industry needs systemic change if it is to fully adopt circular principles and practices – that was the conclusion of a gathering of lighting designers and industry executives in a special webinar on ‘The specifier’s role in the circular economy’ organised by the WEEE compliance body, Recolight.
Manufacturers will have to reassess their business models for a time when reuse of products is normalised; designers will have to reconcile the inherent conflicts in creating a high quality interior that’s demountable and reusable; and clients will have to challenge the traditional take-make-waste consumption of building and refurbishment projects.
New business models – such as specialist ‘remanufacturing’ firms which upgrade, test, sell and warranty reused lighting products –will also be created.
Bruce Weil, co-owner of the independent practice Lighting Design Studio said the retail lighting sector especially needed to reconsider its lighting practices.
“It’s a real outlier,” he told the audience. “It’s wedded to extremely high illuminance levels and energy use and when we come to offset the carbon in our projects, it’s a real standout. As the climate crisis evolves, our role as lighting designers will potentially become even more critical but I think we are far from any kind of standardised approach.” Recolight, recolight.co.uk
CONSTRUCTION RECEIVES FINANCIAL BOOST DURING PANDEMIC
New analysis from Powered Now has revealed that the home improvement boom experienced during lockdown has seen sales for SMEs in construction during 2021 increase by 35%, compared to those in 2020.
Figures from almost a quarter of a million invoices recorded by 915 trade SMEs has shown that the average invoice value in 2021 is 6% higher than those recorded in 2020, with sales for the first eight months of 2021 amounting to £111m, compared to the £82m recorded for the same period last year.
What is particularly intriguing from the data is the continual increase of the average value for invoices throughout 2021. Originally prescribed to the national lockdowns witnessed in the spring of 2020 and winter of 2021, the explosion of home improvements have continued to become more valuable throughout the summer months.
Usually a quieter period for the trades, the significance of this increase is further emphasised by the growth that has continued past ‘Freedom Day’, with the average value of an invoice amounting to £1,233, reaching total monthly sales of £15.1m, making August near the highest month for deal flow in 2021, second only to March.
Powered Now, powerednow.com
EARLY WARNING SYSTEM TO BOOST ELECTRICITY NETWORK
Pioneering technology has been installed for the first time in the UK to boost the reliability of power supplies at key sites across the South East and London.
As part of a £435,000 innovation trial by UK Power Networks, engineers have fitted new ‘Smart Cable Guards’ at two sites – New Addington and East Grinstead – to detect and fix potential power cuts before they happen. It is the first time the devices have been installed on any UK electricity network.
Working like a doctor’s stethoscope to track the network’s ‘pulse’, the box-like devices fit onto an underground power cable and the technology continuously monitors cables for tiny levels of electrical distortion, like an irregular heartbeat.
The Smart Cable Guards are so sensitive that they can detect electrical disturbances lower than the power of a standard mobile phone charger on an industrial electricity cable that serves around 5,000 properties. When the device detects a disturbance, it alerts engineers exactly where on the cable a potential problem could occur, to within a few metres. Once a fault has been successfully identified, engineers can replace the cabling to protect the entire area from power cuts. With four sites completed, Smart Cable Guards will be installed at 18 more locations across Kent, Sussex, Surrey and London as part of this trial. UK Power Networks, ukpowernetworks.co.uk
UK CONSTRUCTION JOB VACANCIES CONTINUE TO REACH NEW RECORD LEVELS
As the number of jobs available in the UK climbs to over one million for the first time since records began, the amount of vacancies in the construction sector has also reached its highest ever level, with 37,000 listings between June and August.
This is an increase of 2,000 from May to July, which, at the time, was another record for the industry, showing a definite trend.
Such high numbers of vacancies suggest that UK construction firms are feeling confident about their future and have sufficient work and finances to be able to increase their staff numbers.
This is good news for unemployed construction workers, as the number of people out of work currently stands at 53,000. Hopefully they will be able to take advantage of the vacancies and get back into employment.
They may consider turning self-employed, as the latest data suggests many workers in the sector are doing just that. There was a big jump between March and June, with 28,000 new self-employed construction workers, taking the UK total to 269,000, which is the highest in a year.
This follows the general pattern in the industry, as the total number of employees in UK construction reached 518,000 in June, which is the highest since records began in 1978. IronmongeryDirect, ironmongerydirect.co.uk
UNQUALIFIED ELECTRICIANS MUST BE REGULATED BEFORE THERE’S A TRAGEDY, SAYS SELECT
People’s lives are being put at risk from electrical work carried out by unqualified or incompetent ‘electricians’ the managing director of Select has told national radio.
Speaking on the Thomas Nagy Electrical Show on Fix Radio, Alan Wilson said that rogue tradespeople “pose dangers not only to themselves and people they might be working beside, but more importantly to the end user”.
Lack of regulation currently means anyone can claim to be an electrician and carry out electrical work in Scotland – a situation which Select says puts people at risk of injury and death and has led to its ongoing campaign for the title ‘electrician’ to be protected.
During his guest spot on the UK radio station for tradespeople, Alan also said that unqualified individuals practising as electricians were not a good look for an industry trying to attract new recruits.
He also pointed out that are currently around 117 protected titles, all protected by law and whose professionals must be registered to use them.
Select is seeking the introduction of protection of title for the profession of electrician alongside partner bodies, including The Scottish Joint Industry Board, Unite the Union and the Scottish Electrical Charitable Training Trust. Select, select.org.uk
JTL has named Nathan Pryce, Harrie Nixon-Jones and Oliver Parry as its winners in this year’s National Apprentice of the Year awards, which took place at The Victory Services Club in London on 2 September.
Blackpool-based Nathan, who recently completed a successful apprenticeship at local firm JET Electrical, was named the overall winner of the JTL National Apprentice of the Year Award for 2021, while Chester-based Harrie and Southampton-based Oliver were named the national winners of the Mechanical Engineering Services (MES) and Electrical Engineering Maintenance awards respectively.
After being crowned winners for their academic and practical progress at JTL’s Regional Awards earlier this year, Nathan, Harrie and Oliver went on to compete against seven other regional electrical and MES winners at JTL’s National Apprentice Awards ceremony.
As part of the selection process, each finalist was invited to be interviewed via an online platform by JTL’s chief executive Jon Graham, as well as national delivery director Judi Wheeler. Once completed and reviewed, it was agreed that Nathan, Harrie, and Oliver should be named JTL’s national winners at its annual apprentice award ceremony. JTL, jtltraining.com
POWER COMPANY WARNS OF DIY DANGERS
UK Power Networks is urging homeowners planning DIY jobs in and around the home to stay safe and be aware of the dangers with the launch of a new campaign. The company wants to highlight the risk of coming into contact with power cables both inside and outside of the home.
Figures from the past year show that 259 of 700 such incidents in the areas UK Power Networks serves occurred in the home (more than a third at 37%), with the majority in the summer to autumn period. Of these, half were in the East of England.
Former Big Brother winner and DIY expert Craig Phillips is helping the Energy Networks Association spread the word on social media through a video filmed in Epping.
Key advice for specific DIY tasks, including outdoors:
• Drilling: Always use a cable detector when drilling. Electricity cables can be hidden in walls and below floors • Mowing the lawn: Always fit plugs with a
Residual Current Device (RCD) to protect against electrocution. This safety device automatically switches off power when there is a fault • Digging deep in the garden: When planting trees, removing tree stumps, or installing fence panels, be mindful of underground cables and the risk they pose • Ladders: When doing outdoor jobs at height always look up and look out for overhead power cables, as contact could be fatal. UK Power Networks, ukpowernetworks.co.uk
INDUSTRY MUST ‘LEVEL UP’ 12,000 PEOPLE A YEAR TO MEET NET ZERO TARGETS
A new report by the Business, Energy and Industrial Strategy (BEIS) Green Jobs Task Force has revealed the extent of ‘levelling up’ required to meet the UK’s net zero carbon target by 2050.
The ECA has said it broadly supports the measures outlined in the report to increase investment in renewable energy, electricity networks, smart technologies and retrofitting existing building stock.
However, the ECA says it finds the recommendations in the report too focused on private sector support. The association believes the onus should be on government to support the ‘levelling-up’ of the industry’s workforce and the efficient and safe installation of low-to-no-carbon technologies.
Luke Osborne, ECA’s Energy Solutions Advisor, says: “There is an enormous amount to accomplish in an ever-shorter timeframe. We will need all hands on deck to get at least 12,000 new workers properly trained every year for the next four years to meet estimated demand. It is critical that, as an industry on the front line of the climate crisis, we get this right.
“As well as more government-led funding, we must ensure the right training is accessible to everyone who wants to join the fight against the climate crisis, wherever they live in the UK. Access to high quality training and skills should not be a postcode lottery.” ECA, eca.co.uk
TOOLSTATION ANNOUNCES NEW DISTRIBUTION CENTRE, CREATING 250 JOBS
Toolstation has held a groundbreaking ceremony to announce it will open a new distribution centre in Northamptonshire to support the brand’s ongoing growth plans. The new facility will support the creation of around 250 jobs in the coming years.
The site is set to open for operations in Q4 2022 and is based at Prologis Park, Pineham. The DC totals approximately 500,000ft2 and will allow Toolstation to serve more customers through its 500+ branches and digitally.
The move supports the brand’s ongoing branch network expansion, with 60 new branches opening each year, together with the rapid growth of online and digital orders seen over the past 18 months. Toolstation, toolstation.com
EARNINGS FOR ELECTRICAL CONTRACTORS AT THEIR HIGHEST SINCE PANDEMIC
The cost of hiring an electrical contractor climbed by 5.5% in August. The increase highlights the inflationary pressures in the construction industry supply chain.
Latest payroll data from Hudson Contract shows average weekly earnings for self-employed electricians increased to £1,139 per week during August. Year on year, earnings rose by 5.07%.
Ian Anfield, Managing Director, says: “Electrical contractors are enjoying their best earnings since February 2020, before the first coronavirus lockdown. Most construction companies are reporting full order books, driven by strong demand for new housing and renovation work.
“The growth is creating challenges with labour and material shortages. Costs are rising on a daily basis, which is squeezing margins and making it difficult to price new projects, and shortages are causing delays in existing projects.” Hudson Contract, hudsoncontract.co.uk
MOVERS & SHAKERS…
Select has appointed Bob Cairney as its new Director of Technical Services. Bob will take the reins from Dave Forrester, who is retiring from Select. He will oversee the development of technical and training services to Select members, reflecting the increasing reliance on electrical technology and the game-changing impact of renewable energy sources.
Marshall-Tufflex has appointed Jean Dias as the company’s Operations Director. Bringing over 24 years of expertise to the position, Jean will play a key role in supporting the business for a sustainable future. With extensive experience in leading operations, projects, and employees in a manufacturing environment, and with solid knowledge of the plastics industry, Jean is well positioned to support the company’s commitments to recycling and dedication to product development. British Cables Company (BCC) has announced two senior staff appointments following the recent retirement of Commercial Director, Paul Farrell. Former BCC Key Account Manager, Nick Bowman, has been appointed to the role of UK Sales Director, and new recruit, Clare Wilson, has recently joined BCC as Commercial Manager.
