UK construction bounces back

With the ONS revising its dip in construction output in 2020 to a fall of 14% and the CPA forecast for a growth this year of 13.7%, it seems that the UK industry continues to bounce back. On the downside, there is the shortage of materials and skilled labour followed with the inevitable rise in costs connected with these shortages.

By Phil Slinger - CAB Chief Executive

It should come as no surprise that 65% of CAB members on balance have stated increases in sales of over 5% during the last year and in the second quarter of 2021, with a record 90% of members on balance expecting sales to increase further in the next quarter. This is tempered with 15% of members stating that they have experienced a loss in sales over the last year with a further 20% stating that they have experienced the same or less than 5% increase in sales over the period. Costs have generally increased in all areas with 80% of members on net balance stating that costs have risen in the past quarter. These increases generally fall in line with the rest of the construction industry. On balance 90% of members forecast further increases with 97% of the wider construction industry bracing themselves for further price increases. Critical costs have increased across the board with wages, energy costs and fuel costs increasing, with increased raw material costs being claimed by 90% of net balance of members as being the most influential.

CAB members are cautiously optimistic about further growth with just 47% of members forecasting that their capacity utilisation will continue to be over 90% in the next quarter. However, 50% of members see a capacity utilisation of over 90% for the year ahead. With a similar forecast increase in capacity utilisation in both the membership and the wider industry, this shows a stable optimism for the year ahead.

Whilst 42% of members see the availability of materials as the major constraint on activity, 32% of members also cite demand as a likely future constraint. This suggests that possibly not all sectors are seeing a steady growth. With historic capacity utilisation of 45% of members operating at over 90% capacity over the last quarter, this is a significant increase from the 30% of members operating at over 90% capacity over the last year. The wider construction industry lags slightly behind at 36% and 26% respectively. CAB members are cautiously optimistic about further growth with just 47% of members forecasting that their capacity utilisation will continue to be over 90% in the next quarter. However, 50% of members see a capacity utilisation of over 90% for the year ahead. With a similar forecast increase in capacity utilisation in both the membership and the wider industry, this shows a stable optimism for the year ahead. 53% on net balance of members are seeking to increase their labour force in the year ahead and 13% claimed that they had increased their workforce in the last year. These figures again closely follow the wider construction industry forecasts. 42% of members have seen increases in labour costs in the last year, with 74% on balance forecasting increases in labour costs in the year ahead. Again, these figures closely follow the wider construction industry. As a proportion of sales, 55% of members reported that none of their production is exported which matches that of the wider construction industry in the UK. Only 5% of members claimed to be exporting more than 15% of their production. The wider construction industry saw a drop of exports in the last year of 8% on net balance likely to be due to the remnants of Brexit.

As would be expected, capital investment is aimed at plant and equipment with 74% of members on net balance stating that investment had been made in the past year with a further 63% on balance stating the future investment would be made in plant and equipment. Information is regularly updated on the CAB website at www.c-a-b.org.uk and for Association Membership enquiries please contact Jessica Dean at the CAB offices by email jessica.dean@c-a-b.org.uk or telephone 01453 828851.

Emmegi offers machine package to get started in Decalu

Emmegi and Decalu have joined forces to make it easy for fabricators to take their first steps into manufacturing in the Deceuninck aluminium system.

Emmegi is offering a simple start up package of machinery which gives fabricators a simple and cost-effective route into manufacturing, backed by one of the biggest and most trusted names in the machinery market. It is pairing an Emmegi Phantomatic CNC machining centre with a Classic Magic twin head saw to give fabricators a ‘classic combination’ of machines which maximise throughput and efficiency. Ian Latimer, Emmegi UK’s Managing Director explained: “One of the USPs of the Decalu system is the speed of fabrication, so we’re recommending one of our high speed Phantomatic machining centres with an electronic twin head saw to help fabricators make the most of that. These are proven to work well together, and we know they will give customers years of troublefree operation.” Nigel Headford, Decalu’s Director in the UK, said that many of the manufacturing enquiries for Decalu are coming from companies who traditionally have fabricated in PVC-U and bought in their aluminium products. He added: “They can see that Decalu is essentially as quick and easy to fabricate as PVC-U and are recognising that they can make bigger margins on the aluminium side of their business if they switch to manufacturing from buying in. “We’re focused on helping them to take that step; and working closely with Emmegi is a key part of the support we’re offering. The machines themselves have a reputation for quality and durability and they’re backed by UK based service and engineering teams who we know our customers can trust and rely on.” Emmegi has already supplied a Phantomatic M4 and Classic Magic to Decalu fabricator PRG based in Romford and a Phantomatic T3A to Glass House in Cardiff, with further installations on their way. Dawud Sandhu and Asaad Hussain from PRG commented: “We liked the fact that the Emmegi machines could match the quality and performance of the Decalu product and we felt reassured by the established partnership between the two businesses. Decalu and Emmegi staff visited us on the same day and the installation and training was really well coordinated, setting us up nicely to add aluminium to our existing PVC-U offering.” More details at: www.emmegi.com and

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Door and window systems continues its productivity drive with a fifth new Kombimatec machine

Door and Window Systems (DAWS), a Liverpool-based fabricator, continues to increase productivity in response to customer demand, with the recent installation of its fifth new Kombimatec machine in 18 months – this time, the AMC308 Automatic CNC Machining Centre.

DAWS is a family-run business specialising in the manufacture of high-quality aluminium doors, windows, bi-folds and rooflights for both the domestic and commercial markets. The company was looking to increase productivity and boost its business growth cost effectively without the need to take on new staff – and Kombimatec provided the solutions. When its latest addition of the AMC308 machining centre joined the fabricator’s manufacturing plant in Bootle, it was immediately among friends as almost every machine DAWS has is a Kombimatec. Within the last 18 months alone, the company also purchased a DGS500 Electronic Double Mitre Saw, CC120 Power Crimper, AFV362 Variable Angle End Miller and MGS460 Upstroke Mitre Saw. The AMC308 machining centre was developed by Kombimatec for both aluminium and PVC-U profiles. Manufactured with a solid steel construction using high quality components, it incorporates advanced CNC control with CADCAM software that provides exceptional levels of precision and reliability during production. DAWS version comes with a 5HP electro-spindle inverter driven to 180000 rpm, closed loop servo driven system, automatic safety guard, and voltage monitor for electrical protection. Like all Kombimatec machinery, the user-friendly AMC308 machining centre is a cinch to operate and program, so all the staff at DAWS are able to use it with ease. An automatic multi-tool changer allows the machine to process complex tasks without interruption, and it automates traditionally time-consuming tasks – including all drilling, routing, slotting, and milling functions – allowing staff to get on with other jobs. Its faster processing speed increases output while the machine’s accuracy reduces wastage too. According to Dave Harrison, Director at DAWS, “The AMC308 is a benchmark for fabricators establishing a window fabricating business in our industry. Previously we used manual copy routers to complete the prep work and it got to the point where we had one person working the router all day. From a cost point of view this machine will easily pay for itself in 2 years. For us, the main benefits are accuracy and efficiency. The CNC has enabled us to increase our output massively.” Operations on the production floor are now super-efficient as the whole team has benefited from the improved processing, with the aim to increase efficiencies and processing orders and accelerate business growth – all while ensuring the ever-important consistent high quality and precision of the results. “Like many of our loyal customers, DAWS prides itself on supplying the best quality, premium door and window products on time every time – and Kombimatec are proud to continue to provide the solutions to help them achieve that,” said Kombimatec’s Director David Parsons. Kombimatec have been an industry-leading manufacturer and supplier of precision machinery used to fabricate windows and doors for over 35 years, delivering machines for working PVC-U and aluminium profiles in the UK and worldwide.

For further information on Kombimatec’s range of CNC machining centres call directly on 01582 562218 or email sales@kombimatec.com.