All industries change and develop but perhaps not at the pace the construction industry has been in recent years. There have been trends and technological advancements which have developed over the course of 2019, but some go back to 2018 and prior. One of these is the rise of prefabricated and modular construction solutions in the UK, and how they impact the world at large. But what is this all about?

What are Prefab and Modular Constructions?

Basically, these particular methods of construction involve working with buildings and structures which have already been partially assembled offsite. So, they arrive in a certain state of readiness, but the difference between prefab and modular is how much of the work has already been done.

Obviously, you can probably begin to identify the benefits of something like this, less time required on site etc. but what else needs to be considered?

Are They Popular?

It’s no secret in the UK construction industry that prefab and modular solutions are rapidly becoming more popular. They seem to be the dominant trend in recent times, and we are seeing more and more buildings and structures put together in this manner.

There are a couple of reasons why this is the case. Obviously, the time it takes to assemble a building like this goes down. When things are put together off-site, it’s not as challenging to get the final product put together. Naturally, it’s quite a bit safer as well, because the risk of weather-related accidents or issues from fatigue go right down.

The fundamental issue that people have with conventional building projects is that it can be incredibly difficult to try and manage resources, time and cost. The issue of manpower and associated costs which come from that make it difficult for people to try and justify taking on a project with such risk. Most businesses/investors want to reduce said risk, and instead opt for something more straight forward and less time-consuming, like a prefab or modular solution. So, it’s easy to see why these modern methods of construction (MMC’s) will only continue to grow in popularity.

So, in conclusion, these are two construction methods which are becoming very popular. They represent a new shift in attitudes towards building in the UK. People now see it as being a more simplified process, with less risk and financial drain. The obvious hope is that people will continue to support this method until such time as it grows and develops past just another trend.

To me it makes sense because it’s just so much easier, or is it? These MMC’s have had their critics… have they addressed the quality concerns, can they address workforce training needs, and can they attain the building certificates on new builds that people clearly want? If they can across the board then these MMC’s will surely soon be the norm?!

Have your say… do you know a lot about Modern Methods of Construction and want to add your view… would love to hear from those in the industry on this hot topic, so those not in the know get more of an insight.

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I speak to lots of businesses across the property sector, I’ve had different feedback on how the market has been. Lots have reported that property sales have been particularly challenging throughout the year, particularly as we have got close to each Brexit deadline. For example, we’ve seen the lowest October rise in house prices since Oct 2008 (https://www.theguardian.com/business/2019/oct/21/lowest-october-rise-in-uk-house-prices-since-2008-financial-crisis)

Of course, uncertainty over Brexit has been the key reason we have seen this affect on the market.

This has also caused a number of property developers to push back launches throughout 2019 as they also wait for a decision in Parliament that will bring some confidence to the market.

How this affects the labour market…
As everyone presses “pause” the labour market also stalls. Less opportunities are available so fewer people are moving to new companies.

Despite the fact there are fewer opportunities, we still have a very “candidate-short” market. However, although finding top quality people for your organisation is still extremely difficult, there is less competition for candidates right now as businesses wait to see what happens in Westminster.

Creating a backlog…
This is creating a backlog. The development launches that have been postponed are still there. Companies growth plans are waiting to be realised, they have just been put on hold for a decision.

What happens when the damn bursts?
Once some sort of decision is made – whether it be the current deal presented by Boris Johnson, or a slightly tweaked one from Jeremy Corbyn, or referendum between one of these deals and remain. Then EVERYONE will be looking to hire, ALL at the same time.

This will mean finding, and even more importantly, securing top quality people will be even more challenging than it is right now. There will also be upward pressure on salaries and the offers required to secure those people.

Therefore, the savvy business leaders will be looking to snap up the top talent that is available right now before everyone is in the market.

Just as in property, the time to be active is when demand is down. That’s the time to maximise your investment.

Equality is something that every person on the planet should be striving for. In some areas of life and particularly employment, huge leaps and bounds have already been made in order for women to be seen as equals to their male counterparts. However, there are still some areas where so much more work needs to be done.

This is true for construction.

The construction industry has always been a predominantly male world, mainly because many of the roles require intense physical labour and of course strength. So, does this mean that construction will always be limited in welcoming women?

We don’t think so, in fact, we think that the construction industry could actually benefit from having a female’s touch.

The current standings

So, how does the current climate look for the construction industry? Well, across the industry as a whole, taking the roles that are more admin and design based into account, women make up around 11% of the entire workforce. When you actually look at the building sites themselves, it drops to just 1%.

Compared to the rest of Europe, the UK has the lowest proportion of female engineers, with only 14% of students entering engineering and technology first degree courses being women.

So, why is this?

Of course, the perception is that it is “men’s work” and its mainly manual and requires strength. However, who is to say that women are not able to handle these roles, and of course, the administration, technical, design, engineering and project led vacancies can be just as suitable for women as they are men.

Many women who are currently working in the industry, or have in the past, state that sexism is a real problem. Women, when they do decide to enter the industry are treated worse than their male counterparts and often face comments and low level, seen as playful abuse from their fellow workers.

What can be done?

We know that something needs to happen when it comes to women working in construction, and it seems that it is not just down to leading women to change it. The main thing that needs to be looked at is the perception of the construction industry and women’s place in it. This is particularly true in the new generation of workers, who will be making their decision on where they want to work in the future. So, this is down to the government, schools/colleges, leading employers and industry bodies and recruitment firms to accelerate the pace of change.

Construction should be portrayed as an industry for all, where women and men are treated equally, where there is a range of jobs and skills required, this will encourage more women to enter it as a career. The current working generation need to become positive role models for women looking to enter construction. Having these role models will show other girls and women that it is possible to enter what is perceived as “a man’s world” and start to put construction on the radar as a job of choice.
There is still work to be done to ensure that men and women are equal. However, we are hopeful that the future of construction looks like it might be a touch more feminine than it is at the moment!

If you are a student interested in working in construction, or you are an employer looking to create a more diverse and inclusive environment, please get in touch with me for a chat!

https://unitetheunion.org/what-we-do/unite-in-your-sector/unite-construction-allied-trades-and-technicians/

A reoccurring conversation I have had over the past 12 to 18 months is the candidate shortage within the Property market – especially in Sales. Why is it harder to find good people I am asked? What factors are affecting this?

There could be many external factors which could be influencing the market…

Firstly, unemployment is at an all-time low of 4.4% (REC) – this indicates that there are therefore fewer people to fill roles. As permanent placements remain stagnant – temporary and contract recruitment is increasing from 33% in March 2015 to 57% in March 2018 (REC).

Is it the uncertainty of Brexit? Inflation to live in London? Wages catching up with cost? Or are people’s ideologies changing?

I have worked within Property since 2012 working my way up to Head of Department in the Sales, Lettings & New Homes Division – during my time within the Sector – now is the time I have seen most unease.

Secondly, the Property Recruitment Market reflects the current Property market…

Property Market update

Several factors are blamed for poor Property Sales growth including “subdued economic activity” (the Mortgage Lender) – also household outgoings are higher which is affecting the demand. According to Cost of Living Survey (which ranks 209 cities globally for costliness) London has leapt from 29th to 19th in 2018.

Demand has dropped off, Jeremy Leaf states the number of £1m houses on Sales throughout London are at a record high – buyers are just walking away from the “ridiculous” prices. Rightmove shows in June 2018 there were nearly 20,000 houses and flats on for Sale – a record. Rightmove also disclosed there were 16.4% more London homes on the market compared with June 2017 with the number of Property Sales in the Capital are down by 5% in the past 12 months (The Independent).

The average house price in the Capital has increased by 500% in the past 20 years from £98,000 to £485,000 in January 2018 – compared to the £277,000 UK average (Property Week).

The Berkeley Group which builds luxury homes in London and the South East warned in a report that profits were likely to fall in 2018 by a third due the constant weight of Brexit uncertainty on the London housing market (The Berkeley Group).

On a positive note, Homes & Property state with the significant increases of the number of houses and flats on Sale in the Capital it gives buyers A LOT more options in comparison to previous years and if prices remain steady and wages increase this will see properties become more affordable.

When I first started at Cherry Pick People Recruitment in 2012 – candidates did not question the low basics and high commission however as the years have gone by and the Property and Property Recruitment Markets have changed rapidly – so has people’s ideologies.

The emphasis of the “work hard, play hard” mentality and working 70 hours a week have decreased in our candidates’ desires.

Perhaps the factors I discussed above have influenced – the current rate of unemployment at all time low in the UK, the inflation of household costs, mortgages and house prices add to the stresses of the 2018 worker – has the uncertainty of the Property market made the Property employee uncertain?

So, with this change, people seem to be far more focused on well-being, health, social time and less stress. We have seen that candidates our asking most about free weekends, benefits, less hours and higher basics.

I’m sure many of you who have been in the industry will feel you don’t want people with these types of drivers – “as they don’t make good sales people” but perhaps as society, how we buy, the markets change we need to change with then???