The state of the construction industry is often considered a trendsetter for investor confidence in the British economy. Following unprecedented market turbulence in Autumn 2022 that saw the BoE Base Rate double to its current peak and push inflation to its highest rate in 40 years, there was understandable concern in the industry regarding the impact of this changed economic landscape.

Of course, economic uncertainty is just one of the challenges the industry must face going forward. Supply chain management, training and recruitment, increasingly tighter planning regulations and the journey to fully sustainable buildings all must be met to ensure a strong outlook for the rest of the decade and beyond.

In the second of a series of blog posts, our Commercial Manager, Kevin Deere, takes a look at where the UK construction industry is today and examines one of its biggest challenges – Recruitment.

Forecasts for growth

The predicted fall in inflation from its unsustainable peak to a level that’s still over 1% above the BoE’s target has yet to be reflected in Base Rates, which remains at 5%. So, what does this mean for the industry?

Well, there is welcome news from the Glenigan Construction Industry Report for 2024/2025.  This influential publication is forecasting growth for the next 2 years – 8% in 2024 and 7% in 2025 – amidst a strengthening economy. A positive vision for the years ahead will hopefully stimulate investment in the sector, increase investor confidence and build momentum for the medium and long term.

Attracting young talent

The industry is projected to need an additional 225,000 people by 2027 to meet UK construction demand. Bringing new people into the industry is, therefore, an essential and immediate necessity, and construction is in competition with many other sectors in the market to attract young talent.

The news that 2024 will see an increase in the number of industry apprenticeships clearly shows that there is a desire among young people to take their first step onto the career ladder in construction. One of the ways this has been achieved is by changing the way the industry is perceived.

Women in construction

The Office for National Statistics states that more women, on average since 2008, are entering the traditionally male dominated world of construction, indicating that the industry is seen as inclusive and welcoming and defines its people by their talents alone. While more needs to be done to recruit the numbers needed to keep the industry moving forward, the aim must be to achieve a gender split that is reflective of wider society.

Alongside recruitment, ensuring people remain in the industry throughout their working life is necessary as these are the people who bring the knowledge and experience to nurture and inspire the next generation. Furthermore, to create a productive environment where people want to spend their working life, everyone must be recognised as unique, with different qualities and ways of working.

Neurodivergence

There is growing recognition of the importance of accommodating neurodiversity in the workplace. Research by APM indicates that up to a quarter of the construction industry is neurodivergent, which includes autism, ADD and dyslexia. Yet, many individuals hesitate to disclose their condition due to concerns about stigma or just ‘not seeing the point’. Creating an inclusive environment where individuals feel supported and valued for their unique strengths can attract diverse talent and drive innovation and productivity within the sector.

The construction industry offers excellent opportunities for those with neurodivergent traits to shine. By introducing accommodations, we can attract individuals with unique talents and abilities that come with neurodiversity, providing a wealth of possibilities and new ways of thinking.

Just as there always has been, the possibility of seismic economic shifts is always on the horizon. Just as it has always done, the construction industry will withstand these events due to the strength and support of its most valuable resource. Its people.

In the quest for sustainable energy, Waste to Energy (WtE) plants stand as a beacon of innovation by transforming waste into a valuable resource while providing an alternative to landfills. The most common energy generation method involves using hot gases from a thermal process to boil water and produce steam, which turns a turbine to produce electricity and/or generate heat.

So where is the sector going? It’s no secret that WtE is not the most environmentally friendly option; that would be prevention. Still, it is more ecologically sound than a country of landfills. Discover the trends, drivers and challenges for the years ahead below.

Growth Overview

The market for waste-to-energy is expected to see significant growth in the upcoming years, with a forecasted Compound Annual Growth Rate (CAGR) of 6.6% between 2022 and 2027. This growth trajectory is estimated to result in a USD 23,138.3 million increase in the market size. Europe, including the UK, is expected to play a significant role in this expansion, contributing to 43% of the overall market growth. This surge is attributed to countries’ fervently reducing reliance on fossil fuels, opting for renewable energy sources like WtE.

According to the Energy Trends report for September 2023 by the Office for National Statistics (ONS), biomass and waste contributed significantly to new growth, marking a 1.2% increase primarily within England. This trend highlights the crucial role that WtE plays in the UK’s energy landscape.

Trends and Drivers

The rise of WtE solutions is driven by growing environmental concerns. These plants provide a dual benefit by managing waste and generating renewable energy, addressing climate change and pollution concerns. Furthermore, with the growth of the global population and urbanisation, waste generation has increased dramatically, so efficient waste management strategies are necessary to tackle this problem.

Challenges

Despite its potential, WtE technology is facing obstacles. The high costs of operation and maintenance pose significant challenges to its widespread adoption. Additionally, strict regulations require the monitoring and control of emissions, which demands continuous innovation to minimise the environmental impact.

The Road Ahead

The UK’s transition towards a more sustainable and environmentally friendly future depends on advancements in WtE technologies. Innovations focusing on cost-effective operations and emission reduction are essential to overcome the existing challenges. For this to happen, collaborative efforts between the government, private sector, and research institutions are necessary to drive these advancements and promote a sustainable energy paradigm.

It’s exciting to see the positive changes happening in waste management across the UK as more and more people are turning to WtE plants. These innovative facilities are reducing our reliance on landfills and making a real difference in protecting the environment. Not only that, but they’re helping to create a circular economy and generate renewable energy, all while finding valuable uses for waste materials. It’s an encouraging step forward.

Waste-to-energy plants in the UK show a promising growth and sustainability trend. Despite some challenges, the momentum driven by environmental consciousness and technological innovation presents a hopeful outlook. WtE is a crucial element in the nation’s journey towards a low-carbon future by converting waste into a valuable resource and leading the way towards a cleaner and greener tomorrow.

Discover our Waste to Energy solutions

ETS Cable Components have been officially appointed as the kitting provider for Nexans Power Accessories in the UK. This is an extension of our distribution agreement which has been in place for 30 years, and, in effect, will mean that ETS will be able to offer unrivalled stocks and quicker product delivery for the Nexans range of medium voltage power cable accessories.

Spearheaded by our MV Technical Manager, Steve Wisdom, the kitting operation will be based in our new dedicated kitting facility, which we have recently acquired, to reflect its status as a standalone operation with its own dedicated team of staff.

Kevin Moloney, MD of ETS Cable Components, mentioned, ‘This investment in stock, experience and facilities will allow ETS take the supply of MV Terminations to the next level. Delivering a premium service and solution that the Energy Sector demands. We have worked with Nexans for over 30 years and have always had tremendous feedback from our customers due to the quality of their products and service levels. Therefore, we didn’t hesitate to take this opportunity to invest and strengthen our commitment to this leading brand’. 

Joe Roberts, UK and Ireland Sales Manager for Nexans Power Accessories added, ‘We are delighted to enter this next stage of development with our long-term distributor ETS. This demonstrates stock commitment, continued product expertise and availability of the Nexans’ full range of products. This ultimately will provide a better customer experience and the continued growth of the Nexans brand.