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Contractors will have the displeasure of paying increased prices for construction materials as well as having to deal with falling workloads that’s according to the latest Construction Trade Survey.
Noble Francis, Economics Director at the Construction Products Association said: “The Construction Trade Survey for 2010 Q4 highlights sharp rises in costs such as the 46% price increase in copper and 80% in iron ore.”
“With 70% of light side manufacturers and 56% of heavy side manufacturers experiencing a fall in sales in Q4 compared to a year ago along with 22% of building contractors also reporting a fall, there is great uncertainty regarding economic activity during the coming year.”
Julia Evans, Chief Executive of the National Federation of Builders added: “The combination of less work, rising material prices, lower margins, continued lending restrictions and a rise in VAT could not have come at a worse time.”
“Companies can only battle these conditions for so long. With the rate of construction insolvencies exceeding that of other industries, the impact on our skills base will be devastating.”
Key Findings of the Survey;
Fewer than 10% of building contractors reported problems recruiting on-site labour in 2010 Q4
90% of light side firms and 53% of heavy side firms stated that employment fell in the fourth quarter of 2010
Only 46% of building contractors reported that they were operating at between 90% and full capacity in 2010 Q4
47% of light side manufacturers and 61% of heavy side manufacturers reported that rising raw materials costs had led to a rise in manufacturing costs in the fourth quarter of 2010
Only 4% of specialist contractors reported being paid within 30 days but 3% of specialists paid in over 90 days during 2010 Q4
81% of light side manufacturers reported a rise in investment in product improvement and 64% reported a rise in investment in plant and equipment in the fourth quarter of 2010
This article was sourced from Construction Enquirer.
I recently came across this interesting article on the sustainablebuild website. I enjoyed reading it and thought it was worth sharing with the BuilderScrap readers.
The concept of a green building was developed in the 1970s in response to the energy crisis and people’s growing concerns about the environment. The need to save energy and mitigate environmental problems fostered a wave of green building innovation that has continued to this day.
Green buildings and green building products are not easily defined. Often known as sustainable buildings or eco-homes, there is a range of opinion on what can be classed as a green home. It is generally agreed that green buildings are structures that are sited, designed, built, renovated and operated to energy-efficient guidelines, and that they will have a positive environmental, economic and social impact over their life cycle. Green specifications provide a good set of guidelines for the building industry, but these are still in the process of being formalised into UK regulation and many are open to interpretation.
Elements of Eco Building
Four main areas need to be considered in green building: materials, energy, water and health.
Construction Materials
These are obtained from natural, renewable sources that have been managed and harvested in a sustainable way; or they are obtained locally to reduce the embedded energy costs of transportation; or used building supplies or surplus building materials at nearby sites. Materials are assessed using green specifications that look at their Life Cycle Analysis (LCA) in terms of their embodied energy, durability, recycled materials content, waste minimisation, and their ability to be reused or recycled.
Energy
Passive solar design will dramatically reduce the heating and cooling costs of a building, as will high levels of insulation and energy-efficient windows. Natural daylight design reduces a building’s electricity needs, and improves people’s health and productivity. Green buildings also incorporate energy-efficient lighting, low energy appliances, and renewable energy technologies such as wind turbines and solar panels.
Water
Minimising water use is achieved by installing greywater and rainwater catchment systems that recycle water for irrigation or toilet flushing; water-efficient appliances, such as low flow showerheads, self-closing or spray taps; low-flush toilets, or waterless composting toilets. Installing point of use hot water systems and lagging pipes saves on water heating.
Health
Using non-toxic materials and products will improve indoor air quality, and reduce the rate of asthma, allergy and sick building syndrome. These materials are emission-free, have low or no VOC content, and are moisture resistant to deter moulds, spores and other microbes. Indoor air quality is also addressed through ventilation systems and materials that control humidity and allow a building to breathe.
In addition to addressing the above areas, a green building should provide cost savings to the builder and occupants, and meet the broader needs of the community, by using local labour, providing affordable housing, and ensuring the building is sited appropriately for community needs.
A Holistic Approach
Green building requires a holistic approach that considers each component of a building, in relationship to the context of the whole building, whilst considering the impact on the wider environment and community around it. This is a highly complex approach that requires builders, architects and designers to think creatively, using systems integration throughout their work. There are several technology tools and assessment methodologies that can help builders with this process including BREEAM (Building and Research Establishment Environmental Assessment Method) and EcoHomes.
Building Hope for the Future
Although still in its infancy, building green is a rapidly growing trade. UK regulations now demand that green specifications are met in all new building design and development, as part of their wider sustainable development strategy, and this means that green buildings are emerging throughout the country. In an age threatened by climate change, energy shortages and ever-increasing health problems it makes sense to build homes that are durable, save energy, reduce waste and pollution, and promote health and well-being. A green building is more than a model for sustainable living; it can build hope for the future.
SMEs will be bracing themselves as Tax may rise from 17.5% to 20% under the new Conservative Government which could lead to 7,500 jobs being lost in the housing sector. Economists have predicted that the new Conservative Prime Minister David Cameron and his new Coalition Government will have to raise VAT in its upcoming budget.
The possible increase has caused worry amongst small to medium builders who depend on the domestic repair and maintenance sector.
Richard Diment, director general of the Federation of Master Builders, said: “The industry needs a decision like this like it needs a hole in the head. We commissioned some research by Experion in February and it showed that if VAT rose by 2.5 percentage points it would decrease demand by 2% in the housing repair and maintenance sector and cost around 7,500 jobs.
The caveat is that our industry needs sound public finances, so what we believe is that the tool the government should use is varying rates of VAT for different areas. We would argue that with the fragility of the construction industry it would benefit from a special reduced rate.”
Michael Ankers, chief executive of the Construction Products Association, said: “We would like to see a reduced rate for housing repair and maintenance, but in the current climate it seems unlikely.
We have discussed it with the Treasury in the past and they said, ‘So your want is to give people a lower rate of VAT for building a swimming pool? That’s how it would be seen.” Instead we’re focusing on sustainable products. There is already a list of those with a 5% rate of VAT and we want to update that list.”
The NFB which represents 1,300 small and medium sized contractors said increasing VAT will give “cash in hand cowboys” a much easier time of things and simply make the respectable taxpaying contractors suffer.
NFB Chief Executive Julia Evans said: “We have campaigned for many years to lower the VAT rate on domestic construction work to five per cent in order to close the cost gap that is exploited by cash-in-hand cowboy builders at the expense of reputable taxpaying businesses.
Increasing VAT will simply exacerbate the problem and inevitably drive more homeowners into the arms of rogue traders.”
So in the financial uncertainty using BuilderScrap is more crucial than ever. We can obviously help to save you costs with free or cheap materials or by the reduction of disposable costs. By using us you show your commitment to help both the community and the environment.
The BuilderScrap.com team have been out and about in recent weeks. We’ve been having conversions around the nature of the building industry and what is ‘green’. The Definition of a Green Building etc. Having researched, searched the web and trade papers… this seems to give the most complete list, with factors we consider to be instrumental and appropriate.
Green building is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life-cycle from siting to design, construction, operation, maintenance, renovation and deconstruction. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort. Green building is also known as a sustainable or high performance building.
* Waste
* Air pollution
* Water pollution
* Indoor pollution
* Heat islands
* Stormwater runoff
* Noise
Ultimate Effects:
* Harm to Human Health
* Environment Degradation
* Loss of Resources
Green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by:
* Efficiently using energy, water, and other resources
* Protecting occupant health and improving employee productivity
* Reducing waste, pollution and environmental degradation
For example, green buildings may incorporate sustainable materials in their construction (e.g., reused, recycled-content, or made from renewable resources); create healthy indoor environments with minimal pollutants (e.g., reduced product emissions); and/or feature landscaping that reduces water usage (e.g., by using native plants that survive without extra watering).
We’ve found that interesting abstact from a BASF article on Eco-Efficiency Analysis;
Life without chemicals would be inconceivable, but the potential risks and impacts to the environment associated with chemical production and chemical products are viewed critically. Eco-efficiency analysis considers the economic and life cycle environmental effects of a product or process, giving these equal weighting. The major elements of the environmental assessment include primary energy use, raw materials utilisation, emissions to all media, toxicity, safety risk, and land use. The relevance of each environmental category and also for the economic versus the environmental impacts is evaluated using national emissions and economic data. The eco-efficiency analysis method of BASF is briefly presented, and results from three applications to chemical processes and products are summarised. Through these applications, the eco-efficiency analyses mostly confirm the 12 Principles listed in Anastas and Zimmerman (Environ. Sci. Technol. 2003, 37 (5), 94A), with the exception that, in one application, production systems based on bio-based feedstocks were not the most eco-efficient as compared to those based on fossil resources. Over 180 eco-efficiency analyses have been conducted at BASF, and their results have been used to support strategic decision-making, marketing, research and development, and communication with external parties. Eco-efficiency analysis, as one important strategy and success factor in sustainable development, will continue to be a very strong operational tool at BASF.
It’s very interesting to BuilderScrap.com that generally and to stress not just in BASF’S case that environmental considerations are offset against raw data. Co-efficiency analysis including; primary energy use, raw materials utilisation, emissions to all media, toxicity, safety risk, and land use to name but a few. To us this still indicates the environmental impact may not be the primary focus when balanced against cost, and life-cycle analysis.
BuilderScrap.com wants to give an honourable mention to the Welsh Assembly. This post is from the good guys at lets recycle.com… keep up the great work!
All the team want to show our appreciation to Merthyr Tydfil county borough council for their continuing efforts. They clearly are aligned with our own goals in trying to reduce waste sent to landfill.
The Welsh Assembly Government has on (March 13 2009) announced an £800,000 package to help reduce the amount of waste being sent to landfill across Wales- including £100,000 to help Merthyr Tydfil county borough council increase recycling.
It is important that residual waste is managed in the most sustainable way and that the waste we produce is progressively reduced over time
Jane Davidson, Welsh minister for environment
In Merthyr Tydfil, the funding will be used for a door-knocking campaign to encourage more households to recycle their waste and help Wales become a greener, more sustainable country. The council reported a 26.2% municipal waste recycling and composting rate in 2006/07.
The remainder of the £800,000 is expected to be used to support plastics recycling in Wales and develop “Zero waste places” – although full details have yet to emerge.
The move comes ahead of the launch of the revised Welsh Waste Strategy for consultation next month, which will set out a new framework for governing waste across the principality.
Jane Davidson, minister for the environment, sustainability and housing, said: “We all have a responsibility for our environment and to reduce Wales’ ecological footprint. A huge part of this is reducing the amount of rubbish we send to landfill. This is no longer sustainable environmentally or financially. I am delighted to be supporting this new scheme to help Merthyr households with their recycling.
“The more we recycle and the less we throw away into landfill the greater our impact will be as individuals in guarding our environment.
“It is important that residual waste is managed in the most sustainable way and that the waste we produce is progressively reduced over time. Then, perhaps, in the more distant future we can contemplate true ‘zero waste – or not producing any waste at all,” she added.
Mike Thomas, head of environmental services for Merthyr Tydfil county borough council, welcomed the funding, which he said would help to boost participation in recycling.
Related links
Welsh Assembly Government
He said: “Merthyr Tydfil County Borough Council has already rolled out several initiatives this year, including weekly collection of food waste to 80% of our households. It’s now down to increasing participation rates and a door knocking campaign is viewed as the best method of making meaningful contact with “reluctant” householders.
The recycling campaign will support Wise About Waste, Wales’ strategy which set recycling targets for local authorities. The strategy is under review and will be re-launched for consultation with ambitious new targets to 2050 in April 2009.
Here at BuilderScrap.com we’ve been looking at some interesting information from Defra. This is an older press release from April, but we think is still relevant… Low carbon economy. The Secretary of State for Environment Hilary Benn today welcomed the measures in the 2009 Budget which encourage investment in low carbon jobs and energy generation using organic waste.
The Chancellor announced additional funding of £10 million for anaerobic digestion and waste infrastructure and a continued increase of £8 per tonne per year to the standard rate of landfill tax up to 2013. These measures will encourage investment in sustainable waste management and will enable over 850,000 tonnes of carbon dioxide equivalent savings to be made each year, which will help towards achieving the Government’s carbon budget.
Following the Budget statement Hilary Benn said:
“The Government is committed to reducing the amount of waste sent to landfill and finding alternative sources of energy. The £10 million for food waste reprocessing will play a vital role in providing alternative energy, diverting a further 316,000 tonnes of food waste from landfill and reducing greenhouse gas emissions.
“In the UK we produce over 100 million tonnes of organic material every year that, through anaerobic digestion, could be used to create enough energy to heat and power over two million homes.
“And it’s not only the environment that will benefit. Increasing our anaerobic digestion capability will also stimulate a greener economy by creating skilled jobs in construction, collection and reprocessing of organic waste.”
Anaerobic digestion is the process of breaking down organic material such as food waste and farm manures and slurries to create heat and power and transport fuel.
In February Defra announced the UK’s goal to become a world leader in this innovative technology. Businesses ranging from the energy sector, water, retail and agriculture support this goal and a task group is working on a programme to implement the plans of Government and industry. The £10 million funding package announced in the budget today is in addition to the £10 million already earmarked in 2008 to build demonstration plants. From April 1 2009 Government has doubled the level of support for anaerobic digestion through the Renewable Obligation.
An increase in the UK’s anaerobic digestion capability will also help to deliver landfill targets. This was bolstered in the Budget that will continue the increase in Landfill Tax in increments of eight pounds a year up to 2013.
Mr Benn continued:
“The Landfill Tax has really helped to reduce the amount of waste sent to landfill and encouraging businesses and local authorities to move towards a more sustainable approach to handling waste. In the last year alone efforts by local authorities have reduced their landfill from 18 million tonnes in 2006 to 15 tonnes in 2008, and by encouraging greater recycling, carbon emissions have fallen by 11 million tonnes– the same as taking 3.6 million cars off the road overnight.”
Notes
1. ‘Anaerobic Digestion – Shared Goals’ sets shared national ambitions for anaerobic digestion, both nationally and within individual sectors. The document and the list of organisations which have endorsed it so far are available at: www.defra.gov.uk/environment/waste/ad/government.htm
2. Anaerobic digestion breaks down organic matter, such as animal manure and food waste, to produce biogas which can be used as a renewable energy source for heat and power, and as a transport fuel. It produces a nutrient-rich digestate which can be used as fertiliser, and importantly it keeps organic waste out of landfill, which cuts greenhouse gas emissions.
3. Electricity from anaerobic digestion is eligible for support in the form of ROCs (Renewable Obligation Certificates). On 1 April 2009, the Government introduced differentiated support levels for different renewables technologies (known as “banding”). Anaerobic digestion is among the technologies that receive additional support in the form of multiple ROCs. Anaerobic digestion now receives 2 ROCs/MWh (Renewable Obligation Certificates per Megawatt hour).
4. In-Vessel Composting (IVC) is a process that breaks down organic matter to produce a compost while contained in a closed environment. Food Waste is subject to the Animal By-Products Regulations that require composting to take place in closed containers or buildings with no access by vermin, and meet stringent requirements for temperature and pasteurisation to kill disease causing organisms. All food waste must be processed by IVC or AD facilities.
5. Landfill targets set by the European Union are:
* By 2010 to reduce the amount of Biodegradable Municipal Waste (BMW) going to landfill to 75% of that produced in 1995.
* By 2013 to reduce the amount of BMW going to landfill to 50% of that produced in 1995.
* By 2020 to reduce the amount of BMW going to landfill to 35% of that produced in 1995.
6. The £10 million additional funding for anaerobic digestion projects is expected to deliver around 178,500 tonnes per year in CO2 savings.
7. Increases in Landfill Tax up to 2013 are expected to deliver around 700,000 tonnes per year in CO2 savings.
Just to finish off our BuilderScrap.com recycling around the world series. Today we’re looking at the amounts highlighted countries send to Landfill. How much waste is recycled, composted and incinerated.
This chart illustrates the point most countries could be doing to recycle. Our thoughts are that some countries really are on the ball. Some need to implement a cultural shift, and it falls to governments and pressure groups to force the issue.
The last part of the BuilderScrap.com recycling around the world series. Today Hamadou Tidiane Sy focuses on Senegal.
Recycling is not done on an industrial scale, but it is part of daily life for many resourceful Senegalese. Everything is recycled, from plastic bags to school exercise books, food cans, bottles of mineral water and even fruit peel. The peel is said to be collected for use in cheap perfume.
Tomato tins become drinking cups in rural areas or are used by beggars in the streets, old newspapers and administrative documents are used to wrap bread, fruit or peanuts you buy in the street. Some artisans also use metal waste to produce anything from chairs to kitchen utensils and children’s toys. Plastic bags are used to make shoes. In the old days, worn tyres used to be made into sandals, but these are much less popular now.
Recently, some smart people have started collecting all the metal waste they can find to send it back to factories in Europe.
The Swiss waste disposal firm Alcyon has signed a contract with the government worth more than $9m to collect and treat rubbish in the capital Dakar. The project is being managed by AMA-Senegal, which will remove a huge tip called Mbeubeuss and recycle much of the city’s waste.
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