construction – Page 2 – The NEN

The Stand is back and ready for The Royal Edinburgh Military Tattoo 2022

The Royal Edinburgh Military Tattoo Piper, Conner Pratt (Fife), Highland Dancer, Rosey Watt (MacDuff) and Drummer, Frazer Rankin (Dunbar), took to the Edinburgh Castle Esplanade at sunset to mark the completion of the Stand build, ready for this year’s much-anticipated Tattoo performances.

Crowds will gather at Edinburgh Castle this summer, from 5-27 August, for the cultural spectacular, which returns for the first time in three years.

This year’s Show, Voices, is a celebration of expression, giving a stage to performers and acts from around the globe to share their voices through spoken word, song, music and dance.

The Tattoo belongs to the city and to recognise this and celebrate the countdown to the first Show, The Royal Edinburgh Military Tattoo is giving back to people living in Edinburgh, the Lothians and Fife with a special, limited offer of a 25% discount for the first 1000 tickets sold – only applicable to locals who use the code EH25 from the 11th of July.

Buster Howes, Chief Executive of The Royal Edinburgh Military Tattoo, said: “The Stand’s construction changes the Castle skyline dramatically, marking the start of Edinburgh’s summer of festivals and cultural celebrations.

“After two years without its presence, its completion today has even more meaning for the people of Edinburgh as it signifies the dawn of a new era. The Tattoo is ready for its return, and we are coming back with a bang!

“We’re committed to giving back to the city, the Tattoo belongs to the locals and we’re celebrating with a discounted offer to give everyone the chance to see the spectacular Voices Show live. I’d encourage everyone across Edinburgh, the Lothians and Fife to make the most of this offer, the Tattoo has something for everyone, and they will be blown away with the Show”.

Tickets are on sale now and can be purchased at edintattoo.co.uk/tickets or on the phone on 0131 225 1188.

Drum Property Group starts construction at Stead’s Place

Edmond de Rothschild Real Estate Management to Forward Fund First Phase of 110 Build-to-Rent Apartments

Drum Property Group’s ambitious vision for the long-awaited redevelopment of a key site on Leith Walk, Edinburgh, is now to be realised with on-site construction starting in July 2022.

Drum’s proposals for Stead’s Place, near the foot of Leith Walk, were approved by the City of Edinburgh Council in 2021 heralding a major regeneration of the 2.9-acre site and bringing much-needed investment to this important part of the city.

The Stead’s Place site has been earmarked for development by the Council since 2008 and consisted largely of an aged industrial estate and office space, together with a two-storey red sandstone building facing directly on to Leith Walk.

With refurbishment of the red sandstone building nearing completion, Drum has cleared the Stead’s Place site to the rear and, in the first phase of construction, will build 110 high-quality build-to-rent apartments for Edmond de Rothschild Real Estate Investment Management (REIM), who have agreed to forward-fund the development.

The apartments will be completed by spring 2024. The Stead’s Place apartments represent the second Scottish investment for the firm, having forward funded a build-to-rent development of 114 apartments in Finnieston, at Drum’s G3 Square development in December 2021.

Graeme Bone, Group Managing Director of Drum said: “The start of construction of the new apartments represents another significant step forward in the long-awaited regeneration of the Stead’s Place site.

“Once completed, the apartments will be a huge boost to the area and to local businesses, bringing life and access to what has been an inhospitable site, and delivering much-needed homes for local people.”

The Edmond de Rothschild Residential Investment Fund UK, which invests in the private rented sector (PRS) on behalf of European institutional investors, was launched in August 2018 and to date has raised equity commitments of £320m.

Charlie Miller, co-head of residential in the UK and director of residential transactions at Edmond de Rothschild REIM, said: “Stead’s Place is an excellent opportunity to establish the fund’s first development in Edinburgh and second in Scotland.

“We will provide high-quality rental accommodation at affordable levels in line with the strategy for the fund. Edinburgh is the sixth most competitive financial centre in Europe, second in the UK behind London and has six universities, a diverse economy and a thriving tourist market – all contributing to exceptionally strong demand for homes to rent”.

The final phase of construction at Stead’s Place will start at the end of the year, and will comprise of 38 affordable homes, owned and operated by registered social landlord, Hillcrest Homes, completing the attractive landscaped residential scheme linking Leith Walk to Pilrig Park and beyond.

David Milton, Development Manager at Hillcrest Homes said, “Stead’s Place provides the opportunity to deliver 23 new social-rented homes and 15 mid-rented homes, all of which will be allocated to those in housing need.

“The Social Rented homes will deliver a good mix of one, two and three bed apartments and we are particularly pleased to be delivering family sized homes in this location.

“There is a continuing unmet demand for affordable homes across Edinburgh and this development will help meet this demand and provide high quality, energy efficient new homes to those who need them the most.”

The start of construction is the culmination of five years of research, planning and local community engagement by Drum since the company first purchased the site in 2017. For more information about Drum Property Group’s redevelopment of the Stead’s Place site, visit www.steads-place.com

GRAHAM reinforces commitment to the next generation of construction workforce

Leading contractor, GRAHAM (formerly GRAHAM Construction), has pledged to support Scottish youngsters to establish a career in construction by joining the Young Person’s Guarantee (YPG) – a joint commitment to bring together employers, partners and young people across the country.

The £60 million Scottish Government led initiative aims to provide opportunities for all 16-24 year olds in Scotland through jobs, apprenticeships, further and higher education, training programmes and volunteering.

In addition to the existing apprenticeship and training opportunities at GRAHAM, including its dedicated GRAHAM Academy Scotland, the firm has joined the YPG to underline its commitment to supporting youngsters whilst future-proofing skills needed in the construction industry.

GRAHAM will now work alongside Developing the Young Workforce (DYW) Edinburgh, Midlothian and East Lothian; DYW Glasgow; DYW Fife; DYW North East and Action for Children to establish valuable partnerships which will see young people obtain both practical experience and academic accreditation with the team’s support.

Already through its partnership with Action for Children, GRAHAM has employed four youngsters in various positions across its live Glasgow build to rent (BTR) schemes, which are creating an abundance of community benefits and helping to address the demand for high-quality homes in the city.

Three young people are currently employed on Edinburgh projects and a further two apprentices will be joining the firm in August. Two Action for Children work trials have started at GRAHAM sites in Edinburgh and both have now secured full time roles, where they will be working across student accommodation and BTR schemes.

Suzanne Stevenson, social impact advisor at GRAHAM, said: “There are a number of young people across Scotland who face a variety of obstacles which prevent them finding a route into construction and a fulfilling career.

“At GRAHAM, we are proud to offer year-round apprenticeship and graduate programmes where over the last five years we have created more than 300 opportunities – many of which have extended into full-time employment.

“However, we are always looking at ways to enhance how we support our future generations and by pledging to support the YPG, we will now have national support to develop a workforce that has young people at its heart and help create a resilient industry for decades to come.”

GRAHAM is also a member of The 5% Club – an organisation consisting of companies committed to ensuring that at least 5% of their workforce over the next five years is comprised of young people on structured learning schemes.

Already across Scotland, 13% of GRAHAM’s workforce is made up of young people and its Building North region hosts a quarterly Young Persons Forum where younger colleagues come together to share ideas and network.

Scottish National Gallery project set for Summer 2023 completion

A ‘transformative project’ to deliver an inspiring new space for Scotland’s renowned collection of Scottish art has passed a series of crucial milestones and the main construction work is on track to complete this winter.

With all the major engineering challenges now successfully overcome, the project is entering its final phase. This means that members of the public can look forward to experiencing a brand-new suite of world-class galleries at the Scottish National Gallery in the summer of 2023.

The Scottish National Gallery Project will create a beautiful space for Scotland’s art right in the historic heart of Edinburgh, with striking displays drawn from the National Galleries of Scotland’s (NGS) broad-ranging collection alongside special loans from other leading arts institutions.

Large windows will offer spectacular light-filled views across Princes Street Gardens, inviting visitors to come in and discover the work of pioneering Scottish artists such as Phoebe Anna Traquair, William McTaggart, Anne Redpath, Sir Henry Raeburn and Charles Rennie Mackintosh.

Stunning exhibition spaces will enable visitors to experience Scotland’s greatest art anew and feel pride in their national collection. Scotland’s artistic legacy will be revealed through innovative presentations, with much-loved Scottish Colourist paintings appearing among other major works from the first half of the twentieth century, bringing to life key aspects of Scottish art and society.

New ways of looking at Scotland’s built and natural environments will be on offer, with early photographs of Scotland’s cities shown in the same spaces as grand paintings of majestic Highland and island landscapes.

Reimagined displays of drawings and sketches will celebrate artists such as Glasgow Style pioneer Margaret Macdonald Mackintosh and David Allan, whose depictions of ‘Edinburgh Characters’ will allow visitors to get up close to street life in the capital in the late eighteenth century.

The teams working on the Scottish National Gallery project have been dealing with an incredibly challenging location, situated within a World Heritage Site which comprises an iconic A-listed nineteenth-century building with several major modern additions from the late 1960s onwards.

The creation of new Gallery spaces has entailed extensive excavation underneath the existing building and its setting on the Mound. Unexpected remnants from previous developments added significant complexity to the building work.

These include deeply buried layers of dense concrete and other undocumented obstructions which had to be extracted before major waterproofing works could be completed to protect the new development for the future.

In addition, the location of a key area of the site directly above the three Mound rail tunnels, some of the busiest in Scotland, posed distinct logistical challenges. These challenges have all now been successfully overcome and the construction work is entering its final phase.

Director-General of the National Galleries of Scotland, Sir John Leighton, said: “We are excited to be looking forward to a summer 2023 opening for the magnificent new spaces that will be delivered by the Scottish National Gallery Project.

“They will enable our visitors to discover and enjoy Scotland’s greatest art in a fully accessible suite of world-class facilities right in the centre of Edinburgh. Reaching this stage has been no mean feat, given the unique set of construction challenges faced by the Project all within the very difficult context of the global pandemic.

“With these now largely overcome, our attention can now focus on preparing the new Galleries for a joyous and celebratory unveiling next year.”

While construction has been ongoing, a wide programme of engagement and outreach for the Project has also been delivered, taking in schools in Fife, Orkney and West Lothian, social groups for older people experiencing loneliness in Edinburgh, and youth groups in the Borders.

Digital activity has further extended the reach of the Project through a rich and engaging series of videos about star works of art from the Scottish collection, and a painstaking monumental conservation project gripped online audiences during lockdown.

The first phase of the Scottish National Gallery Project was completed successfully in 2019. This included a new entrance area in East Princes Street Gardens, a new café, refurbished restaurant and shop, an elegant sandstone terrace, and new landscaping and paths to improve access to the gardens and the Galleries.

Trams to Newhaven project ‘on track’

The majority of track has been laid to take the tram to Newhaven as the scheme enters the final phase of construction works.

More than 3km of track – 70% of the total to be laid – is now in the ground as part of the Trams to Newhaven project, which remains on schedule to begin revenue services in spring 2023, delivered within the £207.3m budget.

The main construction work on three of the eight new tram stops is also complete, while over 3km of drainage (66% of the total) and almost 4km of communications ducting (82% of the total) serving the tram and wider area has been installed.

Construction is ‘largely finished’ on several key sections of the route, other than some localised works, including Constitution Street, between Constitution Place and Queen Charlotte Street, and Ocean Terminal to Rennie’s Isle.

Next week, operational tram stops on Princes Street and St Andrew Square will reopen following their temporary closure. These were closed to allow for the removal of the York Place tram stop and installation of new infrastructure there connecting the existing line to the new one.

As we enter the final year of major civil work ahead of testing and commissioning this winter, a review of the specific completion dates for remaining sections has been carried out.

This has resulted in some changes affecting certain sections due to various unavoidable factors such as complex utilities diversions, archaeological finds and an industry wide shortage of materials, though this is not expected to affect the final completion date.

Full details of the updated programme are available on the Trams to Newhaven website.

Councillor Lesley Macinnes, Transport and Environment Convener, said: “It’s clear that the Trams to Newhaven project is well on its way to completion, as these figures show, and before long we’ll be testing trams on the streets of Leith.

“Next week, we’ll also see the return of the existing service to the city centre, which I’m sure will be great news for many.

“Of course, while this project will bring significant benefits to the area, we know that its construction has impacted all those who live and work nearby, and I’d like to thank them for their patience during the last two years.

“As we enter the final year of work to deliver the tram line, we’ve had to make some changes to the programme due to issues outwith our control.

“I want to assure communities along the route that we’re doing everything we can to mitigate the impacts of this, and that we’re still on track to begin providing the service by spring next year.”

Councillor Karen Doran, Transport and Environment Vice Convener, said: “This project will be transformative for the north of the city and it’s really exciting to see it take shape already.

“Once complete, it will play a key role in the future growth and development of the city. Delivering the tram line to Leith will unlock a large area of the city for housing and economic development, while providing a low-carbon, clean mode of transport to densely populated communities.”

The project team is working to mitigate the impact of changes to the programme, ensuring the scheduled spring completion date is met.

Based on lessons from the first tram line, and best practice from other major European construction projects, Trams to Newhaven focuses on large work sites, providing the flexibility to continue construction elsewhere on-site if issues are encountered.

In the coming months, localised works will continue on completed sections to resolve defects, carry out landscaping, install equipment to support the new tram line including tram communication systems, complete tram stop fit-outs and install overhead line equipment, street lighting and traffic signalling.

Since 2019 the project has provided significant support to businesses through its £2.4m Support for Business initiative. As part of this more than £100k has been spent on an ‘Open for Business’ campaign, 60k deliveries have gone through dedicated logistics hubs and 140 applications have been made to the business continuity fund. In addition, the extremely popular itison scheme has seen over 20k vouchers sold, generating £200k spend in participating businesses.

Additional milestones:

90% of utility diversions complete
Substation at Melrose Drive complete and fit-out ongoing
Lindsay Road retaining walls complete
All track crossovers, which allow the tram to turn back on itself, installed
Constitution Street wall rebuilt following archaeological excavations
Archaeological excavations on Constitution Street complete, which saw more than 360 bodies exhumed, dating from between 1300 and 1650, as well as finding the apparent remnants of the original medieval graveyard wall.

Still no word from the long-running Edinburgh Tram Inquiry into the Edinburgh Tram project.

This inquiry,which was set up in 2015, aims to establish why the original Edinburgh Tram project incurred delays, cost massively more than originally budgeted and through reductions in scope delivered significantly less than oroginally promised.

The costs to taxpayers so far is an eye-watering £12.5 million …

Find out more about Trams to Newhaven online.

Construction: Start performance continues to decline, but negative curves start to soften

Planning approvals and main contract awards rally, indicating future recovery
Value of underlying work starting on-site (less than £100 million) during the three months to February fell 12% against the preceding three months, down 30% compared with the previous year
Residential project-starts performed poorly, with the value declining 21% against the preceding three-month period to stand 46% lower than a year ago.
Non-residential work starting on-site increased 1% against the preceding three months but fell 2% compared with a year ago
Civil engineering-starts slip back 17% against the preceding three-month period to stand 34% lower than the previous year.

Glenigan, the construction industry’s insight expert, has released the March 2022 edition of its Construction Index.

The Index focuses on February 2022, covering all projects with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted.

It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months.

Silver Linings

Although decline continued into February, making it the weakest on record, performance-wise since 2015, a strengthening pipeline of planning approvals and main contract awards indicates future, if not immediate, recovery.

This month’s Index shows that, the downward curve, which has persisted since spring 2021, is starting to soften. Supply chain issues might continue to bite, but are less aggressive in material terms.

However, socio-economic ructions caused by the Russia-Ukraine situation will no doubt have an effect as fuel and energy prices are likely to rocket in Q.2 and Q.3. However, the full impact is still too early to appreciate.

Sector Analysis – Residential

Private housing experienced one of the worst overall performances of any sector during this period, with the value of project starts declining by 23% against the preceding three months (to February 2022), standing 50% lower than a year ago.

Social housing fared little better, having remained relatively robust in the preceding months, falling 16% during the period and 26% compared with the previous year.

Looking at the sector overall, work commencing on site fell 21% during the three months to February, and were 46% lower than the previous year.

Sector Specific – Non-Residential

It was a mixed bag in the non-residential sector, however, a few trends are starting to emerge which indicate post-COVID resurgence.

Last month, the Index reported that hotel & leisure grew (23% on the preceding year, and 35% in the three months to January). Once more, the sector has increased performance-wise, standing 23% on the preceding the three months to February and 7% higher than a year ago.

Community & amenity was another March index high-riser, experiencing a spike in activity. Starts jumped 28% against the preceding 3 months and 38% compared with a year ago.

Industrial-starts, the consistent star performer in Index terms, declined 17% during the three-month period covered by the Index. However, the vertical remained steadfast, up 19% on the previous year.

Sprinting ahead, office construction-starts increased by nearly a fifth (17%) in the three months to end of February, but fell marginally short compared to 2021 levels (-6%)

Education and health-starts fell, reflecting a steady decline in both sectors, which will no doubt throw the Government’s levelling-up policy open to scrutiny.

Whilst infrastructure construction-starts indicated green shoots of recovery, increasing 2% during the three months to February, the value fell 27% compared to 2021.

Modest increases will be tempered by another sharp fall for civils work, down 17% against the preceding three months and 34% compared with a year ago. The utilities sector added further salt to the wound once again posting big losses in start terms, falling 43% against the preceding three months to February to stand 48% lower than a year ago.

Regional Analysis

The North East was the best performer during the three months to February, and the only one that experienced growth against this period and 2021 (+6%).

Inconsistency reigned supreme in the other regions. Scotland experienced the greatest increase in project starts against the preceding three months (+13%), but was down 36% on a year ago. Similarly, project starts in London declined by over a quarter (26%) compared to 2021, but increased during the three months to February. The South East was the only other region to experience growth against the preceding three months (+4%).

Unfortunately, all other regions returned poor performances. The value of project starts fell in the West Midlands by 41% during the three months to February, standing 54% lower compared to a year ago. Strong declines were also seen in the East Midlands, East of England, North West and South West on both the Index period covered and 2021.

Commenting on the Index’s findings, Glenigan’s Senior Economist, Rhys Gadsby says, “We urge readers of this Index to maintain a positive outlook. Whilst project starts remain low, the downward curve is softening and, as our most recent Forecast predicted, a gradual rise in the latter half of 2022 is likely.

“External events are skewing the market and no doubt current geopolitical events in Eastern Europe will create some challenges. However, the UK construction industry is incredibly resourceful, and the strong pipeline of planning approvals and contract wins is testament to this. In our view it’s very much a case of ‘keep calm and carry on’.”

To find out more about Glenigan, click here.

Barratt Homes to transform disused land in Leith

Derelict brownfield land in Leith is set to be transformed into two new five-star housing developments by Barratt Homes.

The UK’s largest housebuilder has started construction of 212 homes on Baltic Street and plans for a 115 home development on South Fort Street are well underway. Named Merchant Quay and Heron Bank respectively, the new developments are expected to generate nearly 60 new jobs and create positions for at least five apprentices.

The construction of Heron Bank and Merchant Quay will also serve to boost the local economy; an economic footprint calculation predicts the developments will add more than £30m in financial output over their build period.

Both developments will also revitalise brownfield sites, with Merchant Quay previously housing a builders yard and Heron Bank home to a steel fabrication company. The regeneration these developments provide will only add to the already booming metropolitan progression of Leith.

Building in these areas will also provide a significant contribution of much needed Affordable Housing units; Merchant Quay will deliver 43 plots, a mix of one, two and three-bed apartments, in collaboration with Port of Leith Housing Association, and Heron Bank will provide 24 units, the mix of which will be determined throughout the planning process.

Barratt Homes has established itself as one of the biggest contributors to Edinburgh’s Affordable Housing Policy, with over 1,000 units constructed to date.

Alison Condie, managing director for Barratt Homes East Scotland, said: “We have a long and proud association providing housing in the east of Scotland and Barratt is a popular and trusted source of five-star quality homes for buyers.

“We’re looking forward to expanding our offering in the region with these new developments on South Fort Street and Baltic Street, and helping to regenerate these locations.”

Work on both developments is now underway and it is expected that opportunities to move into one, two and three-bedroom apartments in Leith will be available in early 2022.

Further details and updates on Merchant Quay and Heron Bank are available on the Barratt Homes website.

Students set for the Scottish Schools’ Hydrogen Challenge

Over 7,000 second year students from across Scotland will compete to build the best green hydrogen powered Lego vehicle over the next eight weeks
Pupils have the opportunity to test drive the low carbon fuel and hear more on the importance of green hydrogen in achieving Net Zero targets
Winners from each city will compete in the Grand Final in Glasgow during COP26

Students across Scotland are taking part in a unique challenge in the run up to COP26 – designing, building and racing a green hydrogen-fuelled vehicle of their own design.

The Scottish School’s Hydrogen Challenge will see groups of three students collaborate to build the most efficient hydrogen-powered vehicle in under two hours. Vehicles that travel the furthest on the zero emission fuel will take part in a Grand Final in Glasgow during COP26.

Over 7,000 second year pupils from Scotland are expected to take part as the challenge visits Fort William, Wick, Inverness, Aberdeen, Dundee, Perth, Stirling, Edinburgh and Glasgow in the run up to the climate change summit.

Regional finals are taking place in each of Scotland’s cities with the top three teams from each being entered into the Grand Final with a chance to win a Lego Robot Inventor amongst other prizes.

Today, 3rd September, marks the first of the regional finals. Schools from across the Highlands have been competing for a place to race at COP26 over the past two weeks with the final contenders racing their hydrogen powered vehicles in Inverness at Millburn Academy today.

The challenge is being delivered by partners Arcola Energy, ITM Power and ScottishPower, a partnership formed to help educate people on the importance of green hydrogen in tackling the ongoing climate emergency.

Barry Carruthers, Hydrogen Director at ScottishPower, said: “Scotland is about to host one of the most important climate summits ever, COP26, and we want to help bring some of the energy and excitement around COP26 to schools across Scotland with our partners Arcola Energy and ITM Power.

“We’re currently working to deliver a number of green hydrogen projects in Scotland – including the largest green hydrogen facility in the country, but we know that we still have work to do to help educate people about this critical, zero emission fuel and the role it plays in achieving Scotland’s overall Net Zero goals.

“This green hydrogen Challenge will help engage Scottish students in how green hydrogen can help decarbonise our daily lives by providing a clean fuel alternative to heavy industries and transport and supporting hundreds of green jobs.”

During the workshops, competitors will find out more about the decarbonisation of transport and the important role it is playing in reaching Scotland’s climate change targets.

The Challenge also offers a chance for members of the community to learn about green hydrogen, its applications and its expected growth over the next decade during evening and weekend workshops.

Experts will be on hand to answer any questions about the technology and offer a chance for people to try their hand at building a hydrogen-powered vehicle.

Graham Cooley, CEO of ITM Power, said: “It is vitally important we work with young people as they grow up during the rapid shift to a net-zero economy. We are thrilled to be working with partners Arcola and ScottishPower, who are as passionate as we are about inspiring and upskilling a future generation of scientists and engineers.

“These hydrogen-fuelled vehicles are being built by the generation who will inherit the hydrogen technology that we at ITM Power are creating today. We hope to learn as much from them as they do from us.”

Green hydrogen is made when a renewable electricity source, like an onshore wind farm, is used to generate the electricity to power an electrolyser which splits water into its two elements; hydrogen and oxygen.

The zero emissions fuel offers a long term, sustainable alternative to fossil fuels, and can be used to decarbonise sectors that cannot be powered by electricity alone, including large transport vehicles like trucks, trains or buses and heavy industry or high temperature industrial processes.

Dr Ben Todd, CEO of Arcola Energy said: “Arcola Energy has delivered hands-on hydrogen education programmes to more than 100,000 students over the past 12 years, as part of our goal to deliver practical solutions to decarbonise transport, many examples of which will be on Scottish roads in the coming years.

“Based on real engineering principles, our workshops are delivered by our in-house team working with members of local universities and colleges who will be on hand to help teach students about green hydrogen and its applications – as well as offer a few hints and tips as they work to build their vehicles.”

The Challenge is being supported by the Scottish Cities Alliance and the Hydrogen Accelerator who have played a key role in the coordination of the Challenge and helping to educate people on the role of hydrogen in decarbonisation.

Cllr John Alexander, Chair, Scottish Cities Alliance, Leader Dundee City Council, said: “With COP26 just around the corner there has never been a better time to engage our future leaders, engineers, economists and so much more about how important zero carbon fuel is.

“In the lead up to COP26 the Scottish cities are proud to collectively support this important programme to inspire the next generation of renewable energy engineers who can capitalise on the high skilled jobs we aim to create from our collective investment to position Scotland as one of Europe’s leading early adopters of hydrogen technology.

“Innovation is happening here and now across the Scottish cities in deploying these technologies at scale to play our part in meeting Scotland’s ambitious net zero target by 2045 and putting the technology in the hands of young people is vital to ensuring that Scotland’s workforce of the future is best placed to reap the economic rewards as part of our just transition.”

Professor John Irvine, Chair of the Hydrogen Accelerator at the University of St Andrews, said: “On behalf of the Hydrogen Accelerator and the University of St Andrews, I am delighted that we are supporting this exciting Hydrogen Challenge programme, inspiring our young people to take up future careers within sectors such as Hydrogen as it offers such a diverse range of fulfilling career opportunities.

“The Hydrogen Accelerator also looks forward to continuing to support the ambitions of the Seven Cities and city regions in achieving their decarbonisation targets.

“With the abundance of renewable energy and water here in Scotland we have the right ingredients to produce green hydrogen enabling not only the decarbonisation of the transport sector but the opportunity to create innovative solutions, supply chain growth whilst providing citizens with clean, green transport.”

Construction growth experiences short-term slowdown

Pace of sector recovery reduces in 3 months to end of July 2021, but long-term indicators suggest quick return to upward momentum

Value of project starts in three months to end of July 2021 dips by 14% compared to buoyant start of the year
Planning consents down 20% in three months to end of July 2021 against previous three months
However, contract awards show resilience, three months to end of July 82% up on same period in 2020 and 43% above same period in 2019
Non-residential RMI Work increases by 2.3% in three months to end of July, up over 50% against previous three months in 2021
East of England region on the brink of return to pre-COVID levels of output

Glenigan, the construction industry’s leading insight and intelligence experts, has released the August edition of its Construction Review.

This monthly report provides a detailed and comprehensive analysis of construction data, giving built environment professionals unique insight into results from the three months to the end of July 2021.

Short-term slowdown

Following a growth spurt in the first half of 2021, momentum has started to show signs of slowing down. This recent decline has been led by a sharp fall in private residential and civil engineering work.

Overall, the value of projects starting on-site averaged £5,497 million per month in the three months to July. Despite being 27% higher than the same period in 2020, it remains 14% lower than the preceding three months in 2021.

Glenigan August Review_Executive Summary.png

Fig 1. August Construction Review Summary

This sudden fall can be attributed, in part, to a 19% decline in the value of underlying project (<£100m in value) starts. Although these were up 36% on 2020, the figures are still 24% lower than pre-pandemic levels.

Whilst the value of major projects remained unchanged (£1,740 million per month) against the preceding three months to July, they were still 2% down on 2019 levels.

Best laid plans

Planning consents have also seen a slip during this slower period, down 20% against the previous three months. Major planning approvals are more stable, but also witnessed an 8% decrease.

However, on a positive note, planning consent levels remain significantly higher on both 2020 and 2019.

Back on track

Looking further ahead, the strengthening pattern of main contract awards points to renewed growth in project-starts during the second half of the year.

Although the value of main contracts awarded slipped 1% against the previous six months, it remained 43% above the same period in 2019 (82% up on 2020). Putting this into perspective, major contract awards were three-and-a-half times higher than a year ago and 98% ahead of pre-COVID levels.

Recovery progressing

Despite the m-o-m decline, second quarter output was up 3.3% on the preceding three months.

Further, some areas of activity saw modest growth on Q.1, with RMI work increasing by 2.3% (53.5% ahead of 2020 figures). Much of this is accounted for by non-housing repair and maintenance work, perhaps reflecting the easing of COVID-19 restrictions and calls from Government and business to return to city centre workspaces.

There was also a slight uptick in new-build output (3.9%) in Q.2 against Q.1, with private housing experiencing a marked upward spike of 10.6%.

In line with Glenigan’s previous reviews and indexes, infrastructure has been the strongest performing sector for new work, rising 15.9% against the preceding quarter.

Industrial and commercial sector activity also rose by 3.8% and 0.8% respectively against the first quarter.

The biggest losers were the new public residential and non-residential sectors, which saw a slight dip in output of 1.5% and 1.4% respectively.

Strong performers

Regionally, Scotland achieved strongest growth project-starts against the previous year (124%) during the previous three months to end of July 2021. However, these figures were still below 2019 levels.

Yorkshire and The Humber also achieved three digit growth on 2020, but slipped by 14% against the previous three months.

Recovery is strengthening in the East of England, which is the closest UK region to returning to 2019 levels of output against the previous three months to July. Climbing 58%, the area is now only 9% off a pre-pandemic footing.

These positive figures are further tempered with continued output decline registered in Wales, the North East and South East. This highlights the sector still as a way to go to full nationwide recovery, even if good progress is being made.

Allan Wilen_Economics Director_Glenigan.jpg

Commenting on the findings, Glenigan’s Economic Director, Allan Wilen (above) says, “There’s no doubt the slowdown seen over the last three months has been the result of a perfect storm of external events, beyond the industry’s control.

“Supply chain issues continue to bite and look likely to remain a challenge for the foreseeable future. However, the sector is showing its strength across the board, and this modest slowing of pace is certainly not as serious as many might have predicted.

“With a number of major projects in the pipeline, a potential national green retrofitting programme and core infrastructure remediation work upcoming, there are reasons to stay positive as we look to the second half of 2021 and beyond.

“Our recent Forecast for 2021-2023 indicates 2022 will see a return to pre-COVID levels of project-starts, and whilst we’re not there quite yet, we’re seeing lost ground being made up at a quicker rate than anyone would have predicted this time last year.”

To request a copy of Glenigan’s full August Construction Review, with sector-by-sector analysis, click here.

Scottish construction shows signs of strong recovery

Scotland demonstrates strong growth in the wake of pandemic and despite supply shortages

Scotland leads post-COVID industry recovery, growing 124% on the value of project-starts compared to last year
UK value of underlying work (less than £100 million in value) up 35% on 2020 figures but down 16% on preceding three months on a seasonally adjusted basis
Nationwide, retail proves a stand-out sector with 150% growth on project-starts, and residential project starts rise by over a third on previous year

Glenigan, the construction industry’s leading insight and intelligence experts, has released the August edition of its Construction Index.

This report provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals unique insight into results from the second quarter of 2021 and the last twelve months.

Strong growth for Scotland

Scotland has been leading the Covid-recovery, achieving strong growth of 124% on the value of project starts against the previous year, this is despite a 15% dip compared with the previous three months of this year.

UK-wide signs of increase

Despite a slight setback for underlying work (less than £100 million in value) in Q.2 of this year dropping 16% on Q.1, the construction industry is regaining its feet. A rise of 35% on figures in the same time period in 2020 show a sector on the way up.

Residential work on the rise

The value of residential work being carried out on-site is also on the rise, climbing 36% against the previous year. However, this fell 28% compared with the preceding three months (seasonally adjusted) and is down 33% on 2019 figures.

Private housing has also shown growth as one of the best-performing sectors, with the value of project-starts rising by over half (54%). Again, these figures are off the back of an initial dip, down 29% on the preceding three months of this year and 32% on 2019 levels.

Retail and offices provide boost

Retail was the stand-out sector during the period, with project-starts having increased 150% against the previous year up 34% compared with the same period in 2019. Retail-starts also increased 83% compared with the preceding three-month period.

Non-residential sectors also performed above 2020 figures, climbing 43% and increasing by 7% in Q.2 on three months previous.

Health projects show vitality

Despite a slight dip in health project starts in Q.2 of this year falling 12% on Q.1, the sector has seen a 7% rise on the previous year and a 43% increase on the same period in 2019.

Similarly, hotel and leisure project-starts have performed poorly in recent months, however, sector growth has nearly doubled against the previous year (94%) and increased 52% on Q.1 of 2021.

Improvement needed for infrastructure and civil project-starts

An area in need of improvement is underlying civil engineering project-starts which increased just 1% on 2020 but fell 41% on the preceding three months. This was also down 40% compared with the same period in 2019.

Infrastructure starts were also down 16% on the previous year and 49% compared with Q.1 of this year. The sector was also declined by 43% on the same period in 2019.

However, utilities starts show much more promise, increasing by nearly a half on 2020 (47%) but down 18% on the preceding three months of Q.1 of this year.

Strong regional performance

Yorkshire and the Humber also achieved three-digit growth on 2020 (110%) and project-starts in London climbed by over 50% against the previous year but was down 9% on Q.1

Project-starts in the East of England also rose by 58% against last year and were the only region to experience growth against the preceding three months (6%).

Rhys Gadsby, Glenigan’s Economic Analyst, commented on the latest figures: “The positive figures we’ve seen in Scotland serves as a strong indicator the construction sector recovery is not limited to London and the South East.

“However, they should be note of caution. While the value of project-starts remains substantially higher than the lockdown-affected previous year, the value has continued to decline in recent months.

“Material supply problems may have contributed to the fall; however, a decline was expected following a surge in activity, due to pent-up demand, during the first quarter.

“More positively, the speed of decline slowed during July. Main contract awards and detailed planning approval were high compared with previous years, so it is only a matter of time before this has a positive impact on project-starts.

“Furthermore, the successful vaccination roll-out, as well as the ending of restrictions on daily life, should give investors – particularly in non-residential sectors such as hotel & leisure – the confidence to progress projects to site.”

To find out more about Glenigan’s expert insight and leading market analysis click here