Campaign to breathe new life into construction sector

The UK Contractors Group, which represents more than 30 leading UK construction contractors, who together account for a third of industry turnover, is set to launch its Creating Britain’s Future campaign in Leeds next month to highlight the national and local, economic and social benefits of investing in infrastructure.

The UKCG says that, according to its research, infrastructure investment drives growth with every £1 invested in construction creating £2.84 of economic activity. Mike Peasland, chief executive, construction services UK, Balfour Beatty, who is chairing the Leeds campaign launch, said: “The construction industry is already delivering world-class projects in Leeds – such as the iconic Leeds Arena – and has the capability to deliver much more.

“With a quarter of a million people unemployed in Yorkshire, investing in construction can deliver local jobs and growth.

“For every £1 invested in construction, 92p stays in Yorkshire bringing benefits to local businesses. The Creating Britain’s Future campaign aims to kick-start that debate with local decision makers.”

The value of construction output in the Yorkshire and Humber region was £8.5bn in 2012, five per cent down on the previous year, while the sector is the source of 161,000 jobs, accounting for 6.3 per cent of employment in the region.

The Creating Britain’s Future campaign has already been launched in London, Manchester and Birmingham. It is now being rolled out across additional cities in the UK, including Leeds on May 16.

UKCG describes construction as a “jobs creator”, adding that it is three times more labour intensive than financial services and provides jobs for people from all educational backgrounds.

The industry, it added, also has “a very low reliance” on imports, which account for less than eight per cent of its supply, meaning investment in construction is retained in the UK.

UKCG members include Balfour Beatty, BAM Construct UK and Carillion, as well as Scunthorpe-based Clugston Construction, Doncaster-based Keepmoat, York-based Shepherd Construction and Thirsk-based Severfield Rowen.

Britain’s construction output contracted in March for the third month in a row, a survey showed last week, suggesting the sector will have weighed on economic growth in the first quarter.

The Markit/CIPS Construction Purchasing Managers’ Index (PMI) inched up to 47.2 from 46.8 in February, holding below the 50 level, indicating contraction. Markit, which compiles the survey, said unusually cold weather combined with sluggish demand kept a lid on construction work in March. A separate campaign, known as construction4growth, recently visited Yorkshire as part of its efforts to get the Government investing more in construction “to bring the economy back to growth”.

It held an event at Leeds College of Building, attended by political figures, members of the construction industry and The Federation of Master Builders, where participants debated how employers could be encouraged to recruit more apprentices.

Jim Gilmour, national president of the Federation of Master Builders, called for the Government to introduce “more flexible apprenticeship contracts”.