The Construction Industry Performance
As a provider of architectural glazing and glass partitioning, we believe it is important to stay abreast of current construction news. Thats why when Glenigan, in collaboration with Constructing Excellence, CITB and The Department for Business, Energy & Industrial strategy recently published an updated report on the construction industry’s performance throughout the 2015-2016 period we took notice and realised it featured some key points.
The paper looks at key performance indicators and data gathered from across the construction sector over the past year, and covers economic indicators, client and contractor satisfaction, profitability, predictability and respect for people. Overall, the report presents a generally positive outlook for the industry, and indicates a sector evolving with the economy.
Client & Contractor Satisfaction
The report notes a marked improvement in client and contractor satisfaction KPIs across all construction with the exception of contractor satisfaction of payment. The improvements across the board on client satisfaction in particular stand out, reflecting an industry that is increasingly client focused.
Clients rated their ‘overall satisfaction with the finished product’ as 8/10 or higher on 85% of projects surveyed; a 4% increase on previous years, and the highest recorded result in the last 5 years. A similar rise was seen in client satisfaction for services received from contractors and value for money, which also received their highest ratings since 2011.
Profitability & Productivity
Industry profitability slipped to 2.5% from 2.8% in the previous survey, likely driven by increased pressure on margins from higher material and labour costs, combined with the industry’s slow growth rate. Productivity increased 2.5% in real terms, a more positive result than the 1% decline in the previous year.
Cost and Time Predictability
Survey data indicates improvements across the industry in both cost and time predictability for design and construction – project costs were on budget or better for 68% of projects, while design costs came in on or under budget for 70% of projects. Predictability for construction costs hit a record high, with 64% of projects coming in on budget or better. Overall, projects were delivered on time or better 41% of the time, an improvement on the previous year but still falling below the average survey result since 2003.
Respect for People
Staff turnover slowed to 2.7%, down from the previous year, reflecting the easing in hiring pressures following slower growth of industry workloads last year. Despite this, the rate of direct employees leaving firms has increased, with the median firm losing 7% of their direct employees – a slight increase on the previous survey, as contracting has become more common.
Training grew to 1.5 days per employee – up from 1.2 – and is currently at its highest recorded alongside the 2012 survey. The proportion of staff qualified to NVQ Level 2 and above has also increased to 72%.
Despite growing global concern about climate change and the environmental impact of the industry, energy use – both in designed projects and in on-site construction – increased on the previous year by 49% and 27% respectively. While this is disappointing, designed water use, on-site waste removal, and commercial vehicle movements saw improvement against the previous year, and overall environmental factors continue on a positive trend.
If you are looking to keep on top of trends and future-proof your business. Our range of glass partitioning, screens and integrated systems are perfect for creating your ideal modern workplace. Contact 0121 374 0070 or email firstname.lastname@example.org to learn more, or recieve a quote on our range of glass partitioning products.