Clearview Midlands November 2013 - Issue 144 | Page 91

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RISING COSTS THREATEN BUILDING RECOVERY
Increases in material and labour costs could
pose a serious threat to the fragile recovery in
the building industry, warns the Federation of
Master Builders (FMB).

‘Costs have remained high’
The FMB’s latest State of Trade Survey
of member firms shows the net balance for
workloads, expected workloads and enquiries
in the third quarter of 2013 was positive across
nearly all parts of the UK for the second quarter
in a row. In particular, the private new build and
residential repair and maintenance sectors saw a

marked improvement, and overall 42% of small
builders saw their workloads increase. However,
material costs, wages and salaries are all expected
to continue rising over the next six months, with
the result that many building companies may
have to put up their prices.
Brian Berry, Chief Executive of the FMB, said:
“Construction SMEs have battled to maintain
staffing and capacity while trying to keep prices
competitive. Material costs have remained high
throughout 2013, and further increases could
snuff out this recovery in its infancy, especially if
companies that have cut their profit margins to
the bone to beat the recession are now forced to
pass on those costs to their customers.”

NEW FIGURES SHOW RECORD
NUMBERS OF APPRENTICES
More people than ever
before are taking part in an
apprenticeship, according to the
provisional figures published in
October 2013.
Nearly 860,000 people were
on an apprenticeship in 2012/13
with the gold standard of higher
and advanced levels attracting
record levels of apprentices.
The data also shows that
there were over 1.5 million
apprenticeship starts since 2010.

Skills Minister Matthew
Hancock said: “These figures
show that a record 858,900
people participated in
apprenticeships last year, which
is almost 370,000 more than in
2009/10.
“This is good news for the
economy, and good news for
those getting the skills they need
to prosper. There are now more
options than ever before with a
focus on the quality and rigour

that people and employers want
from apprenticeships.
“Our insistence that they must
have a minimum duration,
involve on-the-job training,
and respond to the needs of
employers means that it is rapidly
becoming the new norm to
take an apprenticeship or go to
university.”
All apprenticeships now
routinely last a minimum of
a year. That means that while

more people than ever are in
apprenticeships, the number of
starts has not grown. However,
removing very short 6 month
apprenticeships is a vital part of
driving up quality.
The government will shortly
be announcing further reforms
to the system. The aim is to
produce an apprenticeships
model that matches and
surpasses the best in the world.

SUPPORTING UK EXPORTERS OVERSEAS
The National Audit Office has underlined
the need for a substantial contribution by the
Foreign and Commonwealth Office (FCO)
and UK Trade and Investment (UKTI) if the
Government’s target for increasing the value
of UK exports to an annual £1 trillion is to be
achieved.
Since 2010, the Government has been
increasingly committed to supporting UK
exporters abroad and, in the 2012 Budget,
announced its ‘ambition’ to double the value of
exports by 2020 to £1 trillion a year. However,
according to the report by the spending
watchdog, current performance has been flat
over the last two years against a background

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of weak global demand and, to meet the
Government’s ambition, exports will have to
grow by 10 per cent year on year.
Many factors, which affect export performance,
are outside the control of the FCO and
UKTI, such as exchange rates and political
and economic changes overseas. While the
UK outperforms Germany, France and Italy in
the Gulf, it has not traditionally performed as
well in many other emerging markets, such as
Russia, Brazil, Turkey and China. Success here is
essential if the Government is to meet its target.
“If the Government’s ambitious objective of
export-led growth is to be pursued vigorously
and cost-effectively, the FCO and UKTI need

‘According to the report
by the spencing watchdog,
current performance has
been flat over the last two
years against a background
of weak global demand’
to adopt tough measurable objectives in terms of
actions and results across their global networks,
improve evaluation of impact, and work together
more effectively,” Amyas Morse, head of the
National Audit Office.

NOV 2013

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