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What's the average day rate for domestic electrical work?

Posted by Christos Panayiotou on 15th April 2014

This is exactly the question we asked to a large group of UK electricians, and whilst we knew we were taking a 'leap of faith' when asking this question, we had not prepared ourselves fully for the thoughts that followed from the electricians.  We had such an interesting response, it would have been a total waste had we not shared the results with you in depth.  We hope you find the results as useful as we did.

It seems there is no hard and fast rule when it comes to deciding a day rate, and indeed, approximately a third of our responses suggested that a day rate is not always used in all circumstances.

Day Rate Influences

When discussing day rates with electricians through our survey, it was clear that 2 reasons were identified that influenced heavily over the final day rate that was charged to the customer:

Business Costs

Competition with other electricians

How electricians are working

Rather than pin electricians down to reveal their day rate, we decided to listen more to how they actually work which adds usefulness to the results.  Rather than obtain an array of 'day rates' we decided to compare the earning potential of the differing ways of working which will hopefully serve to help other electricians who are struggling in increase their earnings.

Sub-Contracting vs Working Directly for your Customer

We had a good response from the guys who work as sub-contractors as well as getting their own work.  Many of them spoke from experience when deciding on a day rate for their own work.  A lot of sub-contractors forget to add the additional costs such as materials, accreditation, insurance and travel and quote what they are used to earning.

Many electricians work both directly for customers and as sub contractors, however it is important to distinguish your day rate from the two.

Sub-contract work can be great for building up experience and bringing your skills in line with other electricians. Although you will earn less than working direct for a customer, you will not have to worry about additional business costs.

Sub Contract Work Rate: £130-£150 per day

Day Rate vs Quote for Individual Works

Some electricians who responded suggested their customers save money by being quoted a price for the work itself.  This allows the customer to budget sensibly for the work needed as they know exactly how much it will cost.

This method allows several jobs to be completed efficiently in the one day which could actually result in better earnings than quoting one price for the whole day.

Result: Win:Win – Customer can manage their budget better

Quote for work rate: £200+ per day

Day Rate vs Hourly Rate

A small number of electricians chose to work to hourly rates.  This can be useful for smaller jobs and if there may be problems in the property that may present themselves such as removal of furniture before the job starts, lifting of carpets, floorboards, parquet flooring etc.  Hourly rates can work out well if you are working in older homes where it is not clear what has been done before.

Hourly Rate: £34 per hour in London

Electricians who choose to work on day rates

Day rates vary between electricians, and is dependant on factors such as location, parking, and travel costs.  Add to this the cost of accreditation and insurance that every electrician has to consider and it is clear to see how the costs are worked out.

The key point is to identify the rate which you would be happy with.  Then demonstrate to the customer how your services are worth paying for.  There is no point working to make no money, after all we all have bills to pay.  Getting work is not just about your day rate.  Customers also rate character as a high influence over whether they use an electrician.  Factors such as

knowledge,

confidence,

politeness

professionalism are key.

If you get these items right, you are half way to getting the job.  The other part is turning up on time.

Domestic Electricians Day Rate: £200 - £250 per day

Other Considerations

Naturally day rates can be affected by the number of electricians required to carry out the work and if you have a trainee electrician or apprentice working with you.  There is also a difference between working 2 half days to one full day in terms of costs and paperwork as well as whether you charge VAT.

Conclusion

Simply asking an electrician what their day rate is touching the tip of the iceberg.  There is so much more to a day rate than simply calculating business costs and adding a bit on for yourself.  The resulting day rate is the culmination of marketing research, great customer service, a great job and positioning yourself as a knowledgeable electrician in your area.

However, when all said and done it is not the amount paid that makes you good.  It is “would the customer call you again” is where it is really at.

 

Categories: day rates

Test Our New Website & Win a Free Toolset!

Posted by Christos Panayiotou on 25th March 2014

We are often told by our customers that we have a fantastic website. However we are not a company to rest on our laurels and as such if you are reading this now you will be looking at our brand new website. Not only has the site had a complete overhaul visually it also has lots more functionality packed into it making it easier to use, find the course you want and book online. Key new features on this site are as follows:

Our new site will respond to your chosen device making it usable on phones, tablets and PC's

The booking functionality has been improved allowing you to book multiple courses and multiple locations

The look of the site has been improved, lightened and sharpened up

We now have a course finder feature which allows you to answer questions to find your ideal courses

We have broken our courses down into a number of key categories making it easier to find what you are after

Above all we have aimed to put our customers at the heart of our new website. On every page you should be able to easily identify what information you want and access it from any device.

Find a bug and win a toolset!

We have heavily tested our new site across multiple devices however it is possible that there are still one or two bugs which we may not have picked up on so we are asking our customers to let us know if they come across these. A bug can be an issue with a form loading, problems with how the site is displayed or anything that means the site is not working proerly. If you do let us know you will be entered into a free prize draw to receive a free toolkit worth up to £100 or if you are booking with us we will credit your account with £100 to put towards the cost of your course. 

Simply complete the form above if you do find a bug and we will enter you into the draw. We will announce the winners on the 30th May 2014. We don't think there will be too many entrants so this is a great opportunity to bag some new tools!

 

DCLG Select Committee Report Published

Posted by Carl Bennett on 6th March 2014

The CLG select committee report into Part P ‘Building Regulations certification of Domestic electrical work ‘is published today.

It recognised that the introduction of Part P building regulations in 2005 had been successful in driving up standards of installation to the extent that around 40,000 competent electrical installers are now within the available schemes.

It was also recognised that there has been a positive change of attitude particularly by self employed domestic electrical installers and as a consequence knowledge and skills levels are now much higher than they were 10 years ago.

Pictured Above: Carl Bennett MD with Clive Betts MP

Over the last 8 years Tradeskills4U as has played a significant part in the raising of those skills levels for the benefit of the electrical workforce and public safety and we are justly proud of our efforts.

However we know, as a leading electrical training provider to the industry and this is where we agree with the report, that there is room for improvement, particularly with regard to the qualifications a Domestic Electrician should be required to hold to give confidence to the public.

There are a number of recommendations in the report, which the government may or may not adopt. Unfortunately one of the problems with the committee's report, is that we and others in the industry didn’t think they consulted widely enough. For instance they didn’t consult with any of those in the domestic installer or associated trades sector to which this report is directed and employs tens of thousands of people, nor did it seek ideas for training solutions other than the traditional viewpoint and was too ready to accept a narrow view.

The report now goes forward to the government for consultation and review before April 2015, recommending that the qualification of a Domestic Electrician should be equivalent to a Level 3 NVQ. Whilst we agree that a Level 3 qualification and a period of ‘on site’ training is important, we think the qualification should be appropriate to the work the Domestic Electrician carries out, bearing in mind that most of them will be self employed, so in line with the spirit of the report we support a specific Domestic Electrician Level 3 Qualification with an element of on the job training.

The report also goes on to recommend some improvement in public awareness of Part P and a restriction on the number of jobs a Qualified Supervisor can supervise in a year, both of which recommendations we also support.

So what happens next?

Well, this report goes to the Minister Eric Pickles, he will then consult and review sometime before April 2015 and if the recommendations are fully adopted the industry has a target date of 5 years to make the changes.

So for now it’s with the politicians for more consultations. Lets see what they come up with in their wisdom.

 

Are you getting paid on time?

Posted by Joe Bennett on 25th February 2014

Early Payment Initiative: Are you getting paid on time?

The UK was one of the first European countries to introduce late payment legislation back in 1998 with large firms being charged interest for late payment to small firms.  In 2002 the legislation was amended to include payment from small firms also.  In a nutshell, this means that all business, regardless of size should pay for goods and services in a fair and reasonable time scale.  This is known as the Prompt Payment Scheme

Due to the positive success of the Prompt Payment Scheme, the Government introduced a series of Early Payment Schemes which ensure that all businesses no matter who they are doing business with can access a scheme which encourages timely payment.

Early Payment Schemes Introduced

In March 2013, the legislation was reviewed and a process implemented that makes chasing late payments a simpler process for small business.  The Government pledged their support for early payment programmes where clients receive an incentive for paying early or in accordance with agreed payment terms.  This is no longer just limited to business to business transactions, but to anyone who does business i.e. an electrician carrying out work in a clients home.

The rewards of paying on time far outweigh just the payment aspect.  Prompt payment increases confidence amongst business owners which ultimately leads to investment and growth.  Concerns over late payment or even non-payment can have overall adverse effects on economy recovery.

How late payment is affecting electricians

The introduction of Early Payment Schemes seems to a positive step forward particularly for electricians and small electrical contractors who carry out most of their work for members of the public.  According to the payment organisation BACS, small and medium sized businesses are owed an enormous £35 billion in late payments which equates to approximately £45,000 per business.

Almost one year since the introduction of Early Payment Schemes, we decided to survey electricians across the UK to find out if such initiatives had any effect on their business in terms of getting paid quicker and how well the scheme works in reality.

Survey Results

Analysing the results

We had another great response to our survey and getting paid on time is certainly a subject that is important to electricians.  There were two things that were particularly apparent in the comments made to our survey.

• Taking payments upfront for larger jobs

We had a number of comments surrounding payment for work that exceeding £1000 in value.  A growing number of electricians are asking for a percentage of the total payment in staged payments.  A good example of this is 50% of the payment at the end of the first fix and the remainder at the end of the second fix. One electrician has worked in this way for the past 5 years without any problems.

It certainly seems that staged payments is becoming favoured by both electricians and their customers.  Operating a staged payment policy increases your chances of being paid and less chance having to chase for the payment once the job is complete.

• Payment terms

Invoices are an absolute must and payment terms must be clearly stated on them.  Most of the electricians surveyed were happy with payment within 7 days of the job finishing.  98% of small jobs were paid for without any problems with only 1 electrician reporting a payment taking 90 days or more to receive.

Are Early Payment Initiatives Working?

Offering flexible payments is proving to be a good early payment initiative as far as electricians are concerned. 77% of survey respondents are paid within 14 days of the job completing with an additional 13% being paid before work begins.  Only 7% of electricians are reporting later payments.  A mix of fair business practices particularly offering staged payments to clients as well as clear payment terms on invoices is ensuring timely payment for electricians.

 

Categories: paid on time

Modular Wiring Systems – What You Need to Know

Posted by Christos Panayiotou on 18th February 2014

The electrical wiring sector has seen minimal growth in recent years, due to traditional hard wired installations retaining the lions share.  An alternative solution to the time consuming hard wired installation appears to have been finally found in the form of modular wiring systems that will not only save time but money too.  Comprising of state of the art wiring systems they compliment forward thinking technologies such as prefab buildings and renewable energies projects perfectly.

With many sectors within the electrical industry seeing headlong growth particularly in the area of renewable energy, there has been little or no development in regard to traditional wiring which has remained broadly the same for many years.

How modular wiring systems work

Assembled off site, they combine a clever mix of energy efficient solutions all in one system which is simple to install.  The idea is to reduce carbon emissions and energy consumption within the product as well as reduce installation time by up to 70%.

Designed to replace the traditional wiring of sub circuits with a range of prefabricated connector and cable assemblies, the system components are simply connected together to produce a complete pluggable installation.  The concept is similar to how you would plug in cables to produce an entertainment centre at home – each plug has a purpose and when finished you have a TV, DVD, sky box and X box all ready to use.

The idea of modular wiring systems is exactly the same – plug in, connect and go.

Modular wiring systems are set to take the electrical industry by storm

Known for saving time and money – no doubt music to your ears, and to your customers, modular wiring systems have already been used in high profile settings such as within the Olympic Stadium and in St Bart’s Hospital.  Following the huge success of modular wiring systems, specifiers are now looking seriously at the opportunities that modular wiring systems can present within key construction projects.

Increased Productivity

The main attraction of a modular wiring system is the reliability – it will always work.  Once the equipment has been put together using the cable assemblies designed for the job, it will work first time, every time according to Apex Wiring Solutions who produce the modular systems.

What's more is that the full installation is taken care of right from the distribution board down to light accessories and can be installed in practically every location from offices, schools, retail spaces and residential units.

Electrical contractors who are keen to move with the times and use modern construction methods will find modular wiring systems a sensible common sense choice on future projects.

Main Advantages

Modular wiring systems address a huge unfulfilled gap in the electrical wiring sector.  As the construction industry increasingly turns to more environmentally friendly products and working techniques, modular wiring systems are making a welcome entry and producing cutting edge benefits to both electrical contractors and customers.

• Quick to install

With electrical contractors becoming increasingly pressed for time on projects due to client demands and increasing penalties for work going over time, modular wiring systems will improve project performance significantly and reduce installation times saving money as well as time.

• Addressing the skills shortage

The electrical industry is already experiencing a skills shortage with the number of experienced, qualified electricians set to fall significantly in coming years.  Fewer skilled electricians will be required to install modular wiring systems.  Thanks to their plug in and connect set up. The expected 'skills gap' may be averted thanks to modular wiring systems.

• No snagging or fault finding and safer working on site

Modular wiring systems work immediately following connection.  There will be no worries about finding problems, nor wasted materials that have not been used.  Most importantly, the safety standards will always be consistent.  There will be no deviation between work standards between electricians which maintains the safest work environment possible.

• Expertly assembled off site

State of the art wiring systems are constructed off site before being shipped to the required destination.  No specialist tools are required to install and there is no need to pull individual wires through conduit.  Fixing the cable to the wall is done using standard cable ties and can also be routed in ducts or containment if required.

Conclusion

Modular wiring systems are designed to address the main problems faced in the electrical industry – time, standards and money. The fully tested modular wiring systems are produced in a quality controlled environment meaning the chance of an error being made is very unlikely.  Snagging will no longer be a time heavy component, and instead will become a minor matter and testing will be a much improved process.

It is the start of the future of the electrical wiring sector allowing it to finally move forwards with the times.

 

Categories: wiring

SURVEY RESULTS: Which DIY Jobs Do Sparkies Get Called Out To Fix The Most?

Posted by Christos Panayiotou on 11th February 2014

Back on the 20th October 2013 we launched a survey to find out which jobs sparkies get called out to the most as a result of poor handy work by unskilled DIY enhtusiasts. This has been one of most successful surveys and the results are now in.

The top two responses come as little surprise and they are by far the most common reason for DIY electrical call outs.  However, the rest of the responses we had to our survey clearly indicate that DIY electrical is still very much live and kicking.

The Top 2 DIY Electrical Botches

Coming out in top place for DIY fixes is light fittings at over 41%.  This was also the top response to the ESC survey.   The temptation to fit the latest light fittings can have devastating effects for householders. Typical problems encountered with light fittings include brass fittings becoming live, nails being used to mount light fittings and causing the lighting in the home to stop working altogether.

With many householders attempting to fit light fittings themselves, this response was bound to be somewhere near the top.  Over 29% of electricians regularly get called to repair botched lighting circuits.  This is normally seen when householders attempt to replace their lighting and they have more cables than they know what to do with.  The consequences of incorrect wiring can cause expensive damage and risk of fire.

The Impact of DIY Electrical Work

With one person killed every week, thousands injured as a result of an electrical related accident and electrical fires being the main cause of accidental house fires, it is clear to see that electrical safety messages are not getting through fully to the people who would most benefit.

DIY blunders account for over half of serious electrical shocks according to the Electrical Safety Council.  Typical mistakes include drilling through wiring in walls, repairing an electrical appliance while it is still switched on and cutting through power leads.  However it doesn't stop there.  One fifth of people with no electrical training say they will confidently attempt to install lighting in their home and one tenth would happily install new wiring.

DIY electrical is actually keeping electricians busier than ever! Householders attempting to cut corners and hiring unskilled individuals to carry out electrical work or attempting their own repairs are the main cause of electricians being called to repair electrical DIY work that has gone wrong.

A third of electricians recently surveyed by the ESC say they are now spending a quarter of their time fixing DIY jobs and this amount of time has increased over the last 5 years.  Many of these jobs are a simple job for an electrician to carry out and as a result has cost the householder far more than it would have done to call an electrician in to do the job in the first place.

DIY electrical work has the potential to cause fire, serious electrical shock or high financial costs to rectify. Just because it works doesn't mean it is safe!

What Can We Conclude From This?

Despite advice given by the ESC and by electricians themselves to always call an electrician to carry out electrical work, it seems that many householders still ignore the advice and continue to risk their life and pocket by carrying out work which they are not trained to do.

Work carried out by a qualified and registered electrician will be expertly installed and tested for safety.  The household will also receive a Part P certificate which confirms the work was carried out to governmental standards and will be needed in the event of the house being sold or rented out.

 

 

Get Involved in Trailblazing Consultations of the Electrotechnical Apprenticeship

Posted by Carl Bennett on 31st January 2014

The IET and Summit Skills have just published a survey online asking for feedback and input on changes to the Electrotechnical Apprenticeship framework. You may or may not be aware that all apprenticeships are being reviewed as part of the new Trailblazers project. A trailblazer will essentially set the industry standard for that industry and a handful of industries have been selected as a first round including Electrotechnical and Energy & Utilities.

There are also a number of organisations heavily involved in these projects so for the Electrotechnical project companies such as Balfour Beatty, Barlows Electrical, Daly Limited, Darke & Taylor Ltd, The IET & The JIB are all involved. This review is great for the industry and the input of these organisation is invaluable as they are clearly very influential members of it. But what about the voices of the smaller contractor many of whom are employed by the companies listed above. Is their voice really being heard?

The survey does give almost anyone a chance to have their say, however we have only just found out about this survey and the closing date is actually the 3rd February 2014. That doesn’t give us or anyone else in the industry much time to get involved.

We would hope that the process of gathering responses to this survey could be extended whilst more people in the industry have a chance to contribute. We feel it is great that standards are being reviewed and updated, however if they are going to be reviewed we need to ensure the process is not rushed and that the smaller micro businesses get to input their thoughts, opinions and suggestions.

I have just taken the survey and whilst it asks some meaningful questions one key element appears to be missing. The survey doesn’t ask who I am, what I do and why my opinion is relevant. It simply asks if I am an employer or not. This is because apprenticeships are considered to be only relevant for employers and anyone else’s opinion does not matter.

This is possibly one of the most important aspects of the apprenticeship that needs to be addressed. Its content and structure is geared towards the minority of electricians who are employed by a large company. In fact most large companies employ more electrical sub contractors than they do full time electricians. It is the opinion of these people on the ground actually doing the work we feel needs to be included in this consultation. Yes they may not be employers but they are the ones doing the job day in and day out who fully understand what is required to work independently as an electrical contractor.

If you have the time and feel you can contribute please get involved and add your opinion. We simply wish there was more time to get this message out and gather more responses, maybe there will be following this blog post?

>>Click Here to take the survey<<

 

Categories: apprenticeships

EAL 7695: The No.1 Route for Domestic Installers Has Been Updated

Posted by Christos Panayiotou on 24th January 2014

Since changes were implemented last April to Part P the industry has been looking to introduce new qualifications which specifically address the updated requirements. Since that time the EAL 7695 has been available, however it was not an immediate hit simply because there are still other routes available for those wishing to register as a domestic installer on a Part P scheme.

EAL have been working in conjunction with Trade Skills 4U to update this qualification and make it more accessible for all. This is why we are now pleased to be the first in the UK to be able to offer this new updated qualification. The key change is that this all of qualification assessment can now be delivered in centre making it much more manageable for students and trainers alike.

Why should you take this course?

This course is now the no. 1 recommended route for those looking to register on a Part P scheme. It is what the industry has been calling out for and covers much more detailed training specific to domestic installation than its predecessors. Its one single qualification designed with this purpose in mind and as such the course content can be much more specific in what it covers in relation to domestic installation.

Another key difference is that this qualification will map into to the qualifications required to become a fully qualified electrician should you wish to work on commercial projects and open up your scope of work  at a later stage. This is a major improvement and means that this course is a real entry point into the electrical industry as a whole not just domestic installation.

EAL have confirmed this in their Qualification Factsheet which has just been published. You can download a copy here.

What’s covered by this course?

The new qualification covers more in depth training on installation, electro-technical science, regulations, fault finding and inspection and testing. As such it is studied over a longer period with 5 weeks in centre with us and 3 or more weeks spent studying via our online learning management system.

As a brief overview you will receive with Trade skills 4U:

2 weeks hands on installation training

1 Week inspection and testing

1 Week  fault finding and science

1 Week Wiring Regulations

Plus the following modules delivered via our online learning management system:

Health and Safety

Environmental Technologies & Legislation

Organisation & Management

If you are thinking about training make sure you check out this latest qualification as well as the other course we are able to offer.

 

Certsure Follow Up on Select Committee Meeting with Message to Members

Posted by Carl Bennett on 17th January 2014

On the 13th January Emma Clancy (the CEO of Certsure) published a message to their members updating them of developments following their appearance in front of the Communities and Local Government Select Committee.  The message contained some points that are quite significant for those working in the industry and seem to be very positive indeed for all. The key points covered were as follows:

1. One Single Register for Part P Electricians

Ever since the Electrical Safety Register and ElectricSafe Register were launched many in the industry have been asking why we can’t have one single register that allows consumers to easily identify where they can access the details for qualified electricians in their area. Certsure have confirmed that all the major scheme providers will be working together on a proposal for a single mark similar to Gas Safe. This is a pretty major development and can only benefit the industry as a whole.

2. Short Courses

There were submissions to the committee with regards to short courses as a means to enter onto a scheme. Trade skills 4U were instrumental in supplying evidence to the Select committee in this area. Emma Clancy was very clear in her message confirming that anyone registering on scheme must be thoroughly assessed on site. This means that it is the skills and competence of the individual that are the key to gaining accreditation with a scheme provider. She went to confirm that for some that wish to change career, a relevant combination of short courses are an affordable and realistic way to gain a qualification leading to assessment for registration.

3. Licensing electricians

The select committee had heard evidence suggesting that scheme providers should licence individual electricians rather than companies in the same way that Gas Safe is run. This would essentially bring an end to the company qualified supervisor model that is currently in effect and placing the responsibility on the individual contractor. However the suggestion for this did not fully address the cost burden for this especially for those who employ numerous electricians.

Emma Clancy highlighted that the current qualified supervisor system has worked for many years and continues to do so. Essentially if it isn’t broken then why are we looking to fix it. The current system balances costs with safety and is the best model especially for companies. The current regulations and scheme structures more than cover individuals in terms of ensuring that those working on electrical systems are safe to do so and this is spelled out in regulation 16 of the electricity at work regulations act where is states:

“No person shall be engaged in any work activity where technical knowledge or experience is necessary to prevent danger or where appropriate injury unless he possess such knowledge or experience or is under such degree of supervisions as may be appropriate having regard to the nature of the work.”

What is interesting is to see scheme providers continuing to support the Qualified Supervisor Model when it would probably benefit them financially to register every individual. This shows that they truly have consumers and electricians best interests at heart.

As far as Trade Skills 4U is concerned we support what Emma Clancy has said and continue to support the individual as well as the small micro business company’s to ensure we supply the right advice and right training solutions to our customers. The advantage of Trade Skills 4U being involved in the debate is that our menu of courses and qualifications are always relevant and reflect the industry requirements.

Carl Bennett

MD

Tradeskills4U

 

Welcome to 2014 - Construction Projects Set for Boost from Private Sector Growth

Posted by Christos Panayiotou on 15th January 2014

Upon reflection, 2013 was a year of hard work within the construction industry which reaped a little more benefit that hadn't been seen in recent years.  The economy is showing signs of improving which is fuelled by the foreseen growth in the construction industry. Early signs are indicating that 2014 is going to be the best year seen since 2009 when the economic downturn began.

So what should the construction industry expect in 2014?  We take a look at the anticipated high and low points expected for this year.

The good news

This is great news for both electrical contractors and sub-contractors.  There will be more opportunities for fitting out retail and office premises.  The retail focus on 2014 will be more small scale refurbishment work and fewer large scale projects.  With consumer confidence growing, businesses are starting to invest and expand rather than merely fight for survival.

In fact it is London that is driving growth according to cnplus.co.uk thanks to public sector recovery and small scale retail growth.  This is encouraging news for electrical firms looking for new contracts. Electrical firms that have kept a tight control on their purse strings have reported strong and stable business growth during 2013.  Diversification into specialist areas such as electrical maintenance and electronic security have aided continued survival.

New research from Glenigan, the leading provider of construction project leads and industry analysis suggests that the private sector will provide the majority of the upturn and much needed boost to the construction industry.  The value of private sector housing projects is set to grow as expected by 9%.  Other key projects driving recovery forward are hotels and leisure at a growth of 13%, retail which suffered a 24% dip during 2013 but is expected to rise to 7% during 2014, offices expected to grow by 8% this year as well as an increase in demand within the industrial sector.  These sectors are expected to form the backbone of a solid return to growth in 2014.

With business investment that has been held back in previous years now finally being given the go-ahead, office projects are rising significantly in the capital.  Other major UK towns and cities have not been left behind, however a current shortage of space means some projects are delayed and will therefore see growth continuing into next year.

This is leading to increasing demand for distribution centre projects.  Unfortunately the manufacturing sector sees its demand for premises reduced as it continues to raise output to pre-recession levels.

Less Positive

This was not unforeseen.  The reduction is due to continued public sector cutbacks. However current activity does remain at 48% higher than in 2007.  Unfortunately this is not expected to continue during 2014 as a result of the continued public sector cuts.

Although the driver for the current growth, Glenigan expects further project starts during 2014 to flatten out.  However other UK regions are expected to pick up on this growth drive particularly in private sector housing thanks to increased confidence in the housing market, lower interest rates and easier mortgage availability.

Source: Glenigan

Overall

There are signs of sustainable growth not seen before in the construction industry in recent years.  There is growing optimism that projects are coming to fruition and not just dying out at the planning stages.

The general feeling within the construction industry is quiet confidence that the worst of the downturn is now over.

The focus for 2014 will be on the private sector driving recovery with grass roots already being formed for continued growth in 2015.