The post Read the Latest News on Customer Experience Can Revive Construction, UK Building Plastic Trash Grows 15 Times Faster Than EU, Mace for Public Sector Construction Strategy and Balfour Beatty in UK Rise at Construction Margins appeared first on UK Construction Blog.
In today’s news, we will look into the YardLink’s Neeral Shah examines the customer service fall that the UK construction industry has seen and how it might be improved. In the meantime, recent findings indicate that the construction industry in the United Kingdom is on the verge of becoming a significant contributor to the pollution caused by plastic. In furtherance of this, Mace will be in charge of the management of prices, projects, and programs for the most recent consultant frameworks developed by Southern Construction Framework (SCF). Furthermore, the underlying profit margins of the UK Construction division of Balfour Beatty increased to 2.3%, which is an improvement from the 2% the division had achieved in the first half of the previous year.
Customer Experience Change can Revive Construction
Original Source: Construction can boost its revival with a customer experience transformation
YardLink’s Neeral Shah discusses UK construction’s customer service slide and how to improve it.
We’re happy the construction sector grew in 2024’s second quarter following six months of decline. After a tough period, S&P Global’s purchasing managers index score rose 0.5 points to 50.2.
Conversations with supply chain vendors and contractors raise concerns about this growth’s sustainability. The diminishing quality of customer service is a common complaint.
We hear from more stakeholders that they can predict service disruptions. I worry because construction won’t grow without good customer service. Businesses must maintain healthy relationships to grow. We must change this.
Dropping customer service quality
Several years of tough business have contributed to this industry-wide customer service decrease. Construction companies had major challenges during the epidemic, energy crisis, and recession. Easy to appreciate.
However, such circumstances can lead to falling too far behind in other areas. That can lead to long-term customer service issues. Compared to other industries, construction’s Net Promoter Scores show this.
Financial services, technology, and manufacturing have NPS exceeding 60. These scores indicate some client satisfaction in particular industries. Construction is 37, down 23 points from 2023.
These industries have faced similar strains as construction in recent years. How have they kept customers happy and why has construction lagged?
The industry is poised for a digital revolution.
I believe technology has caused the stark contrast between construction and other businesses. Banking, with an NPS of 73, uses modern customer experience technologies. However, YardLink found that 65% of construction companies employ outmoded procurement methods.
Our research found that 25% of procurement managers reported receiving unpleasant or poor treatment from industry suppliers. Another 30% were affected by broken or unsanitary equipment. These inefficient customer service methods lower quality.
Over 25% of our survey respondents reported service delays, which affected their experience. A third said a lack of digital tools and innovation was their main concern.
The industry is causing a problem that will worsen unless we act. This growing moment should be a turning point. Industry is poised for a digital revolution.
Starting a bigger innovation movement
Construction firms can adopt CRM and customer support tools like HubSpot or Zendesk, used in other industries. They will have consolidated customer relationship platforms. Many communication processes will be automated and project stakeholders will collaborate better.
These platforms can also help customer connections by creating single sources of truth. Digital client touchpoint data—project progress monitoring, communication channels, questions, and service requests—can be harmonised. This streamlines crucial information access, improving accuracy and customer service.
This requires bold thinking. Construction has become so entrenched that many can’t envisage it otherwise. We must imagine an alternative future for our sector to discover a better way.
Construction can become like Deliveroo or Amazon, where clients can order with confidence and convenience. Communication, tracking, and transparent issue resolution are available.
As in banking and other industries, technology may improve construction client experiences. Construction firms can improve customer service by providing centralised sources of truth via digital platforms.
Now, the industry must be bold and conceive a new model to succeed. Digital change is essential. Through it, we can all grow in a changing corporate environment.
UK Building Plastic Trash Grows 15 Times Faster than EU
Original Source: UK construction industry’s plastic waste growing 15 times faster than EU
New data shows that the UK building industry is soon to become a major plastic polluter.
The Copper Sustainability Partnership (CuSP) found a stunning increase in UK construction industry plastic waste using European Commission statistics.
The building and construction business, the second-largest end-user of plastics, has been disregarded while the packaging sector has been the main source of plastic pollution.
Oliver Lawton, Co-founder of CuSP and Managing Director of Lawton Tubes, said: “The research confirms the shift we have seen anecdotally in recent years, with suppliers and manufacturers drawn to cheap plastic materials that are unsuitable.
Contrary to plastic producers’ assurances about their products’ lifetime, construction polymers typically perform poorly compared to traditional constructional materials, resulting in breakages and failures that offset their immediate cost savings.
Most plastic garbage from a building is transferred to a landfill, exported, or burnt. Low recycling rates require new plastic products, creating a linear cycle of manufacturing, usage, and trash.
A substantial spike in UK construction plastic trash
On average, plastic garbage surged 210% every two years between 2004 and 2018.
This increase in construction-related plastic trash is 15 times faster than in other European countries, where it averaged 14%.
Plastic trash rise averaged 4% per two years across all UK industries, highlighting the construction sector’s disproportionate impact.
Low recycling rates worsen it.
Construction plastic recycling is shockingly low. Europe recycles barely 3% of post-consumer polyvinyl chloride (PVC), the most common plastic.
Plastic composites like multilayer composite pipe (MLCP) are rarely recycled since separating their components is difficult.
In contrast, construction metals like steel, copper, and aluminium recycle over 70%, illustrating the industry’s material sustainability gap.
CuSP co-founder Andrew Surtees said: “In the plumbing sector, manufacturers have pushed newer products like MLCP, a composite pipe that cannot be recycled, as a sustainable option for installers and homeowners when the opposite is true.
Most construction polymers are marketed as recyclable, however only classic structures with a long history of recovery and recycling will be created with recycled material and recycled.
“Phasing out plastics in favour of fully recyclable materials with proven sustainability credentials remains one of the biggest opportunities for sustainable growth in the sector,” as the UK construction industry falls further behind in its net zero promises.
The UK construction industry needs to adopt more sustainable methods due to the rapid increase in plastic waste and low recycling rates for PVC and MLCP.
As plastic pollution awareness grows, the construction sector must prioritise recyclable materials and invest in creative waste management solutions.
Thus, it can lessen its environmental impact and lead the UK towards a more sustainable future.
Reappointed Mace for Public Sector Construction Strategy
Original Source: Mace reappointed for public sector construction framework
Mace will lead cost, project, and program management for Southern Construction Framework (SCF)’s latest consultancy frameworks.
Any southern England public sector entity can hire Mace for any project, property, and asset consultant services through SCF.
From project start to finish, services include planning, urban design and master planning, development consultancy assistance, strategic advisory services, multi-disciplinary design, and decarbonation and sustainability advice.
The structure also includes Corstorphine & Wright architects. Multi-disciplinary project delivery commissions can be placed with both suppliers.
SCF operations lead for south-east and London Adam Sanford FCIOB said: “We will provide public sector bodies with great value. The SCF Consult team can help public sector groups in health, education, leisure, and local government manage policy review with the new parliament.
“Our teams have delivered fantastic work through the SCF frameworks, ranging from theatres, research and police facilities, schools and hospitals that have helped communities thrive,” said Daniel Easthope, managing director for property UK and Europe at Mace Consult.
We are thrilled to be reappointed to SCF Consult and look forward to working with Corstorphine & Wright to improve regional delivery.”
Construction Margins Rise at Balfour Beatty in UK
Original Source: UK construction margins edge-up at Balfour Beatty
After coming in at 2% in the first half of last year, Balfour Beatty’s UK Construction division saw an improvement to 2.3% in underlying profit margins.
The division’s revenue fell little to £1.46 billion from £1.5 billion, while the profit from underlying operations increased to £34 million from £30 million.
As the UK Construction order book stayed constant at £6.1bn, Balfour attributed the decrease in revenues to decreased volumes from the nuclear new construction project at Hinkley Point C.
As a whole, the group’s pre-tax profits increased to £98 million from £97 million in the six months ending June 28, 2024, on the back of a rise in turnover to £4.7 billion from £4.5 billion.
The earnings-based businesses of the Balfour Beatty Group have maintained their growth trajectory in the first half of 2024, according to Leo Quinn, Chief Executive Officer of the Balfour Beatty Group. This has increased the Group’s profitability and cash generation, and the businesses are making excellent progress in securing the work that will lead to even more profitable growth in 2025 and beyond.
The new government’s reaffirmation of commitments to vital national infrastructure bodes well for the Group’s selected growth markets, where our expertise is in the delivery of complicated infrastructure projects. This is especially true in the United Kingdom. Balfour Beatty’s potential in these areas gives the Board hope that the Group can keep providing substantial and appealing returns to shareholders in the years to come.
Summary of today’s construction news
Overall, we are pleased to report that, after six months of decrease, the construction sector experienced growth in the second quarter of 2024. Purchasing managers’ index scores for S&P Global improved by half a point, reaching 50.2, following a challenging period. In the meanwhile, according to data provided by the European Commission, the Copper Sustainability Partnership (CuSP) discovered a startling surge in plastic waste from the UK construction industry. Additionally, through SCF, any public sector institution in southern England can employ Mace for project, property, and asset consultancy services. On the other hand, the Group’s chosen growth markets should be optimistic in light of the new administration’s pledge to invest in critical national infrastructure. We are experts in completing complex infrastructure projects. The UK is a prime example of this. Given Balfour Beatty’s capabilities in these domains, the Board is optimistic that the Group will be able to continue delivering attractive and substantial returns to shareholders going forward.
