Severfield bags record orders after strong first half

The country’s leading steelwork contractor is boasting a record UK and Europe order book of £393m after a stronger than expected first half of trading.

Alan Dunsmore, Severdfield chief executive officer, said despite material price and labour supply challenges the order book gave the firm good visibility through to the full year 2023.

The growth in the order book was driven by the new stadium for Everton FC, two large and various smaller distribution facilities in the UK, a waste-to-energy facility, new HS2 bridge packages and other bridge awards reflecting investment in infrastructure by Highways England and Network Rail.

He said tendering activity in UK and Europe remained very encouraging and with the firm’s pipeline of opportunities spanning a wide range of sectors demonstrating the benefits of both the strategic acquisitions and the organic investments we have made in recent years.

Pre-tax profit was up 20% to £7.9m from revenue up 5% to £195.9m in first half trading.

Dunsmore said: “We are making strong progress in our Indian business and are well-placed to capitalise on this exciting market opportunity as the economy recovers from the pandemic and construction continues to transition from concrete to steel.

“We continue to be mindful of industry-wide supply chain pressures for both us and our clients which are, in some instances, impacting material costs and availability.

“This includes certain steel products, in part reflecting a price of steel which, although stabilising recently, has nearly doubled over the past year.

“While not immune to this, the impact has been managed without any significant disruption to operations, and the group is managing these pressures through contractual protection, operating efficiencies and by forward purchasing as appropriate, leveraging the roup’s scale and supply chain and subcontract management strengths.”

 

 

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1435

Plans in for Manchester Red Bank enabling works

Manchester City Council has submitted fresh plans for enabling works and infrastructure to create a 5,500 home neighbourhood on old railway sidings in the Red Bank area of the city.

The Government has granted nearly £52m from the Housing Infrastructure Fund to overcome infrastructure constraints needed to bring about delivery of new homes and green spaces, including the first phase of a new City River Park within the Red Bank neighbourhood – part of the wider Victoria North programme of development.

Red Bank is one of seven neighbourhoods that make up the Victoria North regeneration area – one of the biggest renewal projects the city has ever undertaken.

The planed Red Bank neighborhood plan will transform the disused 25-acre former Red Bank carriage sidings which has been been blighted by fly-tipping and anti-social behaviour.

Preparing the site for development will kick-start a wider programme of investment to create a new green neighbourhood.

Further planning applications will be submitted next year seeking permission for the main infrastructure works, improvements to St Catherine’s Wood and the first elements of the City River Park.

These will be followed by applications for residential development.

Victoria North is a joint venture programme between Manchester City Council and developer Far East Consortium (FEC).

Over the next 15 to 20 years, the Victoria North project will deliver more than 15,000 new homes (at least 20% of which will be affordable housing), with each neighbourhood connected by high quality green spaces and 46-hectare City River Park, which will open up and celebrate the Irk River Valley for the first time in decades.

GMI names head for new North East business

GMI Construction Group has lured Gary Oates back to the business to take up the newly-created role of North East operations director.

Oates who left GMI Construction just over five years ago to join specialist industrial contractor TSL Projects where he became project director.

He previously spent more than 16 years with GMI, starting as a site manager before progressing to contracts manager.

He returns to lead the north east growth strategy from a new Teesside office. He is also joined by new North East commercial manager Paul Raine, who joins from Leeds-based Torsion Group.


Gary Oates (left) takes north east operation director role supported by Paul Raine, new commercial manager.

Lee Powell, divisional managing director, said: “Both these appointments underline our commitment to the North East and we are resolved to play a greater role in creating jobs and generating economic prosperity.

“Gary is highly experienced and committed and, as such, is the right person to lead our North East division and grow this business in a region that is already enjoying the benefits of the levelling up agenda. We’re also delighted to welcome Paul to the team, who brings with him extensive commercial knowledge.

“GMI Construction Group has a long association with the North East and has been involved in several high-profile developments, allowing it to build a strong relationship with local suppliers and sub-contractors.”

 

This month, GMI will start work on a £30m contract to construct 362,600 sq. ft of commercial units as part of the first phase of the Hillthorn Business Park development at Washington, near Sunderland.

Appointed lead contractor by client Legal & General, GMI is due to complete the seven units, ranging in size from 21,000 sq. ft to 83,000 sq. ft, by September 2022.

It is part of a £60m two-phased development designed to stimulate economic growth by supporting the needs of industrial, advanced manufacturing, storage, and distribution businesses in the area.

 

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1422

Road firms readied for £300m Wiltshire highways upkeep

Wiltshire Council has put firms on alert for a fresh bid contest to deliver up to £300m worth of highways maintenance over the next five to ten years.

Present delivery contractor Ringways was drafted in to maintain the highways network for five years after a bust-up between Balfour Beatty Living and the council in 2016.

Ahead of starting the bid contest in April next year, Wiltshire Council is planning a suppliers engagement day at the end of this month to discuss options for re-tendering of the Term Highways Maintenance Service contract to start on 1st April 2023.

Current average annual spend through the contract is £15m, with potential for this to increase with additional capital funding.

The contract will be for the provision of a highways maintenance service to undertake a programme of maintenance and improvements of the highways and roads network or other council land in Wiltshire and associated infrastructure.

The successful contractor will be expected to work alongside the authority to help it achieve its commitment to becoming carbon natural by 2030.

Supplier engagement day details

Bidders day will start at 10.00 on the 29 November 2021 and will take place (via Webinar on Teams)

This contract will be for 5 years with a possible further 5 years extension after year 4.

Suppliers interested in attending should email [email protected]  for further event details.

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1419

Product testing mess to intensify site materials shortages

Construction work on more than 150,000 homes could be delayed unless the government wakes-up to a looming crisis in construction product testing.

The industry is due to switch to UK Conformity Assessed (CA Mark) on January 1 2023 when the old European CE Mark for product compliance is phased out.

Construction products will have to be tested in UK centres – but a lack of facilities is sparking a capacity crisis.

The Construction Leadership Council (CLC) said the lack of testing capability is a particular problem in some specialist areas including radiators, glass, passive fire protection, glues and sealants.

In a letter to ministers it warned: “If the current situation prevails, these products will not be available on the UK market after  the January 2023 deadline.

“The inability to certify radiators in the UK, for instance, could delay the construction of over 150,000 homes in a single year and will also delay the switch to low carbon heating.

“The consequences are clearly damaging not only tothe UK construction sector but also to  the Government’s ambitions around housebuilding, infrastructure, building safety and net zero in the built environment.”

The government has already pushed the testing transition back to 2023 but construction leaders want to see more help for the industry.

The CLC is calling for urgent investment in UK testing capability, some test to be allowed abroad and flexibility around the planned regulations.

It said: “Continuing risks associated with the implementation of the UKCA Mark on the UK supply chain already disrupted by the pandemic, product and raw material shortages, increased energy costs and skills shortages are of great concern to the Construction Leadership Council and our numerous industry partners. “There are steps that can be taken to mitigate these risks, but action is needed now. The extension of the deadline to January 2023 is not sufficient to prevent significant disruption.”

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1412

Private investor snaps up modular schools builder

Private investor HLD Group has bought Wakefield-based modular building specialist the Thurston Group.

The established £37m revenue business specialises in modular construction for the education, commercial and healthcare sectors and delivered a £2.7m profit in 2020.

Founded in 1970, Thurston employs over 250 people across three sites in the east of England.

The acquisition is the largest deal in HLD Group’s 10-year history and follows recent acquisitions of the Clugston distribution services arm and steel fabrication company SP Fabrication.

Demis Ohandjanian, CEO, HLD Group said: “This is a very exciting opportunity that will benefit both entities and result in new growth opportunities for the already profitable Thurston Group. 

“We’re also delighted to have the opportunity to work with existing company management, who will remain within the business.  

“Our intention is to ensure the continuation of Thurston Group’s strong organic growth, while introducing new revenue opportunities that will result in a substantial upsizing of the business over the next 3-5 years. ”

The acquisition was facilitated by Independent Growth Finance, through a £16m asset-based lending facility that formed part of the total acquisition cost. 

 

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1407

Northern routes and HS2 scaled back in latest Tory rail plan

The government has unveiled the “biggest ever public investment in Britain’s rail network” with £96bn pledged to deliver faster journeys for people across the North and the Midlands.

But a lot of the programme is money previously committed and savings from scrapping HS2’s eastern leg to Leeds. An £18bn cheaper version of the Northern Powerhouse Rail plan has also been adopted.

The original Hs2 and Northern Powerhouse Rail plans were costed at £185m

The Integrated Rail Plan (IRP) will see construction work including:

Three-new-high-speed-lines-covering-110-miles

Complete HS2 from Crewe to Manchester, with new stations at Manchester Airport and Manchester Piccadillya new high-speed line between Birmingham and East Midlands Parkway. Trains will continue to central Nottingham, Derby and Sheffield on an upgraded and electrified Midland Main Linedelivering Northern Powerhouse Rail through a new high-speed line between Warrington, Manchester and Marsden in Yorkshire as in the first of the options originally put forward in 2019.a study to look at the best way to take HS2 trains to Leeds, including capacity at Leeds Station.

The upgrading or electrification of 3 existing lines:

the complete electrification of the Midland Main Line from London to Nottingham, Derby and Sheffield.a programme of rapid upgrades to the East Coast Main Line to the East Midlands, Yorkshire and the North East. Journey times will be up to 25 minutes faster than nowfull electrification and upgrade of the Transpennine Main Line between Manchester, Leeds and York as part of delivering the first phase of NPR, installing full digital signalling, with longer sections of three- and four-tracking to allow fast trains to overtake stopping services, and increase through passenger services by 20%. An additional £625 million in new funding has been confirmed today to progress the Transpennine Route Upgradein total, electrification of more than 180 miles of route, meaning that 75% of the country’s main lines will be electric, to meet the ambition of removing all diesel-only trains from the network by 2040, as part of our commitment to reach Net Zero by 2050.

The freeing up of money to improve local services and integrate them properly with HS2 and NPR

a new mass transit system for Leeds and West Yorkshire, righting the wrong that Leeds is the largest city in Western Europe without one. There will be £200 million of immediate funding to plan the project and start building it, and we commit to supporting West Yorkshire Combined Authority over the long term to ensure that this time, it gets doneseparately, we could halve journey times between Bradford and Leeds, to be as low as 12 minutesgreater connectivity benefits between the West and East Midlands in comparison to previous plan and progressing work on options to complete Midlands Rail Hub, dramatically increasing local services through central Birmingham and across the Midlands and connecting them better to HS2investment to deliver a programme of fares, ticketing and retail reform including the roll out of contactless pay-as-you-go ticketing at commuter stations in the Midlands and North, ending ticket queues and tackling confusion about fares by automatically ensuring that you are charged the best price. The government will also drive towards rolling out digital ticketing across the whole network

Prime Minister Boris Johnson said: “My mission is to level up opportunity across our country, which is why we’re making train journeys faster and more reliable through the biggest ever public investment in our rail network.


“Levelling up has to be for everyone, not just the biggest cities. That’s why we will transform transport links between our biggest cities and smaller towns, ensuring we improve both long-distance and vital local services and enabling people to move more freely across the country wherever they are.”

Construction leaders have given the revised plans a lukewarm response.

Director of Policy at the Institution of Civil Engineers, Chris Richards said: “Today’s decision on HS2 and Northern Powerhouse Rail will be a blow for many. Decisions are always subject to political review, but it has taken us 12 years to get nowhere – we have to make the next 12 about progress.

“The detailed background work for the schemes mentioned today has already been donewe can therefore shift right away to planning and ensuring we are maximising public benefit We expect to see a delivery plan in the next 12 months, otherwise today’s announcement is a further step on the journey to nowhere.”

Andy Bell, director at Ramboll in the UK, and chair of ACE’s transport group, said: “Just 18 months ago the Prime Minister told Parliament in a statement following the Oakervee review, that it ‘does not make any sense’ to build Northern Powerhouse Rail without HS2 and the Government’s strategy was to do both ‘simultaneously’.

“Clearly the pandemic has strained public finances since then, but another change of approach does not help an engineering sector scaling up skills and resources – at a time of global demand for rail expertise – around what appeared to be clear commitments and pledges.”

The government added: “The new plans, using a mixture of new-build high-speed line and upgraded conventional lines, were drawn up after it became clear that the full HS2 and NPR schemes as originally proposed would have cost up to £185 billion and not entered service until the early to mid-2040s.”

Darren Caplan, Chief Executive of the Railway Industry Association (RIA), said: “It is worrying that this scheme has been scaled back. Northern Powerhouse Rail will be essential in connecting up towns and cities in the North of England, alongside delivery of the Transpennine Route Upgrade.

“This project has been promised time and time again since 2014, with millions of pounds spent on its design and shovels ready to go. These plans being torn up will only add yet more costs and delay work.”

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1400

Steelwork specialist Robinson collapsed owing £8.6m

Derby steelwork contractor Robinson Structures collapsed with total debts of £8.6m.

According to the directors’ statement of affairs, trade creditors have been left around £2.5m out of pocket.

Among the preferred creditors Barclays Bank was owed around £1.2m and HM  Revenue and Customs around £1.8m, in unpaid VAT and PAYE.

The family-owned firm fell into administration last week following the removal of its insured credit limits with its key suppliers.

But creditors are hoping that a pre-pack deal that saw fellow Derby steelwork contractor B&K Structures swoop to buy up assets in a pre-pack deal could help to raise the final distribution to creditors.

 

Assets of the third-generation steelwork contractor, which was set up in the 1950s, included its new HQ and workshop.

Following the pre-pack deal, which saved around 68 jobs, a new business B&K Hybrid Solutions will operate from the former Robinson HQ and production plant, giving the new business capacity to manufacture 10,000t of structural steelwork per annum.

The new well-equipped facilities form part of a larger, long-term plan to deliver on the increased demand for steel and timber-steel hybrid schemes within the UK.

 

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1394

Enabling works start for £65m Carlisle Southern Link Road

Morgan Sindall is due to start enabling works next week on its £65m Carlisle Southern Link Road project.

The 8km road project, which is being delivered as a two-stage design and build contract, moves forward with construction of two site compounds at Newby West and near to M6 Junction 42.

In early Spring, construction of essential site access will commence, including access roads to the west of the River Caldew and borehole installation for long-term groundwater monitoring.


Cumbria County Councillor Keith Little, Cabinet Member for Highways and Transport said, “This is an exciting step for the scheme as the link road will vastly improve east to west connectivity as well as unlocking the delivery of St Cuthbert’s Garden Village, a Carlisle City Council scheme, which aims to deliver 10,000 new homes, infrastructure and employment to Carlisle and the wider county.”

Morgan Sindall’s team includes Capita as designer who had undertaken the preliminary design and development of the scheme for Cumbria County prior to joining the Morgan Sindall team. Local contractor Story Construction is also part of the Morgan Sindall team.

The CSLR will connect Junction 42 of the M6 with the A595 and will connect with Carlisle Northern Development route from the A595 to Junction 44 of the M6.

The project is key to the successful delivery of growth projects and initiatives such as the St.Cuthberts Garden Village, a council-led scheme that will deliver 10,000 new homes and employment opportunities within Carlisle.

Works include four new roundabouts, five cycle bridges and four road bridges and a cycle path along the northern side along its full length.

Two of the bridges will cross Network Rail’s West Coast Main Line and Cumbrian Coast Line.

 

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1388

Mace names new industrial and nuclear sector chiefs

Mace has made two key senior appointments to lead business growth in nuclear and industrial markets.

Bryony Martin, previously with Aecom, joins Mace as the director for the UK’s central region and sector lead for industrial and manufacturing while Dave Weatherburn joins from the Nuclear Decommissioning Authority as business director for nuclear.

Martin has a strong track record in both the property and infrastructure sectors which will support Mace’s 2026 business strategy, growing the regional business across Consult sectors.

She will be responsible for leading Mace’s regional growth agenda, working alongside the businesses’ sectors and practice groups, along with being the sector lead for industrial and manufacturing.

Industrial and manufacturing has been identified as a growth sector for the business in the UK and Europe. Martin will build upon Mace’s manufacturing track record, with clients including Siemens, JLR and BMW, with a focus on electrification and the facilities needed to support growth.

With over 30 years of defence and nuclear experience and a background in mechanical engineering, Dave has delivered a number of major projects and programmes across the private and public sector, including within senior roles with the UK government and the International Atomic Energy Agency.

In his role, Weatherburn will work closely with existing Mace clients to build on the businesses’ current nuclear service offering.

With the nuclear team already successfully embedded within Sizewell C, Hinkley Point C, small modular reactor and wider decommissioning programmes, he will play an integral role in driving forward a more sustainable, resilient and connected world, helping further develop the businesses’ position within this important energy arena.

Jason Millett, CEO for Consultancy at Mace, said:“Together, both Bryony and Dave bring a wealth of experience to two fast-growing sectors within the business: industrial and manufacturing and nuclear.

“Their hires represent an exciting time for Mace’s Consult business as we work towards meeting the ambitious targets set out in the 2026 business strategy.”

 

 

Did you miss our previous article…
https://www.thegraduatemag.com/?p=1382