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OCTOBER 2015 PRO INSTALLER
PRO BUSINESS
www.proinstaller.co.uk
Construction starts
to spring back
The construction industry is starting to move out of its recent stupor,
according to figures released by industry analysts Glenigan.
The September Glenigan Index shows that
private sector construction starts have
returned to growth,
though the impact of
election delays still
hangs over the public
sector starts.
Overall the underlying
value of construction starts
was 8% lower during the
three months to August than
a year earlier, but this rate
has improved from a 20%
decline in July. Taking the
month of August alone saw
starts up strongly from a
year ago.
However inactivity across
the public sector is still
weighing on construction
starts, and non-residential
starts as a whole were down
9% on a year earlier. The
value of new education,
health and other community and amenity schemes
starting was well down on a
year earlier during the three
months to August.
Commenting on this
month’s figures, Allan Wilén,
Glenigan’s Economics Director, said: “The uncertain and
hard to call election continued to cast a shadow over
the construction industry for
much of the summer.
“Indeed a scarcity of public sector projects is continuing to weighing on new
activity, leaving non-residential starts 9% down on a
year earlier during the three
months to August.
“However the latest
Glenigan starts data shows
the commercial and private
housing sectors coming
back to life, and we expect
a similarly strong September
to drag starts overall back
into growth for the third
quarter.
“Private residential project
starts also grew at a healthy
pace, up 11% on a year
earlier. Although this growth
was also offset by public
sector weakness as the
downward trend in social
housing starts has continued
pulling Glenigan’s residential growth index down to
-2%.”
Four English regions experienced growth in starts during the last three months.
The East of England and
East Midlands have been
the brightest parts of the
UK since the beginning of
2015, and growth in private
housing activity has helped
push starts upwards in both
these regions. The East Midlands was also once again a
particular beneficiary of industrial sector expansion.
In contrast the West Midlands has been one of the
worst performing parts of
the UK over the last year,
but the latest figures have
brought rare growth, with
starts up 7% compared to a
year ago. The North East of
England also saw starts rise
against a year ago.
However with starts
overall still contracting,
every other part of the UK
saw further declines. These
were starkest in Scotland,
Wales and Yorkshire and
the Humber, each of which
saw starts decline by 25%
or more compared to a year
ago.
A FAMILY FEELING
National Plastics has seen
astonishing growth in the
past five years, adding £9
million to its turnover by
extending its product range,
opening new sites and making acquisitions. We talked
to the managers at six of
the most recently opened
National Plastics stores
to find out what it’s like to
be part of the UK’s largest
independent trade counter
network.
The Worthing, Chichester and
Horsham stores were acquired
from the small regional chain
of Churchley Builders Plastics.
It is National Plastics’ policy to
keep staff in place following an
acquisition to maintain continuity
and customer relationships, so
the managers of the three stores
have continued in their roles and
all report similar experiences of
being part of a national chain.
Mike Long, manager at the
Worthing store, says: “It’s great
to have the structure of a bigger
chain and our customers really
appreciate the wider range of
stock, the better availability and
the more competitive pricing.
We’ve enjoyed a greater level of
investment than previously too.
The company is running a £6000
local advertising campaign this
month, which will really help
raise our profile.”
Paul Legrange, manager at the
Horsham branch, agrees, saying:
“National Plastics’ buying power
has made a big difference. Our
customers comment that we’re
much cheaper now and they appreciate us carrying a wider range
of stock.”
Rodney Stinchcombe, manager
at the Chichester store added:
“National Plastics is an ambitious chain and it shows in their
approach.”
It’s a similar story for Sharon
Thomas, manager of the Wednesbury National Plastics, which
used to be PAL Supercentre. “We
went from being a single store to
being part of much bigger chain,”
she says. “We’ve got much better
availability as a result.”
Over at the Worcester store
manager Jon Wells echoes the advantages of being part of a bigger
network. “The better availability
than before is a real advantage.
We’ve also seen investment made
which has made the place look a
lot smarter.”
While Mike, Paul, Rodney, Sharon and Paul all appreciate seeing
their stores become part of a
bigger chain, for Tony Hart, store
manager of the new Christchurch
store, it’s the relative smallness of
the chain that appeals. He came
to National Plastics from a much
larger company and he says he
really notices the difference.
He said: “You’re a name here,
not a number, which means that
everyone is accountable. It’s
almost a family feeling and it
makes it a really good place to
work.”
National Plastics intends to grow
its network of stores to 50 by the
end of 2017.
www.nationalplastics.co.uk