Pro Installer October 2015 - Issue 31 | Page 52

52 OCTOBER 2015 PRO INSTALLER PRO BUSINESS www.proinstaller.co.uk Builders’ legs worth £1.1 million How British workers measure up to Taylor Swift style insurance valuations Growth for construction despite woes Construction output is forecast to increase by 13.2% by 2017 and private house building is expected to be a key driver of this growth, according to the latest forecasts from the Construction Products Association. A sharp fall in public housing, however, is expected to hinder short-term growth whilst significant investment in building a skilled workforce will be needed to support construction in the medium-term. Key highlights from the forecasts include: • Total construction output is forecast to rise 4.9% in 2015, 4.2% in 2016 and 3.5% in 2017 • Private house building is anticipated to rise 9.0% in 2015, 5.5% in 2016 and 3.5% in 2017 • Public house building is forecast to fall 10.0% in 2015, 5.0% in 2016 and remain flat in 2017 • Infrastructure output is forecast to rise 10.3% in 2015, 10.8% in 2016 and 10.4% in 2017 Dr Noble Francis, Economics Director, commented: “Prospects for the construction industry are very bright. Construction output is forecast to increase 4.9% in 2015 – almost double the rate of growth for the UK economy as a whole – and 21.7% overall by 2019. This growth will mainly be driven by an increase in work across the private housing and infrastructure sectors. “Private house building is forecast to rise by 9.0% in 2015 and 5.5% in 2016 as it benefits from a strong property market supported by rising real wages, increased mortgage availability and government policies such as Help to Buy. However, public house building activity is expected to fall sharply – 10% in 2015 and 5.0% in 2016 – due to the negative impact of cuts to social rents and the extension of Right to Buy on housing association funding. Dr Francis continued: “Infrastructure is also forecast to be one of the key drivers of construction growth over the next five years. The government has a National Infrastructure Plan in place with a pipeline of projects across the UK worth £411 billion. As a consequence, we forecast that infrastructure output will experience double-digit growth each year to the end of our forecast horizon in 2019. “Our forecast growth of 21.7% by 2019 for construction has raised a key risk regarding the lack of skilled labour. Employment in the UK construction industry is now 390,000 lower than at its 2008 peak. So far, the lack of skilled labour has primarily affected the house building sector. In the short-term, it is already putting upward pressure on costs. In the medium-term, the forecast growth will not be possible without significant investment in skills.” www.constructionproducts.org.uk Taylor Swift might have insured her legs for £26 million ($40 million) but British workers also put high price tags on their body parts. The average worker from Yorkshire and the Humber values their legs at £818,396 which is 8% lower than the UK average of £891,408. The average builder thinks their legs would be worth £1,185,000 for being crucial tools of their trade. The research, conducted by family focused insurance brand There®, asked 2,000 professionals across 20 different industries to put an insurance value on different body parts to highlight their impact on earning potential. Engineers top the tables with an insurance value on their eyes of £3.4 million, followed by plumbers and electricians at £3.1 million and telecoms workers at £2.6 million. Plumbers and electricians also put one of the highest price tags on their hands at £2.2 million, with their index finger alone being worth £1,196,107 in compensation. Philippa McLaglen, Marketing Manager from There® explains: “Taylor Swift insuring her legs isn’t as crazy as it sounds; they’re part of the ‘Taylor Swift ’ brand and so affect her earning power. Similarly damage to a builder’s leg or an engineer’s eye would have a big impact on their earning potential. Being fit and healthy is crucial to an individual’s ability to do their job which is why, despite so many other financial pressures, one in four in our study has considered insuring themselves against being unable to work due to injury. With financial protection, anything is better than nothing if you get injured and can’t do your job.” The research also showed a difference between self-employed and employed workers. Self-employed people valued their bodies even more highly. This is reflected in the fact the self-employed are more likely to think insurance against injury is a sensible precaution (57% vs. 45%) and that 64% of them feel more pressure to take care of their physical well-being because they are self-employed. Philippa McLaglen, Marketing Manager of There® continues: “The self-employed are especially at risk and feel the pinch more than those who have the safety net of an employer that provides sick pay.” Source: The research was conducted by OnePoll on behalf of There® surveying 2,000 UK workers across 20 industries. Carried out online August 2015