Construction industry needs confidence and certainty

Construction Products Association chairman says 2013 might reflect the ‘darkest hour before dawn’

SPEAKING to an audience of 500 senior industry leaders and government officials at the Construction Products Association’s Annual Lunch, chairman Geoff Cooper shared his optimism for market growth from 2014 but urged policymakers to provide greater confidence and certainty to business by addressing a number of key challenges facing the sector.

Following economic forecasts by the Construction Products Association, Mr Cooper, who is also chief executive of Travis Perkins plc, said he was encouraged by indications of growth arising in 2014 and beyond, and that a challenging period through 2013 might finally reflect the ‘darkest hour before dawn’.

However, he said that for this to occur, it was vital that government announcements feed through into real activity on the ground and that the private sector finds confidence in a gradually improving economy.

‘Confidence in the future and certainty around government policies, plans and regulations will drive the decision making of the business community. We look to government to address key challenges such as: energy supply and security, access to finance, taxation, quality of infrastructure, education and skills, and planning regulations,’ he said.

Mr Cooper noted the recent successes of the Government and industry working together to create benefits, particularly around reductions in the corporation tax and elimination of the energy levy affecting the cement, ceramics, steel and glass sectors, helping to give those firms a level playing field with their competitors on the continent.

He also stated that the development of an Industrial Strategy for Construction was an opportunity to define the industry’s role in delivering a world-class built environment, and to:

• Address the needs for a diverse, skilled and qualified workforce;
• Re-double efforts towards achieving a ‘Zero Harm’ culture;
• Achieve greater sustainability performance;
• Promote a smarter and more productive UK supply chain which can supply the construction needs for all other UK industries;
• Create a fair and effective payments charter; and
• Think of ways of making the construction industry more collaborative while recognizing its fragmented and competitive nature, and the strengths already inherent in it.

Mr Cooper closed his speech with a reminder to the audience of the value of construction product manufacturing: ‘Every year the construction products industry produces £1.70 for the UK economy for every £1 invested,’ he said.

‘Our sector is directly providing jobs to more than 300,000 people across more than 20,000 companies, and indirectly employing millions more. We’re keen to promote the positive impact this sector has as a driver of economic recovery for both construction and the wider UK economy.’