Steelwork contractors quash industry crisis fears

Aaron Morby 10 years ago
Share

Steelwork contractors have reassured main contractors that supplies of structural steel will not be impacted by the present UK production crisis.

It emerged today that domestic column and beam production in the UK is actually being stepped up at Scunthorpe despite plans to axe thousands of jobs across the country connected with steel plate production.

The British Constructional Steelwork Association said that the industry is gearing up for a year of growth with demand forecast to rise 5.4% this year and by 2.3% in 2016.

But fabricators are concerned that the political heat being turned up by trade body UK Steel to pressurise the Government into launching an industry support package could have an unwanted knock-on effect unsettling construction clients and designers.

One steelwork contractor told the Enquirer: “There is a risk that understandable political lobbying around steel making will be equated to problems with construction steelwork up the supply chain. Nothing could be further from the case.

“Domestic supply of structural steel has been unaffected by closures, and UK production nowadays only accounts for just over a third of total steelwork erected.”

Constructional steelwork contractors say there is plenty of steelwork being supplied by stockholders and importers from Europe so the industry will avoid supply bottlenecks even with growth forecast to take the industry past 1m tonnes again by 2019.

The softening of global steel prices has also helped to keep steel frame construction 5% cheaper than concrete in office building, according to cost consultant Gardiner & Theobald.

Another steelwork boss said: “The big change in recent years is main contractors are now booking capacity with us through to the middle of next year, just as a matter of securing quality in a busy market.

“The industry does face a major problem, but that’s from major foreign contractors, with balance sheets to match, securing big contracts on projects like HS2 and importing their supply chains with them.”

He said: “If that is allowed to happen then it would cost jobs in the UK steelwork industry.”

Latest news

Contractor hunt begins for £5.7bn Thames Water reservoir

Main works tender issued for Oxfordshire White Horse Reservoir job
6 hours ago

Worker dies on Winvic warehouse site

Fatal accident on £15m Kent job
6 hours ago

£74m refit of landmark Bristol office to go-ahead

Summer start for low-carbon overhaul of Grade II Canons Wharf
7 hours ago

Birmingham City Hospital site set for 750-home rebuild

Homes England and Vistry seal deal to kick-off demolition and rebuild
7 hours ago

Barhale promotes trio in senior leadership shake-up

Contractor creates new executive director role in Southern restructure
8 hours ago

£1.5bn funding to tackle cultural buildings repair backlog

Museums, libraries and arts venues set for major repair works
8 hours ago

JJ Rhatigan lands £78m City office conversion

Main works will start on Barbican site following Gateway 2 approval
20 hours ago

Muse scoops 1,350-home Barrow docks regeneration

Developer picked for Marina Village waterfront plan
21 hours ago

£15bn Warm Homes Plan maps out mass retrofit drive

Government pledges insulation, solar and heat pumps for up to five million homes
1 day ago

FK Facades and Construction placed into administration

40 jobs axed as Man City stadium and Elephant & Castle facade jobs stall
1 day ago

Galliford Try lifts profit outlook for first half

Firm upgrades full-year profit outlook backed by £211m cash pile and a £4.1bn order book
1 day ago

Chinese mega-embassy plan in London approved

Royal Mint Court scheme approved opposite the Tower of London
2 days ago

Winvic targets data centres market

Contractor looks to expand into new sector
1 day ago

South West civils firm Roadform files administration notice

£31m turnover contractor lodges court notice
1 day ago

Plans in for Derby Market Place regeneration

VINCI and ION push forward flagship city revival project
2 days ago

Kier returns to monthly net cash for first time in over a decade

Balance sheet turnaround comes as order book hits record £11.6bn
2 days ago

Strabag UK snaps up failed HV transmission contractor

Austrian giant makes move on UK energy market after GTDS pre-pack deal
2 days ago

Mace name to disappear from UK contracting

Construct arm to be renamed as consultancy takes Mace badge
3 days ago

Motorway closed after road repair kit breaks down

Traffic chaos on M62 as broken-down plant shuts junction near Huddersfield
2 days ago

Align closes out civils on longest HS2 tunnel

10-mile Chiltern Tunnel moves to fit-out after near five-year long civils job
2 days ago

Legal expert rises to head Balfour Beatty regional civils

Kay Slade steps up after reshaping North West operations
3 days ago

Tilbury Douglas regional chief joins Caddick to head civils arm

Ellenor is tasked with growing third-party work and widen the firm's regional footprint.
3 days ago

Six scoop £2bn Southern Housing upkeep deal

Big name firms miss out on 10-20 year framework deal
3 days ago

Hercules delays annual results announcement

Auditors still working on labour supplier's numbers after string of acquisitions
3 days ago

Benniman to finish logistics park at former MG Rover plant

13-unit industrial package marks final chapter of Longbridge West transformation
3 days ago

Flannery to sell old fleet after £107m new kit investment

Huge auction of machines in March after massive investment by plant hire giant
3 days ago

Liverpool mayor sets out £2bn plan to unlock 64,000 homes

300-site pipeline targets stalled urban schemes
3 days ago

Graham lands £37m Leicestershire school rebuild

Castle Rock School overhaul will accommodate more than 1,500 pupils
3 days ago

Caldwell Construction collapses into administration

Insolvency specialist PKF Littlejohn appointed after rescue talks fail
7 days ago

£56bn hospital programme on track but delivery risks remain

NAO warns tight schedules and staff shortages could derail later waves
6 days ago