Steelwork contractors quash industry crisis fears

Aaron Morby 7 years ago

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

Tide gets green light for UK’s tallest modular tower

Volumetric specialist to build 48-storey student skyscraper at Canary Wharf
2 days ago

TopHat cuts losses and aims for profit in three years

Modular specialist investing for future as latest results show £19.4m loss
22 hours ago

Story Contracting names next chief executive

Andy Joy to be promoted to CEO as Jason Butterwork becomes vice chairman
21 hours ago

Stalled £100m North London build-to-rent tower to start

Essential Living commits to start Swiss Cottage scheme six years after planning OK'd
1 day ago

Bidding starts for Pagabo £1bn medium works deal

Extra small project lot added in framework renewal
23 hours ago

Vital funding deal for £50m A38 Midlands upgrade

Work could start early next year on A38 BREP now out to tender
22 hours ago

Graham wins £16m National Railway Museum job

Firm seals pre-construction deal as new museum Central Hall gets planning green light
23 hours ago

Demolition starts on half-built £48m Taylor Wimpey flats

Furious local residents blast house builder over "unbearable" noise
4 days ago

Civils contractor fined £600k after boy dies in drainage pipe

Workers find seven-year-old who suffocated on housing site
4 days ago

Plan for trio of towers at old Yorkshire Post site

Galliford Try advises on construction plan for Leeds student and build to rent towers
4 days ago

Insolvency to rival inflation as project cost threat

Inflationary pressures likely to peak this year before easing in 2023, but supply chain stress is growing.
4 days ago

B+K starts £300m Sheffield West Bar scheme

Funding deal triggers start on major mixed-use scheme
4 days ago

Willmott Dixon bags £44m Passivhaus leisure centre

Private builder prepares to start Staines-upon-Thames complex
4 days ago

Go-ahead for £160m Cambridge mixed-use scheme

Devonshire Gardens will consist of 70 private rental flats and 120,000 sq ft of offices
4 days ago

Construction buyers report first drop in output for 18 months

Civil engineering worst performing sector
5 days ago

Construction and infra margins hit 3.2% at Morgan Sindall

Contractor picking deals carefully as inflation continues to bite
5 days ago

Morrisroe Group revenue tops £200m

Pre-tax profit halves to £2.7m as cost inflation bites
5 days ago

Kier to start new £400m ‘smart’ prison this autumn

At least 50 ex-offenders will help build new HMP Full Sutton
5 days ago

Former P&R Morson staff to launch legal claim

Former staff of failed Midlands M&E specialist consult with lawyers following administration
5 days ago

Eight firms win big north west MMC housing deal

JV North consortium plans to build 4,000 homes by 2026
5 days ago

Balfour to replace Ringway Jacobs on £176m Bucks highways deal

Balfour to start new eight-year maintenance contract in 2023
5 days ago

O’Keefe suppliers owed £13m despite Byrne rescue

Unsecured creditors to get less than 2p in the pound for their debts
7 days ago

Taylor Wimpey staff to get £1,000 towards fuel bills

All staff earning below £70,000 will receive a one-off payment
6 days ago

Equans bags Birmingham 300 council homes retrofit pilot

Council homes retrofit trial will test way for ambitious 60,000 homes decarbonisation plan
6 days ago

Van Elle returns to profit after £125m record revenue

Piling contractor restores dividend after work rebound delivers £3.6m profit
6 days ago

Race for places on £2bn housing decarbonising deal

South west central procurement body starts race for places
6 days ago

Kier signs off £36m Liverpool school job

Work to start on new Deyes High School in Maghull
6 days ago

WSP buys property and infra businesses from Capita

Consultant pays £60m for GL Hearn and Capita Real Estate and Infrastructure
7 days ago

Leeds unitised facade contractor crashes

Jobs axed as Glasshus Facades falls into administration
7 days ago

Morgan Sindall wins £61m Abergavenny super school job

Existing King Henry VIII High School will be replaced by a 1,900 place all-through school
7 days ago

Contractor services