The outlook is positive for construction in 2022. Experts currently project that output will bounce back to pre-pandemic levels.¹ And with the government pledging £12 billion for infrastructure, as well as the £4.8 billion “levelling up” fund, demand for high-quality construction projects looks sure to continue growing.²
But there are still many challenges ahead of us – from finding suitable workers to ensuring our projects are truly sustainable. In this article, we explore five of the key challenges that will define the coming year:
1. The skills gap
As Brexit has reduced the UK’s talent pool and a high level of employee churn, the construction industry faces a serious crisis. According to recent reports, the sector will need 216,800 new workers by 2025 to meet current demand levels.³
In 2022, we will see new initiatives to bring young workers into the industry, including a continuation of the wage increases we’ve seen in 2021.⁴ But solving the problem will likely require more than this, and leaders should focus not just on financial rewards but the actual workplace culture they create onsite.
A shortage of skilled workers is construction specialists’ number one concern for 2022.⁵
2. Greater attention on the work environment
Throughout the pandemic, a new level of attention has been paid to the quality of employee experience. Employees are less willing to work under poor conditions and expect greater support from their employers. A recent report, for example, demanded an industry-wide ‘mental health dashboard’ to support workers in the construction industry.⁶
In 2022, we will see efforts to address this problem continue. This will include a greater investment in employee wellbeing initiatives, as well better on site welfare units to provide much needed support.
More than seven in 10 construction companies do not measure the mental wellbeing of their staff.⁷
3. Reimagining the supply chain
The twin forces of Brexit and COVID-19 have produced price increases in the supply chain, as well as some very well publicised disruptions. Vital materials like timber and bricks have seen rapid price increases across 2021, and experts suggest these problems will continue well into the new year.⁸
Ultimately, as supply chain issues have hindered growth for the industry, companies will have to rethink the way they source vital materials in 2022.
Nearly 8 in 10 construction businesses have absorbed higher input prices in 2021.⁹
4. The innovation gap
Innovation is the key to delivering more effective and efficient projects. But many in the industry still lag behind in this regard, as we explored in our recent research. And this has led to a widening ‘innovation gap’ between companies that use cutting-edge technology – and those that don’t.
2022 will be a tipping point, where businesses that do embrace innovative technology gain an unassailable lead in quality.
In recent years, the number of construction businesses actively innovating has fallen by 11%.¹⁰
5. Sustainable Development Goals
Sustainability has become a major concern for the construction industry in recent years, and there is still a very long way to go in terms of ensuring projects have a positive impact on both communities and the environment.
The United Nations’ 2030 Agenda for Sustainable Development provides a clear blueprint for the changes that are necessary, and the issues it raises will define not just 2022 but the entire future.
As a company that prides itself on providing mobile welfare units and welfare vans that make a positive impact, we believe it’s vital that we take a lead on issues like this and help our industry become more conscious – and more effective – when it comes to sustainability.
So in the coming months, we will launch a long-form content series exploring each of these goals in detail.
2. https://www.grantthornton.co.uk/insights/new-opportunities-amid-uk-construction-skills-shortages/
3. https://www.citb.co.uk/about-citb/news-events-and-blogs/britain-builds-back-construction-will-need-216-800-new-workers-by-2025-to-meet-demand/
4. https://www.constructionnews.co.uk/financial/construction-salaries-rise-more-than-any-other-sector-26-08-2021/
5. https://www.constructionnews.co.uk/skills/skills-shortage-is-top-concern-for-specialists-in-2022-15-12-2021/
6. https://www.newcivilengineer.com/latest/industry-wide-mental-health-dashboard-demanded-13-08-2021/
7. https://www.newcivilengineer.com/latest/industry-wide-mental-health-dashboard-demanded-13-08-2021/
8. https://www.constructionnews.co.uk/supply-chain/materials-shortage-brick-and-timber-supplies-face-uncertainty-in-2022-30-11-2021/
9. https://www.cityam.com/supply-chain-epidemic-leaves-uk-construction-reeling/
10.https://www.kellinggroup.com/construction-and-infrastructure-in-numbers/
Kelling Brings Our Innovative Fleet to Highways UK 2021
Kelling has had a stellar run of trade show appearances in recent months, and we’re excited to add yet another prestigious event to the list – Highways UK.
It is the undisputed highlight on the highway industry’s annual calendar, bringing together countless experts and suppliers for a huge, multi-stream exhibition. This year’s event will be held on Wednesday 3rd and Thursday 4th November, at the NEC Hall in Birmingham.
Both Welfare Hire and Access Hire will be exhibiting
Highways is one the core infrastructure sectors we work with at Kelling, ensuring transient and fast-moving projects have access to the vehicles they need without compromising on quality. So we are bringing both of our key brands to the event.
Welfare Hire will be exhibiting our range of innovative ECO Tower Lights and ECO Mobile Welfare Units – including the brand new EcoXLi. These products offer a variety of benefits for highway projects, optimising sustainable site setup, improving both worksite comfort and environmental impact. And our Tower Lights enable you to work 24/7 with the brightest and greenest solution in the market.
Access Hire will be exhibiting our industry-leading Vehicle Mounted Access Platforms, designed to provide the optimal safety solution for working at heights. For highways projects, reliable service and quality is vital to ensure your project is completed safely, on time and on budget.
We look forward to connecting with key partners in this vital industry and hearing from experts on important topics like sustainability. But most of all, we look forward to demonstrating what our innovative fleet can do for highways projects.
Construction and Infrastructure in Numbers: Three Key Takeaways
We’re excited to announce the launch of our latest piece of thought leadership – a detailed infographic on the current state of the construction and infrastructure sectors.
It is designed to help make sense of the current challenges we all face in these areas, as well as locate a series of actionable insights that will help produce better results. This is based on in-depth research from our team, as well as the knowledge that comes with decades of industry expertise.
While you can see the full graphic here, we thought it would also be useful to highlight some of the key takeaways from our research:
THREE KEY TAKEAWAYS
1. Emphasising wellbeing has real financial benefits
We all know that mental health concerns greatly affect construction and infrastructure workers. So, it is relatively little surprise that 64% of construction workers state that they want their employers to provide more mental health support.
It is easy, however, to underestimate the extent to which such wellbeing and mental health initiatives can impact a project’s bottom line.
As we discovered, projects that emphasise employee experience and wellbeing result in 21% higher profitability. In fact, every £1 spent on wellbeing produces an incredible 500% return.
2. Going green pays
Another well-established priority for construction and infrastructure projects is environmental sustainability. But once again, our research revealed that there is not just the ethical, social and regulatory importance of becoming eco-friendly – there is also a clear business argument to be made for it.
90% of studies, for example, demonstrate that good Environmental, Social and Governance (ESG) scores lower the cost of capital. Not only that: 88% of those studies also show that good ESG practices result in better operational performance.
Ultimately, our research suggests that companies can expect an average internal rate of return of 27-80% on their carbon saving investments – such as using more eco-efficient vehicles.
3. Low productivity still plagues construction
Construction is the world’s single largest industry. However, there are strong indications in our research that projects are still struggling to be as productive and efficient as leaders would like.
Over two-thirds of construction projects run over budget by more than 10%, and larger projects routinely take 20% longer than anticipated. These factors have resulted in productivity in construction growing by less than 1% annually for the last two decades.
To remedy this, projects must look for gains in productivity and efficiency wherever they can find them – including in the service partners and providers they work with. At Kelling Group, we pride ourselves on providing the most modern and innovative fleet of specialist assets, which optimises onsite productivity. Supported with 24 hour delivery nationwide, as well as dedicated service and maintenance for all hires, this results in an extraordinary 99.1% perfect hire rate.
SEE FULL INFOGRAPHIC HERE
Construction & Civil Engineer magazine features Kelling Group
A hire power
The UK’s leading hirer of mobile eco welfare units and vehicle mounted access platforms, to infrastructure sectors, Kelling Group is setting the standard for modern, environmentally-conscious specialist equipment hire. The business prides itself on providing clients with the most modern, innovative, eco-friendly specialist assets in the market. Last year, the group invested c. £20m in fleet with a similar investment anticipated in the next 12 months.
A true innovator in its field, Kelling Group is a specialist equipment hire business built on five key pillars: Quality, Service, Environment, Wellbeing and Value. Backed by dedicated ‘Kelling Guarantees’ for each principle, the Group vows to hire out only market-leading vehicles and equipment, at the most competitive rates, and with premium levels of nationwide customer support. Kelling’s specialist units are designed to maximise smart and effective working, with the Group also offering some of the cleanest and greenest products on the market – many of which include the UK’s first Lithium hybrid power, solar panels and fuel saving systems – with CO₂ reduction rates more than 15 times the industry standard.
Kelling is a strategic investor in core infrastructure sectors, such as rail, highways, power, telecoms, utilities and civil’s projects. The Group has two specialist equipment divisions: Access Hire Nationwide, which specialises in vehicle mounted access platforms, and Welfare Hire Nationwide, focusing on mobile eco welfare units, welfare vans and lighting. As a Group, Kelling and its subsidiaries have invested in some of the sector’s most advanced vehicles and equipment.
“We have the largest and most modern fleet in the UK in our chosen specialist areas of focus,” says Stephen Moore, Group CEO. “Our strategy is to partner with our clients, providing the best a and service for critical infrastructure projects in the UK.”
The Group also aims to become the industry’s most eco-conscious operator coinciding with growing calls for businesses to hit new carbon emission targets, as well as increase their focus on sustainability. As a result, more and more major authorities and organisations, including HS2, Network Rail, and Highways England, see Kelling as a key partner in helping them achieve their environmental and CSR goals.
Andy Grayshon, Commercial Director Welfare Hire, states: “The average age of our assets is two and a half years, and the maximum age is five years. Along with a unique design, our mobile Eco welfare range uses the latest in hybrid power technology and smart water systems, and we tow all our units with our own fleet of low cost, low carbon, modern delivery pick-ups.”
“Our products can make an immediate positive environmental impact,” Grayshon says. “One example of this is the use of Smart XL Water ceramic toilets and services. Traditional welfare units have chemical toilets that are required to be serviced weekly. On top of that, their tank sizes are relatively small – typically around 50 to 80 litres – so you will often be at full capacity very quickly. Our Smart XL Water system, on the other hand, is used as part of a water flushing process like you have at home or in an office, with the tank being up to four times bigger, more hygienic, and longer lasting. This helps to decrease the need for disposal services, and therefore, reduces transport journeys being made to and from the site by around 60 per cent. If you think about that, by using our eco products, you are eliminating hundreds of thousands of tonnes of CO₂ annually.
“A second differentiator is our use of smart hybrid power,” Grayshon adds. “We were actually the first in the market to introduce Lithium hybrid power for our units, allowing customers to run off battery power for longer and, consequently, further decreasing reliance on a generator. It means our products can reduce a contractor’s carbon footprint, fuel usage, costs, and even noise pollution. Typically, with our smart hybrid power management, you can achieve up to 94 per cent running time on battery and even guarantee silent running overnight. Fuel usage and costs for many clients drop to as little as one pence per day.
“Finally, while many competitors are using HGVs to deliver their units, we are using our own fleet of modern, Euro VI compliant, low-emission pick-ups, driven by our own experts. This provides efficiencies in terms of site access, flexibility in delivery, and faster set-up times. Our units can now be set up in just six seconds, which is much quicker than anyone else in the market, as well as creating a much smaller carbon footprint. The upshot is that in 2021, all our collections, deliveries and relocations will be quick, easy, low cost and low emission.”
Though many companies quote the environmental benefits of their products, not one of Kelling’s competitors can lay claim to Welfare Hire’s Smart XL Water or Lithium hybrid power systems. Always looking for ways to improve, the Group recently added telemetry to its capabilities, allowing for smarter, more effective remote management of its assets. The result is an unrivalled package of innovative products with a premium service that continues to attract the UK’s biggest and most successful infrastructure firms.
“Some of our latest work has come with utilities contractors as part of the AMP7 national framework,” Grayshon states. “We are also working with Network Rail, as well as a variety of SME and Tier One contractors on CP6, a key rail framework.”
“Kelling is also keen to invest in people, developing skills and expanding its workforce. Over the last 12-18 months, we have continued to recruit, expanding the team so that Kelling can offer more dedicated service, sales and customer support. As we move forward into 2021 and beyond, we’ll continue to invest in the business and core infrastructure areas,” states Moore.
Before each one of its welfare units is delivered to a client, it undergoes a 62-point inspection regime encompassing all manner of mechanical, electrical and functional pre-hire checks to ensure that the product is of a quality beyond the industry norm.
“Going above and beyond in our service is a vital part of maintaining high quality assets, and the work that goes into that requires investment and efficient processes,” Grayshon asserts. “We do everything we can to make sure that our units show up on time, that they work in the way they are supposed to work, and that our clients can rely on the quality of the kit. That’s why we also plough substantial investment into the updating of our fleet, and ensuring that it meets the needs of our clients.”
Of course, though Welfare Hire and its products prove increasingly popular, the business is not Kelling’s sole focus; the Group’s other subsidiary, Access Hire, is an equally thriving operation. Another market-leader in its specialism, Access Hire has a fleet approaching 1,000 vehicle mounted access platforms for safe working at heights of up to 16.5 metres. As well as efficiently serving Kelling’s main infrastructure sectors in telecoms and power, Access Hire also provides solutions for CCTV installation, facilities management and tree surgery – all supported by customer service available 24/7, 365 days a year.
Access Hire was ranked number one for vehicle mounted access platforms in the UK in November 2020 by Cranes & Access magazine. Martin Whitehead, Sales Director Access Hire, states: “Access Hire is the market leader in VMAP hire in the UK. We continually invest and have the largest and most modern fleet in the market, working with our clients to ensure not only the best, most modern assets, but also first class service, which is vital when providing specialist equipment to critical infrastructure markets.”
As part of its brand promise, Kelling pledges to provide quality products and services, unmatched value, and optimal wellbeing onsite – all whilst minimising the environmental impact on our planet. Commitment to this promise has been a key part of the Group’s success over the years, and the importance of the mission remains unchanged in 2021 as Kelling and its subsidiaries move into the future with ambitions for more growth.
“Kelling Group has grown organically, and in some respects under the radar as we’ve quietly gone about our business,” Moore comments. “More people are now becoming aware of us and that’s great because we have some genuinely unique propositions. We can add a lot of value around innovation, sustainability, quality and wellbeing. In the next three to five years, we will become even more established in the market, working in partnership with key clients in our core infrastructure sectors. With our help, we know that our partners across the UK will be able to deliver smarter and more modern approaches to their projects to help future proof their business.”
Senior Team Announcement
Given Kelling’s continuing growth in core UK infrastructure sectors, the business has been continually investing in its senior team over recent years to make sure the team structure is set for the next phase of Kelling’s growth plans.
With that in mind, from 1st October, John Wood, founder of the business, will be taking on the role of Chairman, with Stephen Moore (current CFO) and Richard Green (current FC) taking up the roles of Chief Executive and Finance Director respectively .
With a number of senior sales and operations appointments over the last 18 months, augmented by the changes announced today, Kelling is proud to be an investor in people as well as a UK leader in the investment of specialist assets for the infrastructure sector.