uk construction key performance...
TRANSCRIPT
UK Construction Key Performance
IndicatorsPresented by: Tom Crane, Economist
Date: 11th February 2015
The 2014 Report
Free to download from Glenigan- just search Construction KPIs 2014
Headline findings on Client Satisfaction, Project Predictability, Profitability, Environmental Performance, Industry Workforce, Consultant Performance
Industry benchmarks are tip of the iceberg….
Market Conditions
Double dip recession
– Initial slump falls in private sector work in 2008 & 2009
– Renewed pressure from public sector cuts in 2011 & 2012
Gradual private sector recovery
Costs have risen alongside improved volume
50
60
70
80
90
100
110
120
2006 2007 2008 2009 2010 2011 2012 2013 2014ytd
Cu
rre
nt P
rice
s -
Inde
x 2
00
6 =
100
Construction Activity
New Orders
Output
Underlying Project Starts
New Work Output
Sources: ONS, Glenigan
Property Market & Construction Prospects
Government looking to private
sector to lead the recovery
Public sector capital funding
constrained by Budget deficit
Improving consumer
confidence
Broader housing market
upturn in 2015
Office Market strengthening in
major conurbations
Retail property facing
structural change
Infrastructure investment plans -10
-8
-6
-4
-2
0
2
4
6
8
10
2013 2014 2015 2016 2017 2018 2019
% A
nn
ual
Gro
wth
Household Consumption
General governmentconsumption
Business investment
General governmentinvestment
Source: OBR, Autumn Statement 2014 Outlook
Construction Costs
5
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%Q
1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3 Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4 Q1
Q2
Q3
Q4
Q1
Q2
Q3
2006 2007 2008 2009 2010 2011 2012 2013 2014
Ch
ange
on
a y
ear
earl
ier
Construction Inflation Accelerating
All work
New WorkSource: ONS Implied Construction Output Deflator
Industry Profitability Squeezed
0
200
400
600
800
1,000
1,200
1,400
Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2007 2008 2009 2010 2011 2012 2013 2014
No.
of C
onstr
uction F
irm
s
Construction Company Insolvencies
Source: Insolvency Service
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Media
n p
rofita
bili
ty
Profitability
Sources: Companies House & KPI Survey
Respect for people
Low staff turnover…
…as departing staff
are not replaced
Staff loss begins to
fall
Rise in skills base
0%
1%
2%
3%
4%
5%
6%
7%
2006 2007 2008 2009 2010 2011 2012 2013/14
Me
dia
n %
sta
ff t
urn
ove
r
Staff Turnover
Customer Satisfaction
60%
65%
70%
75%
80%
85%
90%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013/14
% r
ati
ng
8 o
ut
of
10 o
r h
igh
er
Client Satisfaction
Product Service Value for Money Defects
On time & to budget
0%
10%
20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012 2013/14
Pro
po
rtio
n o
n t
ime o
r b
ett
er
Time Predictability
Design Construction Project
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2007 2008 2009 2010 2011 2012 2013/14
Pro
po
rtio
n o
n t
ime o
r b
ett
er
Cost Predictability
Design Construction Project
Environmental Performance
10
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2006 2007 2008 2009 2010 2011 2012 2013/14
kg C
o2
pe
r 1
00
m2
Designed Energy Consumption
0
20
40
60
80
100
120
140
2006 2007 2008 2009 2010 2011 2012 2013/14
20
06
= 1
00
Construction Process
Energy Mains Water
Summary
Industry retrenchment
– Profit squeeze, reduced workforce
Pressure to meet rising client expectations
– More projects delivered to budget
– Projects delivered on time
– Drop in client satisfaction with product, service,
defects & VfM
Rising to environmental performances challenge
Increased investment required to develop skills base to
meet rising demand and expectations
2015 Construction KPIs
Surveying all projects completed in 2014
Client, contractor and consultant on 7,000 completed
projects, over 25,000 surveys in total.
Centrally collecting company employment,
environmental and project data
Look out for your survey!
