April constructsteel newsletter

Europe is facing shortages of building materials as companies have stopped production due to surging energy costs and “chaotic” EU policies. The warning came after the invasion of Ukraine by Russia triggered further volatility in natural gas markets, pushing European wholesale prices for next day delivery up 38 per cent on Friday to €205 per megawatt hour, a ninefold increase compared with a year ago.

Associated General Contractors of America called for the US government to end tariffs on key materials, as well as broaden training and education opportunities for construction careers. Association officials said the industry will need to obtain materials on a more timely basis and hire hundreds of thousands of additional workers in order to execute projects that will soon be funded by the US$1.2 trillion Bipartisan Infrastructure law, on top of the continuing demand for homebuilding and private nonresidential structures.

The UK government is planning a significant expansion of its nuclear energy capacity, with up to seven new nuclear plants potentially being commissioned by 2050, increasing energy output to more than three times the current 24GW. This would see up to a quarter of the country’s energy mix being provided by nuclear plants.

UK’s R&D spending in the construction sector surged 18% in 2021 to £471m up from £399m in 2020 and £350m in 2019. The construction sector’s performance was significantly better than the performance of UK industry as a whole. Total R&D spending by UK businesses rose 5.6% to £42bn last year.

The United States reached a deal with the United Kingdom to partially lift tariffs on steel and aluminium exports from the U.K. beginning June 1. The U.K. will be able to export a certain amount of steel and aluminium into the U.S. duty-free before tariffs take effect. In return, the U.K. will lift approximately $500 million worth of tariffs on U.S. products such as whiskey and blue jeans.

With post-pandemic flex leasing at an all-time high, India’s combined office net absorption across seven cities ends Q1 at 11.55 mn sq-ft. According to an analysis published in JLL’s Office Market Update-Q1, 2022, office net absorption was up by a significant 113% yearon-year, clearly indicating the momentum that is now visible in the market. Net absorption was similar to the last quarter due to lingering uncertainties surrounding the Covid-19 pandemic.

Atkins, a member of the SNC-Lavalin Group, has become the first global engineering consultancy to achieve certification from BSI (British Standards Institution) for building information modelling (BIM) compliance, across its operations in Europe, the Middle East, and Asia Pacific. Achieving BSI BIM certification internationally is a significant milestone for the organisation as they drive the global adoption of consistent digital practices which are transforming the way infrastructure is designed, built, operated and maintained through the use of secure data which reduces risk and increases certainty.

To boost renovation, EU wants to reset single market for construction materials. The overhaul of the EU’s Construction Product Regulation is the latest in series of legislative recasts aimed at bringing the EU’s laws in line with its climate ambitions. The Commission’s stated aim is twofold: achieving a well-functioning single market for construction products while contributing to the objectives of the green and digital transition. Market’s potential is massive: construction ecosystem means five million firms and more than 25 million jobs. When it comes to building materials alone, it’s about 430,000 companies, €800 billion turnover and 10,000 jobs.

3D home construction company seeks investors as new home technology business expands. Apis Cor has developed 3D printing technology for the construction industry, which will cut the time and cost of building housing. It can take about seven months to build a finished woodstick house, but with 3D printing technology, houses can be built within two to three months. These cost savings can help support the development of more affordable housing options. SmarTech Analysis predicts 3D printing in construction will be a $40 billion market by 2027.

FBR Australia, a construction robotic technology company to partner with UAE – it has signed a Memorandum of Understanding (MoU) with the UAE’s Ministry of Energy and Infrastructure. Together they will identify opportunities for the introduction and adoption of FBR’s robotic construction technology, and further solutions and services to serve the construction sector in the UAE. FBR will exchange information and collaborate in relation to the application of modern building methods, smart support systems, and other construction technologies.

A consortium that includes Italy’s Webuild Group, South Korea’s GS Engineering and Construction and Australia’s Plenary Group, Clough Group and Service Stream, has been selected as preferred bidder by the Australian Rail Track Corporation for a €3.3bn design-and-build contract, that also includes a 25-year maintenance phase following completion.

Caledonian Modular, the UK’s largest modular construction company that fell into administration last month, has been rescued by JRL Group.

Meta, parent company of Facebook, has launched two new data centre projects in Texas and Missouri, pushing its total investment in U.S. data centre construction and operations past $16 billion. Meta’s two newest data centre projects come on the heels of a third $800 million data centre announced in February in Kuna, Idaho, bringing the company’s footprint to more than 20 facilities worldwide.

South Korea and China are competing to build $10bn metro in Chattogram, Bangladesh’s second city. The project, the second in its kind in the country, is to be procured on a public– private partnership (PPP) basis.

WSP ends year with better-than-expected profits, record-high backlog. The company earned $98.8 million in the fourth quarter last year, up 75% over the year-ago quarter as the company invests in green building, technology and its own staff. In the fourth quarter company booked revenue of $2.25 billion, up almost 29% from the fourth quarter 2020. WSP told investors it expects net revenues this year of between $6.44 billion to $6.83 billion, and net capital expenditures of between $124.8 million and $140.4 million.

Balfour Beatty profits rise, revenue dips as company focuses on future of infrastructure. The company reported profits of $183 million for 2021, up markedly from $39.5 million in 2020. That’s 28 cents a share versus about 6 cents. Revenue totalled $10.88 billion, down 3.8% from 2020. Profits from operations, however, rose 54% to $127.7 million.

Evergrande, the world’s most indebted property developer, with over $300 billion in liabilities resumed construction at 95 per cent of China projects, as of March 27. The company will “continue to maintain the normal construction of the projects in order to deliver the buildings to the owners with guaranteed quality and quantity at all costs,” according to the post.