Search Results for: economic

May 27, 2015

Smart buildings, smart cities and the promise of infinite data

by Paul Doherty • Cities, Comment, Facilities management, Technology

The rapid urbanization of our world and the weaving of existing and new buildings into the urban fabric of Smart City initiatives are some of the great challenges facing our global industry today. Along with the vast amount of definitions and marketing campaigns surrounding the phrase “Smart Cities” comes the challenge of understanding why the movement is important to the Architecture, Engineering, Construction and Facility Management (AEC/FM) industry and how industry stakeholders can profit from, or at the very least, not get run over by the tsunami called Smart Cities. The emergence of Smart Cities as the conduit for ideas, thoughts, policies and strategies for the world’s urban environments is an important milestone for our industry, and it comes at a time of rapid innovation, convergence and redefinitions.

May 24, 2015

More intensive space use is helping to drive down office costs worldwide

by Mark Eltringham • News, Property, Workplace design

Office costs are falling worldwide, in part because occupiers are using space more intensively, according to the latest Office Thermometer report from commercial property firm DTZ. The report found that the West End of London has comfortably retained its position as the world’s most expensive location. The average annual cost of a workstation in the area is $29,000 (about £19,000), fully a third higher than second placed New York. The report found that office costs continue to fall significantly in most regions, nearly 4 percent overall on average, although there were increases in fast growing local markets, especially in the Middle East. According to the study, more intensive use of office space by occupiers, an appreciating US dollar, weak economic growth in Europe and significant new supply in emerging markets have combined to cut costs worldwide.

May 12, 2015

One third of global workers are finding work-life balance unattainable

by Sara Bean • Flexible working, News, Workplace

Managing work-life balance has become more difficult for a third of workers over the last five years, with Millennials most affected. After competitive pay and benefits, nearly three quarters of people questioned in a global poll (74%) felt that being able to work flexibly and still be on track for promotion, and working with colleagues who supported flexibly were the most important considerations when choosing a job. In the countries covered in the research from EY, German and Japanese workers find it hardest to create work-life balance. Globally, around half (46%) of managers are working more than 40 hour weeks and four in 10 say their hours have increased over the past five years. Nearly half of Millennials (47%) report an increase in hours compared to 38 percent for Gen X and 28 percent for Boomers.

May 11, 2015

Does declining productivity spell the end for IT and property directors?

by John Blackwell • Comment, Facilities management, Property, Technology, Work&Place

When it comes to increasing organisational output, which in turn directly relates to real wage growth and higher living standards, the only determinant is productivity, measured in terms of output per hour worked. This is at the heart of all businesses and is essential for growth. The basic facts on productivity are clear. For over a decade, productivity has been painfully weak across all the major economies. The UK has performed particularly badly, with productivity having declined by 3.7 percent since 2008. A recent OECD report went as far as saying: “weak labour productivity since 2004 has been holding back real wages and well-being. The sustainability of economic expansion and further progress in living standards rest on boosting productivity growth, which is a key challenge for the coming years”.

May 8, 2015

The death of the office has been overstated but it is changing, study confirms

by Mark Eltringham • News, Property, Workplace design

The implications for the property industry of more efficient space planning models and the uptake of flexible working are laid bare in a new report from planning and design consultancy Nathaniel, Lichfield and Partners (NLP). The headline figure from the report, Workspace Futures: The changing dynamics of office locations is that the office stock in England and Wales rose by 17 percent in the twelve years to 2012 while the numbers of office based staff increased by around 21 percent. The report includes details on how these trends affect 11 key locations including Manchester, Cambridge, Bristol, Newcastle and Reading and concludes that while ‘the death of the office has been largely overstated’, the market is undergoing structural changes that need to be addressed by developers and government.

May 5, 2015

Election uncertainly blamed for slowdown across the UK construction sector

by Sara Bean • Facilities management, News, Property

The UK construction market experienced a slowdown in April, with output and new orders expanding at the slowest rates since June 2013, according to the latest Markit/CIPS UK Construction survey. Although the growth of commercial work was the least marked since August 2013, many survey respondents suggested that underlying conditions remained favourable, but some clients had delayed decisions ahead of the general election. Looking ahead, confidence regarding the 12-month outlook dipped from the nine-year high seen in March, but remained stronger than its long run average. A number of firms cited optimism that underlying demand would continue to improve, while others suggested that the removal of election related uncertainty would help support new business gains.

April 30, 2015

Three workplace issues that could help to shape the general election ⁰

by Mark Eltringham • Comment, Flexible working, Legal news, Technology

With only a week to go until the general election, nobody seems clear on what exactly will happen at the polls, least of all the voters. The BBC’s political correspondent has described it as the Vanilla Election, with the major parties paralysed by the closeness of the race into not doing anything bold or imaginative enough to spook an ambivalent and undecided electorate. With little to differentiate the parties and an unprecedented degree of cynicism fuelled by social media and online commentary, it seems likely that voters may be swayed by what may in the past have been peripheral issues. Over the past few days several news items have even hinted that workplace related issues might have a role to play in making up people’s minds. Here are three.

April 29, 2015

RICS reports surge in investment and demand for commercial property ⁰

by Sara Bean • Facilities management, News, Property

Demand for commercial property in the UK is growing close to its fastest pace since 1998. The latest RICS UK commercial market survey shows that there was a surge in investment and tenant demand in the first quarter of this year, which suggests stronger economic growth over the remainder of 2015. The UK had its 10th consecutive quarterly acceleration of demand, with 46 percent of respondents reporting greater interest. However, the availability of commercial property declined, with 38 percent of RICS’ surveyors seeing fewer properties on the market, the impact of which is higher rents. This is particularly apparent across the industrial and office sectors. Looking ahead, respondents expect the office sector to perform most strongly; with London leading the way, despite some concerns over the valuation of prime property in the capital.

April 27, 2015

Business clusters fuel growth in office occupier demand in smaller cities ⁰

by Sara Bean • Facilities management, News, Property

Smaller cities, including Brighton, Solihull, Reading and Warrington [pictured], look set to see a growth in occupier demand for office rentals over the few years, a new report has revealed. JLL’s ‘Where Next in the UK?’ report analysed the economic and office market performance of 37 smaller towns and cities giving an insight in to which locations will offer investors the biggest opportunity over the next five years. It shows some smaller cities are found to have a stronger outlook than the ‘Big 6’, (Bristol, Birmingham, Manchester, Leeds, Glasgow and Edinburgh). The success of these smaller cities, says the report, will be closely associated with their ability to develop and grow clusters of businesses, for instance a growing nuclear research and technology cluster in Warrington – along with strong university links and the provision of integrated transport and infrastructure.

April 22, 2015

Flexible working and smart tools prove a big hit with UAE employees ⁰

by Mark Eltringham • Flexible working, News, Technology, Workplace

It’s not just in the UK where employees say they are attracted by the idea of flexible working. A new study from YouGov commissioned by the Dubai based Federal Authority for Government Human Resources (FAHR) claims that employees in the United Arab Emirates now rate employers most highly for the smart tools and flexible working opportunities they offer. The study of over 1,000 employees and HR professionals in the UAE was commissioned to uncover emerging trends in human capital management. It found that 64 percent of employees rate flexible working hours, provided by employers based on personal circumstances, as good or very good, which is particularly prevalent amongst Emirati respondents (83 percent). The majority of employees (74 percent) also believe a remote and flexible work schedule increases their productivity.

April 22, 2015

UK’s health and social systems failing to improve workforce wellbeing ⁰

by Mark Eltringham • News, Public Sector, Wellbeing, Workplace

A new report published this week by The Work Foundation, Healthy, Working Economies sets out the challenges facing the next UK government to improve the health and wellbeing of the country’s workforce. The report calls on the government to review how it is using local organisations, such as Health and Wellbeing Boards and Local Enterprise Partnerships to encourage improvements in workforce wellbeing and health. The Work Foundation recommends that a standardised set of measures be included in the Joint Strategic Needs Assessments performed by Health and Wellbeing Boards, including measures of employment outcomes for individuals with health issues. The report also suggests that employer leadership is needed to drive the step-change needed to improve the health of the workforce.

April 21, 2015

UK office market grows as employers enhance quality of workspace ⁰

by Sara Bean • Facilities management, News, Wellbeing, Workplace design

The level of activity in the UK office market has grown as employers strive to create environments designed to enhance staff wellbeing. According to the 2015 edition of the annual Office Report from property consultancy Lambert Smith Hampton, occupiers have expanded headcount and upgraded their accommodation, helping to propel take-up in markets up and down the country. Edinburgh reported record activity; Oxford, Cardiff, Bristol and Cardiff all posted take-up well ahead of their 10-year averages and Manchester enjoyed its best year since 2001. However, over 11 m sq ft of office space has been earmarked for alternative use since the relaxation of planning rules. This equates to an area the size of all the office floor space in Reading being converted into new uses such as apartments and hotels, since the introduction of Permitted Development Rights in May 2013.