February 22, 2018
Investment in UK commercial property sector remains strong
Investment in UK commercial property rose 66 percent in January compared to the same month last year, according to data from Savills, to £4.2 billion. In its February Market in Minutes report the international real estate advisor says that investor appetite for UK property remains very strong. In 2017, total investment into UK real estate reached £65.4 billion, representing a 26 percent increase on 2016’s annual total. According to Savills, the office and industrial sectors led the way, with overseas investors responsible for nearly half of total volumes, of which Asian investors were the most active, accounting for a fifth of all investment.
A new report a new report by the Centre for Ageing Better has called for government and employers to support older workers to stay in work for longer, help those who have fallen out of work involuntarily to return and to create workplaces that work for all, irrespective of age. The report claims that ensuring older workers are able to stay in good quality employment is essential to the future of the UK economy and will relieve pressure on public finances. It makes some key recommendations that include access to flexible working hours and workplace adaptations to help people manage pressures such as caring responsibilities and health conditions, which become more prevalent with age. It also calls for equality of opportunities in the workplace as older workers in the UK experience age discrimination in recruitment and progression. They are less likely to be offered opportunities for development – across the whole of the OECD only Turkey and Slovenia have lower levels of on-the-job training for older workers than the UK. Research shows they are also the most likely to be stuck on low pay and feel most insecure about their jobs.
The construction industry needs new talent and skills to help in the adoption of new technologies to meet the challenges of digital transformation. It must also become more diverse, including increasing the percentage of women in the industry. These are the recommendations of a new report from the World Economic Forum, developed in collaboration with The Boston Consulting Group (BCG), Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap. The report argues that the Infrastructure and Urban Development (IU) industry has failed to innovate as quickly as other sectors, resulting in stagnating productivity and negative effects on the economy, society and the environment. An ongoing industry-wide shortage of qualified workers is among the key reasons for this issue. It has undermined project management and execution, adversely affecting cost, timelines and quality. It also has impeded the adoption of new digital technologies, such as building information modelling (BIM), automated equipment and cloud-based collaboration tools, which could improve productivity. The report provides twelve key actions which needs to be implemented to close the structural talent gap of the construction industry.
Demand for labour is likely to remain relatively strong in the near-term which is one of the main reasons why employers support a national approach to tackling the UK’s skill and labour shortages post-Brexit, in comparison with a regional or sectoral one. According to the latest quarterly Labour Market Outlook from the CIPD and The Adecco Group the preference for a national labour or skills shortage occupation scheme reflects the main reason given by organisations for employing EU nationals, which is that they have difficulty finding local applicants to fill lower skilled roles, as cited by 18 percent of employers. The national survey of more than 2,000 employers found that the relative majority of employers (41 percent) would prefer a UK-wide immigration system that is based on national labour or skill shortage occupations in the likely event of migration restrictions once the UK leaves the European Union. In contrast, around one in ten (13 percent) favour a sector-based policy and just 5 percent would back a regional policy.
Concern amongst small and medium sized enterprises (SMEs) regarding the current economic climate fuelled by worries over a Brexit-related skills shortages, is at a three-year high, according to the latest Zurich SME Risk Index. It now sits at 56.38, indicating almost a 2 percent rise in perceived risk since Q1 2016 (55.43), and more than 3 percent higher than in October 2016 (54.55). SMEs attitudes towards economic growth, presently sits at a four-year low – with just two in five (40 percent) businesses confident that the UK economic situation will improve over the next 12 months. Similarly, the results regarding SMEs attitudes towards the international trade environment, reveals concern regarding overseas competition and currency rate fluctuations being at its highest in four years at 45.49. Equally, workforce challenges, namely the availability of skills and talent, is also an increasing concern for smaller businesses. Two in five (40 percent) SMEs now see workforce challenges as a major concern for their business; a rise of 8 per cent since October 2016, indicating that political issues are a major influence on the current attitudes of business owners in the UK.
February 12, 2018
Luther, Marx, Engels and a nailed-on manifesto for workplace change
by Mark Eltringham • Comment, Facilities management, Workplace design
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