Creative Colours - A Spectrum of Inspiration - Tile and Stone Journal

NEWS & COMMENT
Value of construction projects rises by over 10%
The value of construction projects starts in the
three months to April 2010 was up 10.5% on
the same period a year ago, according to the
Glenigan Index for April. The Index, which
tracks the value of projects under £100 million,
showed a gradual recovery in private sector
confidence coupled with a flurry of public sector
work. Increases were seen in private and
social housing, retail, education and health
projects starts.
“The construction industry will be looking to
a continued rise in private sector work over
the coming months with public sector expenditure
cuts looming and disruption following
the result of the general election.‚“ according
to Allan Wilen, Economics Director, Glenigan.
Supermarket developments and private
housing were key growth areas in the three
months to April. The value of supermarket
developments were double that of a year ago
and private housing project starts were 41%
up on a year earlier, although this comparison
is against the trough of the recession.
Mortgage applications appeared to be dampened
by pre-election uncertainty, but market
conditions are expected to improve throughout
2010.
Continued weakness in the industrial and
office sectors was partially offset by hotel and
Olympic related schemes. Additionally, the
underlying value of health and education
projects increased compared to a relatively
weak period in the three months to April 2009
despite a slowing in government funded projects.
Civil engineering project starts re-bounded
following a weak start to 2010. The Glenigan
Civil Engineering Index was down 4% in April
2010, compared to 36% and 24% in February
and March 2010 respectively.
“Civil engineering was boosted by an
increase in utility projects. However growth
was tempered by fewer road and rail projects.‚“
says Willen
Regionally, project starts increased considerably
in the Midlands and North East. Northern
Ireland, the South West and South East of
England were the only regions to record a fall in
project starts against the same period last year
“A further strengthening is anticipated over
the forecast period (to Q2 2012),” argues
Willen. “Weak industrial and office sectors will
remain a drag on project starts over the next
few months. However conditions in the
industrial and commercial property markets
have moved off the low point reached in the
first half of 2009. We can see that housebuilders
are keen to capitalise in recent
improvements in market conditions, although
weak household earning and consumer confidence
combined with limited mortgage availability
will restrict the pace of recovery in new
house sales and project starts during the
remainder of 2010. The growth in public sector
project starts seen since April 2009 has
begun to lose momentum. The result of the
general election will further disrupt the flow
on projects in the short term and the impact
of government funding cuts will be felt in the
medium term.”
Tile Depot expands and improves its stores
NEWS IN BRIEF
F Ball and Co’s Managing
Director, James Igoe, has
recently been appointed
Chairman of the British
Adhesives and Sealants
Association. Igoe, with
the assistance of the
BASA Council, will be
responsible for setting
and reviewing BASA policy,
mission, strategy and
annual objectives. He
will also provide industry representation to external
organisations on a wide range of issues and represent
BASA at the FEICA (Association of European Adhesives
and Sealants Manufacturers) presidential meetings.
Norcros has announced that it has signed an agreement
to sell its 25.5% interest in R J Beaumont & Co
Pty Limited, its trade investment in Australia, for a
consideration of Aus $7.75 million to Beaumont by
means of a selective share reduction.
“According to data from the US Department of
Commerce, imports of ceramic tiles to the United
States rose in both January and February 2010 (by
12% and 23% respectively), with Italy amongst the
leading group of exporting countries. If we add that
sales of existing houses to March exceeded expectations
to reach a total of 400,000 units, it is evident that
the recovery in the US property market and in Italian
tile consumption has begun,” stated Confindustria
Ceramica Chairman, Franco Manfredini, at a press
conference held during Coverings 2010. His words
were underlined by Aniello Musella, Director of the
North American network of the Italian Trade
Commission ICE. “In spite of the severe crisis that has
hit all industrial sectors, the Italian ceramic industry
continues to maintain its leadership position in terms
of imports by value, demonstrating the strong appreciation
of its products by American consumers.
Tile Depot has opened a new store in Crawley (left). Located on Denvale Retail Park, close to
Crawley College and the County Mall Shopping Centre, the new store is Tile Depot’s fifteenth
and the first since revealing plans just three months ago to more than double its number of
stores by the end of 2012. Open seven days a week from 8am till 6pm on weekdays, the new
sq. ft Crawley branch of Tile Depot occupies a prominent position on busy Denvale Retail Park
with Bathstore, Wickes, plumbing, electrical and automotive outlets Tile Depot has also given
a facelift to its Milton Keynes branch (right), with new signage, an improved store layout and
a brand new marketing campaign, which puts Tile Depot on the only outdoor advertising display
site in Central Milton Keynes; the giant Skywall at Xscape. The store is located at
Grampian Gate, Winterhill.
Euro/dollar trades have hit a four year low of 1.2185 as
the unexpected ban on naked short selling of certain
financial stocks and credit-default swaps enforced by
Germany’s financial regulator has added to the lack of
confidence surrounding the Euro. But Mark
O’Sullivan, Director of Dealing at Currencies Direct,
believes further falls in the value of the Euro could yet
be seen. “While politicians are still trying to blame
speculators for the fall in the Euro, it’s the market’s
loss in confidence in these politicians’ ability to implement
the austerity measures needed domestically
that is at the root of its decline in value.”
JUNE 2010 TSJ
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