The long-awaited £56m Newtown bypass will create jobs, but only if it is done right.

A LONG-AWAITIED £56 million bypass is heralding "exciting times" with work set to boost the economy and help revitalise the region.

Welsh Government Assembly Member, Russell George, says construction jobs are set to be created in the area when work starts on the much anticipated Newtown Bypass, which he anticipates will begin next month.

The bypass was given the green light by planners following decades of expectation towards the end of last year. Plans for the 3.4 mile-long bypass were passed in October with the development to run from the Llanidloes side of Glandulas Caravan Park to the existing Pool Road

Mr George says it will usher in the dawn of a new era and expects new and expanding businesses take advantage and help deliver a huge economic boost. Estate agents also believe Newtown's commercial viability is rising in respect of the bypass, which will alleviate the traffic problems faced by frustrated road users.

"These are exciting times, not only for job prospects in the area but to see the bypass come to fruition after such a long wait," Mr George said. "The bypass will transform the Newtown area as well as the mid Wales economy. It will encourage new businesses to move to Newtown and will be a huge relief to people who have suffered congestion in the area for many decades. I am hopeful work will begin in February."

Abergavenny-based Alun Griffiths Contractors are to construct the bypass, which is expected to take two years to deliver, but they are yet to confirm when work will commence. However, Mr George is encouraging workers to take advantage of the construction jobs he says will arise in the locality as a result.

Estate agents in the area have confirmed Newtown's commercial prospects have increased dramatically since news of the new bypass was announced. Recognised brand names including fast food chain Kentucky Fried Chicken and hardware store Screwfix are soon to open their doors on Pool Road. Mid Wales estate agent and property surveyors Morris Marshall and Poole say the current availability of commercial property is an asset to the town. The estate agents have been appointed to promote the large Mochdre Business Park, as well as working on behalf of other commercial landlords and property owners elsewhere in the area.

Kathryn Davies, chartered surveyor at Morris Marshall and Poole said: “Newtown has a great deal going for it in terms of the availability of commercial premises. We’re currently marketing over 20 commercial properties in the town alone ranging from 86sq ft to 13,785sq ft. Newtown has historically been a town thriving on business and manufacturing. Bringing a range of commercial units to the market means there a wide range of choice for those seeking to expand in the town or relocate."

Construction sector in buoyant mood as workloads grow, but worries mount over skills shortage and rising wage costs

The latest Construction Market Survey from the RICS show many in the sector reporting difficulty sourcing skilled workers in Wales.

Construction businesses are busier but are finding it increasingly hard to find skilled workers

The building sector has begun 2016 in a positive mood with most businesses reporting increased workloads, according to the latest Construction Market Survey from the RICS.

However, many in the sector are also concerned that shortages of construction skills are pushing up wages in the sector in Wales, with surveyors reporting scarcities of skills among a variety of construction professions and trades and pointing to strongly rising input costs, including wages.

Almost half (44%) of respondents reported difficulty sourcing skilled workers in Wales during Q4, with shortages in quantity surveyors and the bricklaying trade particularly evident. A balance of 64% of surveyors said that total input costs rose in the quarter.

Read more: Shortage of bricklayers affecting construction firms as they struggle to meet rising levels of work. This is similar to the picture across the UK, where 61% of construction professionals have reported sharp wage rises. Average UK construction earnings have risen by more than 6% in the year to October – a marked increase on the average UK wage rise over the same period of under 2%.

In terms of workloads, growth was most evident within the infrastructure (a net balance of 30%) and private commercial (a net balance of 36%) sectors, according to Welsh surveyors. Private housing workloads also grew (a net balance of 28%).

Infrastructure and private commercial have seen the largest growth in new work

Overall, a net balance of 24% of respondents reported an increase in workloads across Wales during Q4 2015, with over half of respondents (54%) expecting further growth throughout the next 12 months.

Read more: Businesses worried about impact of National Living Wage, migrant caps and skills shortages, CBI survey finds

RICS Wales director Ben Collins said: “With regard to construction, 2015 ended much as it began, with workloads growing, and surveyors optimistic about the outlook.

"However, skills shortages remain a challenge for the industry, as do input costs. It is encouraging to note though that the balance of surveyors expects profit margins to improve in the next 12 months.”

Workloads have also grown in the private housing sector. Rui Vieira/PA Wire

RICS Wales spokesman Tony Filice added: “Rising demand, sales and prices in the residential sector are being reflected in increased confidence in the construction sector in Wales, with 54% of chartered surveyors expecting increased workloads during 2016. It is important that skills shortages don’t impact on the ability of the construction sector to deliver the new homes that Wales needs.”

Looking at the overall UK picture, RICS chief economist Simon Rubinsohn said: “While workloads are still growing at a relatively healthy pace, labour shortages in the construction sector are causing delays at different stages in the development process and leading to significant problems with project planning. More than 60% of our survey respondents said that these resulting planning delays were an impediment to growth.

“That said, industry wages are becoming increasingly attractive, and I would hope that over time this will encourage skilled workers to return to the sector, as well as drawing school leavers and graduates towards construction industry careers.”

The COP21 climate talks in Paris, unseasonal warm weather, floods and ongoing debate means climate change is always a hot topic. What’s your view? What’s the role of construction?

One of the messages that has been debated in the media since the ground breaking outcome from the Paris climate talks before Christmas (COP21) has been the difference between saving ourselves and our planet. Where we live, the Earth, will survive, but it will do so by adapting and changing according to very many factors – some of which are within the control of humans living today and our children’s children tomorrow. We can control what we do now. We can plan for what we do tomorrow. The focus has to be upon how we want to live our lives and what legacy we leave behind.

Next week is another major event informing the discussion and shaping views organised by Stop Climate Chaos Cymru – save the date: Wednesday 27 January. Construction can help manage the effects of our changing climate and shape the legacy we leave behind us.

Following the COP21 climate talks in Paris, panels of experts speaking on Wales, UK and the World will come together for an event on Wednesday 27 January at the Welsh Centre for International Affairs, Temple of Peace, in Cardiff from 6.45pm. The panel will discuss and gather views on the outcome of COP, what’s the current situation for Wales and what role should Wales play internationally in tackling climate change. Q&A will follow panel discussions. 

To date confirmed speakers include

• Dr Stephen Cornelius, WWF-UK’s Chief Adviser on Climate Change; 
• Lowri Jenkins, Size of Wales; 
• Professor Nick Pidgeon MBE from Cardiff University; and 
• Ann Jones, Chair of NFWI-Wales.  

Think seriously about attending. Construction and climate issues are linked. What’s more it is something Welsh Government is taking very seriously and we (the construction industry), as the biggest enabling sector of the economy must respond to. Just look at the budget numbers: climate change programmes have been deemed a priority – the budget will rise from £48m to £73m.

Please share with contact, networks to ensure a good attendance. You can register to attend the free event, Temple of Peace, Cathays Park, Cardiff, CF10 3AP at 6.45 by clicking here.

CEW are developing BREEAM guidance to support clients new to the BREEAM process or experiencing BREEAM 2014 for the first time. We are seeking examples of where your project may have secured the maximum credit’s available for a specific topic, or negotiated an innovation credit with BRE. Examples can be for any BREEAM Scheme (new build, retrofit) and for any building type.

Please send a short paragraph outlining how your project excelled with a particular credit with an accompanying photograph to info@cewales.org.uk  Credit and copyright will be acknowledged.

RICS Wales Manifesto Launch  - Cardiff & Llandudno

For further information please contact dmorgan@rics.org or visit their website