Bleak mid-winter or season to be jolly?
There is nothing like the New Year to make us ponder what the future will bring, raising concerns regarding seemingly uncertain prospects. The 'credit-crunch' of 2008 had a significant impact on the construction industry; fuel prices rose, house prices fell and an estimated seventeen thousand construction professionals joined the unemployment lines. So is it a foregone conclusion that the economic ‘bleak mid-winter’ is set to continue for some time?
Whilst it is evident that the new-build market will take some time to recover, exciting new opportunities are arising within the refurbishment sector, created as a direct result of the Government’s binding Kyoto targets to reduce greenhouse gas emissions by 5% against 1990 levels by 2012, and a legal obligation to eradicate fuel poverty by 2016.
Although statistics are currently unavailable on the number of existing energy-inefficient commercial buildings requiring refurbishment, recent reports suggest that approximately 5.8 million households are currently experiencing fuel poverty within the UK - and are in need of urgent upgrade - thus creating an immediate opportunity for business development.
New legislation such as The Energy Performance of Buildings Regulations (2007) has introduced new strategies to identify the location and extent of poorly performing buildings within the UK, creating a database of domestic and commercial buildings, and highlighting those most in need of improvement. Moreover, it is creating a market driver towards more energy efficient existing buildings through instantly comparable energy ratings (EPCs). The intended consequence of this is increased demand for building improvement.
It is clear that capital investment is the primary catalyst necessary to ‘kick-start’ the much needed programme of refurbishment and public money is being made available through a range of Government initiatives, such as the recently announced ‘Home Energy Saving Programme’ [3]. However, uncertainty exists within the industry surrounding the most effective methods of managing and implementing this programme - practically and financially.
Stroma is currently working with a number of public and private sector partners on a pioneering research project within the Thames Gateway region, exploring the most effective solutions for the refurbishment of poorly-performing dwellings. The project aims to identify the most effective methods of delivering financially viable, retrofit options, which improve energy efficiency and can be replicated within a rolling programme of works. This important project is one of several innovative schemes across the UK designed to inform industry and lead the way in launching a range of new opportunities and initiatives.
Whilst it is evident that the construction industry will be a key player in meeting Government targets, the shift in emphasis from new-build to refurbishment will not necessarily be a straightforward process; it will require a proportion of construction professionals to retrain in specialist areas, including renewable energy technologies.
However, for those who are willing to diversify and rise to the challenge, an exciting opportunity exists that undoubtedly has the potential to render the ‘bleak mid-winter’ a thing of the past.
[1] Kyoto Protocol
[2] The Energy Performance of Buildings Regulations (2007)
[3] Community Energy Saving Programme (EESP)