The construction industry is one of the sectors confronted with various challenges, including a need for more available workers and material problems. Consequently, Royal BAM group is now facing a loss of $16 million as a result of issues with the supply chain.
(Photo : Unsplash/Scott Blake)
$16 Million of Royal BAM Group
In the United Kingdom, a Dutch construction company, the Royal BAM Group branch, had quite challenging years. It reportedly recorded a loss of £13 million or more than $16 million due to problems with the supply chain and price delays at a significant project. Construction UK's performance was deemed unsatisfactory by Ruud Joosten, the CEO of Royal BAM Group, on account of these complications. Thus, vital contributions were made by Ventures UK, Ireland, and Civil Engineering UK.
He also mentioned that the civil market in the United Kingdom was anticipated to remain steady. However, the construction market would be more challenging to navigate in the short term. On the other hand, the 2023 UK Energy Act, which Joosten described as a welcome move, is intended to increase energy security and help the delivery of net zero. BAM has established a robust presence in the energy sector due to its effective implementation of initiatives in this particular product market combination.
Also Read: Top 5 Most Expensive Ongoing Railway Mega Projects in the World
UK Energy Act
The dependence that humanity places on the supply of energy from a select few essential sites has been brought to light by recent events worldwide. The Energy Act provides the Secretary of State for Energy Security and Net Zero with the authority to impose responsibilities on energy firms to maintain the resilience of the supply of certain essential fuels, which is done to increase supply security.
Moreover, it is anticipated that when the government improves its support and regulation of new and emerging energy markets, it will result in more investment and higher capacities for producing electricity at the national level. This will, in turn, reduce our reliance on energy supplies from other countries while increasing the consumption of cleaner energy.
To regulate not only the conventional energy markets of oil, gas, and nuclear power but also the more recent and developing industries of renewable energy, nuclear fusion, and hydrogen, as well as carbon capture and storage, the Act deserves praise for its efforts. In addition, the Act incorporates many new measures, including those about the reform of markets and the protection of consumers.
The Act imposes additional responsibilities and powers on the energy regulator, Ofgem, to foster greater competition in the industry and protect consumers from unfair pricing. By doing this, the government hopes to enhance customer trust in energy-efficient appliances, which will, in turn, assist consumers in lowering their overall energy consumption and provide consumers with the opportunity to reap the benefits of a reduction in the cost of energy.
Accordingly, through the passage of the Act, the government is attempting to solve the energy trilemma, which consists of ensuring the availability of energy, maintaining affordable prices, and ensuring the sustainability of the source. On October 26, 2023, the Act was given royal assent; nevertheless, due to the start provisions, it is necessary to pass secondary legislation for a significant number of the clauses before they can be put into effect.
Related Article: Top Challenges the Construction Industry Will Face This 2024: From Supply Chain Problems to Recession
