The Construction Products Association (CPA) has produced an interesting report highlighting the current status of the UK Construction Sector, and although there are some major causes for concern – there are at least some signs of optimism for the industry.
The unprecedented economic downturn of the last few years have presented yet another obstacle for the sector to overcome – this time things are a little different though, there has been very little good news for the sector in three years and the fall in activity has been the sharpest in 35 years. Here are some of the key figures from the report:
Problems:
- A 3% decline in construction activity during 2010 (last year dropped 12%)
- 2011 until any growth is expected, with only 1% a year in 2011, 2012 and 2013
- Since November 2008, private sector construction fell by almost 20% (a further fall of 4% is anticipated during 2010)
Opportunities:
- A growth of 32% in private house building expected between 2010 and 2012
- A boost from infrastructure work in the regulated sectors of rail, water and energy sectors
- London Olympics work ongoing
- Value of road building projects has increased fourfold
- A quick look on the Tracker website shows that there are currently 2996 construction contracts in their database
- £16bn Crossrail project
- £1.1bn for electrification of the Liverpool-Manchester line
- £100m prison being built in East Dunbartonshire
Is there reason for optimism for the future of the UK construction industry?
