Loading...
In the UK, construction is essential to our ongoing development and it continues to make a large contribution to the economy. Throughout the years, various fluctuations have altered the effect of construction on the country, but with 2.1 million employed in the construction industry in 2015 alone it is difficult to argue that it does not have a significant impact.
Housing
The largest sector in construction to see the most dramatic peaks and troughs is housing. Overall in 2008, output in the construction sector fell faster than the whole economy. With an equally pronounced recovery in 2009. Housing has since seen largely flat growth followed by a further dip and recovery 2012-2013. According to more recent stats, house building in Britain reached a record high in February. This is in sharp contrast to the rest of the construction sector, as following much uncertainty created by the EU Referendum and public spending cuts, a dip of 0.3% of the entire sector was seen in the same month.
The Sector
Whilst housing is just one of the many areas within construction, it is important to remember that construction overall is vital to continuous development. Everything from monuments and buildings to bridges and dams are covered by the industry and involve a great deal of skill, specialist equipment and expert logistics. The construction industry can also be seen as a mechanism of generating employment with job opportunities to suit a wide ranging level of skill. With such an emphasis on consistent support it is important to look to the future and consider predictions for what is to come.
Brexit and Current Forecasts
The biggest political issue of the year has undoubtedly been the UK’s decision to leave the European Union. Brexit has caused widespread controversy and ignited many a heated discussion. Affecting a wide range of industries, our decision to leave the EU will have an effect on all areas of construction. It is most likely that we will now leave the single market which could end the free movement of workers across the European Union. Although it is worth noting that there will be no effects short-term, stats suggest that a large proportion of construction workers come from the EU - around 12%. Around 65% of materials used in construction in the UK are currently imported directly from the EU. Although the pound has recovered from its initial drop, it is thought that the cost of materials could increase significantly, adding to the pressure on employees to increase workers’ wages. Whilst our future in the EU is uncertain, it is likely that other markets could open their doors seeing fresh trade into and out of the UK. We cannot be 100% sure of the outcome, but it is important that construction in the UK remains at the forefront of our overall development.
