Last year the construction sector figured in a number of our articles, particularly after the Grenfell Tower blaze wherein most of the blame fell on cladding issues. Now, with the new year upon us, is the industry still building on shaky ground?
The latest IHS Markit/CIPS UK Construction Purchasing Managers’ Index report noted a contrast between the growth in residential building and the reduced work on commercial projects, as well as “stagnating” civil engineering output.
Residential work rose for the 16th consecutive month in December while data indicated a moderate drop in commercial construction. Civil engineering work, on the other hand, ended a three-month period of decline.
In addition, construction firms indicated a “subdued degree of optimism” when it comes to business outlook for the next 12 months. The balance of companies projecting an increase in output levels remained among the weakest recorded since mid-2013 amid worries about the wider UK economic outlook.
“The housing sector was the strongest performer again and materials for residential building were in greater demand fuelling longer delivery times, shortages of key materials, and sharper input cost rises,” said Duncan Brock, director of customer relationships at the Chartered Institute of Procurement & Supply. “It appears that the continued fall in commercial activity was testament to Brexit-related uncertainty on the horizon and the sector’s fear about the direction of the UK economy as clients still hesitated to spend on bigger projects.”
Meanwhile, in an article published by
Construction Global, Steve Mansour – chief executive of construction insurance specialist CRL – noted that while there will be challenges, overall outlook for the industry is bright.
“2018 must be the year we encourage entrepreneurialism and further innovation in the construction industry and, because of this, we expect it to be the year of the SME builder,” said the insurance boss. “Not only will they continue to be the backbone of the industry, but we will see their agility and creativity come to the forefront.”
Mansour also cited the role technology has and will continue to play.
“There isn’t any doubt that technological advancements have already improved construction and we expect this to expand this year, through processes such as modular building and 3D printing,” he explained. “Expect more virtual reality and augmented reality use, with potential buyers visiting the shell of a virtual house, allowing them to design and configure a truly unique home.”
Related stories:
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How construction can rebuild public trust following Grenfell disaster
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