A CONSTRUCTION FORECAST UPDATE
Recent construction news contains a mixed bag of good, very good, caution and gloom! Lets start with the gloom first. Forced closure which produces redundancies is to be noted with the likes of Cameron Black and Mivan moving into insolvency and the sell off of Euromix concrete. To have survived the years of recession and to fall during the upturn we are now experiencing, I guess, is very disappointing to those employees in those companies and a warning against complacency for others developing in the present resurgence of our industry.
However, on the positive side, the work is out there and it will still need to undertaken and completed, thus providing opportunity and employment for others. Talking of employment, it was reported yesterday (22.1.14) that the unemployment figures dropped far in excess of what was expected at a record pace. This demonstrates the economic recovery we are now experiencing but perhaps fuels the suggestion that interest rates will be increased earlier rather than later? Should this happen it will have an effect on the housing market as the chancellor and government will work against the possibility of inflation running out of control as sustainable growth is what we are all aiming for.
Lets look at some good news statistics. 6% commercial Construction growth forecast for 2015. This predicted upturn … in the commercial sector means that the housing recovery has assisted the commercial sector and the overall construction forecast has risen from 2.7% to 3.4 % over the past three months. This has to be seen as a significant rise. However, the two highest hindrances to construction growth reported presently are finance and a national skill shortage.
And, the Government has set a target of building 230,000 new homes this year and our PM has set a minimum target of 200,000. The growth in our industry is creating a 230,000 prospects for employment and one way the government is seeking to meet this skill shortfall is to promote and encourage SME’s to work in competition to the main House Builders. Supply and demand dictate price, but adding healthy competition lowers price by creating a competitive edge. It is also to be noted that in the global economy we now reside in, foreign investment currently holds a land bank in the UK for the development of 33,000 new homes.
So in summary, the forecast is good to very good and especially for Construction Managers and Construction Site Supervisors and all Trades.