UK Construction Industry Returning to Pre-Recession Levels
A series of large road, rail and energy projects is expected to propel the UK construction industry to levels not enjoyed since before the latest recession hit. Reports by the Construction Products Association (CPA) reveal that the industry is anticipating a 3.6% growth in 2016, and 4.1% growth in 2017 – generating over £10bn.
Despite the industry suffering its weakest month for almost a year in January 2016, CPA Director, Noble Francis remains upbeat about the construction’s immediate future.
“[We are] positive about the next 12-18 months because the fundamentals in the sector are still good. It’s been a tough decade for the industry due to the prolonged impacts of the financial crisis so the growth is a welcome relief.”
Housebuilding has been a major contributing factor to the sector’s growth, driven forward by schemes such as the Government’s Help to Buy programme – necessitating a huge number of new build properties. In the next two years alone, the number of new homes built in the UK is expected to grow by 22.7%.
Similarly the Road Investment Strategy run by Highways England has secured £15.2bn to help improve the nation’s roads.
These schemes combined with an anticipated 56.9% increase in infrastructure projects between now and 2019 has helped cement the industry’s significant growth.
Undoubtedly the largest single project to contribute to this growth is the planned HS2 rail link, which will cost a mighty £42.6bn if completed on time and on budget. Following this is the less glamourous £4.3bn sewer which will run for 16 miles under the tidal section of the River Thames. Work has started on the Thames Tideway Tunnel this year, and is planned for opening in 2023.
The capital again will benefit from the £563m upgrade of central London’s Bank Station. However, there are concerns that the large number of massive simultaneous projects could lead to a series of delays.
The electrification of Midland Mainline and Transpennine rail routes have already been delayed, and the new Hinckley Point C power station, planned for a 2025 opening, may also be subjected to significant delays.
But in better news the schools building programme which was scrapped by the coalition government when they came to power in 2010 looks set to the reignited, although not to the same scale as was previously planned. The total spending on schools looks set to grow by 22.5% by the end of the decade.
All of these signs suggest that it is a good time to be involved in the construction business. If you need to stock up on extra construction and safety equipment, the Manchester Safety Services store has everything you could need. For the full range, visit our homepage, here, or call our dedicated customer services team on 01706 364943.
