Its great to read some positive news in the construction industry after months of negative reporting.
As inflationary pressures have been subsiding and construction output prices have been falling since their peak in July 2023, some of these benefits have arisen due to the lowering of construction material prices, the softening of shipping costs (until the recent crisis) and the decrease in oil and natural gas prices.
Growth has been attributed to the R&M (repair and maintenance) projects across all sectors but mainly from non-housing, this has come from many of the government’s retrofit schemes, with the increased investment in sustainability projects.
The industry is still susceptible to other pressures, like the election in the late summer, with both parties diverging on attitudes on sustainability, planning, housebuilding and infrastructure investment. Construction project costs remain high and the issues surrounding labour shortages, are still one of the top reasons construction firms are under financial pressure.
The UK has again missed its house-building targets, with just over 210,000 homes being built up to the end of the financial year ending March 2023, the target remains at 300,000 a year but many national groups believe the UK needs to be building double this amount to deal with the backlog and the housing crisis.
In a recent report published by the Centre for Cities, claiming the UK is missing 4 million homes, this is particularly prevalent in the Greater South East, where the average house costs more than 10 times the average salary, vacancy rates are below 1% and the availability in the private rental market is at an all-time low, with rental values rocketing.
London is feeling some of the benefits of workers being encouraged to return to the office, also lifting optimism for 2024, with refurbishments and renovation projects.
If you are a construction company and you are looking for site operatives, get in touch with Liam, who can help place construction workers almost immediately.