We asked in our Autumn Report whether the UK construction industry was in for a trick or a treat. Now that 2023 has arrived, our latest construction update shows that the picture isn’t much clearer, with many of the challenges faced in 2022 continuing at the beginning of 2023 …
As inflation remains high and industrial action causes turmoil, are there opportunities for construction behind the headlines?
We received food for thought in our Winter survey responses: “Who better to move into the project management of building a new hospital ward than a nurse?” one shrewd commentator asked. Tech company layoffs could also help the future of construction by creating opportunities to invest in digitalisation, improving efficiency and productivity within the built environment.
Many of our survey results were heartening. Only 3% of our survey respondents said the Autumn Statement was worse than expected. Feedback highlighted that collaboration remains high to overcome the challenges faced with cost escalation and project viability.
In our UK Construction Market Report, we examine the market and extensive construction data, shining a light on:
Wider context, including economic outlooks and the Russia-Ukraine war
There are widespread economic challenges, with the UK’s economy expected to shrink in the first half of 2023 and the global economy forecast to weaken this year. Will this detrimentally impact the industry, or does it present an opportunity to steady the ship after the recent challenges?
Site productivity, labour and materials
Following significant cost escalation in recent times, are materials prices beginning to reduce? Our survey respondents were optimistic that the picture was settling overall; however, some issues remain and construction industry statistics show that certain products still see price increases.
Tendering and contracts
As the market is changing with industry reports of slowing opportunities, what is the outlook for construction tenders? Is activity shifting to particular sectors and is the supply chain changing its pricing approach to secure work?
Inflation forecasts, sector and regional insights
Local market knowledge is vital to ensure successful projects. Our UK Construction Market Report includes typical construction inflation forecasts and intelligence on key regional issues for construction organisations across the UK.
The built environment is facing uncertainty as we progress into 2023, but there are some glimmers of hope. Our UK Construction Market Report takes a closer look at key construction trends.