Half of Construction Industry Professionals Report a Slump since Brexit
Here at Safety Fabrications we make sure that we keep our finger on the construction industry’s pulse so that we can bring you, our readers, all the latest news that’s likely to affect the industry as a whole or any of its sub sectors. During the run up to the summer’s EU Referendum we scoured the news to keep our readers up to date with the views and predictions of the construction industry’s movers and shakers. In the wake of the shock Brexit vote we made sure that we brought you all new developments as they happened, along with the views of the sector’s pundits, many of whom were predicting a slump in the construction industry as investors and potential investors waited for the dust to settle before making a financial commitment.
Last week saw the publication of the latest figures from Markit (the global financial information and services expert) revealed a worrying sign that the Brexit is likely to crush Britain’s economy following a “dramatic deterioration” since the UK voted to leave in June, 2016. The PMI (Purchase Managers’ Index) readings for the UK economy demonstrate that composite output fell to its lowest level since March 2009. This reduction, whether as a result of order book cancellations, a lack of new order or the postponement of existing projects, was commonly attributed to the Brexit vote.
According to the construction industry’s Building magazine, half of the industry’s professionals have lost work following the Brexit vote. Building’s latest survey of the industry (carried out during the last two weeks of August) shows that 49% of construction professionals have had job put on hold or even abandoned as a direct result of the Brexit vote. A massive 72% of respondents believed that Brexit would have a negative impact on construction activit5ies in the short term while only 10% believed that the impact would be positive. More mixed views were reported when it comes to looking at the long term picture but 42% were still positive compared with 33% positive and 25% unsure.
RIBA (the Royal Institute of British Architects) recently published its Future Trends survey of architects which shows that confidence in the industry has taken a sharp nosedive with the workload index falling from +22 to -7 in July. This is the first time since 2012 that RIBA’s monthly survey has returned a negative result in this way.
Other recent business and construction industry surveys are also demonstrating a worrying lack of confidence in the future of the industry and of business in Britain in general. Business Insider has revealed that British manufacturing production fell sharply in July (the first full month after the Brexit vote), by 0.9% a much bigger fall than had been predicted by economists. This is all worrying news for those of us who work in the construction industry, and the coming months may bring more gloomy news.