Predictions for the Construction Industry - 2015
Indeed, we pride ourselves here at Safety Fabrications for having our finger on the pulse and bringing you the latest news in the construction industry and spotted this trend back last summer when we reported that things are looking up in one of our blog posts. All of us here in the UK are heartily sick of the depressed economic climate and we’ve been getting excited about rumours in the news over the past year that we’ve turned a corner and that the depression is showing signs of coming to an end. So, let’s now take a look at what some of the industry pundits are predicting for the construction sector in the coming year so that we all know what to expect in 2015.
The outlook for construction in Europe as a whole is looking rather sunny with the market expected to grow at 2% per annum over the next two years, with some forecasters being rather more optimistic, promising growth of up to 9%. This will be the beginning of what’s expected to be a protracted recovery and the UK construction market is predicted to grow 3 – 4% per annum along with Denmark, Hungary and Slovakia.
The UK recovery will be led by both housing demand and political conditions. The UK government sees house-building as an effective way to stimulate growth and increase jobs – however the government’s policies have created a bit of a bubble and house prices have been rising quicker than people’s ability to buy. However, domestic politics may have been to blame for some clients’ decisions, with uncertainty about Scottish independence last year leading some organisations to consider moving Scottish businesses south of the border. The North-East is likely to be the place where we see the most growth here in the UK, with London and the South-East also enjoying high levels of growth.
The good news is that technological innovations are set to spur on the upturn in the construction market. The Building Information Modelling (BIM) Task Group was formed to deliver the objectives of the Government Construction Strategy and this is likely to change the dynamics and behaviours of the construction supply chain and form more efficient and collaborative ways of working and put the UK at the forefront of a new digital construction age. This is likely to provide opportunities to exploit existing and new export markets for UK construction “know-how” and BIM ready products.
However, despite such a positive outlook, a panel of experts recently warned that there are challenges ahead. Despite a 7.8% increase in house prices in 2014, the pace of growth in property value is likely to slow down this coming year. This is being blamed on several factors including relatively slow growth in earnings and changes in stamp duty will do little to ameliorate the situation. Mortgage rates are falling and consumer confidence is increasing, so hopefully we will begin to see some real progress following the tentative upturn we saw in 2014.