Construction forecasts for 2020
According to The Glenigan 2020-2021 Construction Industry Forecast, UK construction industry prospects look cautiously promising for 2020/21, with the number of new project starts forecast to increase by 2% in 2020 and 5% in 2021.
This growth is expected to come primarily from housing, education, health and civil engineering projects. However, industrial, commercial and retail starts are expected to slow as businesses take stock of the effects of Brexit.
Unfortunately, the uncertainty around the Brexit trade deal that we negotiate with the EU will continue to affect the construction sector, together with the impact of sterling fluctuations on supply chains. With these uncertainties, it will fall to contractors to de-risk projects and to reduce unnecessary wastage wherever possible.
Meanwhile, the country and the industry’s response to climate change will have an increasing effect on decisions of not only of how, where and what to build, but also where to source our supplies from.
Get ready for a new era
In this landscape of cautious growth, Brexit uncertainty and climate challenges, contractors and sub-contractors will increasingly turn to technology and digital solutions to improve efficiency, reduce costs, cut wastage and speed up construction processes.
Fluctuations in sterling will continue to impact contractors buying materials from overseas, while changes to customs rules will affect the speed and availability of imported materials, especially for those projects that rely on just-in-time delivery. The changes in availability of skilled workers must also be factored in.
Whether you’re responsible for finance, commercials, cost estimating, quantity surveying or IT, those businesses that have a clearer view of changing market conditions together with fast access to accurate cost and supply chain information will be better placed to thrive in this new era.
With a positive outlook, 2020 should be a year of great opportunity in a rapidly changing construction landscape.
Why not make 2020 the year you take some time to review your estimating and quantity surveying systems and processes and get your house in order? Request demo