The Construction Economy In 2024
Predicted growth in 2024 and 2025
Where 2023 saw a significant fall in the construction economy, the Glenigan Construction Industry Forecast 2024-2025 predicts a strong ‘comeback’, with 8% growth in 2024 and another 7% in 2025. This prediction relies on an increase in bigger project starts in the background of a strengthened UK economy with decreased inflation and overall growth back on track.
The decline in UK construction activity is slowing
While the S&P Global UK Construction PMI noted a fall in construction activity in December 2023 – with a slow in housebuilding being the main cause, this decline is now slowing, and factors such as an increase in employment numbers and improved delivery times for supplies indicates a reverse of the trend in 2024. Material costs have also decreased over Q4 2023, and sentiment surveys by S&P found a more optimistic outlook across the sector.
The construction workplace in 2024
Investment in construction technology in 2024
It is essential for the industry to embrace digital transformation in order to grow and increase notoriously low profit margins. The PlanRadar Construction Digitalisation Survey found that the majority of construction professionals questioned are looking to invest in construction management software in the near future – a solid indication that the industry is looking to speed up output, increase margins and avoid rework through digital investment.
Cloud technology in construction in 2024
Cloud-based construction technology provides value to construction companies by enabling remote work, linking sites to the back office and providing construction with leading technology that saves time and enables seamless collaboration. PwC’s Cloud Survey uncovered the true impact of cloud across sectors, with cloud-enabled businesses realising value with increased productivity, cost savings and improved decision-making.
Diversity and inclusion in construction in 2024
More Women Working In Construction In 2024
The Office For National Statistics has found that more women are working in construction than ever before. With the labour and skills shortage being one of the leading problems for the UK industry, training and employing women in a traditionally male-dominated industry is one of the fastest and most effective ways to close the gap. While there is still a lot of work to be done to improve conditions for women in construction and close the gap, the increase is a very positive indication for construction’s future.
More Done To Accommodate A Neurodivergent Workforce in 2024
According to a survey around neurodivergence in the workplace by the Association of Project Managers, a significant percentage of employers are now making changes to the workplace to accommodate neurodivergent employees. Research by The National Federation of Builders in 2023 uncovered that up to a quarter of the construction industry is neurodivergent, meaning they will have conditions such as autism, dyslexia or ADHD. Construction is a popular sector for neurodivergent people to succeed, and accommodations will only make the sector more attractive to those who have the unique strengths and skillsets that neurodiversity brings.
Sustainability In Construction In 2024
Decarbonization is a Priority for Construction in 2024
Shell and Deloitte’s report on decarbonizing the construction industry saw overwhelming positivity on the industry’s approach to creating a sustainable industry with a positive low-carbon future. Over 80% of material suppliers and construction companies viewed decarbonization as a priority in the coming years, a positive indication of an industry ready to innovate and adapt to a green-led future.
H3: The Construction Industry Requires More Guidance on Implementing Decarbonization In 2024
The same report by Shell and Deloitte also uncovered the blockers that construction professionals are facing when it comes to decarbonization. Most found that the technology to reduce carbon output existed, but it was guidance and implementation that were the leading obstacles. With ‘net zero’ regulations and guidance continuing across the industry, there is a demand for more specific outlines around the approach.
Challenges in construction in 2024
Rising costs continues to be the biggest challenge in Construction in 2024
While the UK construction sector faces a wealth of challenges to navigate, the bottom line is still being impacted by rising costs of both materials and labour. The Construction Management Economic Outlook by Turner & Townsend found that 69% of construction companies have identified cost rises as having a medium-to-major impact on projects. Building strong supplier relationships and improving data collection through construction technology will be key to tackling cost issues in 2024.
The Impact of the Labour Shortage in 2024
The RICS UK Construction Monitor tracks what the sector believes are the most impactful issues in construction. Where financial constraints lead as a leading issue, the obstacle of the skilled labour gap has seen a fall across 2023. An increase in skilled apprenticeships and the continuing trend of training and employing more women in construction should see a continued closure of the gap – though it is still affecting over 50% of the industry.
Future-Proof Your Business With Access Construction
The UK construction sector is facing 2024 with a mixture of optimism and caution, with both growth and challenges on the horizon.
One of the best ways for construction companies to prepare for the future – however uncertain – is to invest in digital transformation and choose the right technology to increase productivity, boost collaboration and protect profit margins.
Access Construction’s software moves businesses away from spreadsheets and outdated systems to cloud-based solutions that streamline processes and encourage growth.
Access COINS is a construction-specific ERP software which helps construction companies take control of their cashflow, save time and cut costs by centralising your data.
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