British Construction Industry Recovers From Coronavirus, UK Housebuilding after COVID-19 Guide
UK Construction Industry recovery from Covid-19
12 Feb 2021
UK Construction Output Figures
New Construction Output Figures Show 2.9% Fall: Industry Comment
Commenting on the new construction output figures published by the ONS today which show a 2.9% fall in December, the first decline in monthly growth since April 2020, Clive Docwra, Managing Director of construction consultancy and design agency McBains, said:
“Following a period of successive months of growth where output had been gradually picking up, today’s figures are hugely concerning. Output was 3.5% below pre-coronavirus levels in December compared to November.
“The reason for the recovery over the previous months was due in no small part to a strongly performing housing sector. But the imminent end of the stamp duty holiday could see a reverse, especially when today’s figures show that private new housing work already fell by 3% in December.
“New commercial work contracts remain at low levels, with today’s figures showing a 6% fall in private commercial work. This is in part due to the office sector deciding on what changes to make to its real estate as a result of the pandemic and the impact on working patterns.
“All this uncertainty means that continued government public spending commitments are necessary to support an industry that is still feeling its way back after the impact of Covid-19.”
4 Dec 2020
UK Construction Industry Sector Update
New building projects fuel industry optimism
New order volumes in November grew at its fastest rate in six years with housebuilding a star performer, according to the UK purchasing managers’ index.
The survey pointed to the strongest degree of business optimism across construction since January.
Chartered Institute of Procurement and Supply group director Duncan Brock, said: “The sector is moving back to strength with another solid rise in output and gaining more momentum as new orders rose last month at the highest rate since October 2014.
“The energy behind this success was primarily the housing sector as sales remained buoyed by consumers rushing to meet the stamp duty relief deadline less than four months away and a rise in home improvement projects for locked down citizens.”
House building at 59 was the strongest out of an overall activity rate of 55 for November – above the 50 no-change value for the sixth consecutive month.
The EY ITEM Club chief economic advisor Howard Archer said: “Positively, the index observed there were signs the main growth driver has transitioned from catch-up work to new projects.”
More than half of the index’s panel forecast a rise in business activity during the year ahead, while only 16 per cent predict a decline.
Brokers Hank Zarihs Associates added property development lenders were reporting healthy levels of constructions loans and refurbishment finance applications.
Rising material costs fuel job cuts
Survey respondents reported on supply chain pressures due to increased demand with transport delays and stock shortages.
Materials costs, particularly for timber, had risen at their fastest rate in 19 months leading to job cuts, the index revealed.
“In a bid to dampen down the effects of the sharpest rise in input costs since April 2019, builders were reducing headcounts to keep their own heads above water leading to another fall in job numbers,” said Mr Brock.
“As more work fills the sector’s pipelines, the necessity to recruit is likely to become more urgent, and the shortfall could be reversed barring further disruption.”
The latest index activity results prompted the Federation of Master Builders to put more pressure on the government to extend the green retrofit scheme for homes beyond the end of March 2021.
Civil engineering returned to growth in November 52.3, while commercial work increased marginally to 51.9 – the slowest rate for six months.
Construction Industry recovery from Covid-19 images / information received 041220
Previously on e-architect:
12 Nov 2020
British Construction Industry Output Recovery
New Construction Output Figures Show Continuing Recovery
Commen on the new construction output figures published by the ONS today which show the construction sector maintaining its recovery with growth of 2.9% in September.
9 Oct 2020
UK Construction Industry Output Figures
New Construction Output Figures Show Slowdown In Growth: Industry Comment
Commenting on the new construction output figures published by the ONS today (9 October) which show a slowdown in output.
11 Sep 2020
Construction Industry Recovery From COVID19
New Figures Show Construction Industry Continuing To Recover From Covid-19 – But Output Below Pre-pandemic Levels: Industry Comment
Commenting on the new construction output figures published by the ONS which show a third successive month of growth, in the context of an industry that experienced a record 40% drop in output at the height of the coronavirus lockdown.
21 Oct 2020
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