THE UK CONSTRUCTION industry is expected to add more than £12bn to Britain’s economy over the next two years, according to research conducted by the Construction Products Association.
Released yesterday (Monday, October 20), also said that the construction industry will grow 23% by the end of 2018.
“Our forecasts reflect a welcome, recurring theme as growth continues and begins to broaden,” said Dr Noble Francis, Economic Director at the CPA, which represents the UK’s manufacturers and distributors of construction products and materials.
“Short-term activity is still led by private housing, infrastructure and commercial, and areas of public sector construction are showing the first signs of increasing strength.”
But Dr Francis said that although expansion should continue through to 2018, recovery “was not a foregone conclusion” because several risks remained around the strength of the UK and Eurozone economies, alongside potential supply constraints, lack of labour and material shortages.
According to the CPA report UK construction output will grow by 4.8% in 2014 and 5.3% in 2015, before slowing a little to 4.2% in 2016, with the 2015 figure representing a firm upward revision from its previous forecast of 4.8% growth.
CPA Report Highlights:
It’s also good news for private housing starts, which are set to rise by 18% this year and 10% in 2015 – leaving starts at 148,000.
But in the long-term, slower rates of growth are forecast but by 2018 private housing starts will reach 171,000, forecasts indicate.
Infrastructure output is expected to rise 53.7% between 2013 and 2018. Growth in the sector is anticipated to be driven by a recovery in roads construction, combined with further growth in the rail and energy sub-sectors.
New roads construction is expected to grow by 46.1% between 2013 and 2018, thanks to increased capital investment from the Highways Agency.
Energy infrastructure is anticipated to grow 118.2% by 2018.
*Report and figures compiled from CPA information. For a full copy of the CPA report please click here