Key Note Media Centre
Building on Growth: The Construction Industry Begins to Recover
According to Building Contracting, a new Market Report from market intelligence provider Key Note, output in the construction industry fell by 0.8% between 2006 and 2010, to be worth £117.43bn in 2010 at current prices, including repair and maintenance work.
Private construction bore the majority of losses during the economic crises, with private commercial construction, private housing, and private industrial construction investment all suffering significant losses. With private commercial construction accounting for 32% of new construction work, and private housing accounting for 19.6%, losses in these sectors caused a major drop in output for building contractors. The relatively stable growth in construction for the public housing, infrastructure and other public work sectors was insufficient to offset those losses in the private sector.
A number of challenges are facing the construction industry, as well as the impact of the recession. Sustainability and carbon emission issues are increasingly important concerns to both the Government and consumers. The Government has introduced legislation to reduce carbon emission from homes to zero by 2016, with public- and private-sector non-domestic buildings following shortly after. The sustainable credentials of building materials and the waste produced by construction projects have also come under increased scrutiny in recent years
Despite these challenges, the UK construction industry is one of the largest industries in the UK and is a massive employer; as such, Key Note expects construction output to have recovered by 2013. In 2011 and 2012, public spending cuts are expected to offset any recovery experienced within the private sector. By 2013, public-sector spending is expected to have recovered somewhat and significant growth is expected to return in 2014 and 2015, buoyed by public-sector investment in energy infrastructure.
Press enquiries: Jack Sykes at Key Note at email@example.com or 0845 504 0452. Press/review copies of the report are available on request.