A construction news update; it has been predicted that the current level of output in the construction level is set to spike considerably in the coming years, with recent construction industry research, as undertaken by Leading Edge, predicting a considerable jump of 3.3% on those figures achieved in 2015. This, in effect would represent a predicted figure of £135.3bn for 2016.
Signalling a boom period for the construction industry which has not been witnessed since before the recession, the figures actually outshine the boom period of 2007’s figure of £133.7bn; an incredible piece of good news for construction industry sceptics.
And looking at the various areas expected to see such considerable degrees of growth, the spread is, in fact expected to be quite far and wide, touching an assortment of industry sectors. Key areas, however, which are predicted to see a level of considerable growth include the private housebuilding sector, the industrial sector and also that of infrastructure.
While not dubbed as one of the key sectors to see massive growth this year, the commercial sector is actually forecast to enter the green once more, with a degree of growth expected, in contrast to the reduction witnessed last year; a statistic no-doubt welcomed by the industry.
Although many sectors are expected to see the benefit of the emerging boom, the public housing sector, however, has not been predicted to see growth this year, with a shortfall actually considered to be on the books for the year. An unfortunate prospect for the sector, but one which has arguably been predicted long in advance.
The figures, of course, do indeed highlight a very strongly performing sector in the whole. As such, industry optimism remains high, with Mel Budd, Director of Leading Edge commenting: “Although the Office of Budget Responsibility has just downgraded its GDP forecasts, the UK economy is still relatively healthy and one of the fastest growing western economies, which will help grow output in the construction sector.”