Turnaround is underway in the built environment after output falling for over a year, according to the latest Construction Market Intelligence (CMI) from leading construction and property management consultant, Rider Levett Bucknall UK (RLB UK).
According to its Q3 2024 findings, there is an improving market confidence which although dependent on the new government’s management of the economy, is seeing significant growth of nearly 18% and over 16% respectively in new work orders in the first two quarters of 2024.
Backing ONS data, RLB’s CMI Q3 found that new orders for private commercial work (new build and repairs and maintenance) are on the increase. Even more striking is the fact that in Q2 2024, almost 12% of total new work orders arose from the commercial sector, whether that be in actual new work or repairs and maintenance. This has been reflected with RLB appointed on projects including the Tower Bridge Court, a landmark net zero workspace on the River Thames.
Across RLB’s 14 offices around the UK, the outlook is also positive, with the reduction in the base rate of interest to 5% hopefully helping confidence levels across the board, and possible future investment.
Labour shortages ongoing
However, RLB’s Construction Market Intelligence (CMI) highlights the ongoing concern from many contractors and subcontractors around labour shortages, lending weight to the need for political solutions and planned programmes of skills development.
The new government’s aim to abbreviate the planning pathway, while useful in bringing projects to market more speedily, has the potential to encourage price inflation should excess workload appear in a restricted timeframe, particularly in the case of labour-intensive projects such as housing.
Roger Hogg, RLB’s Head of Research and Development Manager comments, “Overall, the watchword of this quarter’s report findings in respect of tender pricing is ‘stability’. While some regional forecasts have been trimmed slightly, there is prospect of more work entering the marketplace next year, which is set to constrain any current breakout of price inflation on a project basis.”
Click here to read RLB’s full Construction Market Intelligence Q3 2024.
Building, Design & Construction Magazine | The Choice of Industry Professionals
