In the UK, the construction sector is one of the largest in the economy. Employing a staggering 3.1 million people, it’s no secret that the construction sector is going nowhere.
However, that doesn’t mean that it isn’t facing its own set of challenges in the next few years.
Over the last few years, we’ve seen the construction industry grow at record-breaking speeds. Accelerated by the pandemic, the construction industry boomed. With people no longer being able to spend their hard-earned cash on holidays or going out, many turned to look at how they could improve their homes.
However, the bad news for construction workers is that this is predicted to come to an end soon, with a recession looming on the horizon.
To find out why, read on.
What are the main factors causing the slow growth?
Firstly, one of the main reasons why the growth is predicted to slow is due to the current cost of living crisis. With energy costs rising to record levels, many people are finding their budgets squeezed, so are predicted to put off spending substantial amounts on home improvements.
There’s also the war in Ukraine adding into the mix. This conflict combined with rising prices across the board is likely to mean that construction materials costs reach record highs, which may not be absorbed well by many construction businesses.
However, it’s also important to bear in mind that slow growth was inevitable. For example, with the construction industry doing so well for so long, demand would naturally come down after a certain period of time, and that time looks to be now.
What will be the impact of reduced growth on the sector?
As a result of the slow growth in the construction sector, there are some positive impacts amongst the doom and gloom.
Due to the high growth, over the past few years, raw materials have been difficult to get hold of. Now, as the sector slows down, it’s predicted that raw materials will be more readily available for the projects that do go ahead.
You may be able to get your hands on tools more easily too, so if you’ve been putting off getting a new spanner set, now’s the time to strike!
What’s more, with reduced demand, it’s good news if you’re looking at undertaking a full-scale home renovation as prices are predicted to reduce to entice customers in!
Although it may seem like it’s all doom and gloom for the construction industry, the good news is that given the high growth in the constriction sector in recent years, some slowing down was expected.
So, if you’ve been struggling to get hold of tradespeople or raw materials, you might just be in luck this year…