The construction industry will grow 23% by the end of 2018 and contribute £12 billion to the UK economy over the next two years alone, according to the latest Construction Products Association Autumn Forecasts.
Key highlights in the forecasts include:
- Construction output will grow 4.8% in 2014 and 5.3% in 2015;
- The private commercial sector is set to increase 3.7% in 2014 and 6.1% in 2015;
- Roads construction will rise 46.1% by 2018
- Energy infrastructure is anticipated to grow 118.2% by 2018.
Dr Noble Francis, Economics Director of the Association, commented:
“Our Forecasts reflect a welcome, recurring theme as growth continues and begins to broaden. 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. We believe the expansion will continue through 2018.
“Recovery is not a foregone conclusion however, and several important risks remain, primarily around the strength of the UK and Eurozone economies, the policy outcomes following the 2015 General Election and the impact of any supply constraints such as the scarcity of labour and materials.
Infrastructure output is forecast to rise by 8.2% per year, on average, over the next four years. Roads construction is forecast to increase by 10.0% in 2014 and a further 5.0% in 2015 due to growth in the Highways Agency’s capital funding. Rail output is forecast to rise 8.0% in 2014 and 2015, but from 2016, growth is anticipated to slow, reflecting uncertainty regarding funding.
Dr Francis concluded:
“The Association’s central forecast estimates that construction output will rise 4.8% in 2014, a marginal change from the previous 4.7% estimate. Output is forecast to rise a further 5.3% in 2015, an upward revision from 4.8% growth in the Association’s Summer Forecast due to the continued strength of the UK economy.”
The Construction Products Association represents the UK’s manufacturers and distributors of construction products and materials. The sector directly provides jobs for 300,000 people across 20,000 companies, has an annual turnover of more than £40 billion and accounts for over 1/3 of total construction output.
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