Construction set for “ten more years of pain”

Grant Prior 13 years ago
Share

Construction output will not recover to its 2007 peak until 2022 with the industry set for “ten more years of pain.”

That is the bleak warning from forecasters at CITB-ConstructionSkills in their annual Construction Skills Network report.

The report paints a grim picture of 2012 with:

  • 20% downturn in public sector housing and non-housing construction;
  • 5% downturn in private housing construction;
  • 10% per cent downturn  in commercial sector construction and;
  • 15% downturn in infrastructure construction.

And the prospects for the next five years from 2013 – 17 are equally bleak.

The report forecasts that nearly every sector of the industry will continue to struggle with only the private housing, repair and maintenance and industrial sectors predicted to achieve anything like consistent growth.

As a whole, the industry will only grow at an average of 0.8%, and will not match its 2007 output peak until 2022.

This weakness is reflected in a predicted fall in construction employment every year from  2013-16, reaching a low of 2.36m – the lowest employment level in the industry since 2000.

Recruitment to the industry is predicted to run at an average of 29,050 a year from now until 2017 – largely to fill vacancies arising from those leaving the sector.

Across the UK only Greater London and the East of England can expect to see employment actively grow in this period.

Judy Lowe, Deputy Chairman of CITB-ConstructionSkills, said: “Client and consumer confidence is low and it is keeping growth levels down.

“Worryingly, the outlook doesn’t look much better – by 2017, construction output will still be 12% down on its 2007 peak, and employment 17% down on its peak in 2008.

“Indeed, we don’t anticipate the industry returning to its former levels until at least 2022 – meaning this will be one of the most difficult periods for construction on record.

“What’s bad for construction is bad for the economy, so doing nothing is not an option. There is too much at stake.”

A deputation from the Construction4Growth campaign will meet Ministers at an 11 Downing Street Summit tomorrow where a ten point plan for working with Government to secure growth and support the industry will be discussed.

The plan examines:

  • ways to get projects  delivered as part of the Government’s pledged capital investment in construction;
  • investment in shovel-ready repair and maintenance projects to get unemployed construction workers back on site and;
  • a mandatory requirement for teachers to undertake taster courses to understand the value of a vocational career.

Latest news

True cash cost of HS2 to date tops £40bn

New figures ditch 2019 prices as project switches to full cash terms
17 hours ago

Guinness opens bidding on £250m remediation framework

Fire and structural remediation jobs up for grabs nationwide
16 hours ago

Wills Bros wins latest £152.7m A9 dualling deal

Contractor beats off competition from Balfour and Graham
2 days ago

Lorne Stewart pulls plug on modular arm as losses mount

MDSL modular business wound down as parent LSRM reports £1.9m loss
2 days ago

New law to force tower block cladding fix by 2029

Jail threat looms as £1bn fund launched to fix unsafe social housing
3 days ago

Infrastructure Pipeline published with 780 projects worth £530bn

New online tool to provide live updates on hundreds of schemes
3 days ago

World’s largest crane lifts Hinkley dome: Video

Construction times cut by 30% on nuclear site
3 days ago

Aviva funds council housing push in north London

Barnet council seals first big institutional funding deal for housing
2 days ago

Tarmac lands Welsh road repairs deal

Tarmac will also be able to bid for improvement work on the A55 North Wales Expressway
2 days ago

Flannery invests £22m with JCB to boost fleet

Plant hirer strikes latest deal with machinery giant as fleet investment continues
3 days ago

BAM boots Danny Sullivan off £100m HS2 bat tunnel

Contractor terminates labour supply deal on controversial project
3 days ago

Mace confirmed for £200m Paddington overstation job

Helical JV also sets start date for 429-room student job over Southwark station
3 days ago

Kier names new construction boss for clients and markets

Rebecca Boundy promoted to lead sector teams after year of framework wins
3 days ago

Elements Europe went down owing supply chain £8.7m

Korean owner kept offsite specialist afloat with £71.8m of loans in bid to stem losses
4 days ago

Bristol awards £288m civils and highways framework

Eurovia, Tarmac, Colas and regional SMEs share 10-lot deal
3 days ago

Kier seals PCSA deal for £55m Bridgend school

Heronbridge special school move back on track after cost hike and delay
3 days ago

Mobile crane fire closes M11 motorway

City Lifting machine catches fire in Essex
3 days ago

Altius and Erith win landmark London tower rebuild

Westminster council advances Huguenot House redevelopment
4 days ago

Corbyn suppliers left £4.4m out-of-pocket

£33m-turnover civils contractor only employed eight staff
5 days ago

McAlpine to restore England’s largest Victorian water tower

Colchester’s iconic ‘Jumbo’ to be reborn as visitor destination
4 days ago

Andrew Scott lands £20m Grand Pavilion revamp in Porthcawl

Restoration of landmark Art Deco building gets underway with 2027 finish target
4 days ago

Keepmoat profit drops 35% as completions slide

Land pipeline expands to 24,400 plots as firm eyes rebound
4 days ago

Bid race begins for £425m water transfer scheme

Contractors invited to help shape Affinity Water project
4 days ago

Legacy building defects return to haunt Barratt Redrow

House builder sets aside £248m for Redrow fire and concrete frame fixes
5 days ago

Skanska agrees £153m price to revamp A47 Thickthorn junction

New link roads and underpasses to ease traffic near Norwich
5 days ago

First tower plans go in for £1bn Liverpool Pier Head site

First design will "set tone" of scheme which could contain 60-storey tower
5 days ago

Barhale creates new low-carbon chief board role

Haddon takes board seat while Solomon becomes eastern regional director
5 days ago

Met Police preps £300m framework for estate upgrade

Early market talks start ahead of October bid contest
5 days ago

Raft of SME firms win £94m framework places

More than 50 demolition and asbestos specialists chosen: Full list
5 days ago

GRAHAM gets go-ahead for £110m Boddingtons Brewery revamp

Work to start this summer after Gateway 2 approval secured
6 days ago