Construction set for “ten more years of pain”

Grant Prior 11 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

Lonsdale went down owing £65m to supply chain

More than 600 firms owed money as reduced credit rating sinks M&E giant
36 mins ago

Hunt for delivery partner to revive New Hospital Programme

Programme delivery partner to get £600m fee to get plans back on track
12 hours ago

Green light for new £780m Essex garden village

3,700 homes and four new schools to be built at Dunton Hills
9 hours ago

Laing O’Rourke makes a £288m loss

Rampant inflation on fixed-price jobs and problem contracts blow hole in accounts
17 hours ago

Keltbray, OCU and Clancy clinch £1bn electricity network upgrade

Scottish and Southern Electricity Networks awards biggest ever deals for central southern England
2 days ago

G&T enlisted for commercial review of HS2 main civils contracts

Phase 1 Main Works Civils Contracts to come under cost scrutiny
15 hours ago

TClarke order books doubles to top £1bn for first time

M&E specialist on track to exceed £500m turnover this year
16 hours ago

Wates signs Government safety remediation pact

Private builder belatedly signs fire safety developer remediation contract
17 hours ago

Liverpool all-electric industrial park approved

McLaren and Caddick in chase for Sefton 800,000 sq ft Atlantic Park scheme
1 day ago

Former Buckingham Group MD to join John F Hunt

Simon Hyams is new Managing Director for Contracting
2 days ago

Three in race for retendered £150m A9 dualling job

Bidders take another look after client takes on more risk
2 days ago

Clancy tops £300m revenue in fifth year of growth

Civils contractor delivers £13.5m pre-tax from water and energy sector work
2 days ago

Tower crane collapses on Edinburgh resi site

Jib falls onto apartment block under construction: Video
3 days ago

Salboy drops office space from Viadux Phase Two

Developer to focus on Manchester residential towers of 76 and 23 storeys
3 days ago

Warwick Uni plan for science and engineering campus

370,000 sq ft science and engineering precinct submitted for planning
2 days ago

Morgan Sindall chalks up Greater Manchester schools treble

Bury, Stockport and Wythenshawe school jobs will create 1,600 pupil places
2 days ago

Plans in for £65m Blackpool multiversity campus

Council leads plan for Talbot Gateway learning campus
2 days ago

Laing O’Rourke wins first phase of £700m Oxford R&D district

Landmark Red Hall and two labs to be built in phase 1a of Oxford North scheme
4 days ago

Ardmore wins retrofit deal on £200m Chancery Lane office

Building will be transformed to provide 105,637 sq ft of office space
3 days ago

Construction’s “Leading Lights” recognised

More than 50 winners in latest Considerate Constructors Scheme awards
3 days ago

Balfour Beatty clinches £20m Norfolk coastal defence jobs

Firm will install rock armour at Cromer and Mundesley
3 days ago

Architects join construction union Unite

Section of Architectural Workers forms official branch
3 days ago

Boot to build £20m lightweight aviation composites factory

Work starts on Sheffield University's COMPASS R&D facility
3 days ago

GMI secures £27m Leeds City College job

Site clearance underway for new Mabgate campus
4 days ago

Balfour signs deal with Koreans for UK power transmission jobs

Contractor strengthens large-scale onshore power transmission capability
4 days ago

36 storey south London build to rent flats tower approved

Construction to start next year on £220m Croydon scheme
4 days ago

Hunt for firms for £400m volumetric offsite deal

Procurement for Housing aims to expand its pool of firms on major offsite framework
4 days ago

Graham wins £87m Jock’s Lodge junction upgrade

Spring start for East Riding A164 improvement scheme near Beverley
7 days ago

Giant concrete pour at HS2 Curzon Viaduct: Video

Over 2,000 cubic metres create the first two 90 metre viaduct deck structures,
4 days ago

Cladding safety contractors told to wear body cameras

Insurance giant AXA to record remedial work
4 days ago

Contractor services