Construction set for “ten more years of pain”

Grant Prior 7 years ago
Share

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

dole queue

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

Historic London markets to move to Dagenham

Billingsgate, New Spitalfields and Smithfield to get new home together
3 hours ago

Plans in for 1m brick monument of hope

Construction of The Wall monument is planned to start later this year
4 hours ago

Trio selected for £135m Meridian Water civils packages

BAM Nuttall, Vinci and VolkerFitzpatrick in for London Lee Valley infrastructure work
5 hours ago

Major contractors to stop using dodgy umbrella companies

Big names sign charter to protect employment rights and promote equality
1 day ago

Berkeley to boost construction by 50%

Cash rich housing giant to hand out extra £455m to shareholders
8 hours ago

30 jobs to be axed as Sanderson Contracts shuts down

Yorkshire contractor collapses while working on two Easy Hotel projects
9 hours ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

Van Elle profit slides in first-half

Slowdown in rail work hits margins but revenue grows 13% on higher housing demand
9 hours ago

Amey hires collapsed glazing contractor boss

Craig McGilvray joins Amey to head FM and defence arm just a week after FGS collapsed
16 hours ago

Willmott Dixon nabs £20m Humberside police hub

Work to start in autumn on new operational support building
17 hours ago

Multiplex gets start date for £86m Glasgow Uni block

July start for postgraduate hub and business school building
1 day ago

Laing O’Rourke to build Gary Neville’s £200m tower scheme

Work to start this summer on St Michael's complex in Manchester.
1 day ago

Late payment bill to enforce 30-day terms

Latest legislation aims to outlaw abuse of subcontractors and supply chain finance schemes
1 day ago

Building safety police force to be run by HSE

Government promises "biggest change in building safety for a generation."
2 days ago

Report submitted on Shaylor directors following collapse

Latest update holds out little hope for more money for trade contractors owed £19m
2 days ago

Green light for new stand at Emirates Old Trafford

Lancashire Cricket Club will have the largest ground outside of London
2 days ago

SME contractors to have their say on CITB levy

CITB training system branded a "billion pound bodge job"
1 day ago

Green light for £137m Midland Metro eastside extension

New 1.7km Birmingham Eastside Extension will connect planned HS2 station at Curzon Street
2 days ago

HS2 review slams project team as costs could hit £106bn

Oakervee review to give "lukewarm" backing to project
2 days ago

Demolition winner for vast Elizabeth House job

Fierce competition for demolition package to pave way for new 31-storey tower at Waterloo
2 days ago

Anglo American commits to saving £2.5bn potash mine project

Mining giant aims to get Yorkshire construction project back on track
2 days ago

South Koreans buy stake in UK offsite specialist

Elements Europe aims to ramp up production with new factories
1 day ago

T+T secures PM role on Bradford Odeon job

Restoration of former 1930s Odeon cinema to be completed late next year
2 days ago

Robo cone layers to make life safer on road jobs

Automatic cone laying machines could be on site by end of the year
5 days ago

NAO raises alarm over cost of finishing Carillion hospitals

Spending watchdog warns a significant risk of £2bn cost of both hospitals rising further
6 days ago

Green light for Birmingham’s tallest tower

£150m Broad Street skyscraper will rise to 61 floors
5 days ago

Plan for £33m cross laminate timber office block

Developer Southern Grove plans 6 storey office block in London's Shoreditch area
5 days ago

GMI to build 14-storey Leeds hotel

Scheme will occupy last remaining plot on Sovereign Square site
5 days ago

Burglar caught after ransacking construction training centre

Rampage and robbery disrupts Sunderland training hub
5 days ago

Alligator park plan for £230m mixed use London site

Developer plans to turn iconic gasholder into reptile house on Old Kent Road
6 days ago

Contractor services