Construction set to grow by 14% this year

Grant Prior 1 month ago
Share

Industry forecasters are predicting construction output will rise 14% this year and 4.9% in 2022.

Experts at the Construction Products Association now believe the industry will see a ‘W’-shaped recession and recovery.

The CPA’s latest scenarios take into account the current lockdown and are a downgrade on last summer’s numbers when an 18% increase was predicted this year before the second covid wave hit.

The 14.0% rise in 2021 follows an estimated contraction of 14.3% overall last year caused by the sharp fall during the first lockdown.

Output is now only expected to recover to pre-Covid levels in 2022 and “there is also the risk that once the furlough and self-employment support schemes end in April, there may be a sharp rise in unemployment that could potentially dampen this recovery.”

Private housing was one of the quickest sectors to recover in 2020, with mortgage lending and property transactions above pre-Covid levels at the end of the year.

Demand for private housing is expected to moderate in 2021 after these policies end on 31 March and then subsequently pick up once again in line with the economic recovery throughout late 2021 and 2022.

CPA Economics Director, Noble Francis, said: “The long term impact of Covid-19 on the structure of the economy still remain.

“This continues to leave questions about the fortunes of certain construction sectors. This is most notable in the commercial sector, where there is still lots of uncertainty about the future of retail and office space.

“It will be crucial to observe how businesses change their operations as the vaccine is rolled out in the coming months and to what extent there is a ‘return to the office’.

“While the fortunes of some sectors have been tied to Covid restrictions and associated business and consumer confidence in the wider economy, infrastructure has largely escaped such uncertainty.

“Projects have been able to effectively enact safe operating procedures given the sector’s large construction sites that have fewer different trades mixing than in most sectors.

“As such, infrastructure has been least-affected by Covid restrictions and output is expected to lift the whole industry over 2021 and 2022.

“Main works on HS2, Europe’s largest construction project, along with offshore wind and nuclear projects are expected to be the main drivers of activity.”

Latest news

Elland Steel ownership shifts to employee trust

Family of Halifax steelwork contractor sell to workforce trust
10 hours ago

Bechtel’s £100m HS2 legal claim over contract award fails

American giant has procurement complaint dismissed
15 hours ago

Commercial jobs spur February new orders rebound

Optimism levels among buyers hit five year high despite supply challenges
19 hours ago

Amey raids Ringway Jacobs for highways chief

Andy Denman joins Amey in May to lead local authority highways growth plan
17 hours ago

ISG tops February contracts league with mega-shed job

Big logistics projects boost ISG, TSL Projects and Winvic
22 hours ago

Galliford Try returns to profit and resumes dividends

Business achieves 1.6% operating margin in improved first-half year
21 hours ago

Vistry sets aside £20.9m for cladding retrofits

House builder reports strong second half in 2020 and start of this year
21 hours ago

Robertson starts work on £22.4m robot centre

National Robotarium in Edinburgh to open in spring 2022
22 hours ago

Willmott Dixon wins £16m Notts leisure centre

Bingham town leisure centre project includes a swimming pool, adjacent community pool and workspace
22 hours ago

First eight freeports to lead regional regeneration drive

Chancellor unveils free trade zones in East Midlands, Felixstowe, Humber, Liverpool, Plymouth, Solent, Thames and Teesside
2 days ago

Bristol Beacon refurb cost doubles to £107m

Council agrees extra investment after Willmott Dixon discovers major structural issues
2 days ago

Corporation tax to increase to 25% in 2023

Chancellor also unveils "super deduction" scheme to boost construction investment
2 days ago

Groundworks firm moves to employee ownership

Brother and sister owners sell Fitfield to 60 strong staff trust
2 days ago

Persimmon doubles size of construction quality hit squad

House builder to boost team of build quality inspectors to 60
2 days ago

HS2 shortlists quartet for £540m signalling contract

Alstom, Hitachi, Siemens and Thales in race for phase one contract
2 days ago

Osborne forms JV for zero carbon housing retrofits

Partner Passivhaus specialist Bow Tie Construction to offer innovative carbon reduction techniques
2 days ago

Leeds to spend £100m on council home energy retrofits

Five-year programme to install heat pumps, district heating, wall insulation and solar panels
2 days ago

Utility contractor Falco sold to staff

London contractor becomes the latest to be sold to Employee Ownership Trust
3 days ago

Keltbray lands first major roads package

Specialist bags £14.1m bridges deal from Costain/Jacobs as it targets highways sector
3 days ago

Lee Marley Brickwork launches Scottish scaffolding division

Industry veteran Billy Dolan to lead latest brickwork and scaffolding offering

Interserve resurrects Tilbury Douglas name in rebrand

New Tilbury Douglas branded business targets £500m revenue this year
3 days ago

Taylor Wimpey pledges £125m for cladding and fire safety retrofits

Pre-tax profit slumps two-thirds to £264m as margin halved to just over 10%
3 days ago

Fusion21 names line-up for £1.1bn FM framework

Successful firms include BAM, Bouygues, Galliford Try and Eric Wright
3 days ago

Major pharma HQ in London’s King’s Cross approved

Work could start on 220,000 sq ft research facility before the end of 2021
4 days ago

Union fears over plan to house site workers on cruise ships

2,000 builders could live on ships during construction of London Resort in Kent
4 days ago

Another ISG director joins Structure Tone

Justin Fahy joins former ISG colleagues as Commercial Director at fit-out specialist
3 days ago

Stoke lines up Bowmer & Kirkland for new urban quarter

Goods Yard plan includes 180 homes, 150-bed hotel and workspace
4 days ago

£60m London Stratford student complex approved

Work to start later this year on 282-room student complex near the Olympic Park
3 days ago

D-day for VAT plan cutting cash flow across construction

Reverse charge scheme is now active despite industry lobbying
4 days ago

Project SPEED aims to slash costs and halve time of rail upgrades

Rail minister urges industry to pioneer faster, smarter and more efficient projects.
4 days ago

Contractor services