{"id":141286,"date":"2024-07-02T10:14:06","date_gmt":"2024-07-02T09:14:06","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=141286"},"modified":"2024-07-02T10:14:06","modified_gmt":"2024-07-02T09:14:06","slug":"construction-industrys-long-term-growth-reliant-more-favourable-conditions","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-industrys-long-term-growth-reliant-more-favourable-conditions\/141286\/","title":{"rendered":"Construction industry\u2019s long-term growth reliant on more favourable conditions"},"content":{"rendered":"

Mace\u2019s latest UK Market View<\/a> demonstrates that expectations should be managed when it comes to the construction industry\u2019s long-term growth as it depends on more favourable conditions and the approach of the next government<\/h2>\n

Mace\u2019s current tender price inflation forecast nationally has not changed since earlier this year, standing at 2.5% for 2024 and 3% for 2025 and 2026.<\/p>\n

The figures for London remain at 2% for 2024, 2.5% for 2025, and 3% for 2026.<\/p>\n

Market conditions are becoming slightly more favourable<\/h3>\n

Looking widely at the market, material costs are down 2.3% in annual terms, and total construction new orders are higher than at the end of 2023.<\/p>\n

The report highlights that labour cost pressures continue to ease, and insolvencies in Q1 were at the lowest level since the end of 2021.<\/p>\n

Another challenging quarter for construction output<\/h3>\n

This quarter, construction output shrunk by 0.9%, and pipelines remained weak.<\/p>\n

The report also found that earnings growth is lower than the average for the whole economy, and vacancies remain high.<\/p>\n

There are around 40% more vacancies than in 2019, worse than the wider economy.<\/p>\n

In its latest outlook, the CITB also suggested that an extra 251,000 construction workers<\/a> will need to enter the industry over the next five years.<\/p>\n

Will new government policies affect the construction industry\u2019s long-term growth?<\/h3>\n

Indicators suggest that new government policies will take time to have an effect.<\/p>\n

It would, therefore, be surprising if anything fundamental changed over the coming months.<\/p>\n

However, there is hope that as we move into 2025, progress will be made.<\/p>\n

Creating the right environment for infrastructure projects is essential<\/h3>\n

Oliver North, director of cost and commercial management, UK & Europe, Mace Consult said:<\/p>\n

\u201cThe next government needs to help create the right environment for infrastructure projects to help productivity and in turn attract investment to the UK. However, long-term growth is something that the industry will need to be patient for as key metrics remain mixed.<\/p>\n

\u201cWhile the electoral outcomes domestically and overseas have the potential to impact costs and affect our industry, as a sector we are always working proactively to be ready to deliver. Best practices remain paramount; there needs to be close alignment between clients, consultants, contractors and subcontractors with supply chains engaged early and working collaboratively to ensure optimal outcomes.<\/p>\n

\u201cFrom a cost perspective at least, conditions do seem to be becoming slightly more favourable, albeit not enough for us to adjust our tender price outlook.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Mace\u2019s latest UK Market View demonstrates that expectations should be managed when it comes to the construction industry\u2019s long-term growth as it depends on more favourable conditions and the approach of the next government.<\/p>\n","protected":false},"author":31,"featured_media":141292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[172844,276,579,21873],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-141286","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-2024-general-election","9":"tag-government","10":"tag-infrastructure","11":"tag-mace"},"acf":[],"yoast_head":"\nConstruction 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