{"id":95483,"date":"2021-06-30T14:42:06","date_gmt":"2021-06-30T13:42:06","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=95483"},"modified":"2022-02-06T19:57:43","modified_gmt":"2022-02-06T19:57:43","slug":"construction-industry-2021","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-industry-2021\/95483\/","title":{"rendered":"5 challenges the construction industry is facing in 2021"},"content":{"rendered":"

Being in the construction industry is an endless battle between pleasing the client and facing external challenges. The last year has been strange for everyone, yet the sector has still ploughed on. As we now approach the end of the last round of lockdown restrictions (hopefully), The Access Group<\/a> takes a look at the challenges in the construction industry in 2021<\/h2>\n

1. Covid-19 pandemic housing boom<\/h3>\n
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\u00a9\ufe0f David Calvert<\/figcaption><\/figure>\n

Over 70% of construction businesses<\/a> in the UK experienced a decrease in turnover during the Covid-19 pandemic. A similar number also had to completely cease operations in the same period, with planned projects cancelled or postponed, and the availability of goods and services being diminished.<\/p>\n

However, especially in the period of the third national lockdown, the pandemic has also seen other opportunities arise for a struggling sector. The stay-at-home orders issued throughout the course of the Covid-19 pandemic has led to increased consumer spending on home improvements and larger houses. While this is fantastic news for housebuilders<\/a>, they are also finding themselves battling for fresh supplies.<\/p>\n

This has led to a strained supply chain, with UK factories struggling to cope with demand. One builder\u2019s merchant faced an eight-month wait<\/a> for roofing materials, as opposed to the usual three. Naturally, this means builders are not able to complete projects as timely as they\u2019d like to, with the Builders Merchants Federation (BMF) expressing concerns on the number of houses that the UK is able to build.<\/p>\n

2. Material shortages<\/h3>\n
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\u00a9\ufe0f Trodle<\/figcaption><\/figure>\n

Material shortages is a continuing challenge<\/a> and the Construction Leadership Council (CLC) has warned the industry that it\u2019ll only worsen. As of the beginning of 2021, 71% of contractors face material shortages<\/a> – with lumber, steel and lighting being most-cited. The production of timber is not enough to meet global demand. This is a situation exacerbated in the UK, with other countries willing to pay more – pushing us down the pecking order.<\/p>\n

It is not only the pandemic causing materials shortage, but the ongoing disruption in the time since the UK has left the European Union (EU). The movement of goods, and people, was a big talking point of the hugely drawn out Brexit negotiations. In January, EU imports fell by a record \u00a36.7bN, only increasing by \u00a31.2bn in the following month – a very weak recovery. Aecom says<\/a> that if this were to continue there would be further disruption and higher prices until alternative sources of supply are found.<\/p>\n

This means, now more than ever, UK firms need to be really concerned about how they manage their projects and supply chains<\/a>. Keeping up with the very latest news in the industry will help them mitigate any issues that may arise. Having the right software in place, such as EasyBuild, and having the most up to date data will go a long way in being able to counteract future supply shortages. Having access to the latest information helps to make justified decisions as to when to order new materials.<\/p>\n

SEE HOW WE CAN HELP YOUR SUPPLY CHAIN\u00a0<\/span><\/a><\/p>\n

3. UK government targets net zero by 2050<\/h3>\n

The UK government is looking to deliver an \u201cinfrastructure revolution\u201d. As such it’s pressing ahead with its initiative to bring all greenhouse gas emissions to net zero by 2050<\/a>. It is looking to transform the construction industry to become more productive, more sustainable and more internationally competitive – with an emphasis on using data and more modern methods. Only two years in, there are already calls for the government to provide more support and funding for the sector.<\/p>\n

This is a huge problem for the construction industry – given that it accounts for 45% of total carbon emissions in the UK. Any given project can have a huge environmental impact. The site, tools, machinery and equipment all require a lot of energy. Heavy vehicles and machines also contribute massively to consumption. All this leads to a huge carbon footprint for the construction industry. We\u2019ve put together a helpful guide<\/a> to help your construction firm become more sustainable and improve corporate social responsibility<\/a> (CSR).<\/p>\n

Adopting the use of ERP software<\/a> and just-in-time (JIT) technology, means managers are able to only order stock when it\u2019s needed. This avoids unnecessary excess waste.<\/p>\n

4. Skills shortage in construction<\/h2>\n

It\u2019s been one of the ever-present challenges in the construction industry for years. The skills shortage<\/a> that we are now faced with has created a number of implications for firms and projects, including:<\/p>\n