Poor transport network development has been cited by UK’s business leaders as a critical barrier to inward investment and have called on the government to step up its investment on infrastructure construction.
Businesses are concerned that infrastructure improvements are not happening quickly enough. That is the main finding of the second annual CBI/KPMG infrastructure survey, ‘Better connected, better business’, published last month.
Responses from 568 business leaders during June and July identified transport infrastructure as the area of greatest concern. Nearly three-quarters of firms do not expect to see any improvement in transport infrastructure during the next five years.
The findings show that businesses see the quality and reliability of the UK’s transport networks as more important to their investment decisions than any other infrastructure.
Nearly two-thirds (61%) of companies think the UK’s infrastructure is less favourable than elsewhere in the EU, and 43% say it is worse than in other developed economies outside the EU.
The local road network is seen by two-thirds (65%) of businesses as being in decline, with congestion and a lack of investment identified as the main causes.
The railways fared better, with nearly half (45%) of companies seeing improvements to intercity rail connections in the past five years, and a positive balance of firms (64%) believing the planned High Speed 2 line would have a positive impact on their ability to grow.
Richard Threlfall, KPMG UK Head of Infrastructure, Building and Construction, said: “Actions speak louder than words, is the clear message of this year’s CBI/KPMG infrastructure survey. Business confidence in our infrastructure appears to be ebbing away. The key issue is how quickly can recent policy announcements translate into investment on the ground.”
We’ve seen real improvements in the UK’s digital infrastructure, but there’s continuing uncertainty over energy and transport investment. Everyone understands that the government is constrained financially, but the right government interventions will encourage the private sector to invest.
Surely, now is the time to act…
In this edition of Construction Magazine we spotlight the skills shortage crisis facing the industry. CITB-Constructionskills show that the sector is facing a skills vacuum with around one in six workers due to retire within 10 years and the number of young people in the industry more than halving since the start of the recession. So how can we ensure a skilled workforce for the future?
We look at the potential for the mass installation of green roofs in Building a Green Future and Fast Track Ron Charlton, CEO of space architecture and instrumental player in the launch of BIM.Technologies.
Meet some of the newest industry appointments in Head Hunters and get your diary and your passport ready for our digest of construction events happening around the world this month. Check out our round up of some of the most exciting European construction equipment launches.
All this, along with profiles on some of the industry’s best performing firms and the usual round up of UK & Ireland and World news.
Heather Campbell
Editor
