Chancellor George Osborne has drawn parallels between the changing fortunes of the British construction industry and the country’s economy as a whole.
As he delivered an extensive speech on the government’s plans for economic recovery last month, the Chancellor hailed an upturn in construction output – and the revival of projects that were previously put on hold – as reflective of “Britain turning a corner”.
This is being seen across much of the UK construction industry, with established barometers like the Purchasing Managers’ Index (PMI) showing the sector growing at its fastest rate since before the recession.
PMI data is collated by Markit and the Chartered Institute of Purchasing and Supply. The reading for August was the highest posted since September 2007.
The positive performance is boosted by pronounced increases in the number of new building projects being undertaken in housing and other segments, with temporary structures and other developments springing up around the country.
Sales of construction products continued to strengthen during the third quarter of 2013, according to the latest Construction Products Association’s state of trade survey. Private house-building and infrastructure construction remain the key drivers to growth but the rise in sales was more widespread than that seen in Q2, suggesting a broader base to recovery is developing.
There’s also been a threefold increase in the recruitment of senior executives in the building and construction industry this summer, according to head-hunter firm InterExec. This is significant, they claim, as recruitment of senior executives usually precedes the recruitment of more junior positions, so there is likely to be a substantial increase in broader recruitment in construction over the next six months.
And it’s also encouraging news for our neighbours across the Irish Sea. Ireland’s construction sector moved closer to stabilisation in August amid further growth of new business. Sentiment among construction firms regarding the 12-month outlook for activity strengthened in August and was the highest since January 2007. Rising new orders was the main factor leading to optimism, while panellists also mentioned improving economic conditions.
In this edition of Construction Magazine we Spotlight the tragic consequences of poorly installed automated gates. Building a Green Future highlights Hopkins Homes use of carbon negative blocks in all its new developments.
We Fast Track Midas CEO, Alan Hope and meet some of the newest industry appointments in Head Hunters. Get your diary and your passport ready for our digest of construction events happening around the world this month and 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
