The Government’s Help to Buy will soon start to take full effect and with mortgages becoming easier to get, the next five years will see the construction industry contribute approx. £120bn per year to the country's output. Housing is predicted to account for a third of this figure.
Figures show that only 108,000 homes were completed according to the last full-year data available - this is less than half the target set for 2016 of 240,000 new homes a year. It is clear that to achieve this, the country needs two main things: building products and people with the skills to build.
The report from the CITB states that 182,000 new construction jobs will be created by 2018 to help meet these targets.
This news should fill manufacturers and distributors with great confidence that their products and services will be in demand for the medium term - with so much potential new business to win, the more astute building product manufacturers and merchants are already recruiting to ensure they get their fair share.
At Pinnacle Consulting we have seen a noticeable increase in new Business Development and Specification Sales roles being created.
Contact us if you are looking for a job in construction sales? or looking to recruit?
Over the next five years, performance across the UK construction industry is expected to show:
- Output growth will be strongest in the South West (+3.5%), Wales (+3.4%) and East Anglia (+3%) – all set to perform above national average of 2.2%
- The North West (+1.3%), the East Midlands (+1.1%) and the West Midlands (+0.8%) will be slower to feel the effects of the return to growth
- Private housing will be the chief driver for construction’s growth and the sub-sector will see a 7.0% rise in output in 2014, followed by 5.0% in 2015. On average, it will grow by 4.6% a year to 2018
“The report shows that the economy is turning the corner and the UK construction industry will benefit from that. But growth needs to be sustainable; underpinned by long-term infrastructure projects and continued investment.
“The Government’s Help-to-Buy scheme has kick-started demand across the housing market and announcements on nuclear power, rail and roads have the potential to breathe fresh life into infrastructure and industry. Alongside this, we’d welcome fresh incentives to encourage house building, and the assurance that major infrastructure projects in the pipeline go ahead as planned.
“Employment (in construction) in 2018 is predicted to be 196,000 below pre-recession levels, which is why measures must be taken now to ensure growth is sustained over the long-term.”
Stewart Baseley, executive chairman of the Home Builders Federation, said: “Help to Buy has addressed the biggest short-term constraint on supply and as a result, builders are increasing output and looking to recruit in all areas – as outlined in the report.
“All political parties recognise the social and economic benefits of increased housing supply and policies need to promote this, but as the economy recovers, and lending conditions improve generally, we look to the future with confidence. To build the homes the country needs we will need a bigger and suitably skilled workforce and we are working with the industry to put this in place.”
More information can be found here on the report.
Image thanks to: "Engineers Planning House" by njaj FreeDigitalPhotos.net