Construction Industry Update – Spring 2018 Overview

Qom Last month, we posted a blog which listed some factors affecting growth of the construction industry. Now we’re into summer, we thought we’d do another post – but looking at spring 2018 as a whole.

Sun Prairie Construction

One of the key things which started spring off on a bad foot was the Beast from the East. Followed by the mini one a couple of weeks later. Therefore, a good portion of March was spent with many parts of the UK suffering from sub-zero temperatures, meaning that there wasn’t as much work completed over the course of the month.

The Office for National Statistics have produced figures showing that the construction sector fell by 2.7% in March 2017 – the biggest fall since August 2012 according to their website. Whilst they don’t think the Beast from the East was the only contributor to the fall, the ONS does agree that it could have been a factor for part of this decrease.

Moving on from the adverse weather, an article on the Guardian talks about how in April, the construction sector recovered from the effects of the snow and ice. According to the article, the construction sector returned to growth in April – suggesting the previous month’s statistics were definitely weather-related.

We’ve already written this post on Brexit and the construction industry, so we’re not going into much detail here. Suffice to say uncertainty is playing its part again.

In other news, there have been calls for changes to building regulation in the report looking at the Grenfell Tower disaster last year. Construction News wrote about the subject in an article which talks about the report. As well as this, there is also news about the collapse of Carillion – The Construction Index’s summary of the inquiry into the company states that the way the company was run in an unsustainable way, which caused the collapse.

There have been many things affecting the construction sector this spring, for a variety of reasons. From the political to natural weather phenomenon’s, the industry seems to be at the mercy of outside factors affecting growth. Moving forward, this can only continue to be the case.

However, on a brighter note, the construction sector seems to be proving its resilience at the moment – as despite all these outside factors, it is still mainly growing. March was a difficult month, but the return of growth in April demonstrates the industry’s strength.

Continuing into summer 2018, we don’t see any of this changing. House building – as mentioned in our previous post – is growing, which is good for the sector. Factors like uncertainty over Brexit aren’t going to resolve themselves any time soon, although we’d like to predict that the sector should keep to the status quo of growing at a small rate over the next few months – providing there aren’t any surprises.


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Relevant Posts

Construction Sector Autumn Update

Construction Sector Update – Summer 2018

Autumn’s On It’s Way!

The Construction Sector And House Building

The Collapse Of Carillion – An Update

New Trends In The Construction Industry

Technology Which Could Change The Face Of Construction

The Impact Of Brexit On The Construction Industry

Construction Industry Sector Update – May 2018