It’s been one of the hardest hit industries in the UK economy, but years of contraction could be at an end in 2013 for the construction industry. Despite mixed predictions from industry experts, say poor performance at the end of 2012, the industry could recover in 2013.
The Argument Against Recovery in 2013
Despite some experts sanctioning predictions of industry growth in 2013, others are wary of making the statement due to one very simple consideration ? poor weather conditions. Flooding has set numerous construction projects back significantly. And despite repair projects offering some revenue opportunities, it’s thought the adverse effect of the floods will outweigh the benefits.
The UK construction industry contracted by around 10% in the last quarter of 2012, something some experts believe cannot be ignored when predicting 2013 performance. The private commercial sector remains the biggest contributor.
Forecasting Improvements in the Industry
According to the Royal Institute of Chartered Surveyors (RICS), construction activity in the UK is likely to improve in 2013 following a poor year in 2012. ?The number of experts involved in the survey who expect growth in 2013 rose by 15% Further representatives reported an expected increase in workload, predominantly in the sector of infrastructure and public sector contracts.
The government announced in early January that a team of industry advisors is to be set up to create a ten year plan to boost UK construction. The panel is scheduled to produce a plan within the next six months.
The move follows Vince Cable’s announcement that the government is committed to creating workable business strategies to help various UK industries heal and grow. Construction is a priority. It’s thought subjects like sustainable housing and eco-friendly building look set to headline the initiative. Construction advisor, Peter Hansford, said the UK needs to work to bring innovation back into what was once a flagship industry.
Construction in Education
The government’s new school building initiative ? the Priority School Building Programme ? is set to create construction projects at 261 schools across the UK. The scheme was open to applicant schools with deteriorating buildings or poor resources. More than 500 schools applied for ?a slice of the ?2 billion pie. The 42 schools deemed most in need will be prioritised for building work. All projects are due to start within the next five years, although no completion dates have been set.
A large percentage of our generator client base is made up of those in the construction industry. These customers are predominately after things like portable electric generators and portable?industrial generators for use on site. We follow the ups and downs of the industry with keen interest to help us create custom rental/buyer contracts that suit the financial position of our construction industry clients.
As a supplier of industrial generators and products and services relating to the construction sectors, we’d love to see the UK make moves towards fiscal recovery in 2013.