29th June 2017
June was an interesting month for the construction industry. With a shock general election result, many businesses across the industry are wondering what the implications for construction will be. On a positive note, UK construction activity has hit a 17-month high. Here we take a closer look at the latest headlines
General Election: Implications for construction?
June saw a month filled with a raft of political activity. With a surprising outcome in the General Election, resulting in a Hung Parliament- many within the industry are questioning ‘What are the implications for construction?’ According to PBC Today, housing and skills are high priorities for discussion especially as the country waits to understand the implications of BREXIT. Building.Co.Uk provide a breakdown on each of the main parties’ pitches to the construction industry. Read them in full here.
CIOB sets up commission to probe control of build quality
June saw The Chartered Institute of Building launch an investigation into the issue of build quality. The investigation was triggered by the report into the defects that led to the closure of 17 schools across Scotland. The goal of the Commission is to outline and recommend what steps the CIOB need to take to address issues around management and supervision and , the importance for the industry’s education framework for improving build quality.
Construction Contracts Shifting Away from London
According to The Telegraph, construction contracts on major infrastructure projects have shifted from being highly focused on London to even more spread out across the country. In 2016 Scotland and the West Midlands had the highest growth in value of contracts with just three areas of London appearing in the top ten places. This is according to research by Barbour ABI and the Construction Products Association. More here via The Telegraph.
UK construction activity rebounds to 17-month high
June brought good news on the construction market front. According to figures published by The Purchasing Managers Index (PMI), activity in the construction sector rebounded in May to its highest level for almost 18 months. Respondents to the survey highlighted a strong pipeline of projects as well as high demand for homes despite a significant slowing in house price inflation.
In addition, The Office for National Statistics stated that both public and private housebuilding has been the strongest part of the construction sector over the past year. More here via Construction Enquirer.
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