24th August 2018
Future looks bright as reports show growth and the rise of innovative approaches that promise potential for economic boost. Read on for the latest highlights and news from the UK construction industry.
Modern Methods of Construction to boost UK Economy
The hunt to lessen the impact of Brexit has identified that modernising the industry via so called Modern Methods of Construction (MMC), including off-site manufacturing and advanced digital design, could potentially create an export market nearing £40bn a year for the country.
The global construction industry has averaged a year-on-year growth of only 1% over the last 20 years, compared to the 2.8% total growth of all other markets. Analysts suggest the stagnation is representative of using outdated business models and inefficient building techniques, making the industry ripe for disruption from the MMC and other innovations.
ONS Reports Growth in Construction Output
The Office for National Statistics (ONS) has published a new report that reveals construction output growth of 0.9% in the second quarter of 2018 despite a difficult start to the year.
New data shows that growth was ignited by a 2.7% increase in repair and maintenance work, however construction in the public sector (Health and Education) continue to show disappointing levels, accounting only for 5.3% of total work in the sector.
Sharp activity increase for construction in Ireland
New reports show Irish companies raising employment and buying activity as new orders continue to increase at a substantial pace. Ulster Bank Construction Purchasing Managers’ Index (PMI) showed a new reading of 60.7 in July from 58.4 in June, marking it the 59th consecutive monthly rise in construction activity in Ireland.
Commercial and House-building sectors maintain their positions as the strongest sectors in the field amid reports of incoming new business due to the rise in customer demand. This month sees a further improvement in confidence amongst construction businesses, with positive perspectives regarding the next financial year.
Rise in construction equipment sales
Sales in construction equipment continue rising as machinery sold in the first half of the of the year has superseded sales in 2017 by 5% during the same time period.
The most popular machine, Crawler excavator, showed the strongest increase in sales in Q2 at 11% higher than Q2 2017. Nonetheless, Sales are expected to slow down during the second half of the year as equipment sales traditionally peak in Q2 and fall in Q4.