If all three of these projects succeed, the sector will represent 45% of all construction growth in the period according to the Construction Industry Training Board (CITB) and will replace the residential housing sector as the main driver of growth in the industry. The Office for National Statistics (ONS) confirms this with infrastructure growing by 4% over the preceding three month period and private housing by 3%.
Overall, the CITB has recently lowered its five year growth forecasts for the construction industry, down to 1.7% per year up to 2021, with concerns over rising costs and labour shortages as a result of Britain’s decision to leave the EU one of the drivers of this.
Tony Brennan, Director – Quantity Surveying, commented: “Brexit is having a clear impact on the construction industry. Unless skills shortages and rising costs of imported materials are addressed, they will severely hinder the government in achieving their own construction targets and ultimately have an adverse effect on wider economic growth.”
To find out more, click here to read LSH's latest Construction Market Briefing.