The hiatus on growth this year ends the industry’s five-year run, which had been fed primarily by robust industrial and commercial activity as well as private sector homebuilding.
While the growth forecast for 2019 and 2020 will benefit trade contractors and civil contractors employed by housebuilders, commercial building contractors are expected to keep feeling the pressure in both retail and commercial work opportunities.
The Construction Products Association economists recently issued a forecast that revises 2018 results from stagnation to halting, due primarily to severe weather conditions and the aftereffects of Carillion.
- It is predicted that construction sector growth will resume in 2019 and proceed to increase by 1.9% in 2020.
- Robust housebuilding activity outside London will increase sector activity by 5% this year and 2% the year after.
- Private housing starts will go up by 2.0% this year and the next
- Commercial office construction will decrease by 20% in 2018 and 10% in 2019
- Output in commercial retail will fall by 10% in 2018 and remain level in 2019
- Infrastructure construction will increase by a mere 3.2% in 2018 and 13% the following year