Following the announcement inÂ the Spring Budget that the UK's economy is continuing to grow, Paul Morley, Managing Director of Chalcroft, reflects on what this news will mean for the construction industry.
There was natural uncertainty following the referendumÂ with regards to the state of the UK economy and as a result, building and construction suffered a momentary downturn. However, weâ€™re seeing that momentum is gathering pace and recovering from the previous dip â€“ illustrated by figures released earlier this month which showed construction output rose for the sixth consecutive month in February. The clarification that the economy is stronger than expected, coupled with the market data will no doubt encourage more businesses to commit to development.
The growth in the UK economy has had a positive impact on our clients too, with many industries looking to expand their operations, whether by opening new facilities or expanding and refurbishing their current premises. For specialist construction projects, for example in the food and drink sector, it can be more beneficial to relocate to incorporate bespoke hygiene and safety standards, than to expand existing premises. Plans announced today to invest further in transport infrastructure improvements will also encourage developers to look at alternative build sites across the country.
We are pleased to see the announcement of Â£500 million investment in technical education, with construction listed as one of the key topics. This is certainly welcome news for the industry, particularly following concerns that the sector is suffering from a skills shortage. This will hopefully encourage more young people to pursue a respected and recognised career in construction and promote the opportunities available to them.
The Budget is further positive news for the industry and weâ€™re excited to be agreeing more projects as the economy continues to improve, as well as supporting more young people to get into construction.