INDUSTRY UPDATE NEWS
CLC to stay
The new Labour government has opted to keep the Construction Leadership Council (CLC) in existence, despite being set up in 2013 by the coalition government and trimmed down by the previous Conservative government. New Construction Minister, Croydon MP Sarah Jones, said of her responsibilities with the CLC: “The construction sector is vital to our economy, supporting thousands of jobs in every part of the UK, and will be at the heart of our mission to deliver growth and get Britain building again. “I look forward to working closely with the Construction Leadership Council to champion the sector as it builds the infrastructure we need, and ensure its net zero ambitions deliver for both the workforce and our economy.” Industry-side Co-chair, Mark Reynolds of Mace Group, said the construction industry will play an important role in helping the Government to realise its ambitious targets for infrastructure delivery and growth. Reynolds added: “The CLC, working in partnership with Government, provides crucial leadership to the sector. We’ve already had some productive and insightful conversations with the minister and I look forward to working closely with her over the coming years.”
Industry growth projections are down
T he construction industry’s performance is not as strong as expected, according to forecasts by the Construction Products Association (CPA). The CPA has downgraded the industry’s near-term growth prospects, forecasting a 2.9 per cent contraction in output. Previous forecasts expected contractions of: ● 2.2% (three months before this forecast) ● 2.1% at the start of the year The increased percentage has been affected by slow recovery in private housing, new builds and repair, maintenance and improvement, due to higher interest rates and decreased consumer confidence. Uncertainty in supply chain responsibilities brought about by the Building Safety Act might also delay some larger, high-rise projects, CPA economists said. The CPA’s Summer Forecasts for 2025 and 2026 remain unchanged,
with growth of 2.0 per cent forecast for next year and 3.6 per cent the year after, but that is from a lower base point than previously imagined because 2024 will see a bigger fall than had been anticipated. Head of Construction Research at CPA, Rebecca Larkin, said “Interest rate cuts and a pick-up in sentiment are expected to start in the second half of this year but, realistically, it will take until 2025 for the recovery to be felt more strongly. “Off the back of the election, there have been clear signs of intent from the new government, particularly around potential changes to planning policy to improve housing and infrastructure delivery. However, with little detail at this stage, it is difficult to see any near-term uplift, whilst long- running concerns over skills shortages and the loss of construction workers, which has worsened dramatically in recent years, present the biggest risk to longer-term growth.”
Construction Minister Sarah Jones
10
Master Builder
www.fmb.org.uk
Made with FlippingBook - PDF hosting