FRP - Resilience to recovery: The future of UK construction

Resilience to recovery: The future of UK construction Resilience to recovery: The future of UK construction

Resilience to recovery: The future of UK construction

Overcoming hurdles

What factors are underpinning firms’ optimism – or, in many places, lack of it?

When we asked about the biggest challenges they faced during 2023, firms commonly cited difficulty retaining staff (14%) and the increased cost of servicing their debts (14%). These issues came up again when we asked respondents what the largest hurdles for the coming year would be, and were cited by 11% of firms in both cases. However, they were both surpassed by political uncertainty (14%) – something that we explore in more depth in the final section of this report.

Key challenges in the next 12 months

£

Supply chain 12% | Supply chain disruption 12% | Supplier credit terms reduction 11% | Raw material costs

Finances 11% | Cost of servicing existing debt 9% | Cost of new funding/credit 9% | Access to funding/credit

Operating 13% | Energy costs 13% | Labour costs 9% | Land costs

People 12% | Weakend customer demand 11% | Labour shortages 11% | Retaining staff

£

Delays 12% | Planning delays 11% | Delays to major infrastructure 9% | Delays of contracts

Economic 14% | Political uncertainty 11% | High interest rates 10% | Insolvency of sub-contractors

10

11

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