TRENDS
TRENDS
We’ve all seen significant changes across the building and construction industry in recent years. This has resulted in both significant growth in the industry and new challenges. From increased demand for home renovations, fuelled by the lifestyle impact of the pandemic, to new regulations and evolving technology, the sector has seen great change yet remains central to the UK economy. Here we discuss the trends we are seeing, what’s on the horizon, and how you can take advantage. WHAT’S SHAPING THE FUTURE OF OUR INDUSTRY?
OUTLOOK
GROWING DEMAND As the UK continues to push towards a green economy, the need for tradespeople skilled in sustainable practices is rising. From installing solar panels to retrofitting homes for energy efficiency. Training in these areas is expected to become a priority, driven by consumer demand and regulatory pressure. INVESTMENT IN TRAINING The government, Checkatrade, and industry bodies are investing in programs to attract young talent and offer re- skilling opportunities. These initiatives aim to close the skills gap, enhance the appeal of trades as careers, and provide clearer career pathways, creating more opportunities for people to enter skilled trades. TECHNOLOGICAL INNOVATION Tradespeople will have better access to digital tools, and our work in this space will continue at pace. Future advancements in our products and processes to help you streamline your operations is critical. We’re working hard to understand what you need, develop our platform and share new developments with you. ECONOMIC VOLATILITY The UK’s economic outlook remains uncertain. With fluctuating inflation and rising interest rates, many trades are likely to face increased operational costs. However, demand for essential services such as
CURRENT TRENDS
HIGH DEMAND Sectors like plumbing, electrical work, carpentry and general construction continue to see high demand. Home renovations surged during Covid, and that trend has persisted, although at a slightly lower rate. Our ageing housing stock in the UK and the ongoing shift towards sustainability and efficiency mean trades who have adapted to these new trends are continuing to benefit. SKILLS SHORTAGE You may be experiencing it yourself, but the industry is feeling a well-documented shortage of skilled workers. The Checkatrade UK Trade Skills Index 2024 highlighted the urgent need for 1.3 million new skilled tradespeople and 350,000 construction apprentices over the next decade in order to meet Government targets and the ever-growing demands on the construction, home improvement and repair industry. With 35% of current workers aged over 50 and many planning to retire within the next decade, a new recruitment drive is needed to meet the current and future demand. GROWTH The sector is expected to grow by 40% over the next 10 years, contributing 2.4% to the UK’s GDP. This growth will come from a variety of sources, but most notably 50% of homes in the UK currently have an EPC rating of D or worse, and households could save £8.8 billion annually if every household in the UK was upgraded to an EPC rating of C.
INCREASED OPERATING COSTS AND ECONOMIC UNCERTAINTY
Rising materials costs and economic instability has put pressure on many of your businesses. Many of you have been affected and continue to feel this pressure on your profitability. TECHNOLOGY From digital invoicing to project management, technology is advancing across the board. Checkatrade is at the forefront of that change and we are continuing to develop technology and tools to help keep you up to date with new technological needs from your customers as well as for your business. REGULATORY PRESSURES Stricter health and safety as well as environmental standards are affecting the industry. The push towards net-zero emissions has increased the need for ‘green’ building solutions, and our trades are having to adapt by learning new skills as well as keeping up with the changes.
plumbing, electrical work and maintenance is relatively resilient, making it likely that core trades will continue to see this demand. Offering both traditional and sustainability- focused options might be a smart way to stay competitive. CHANGING CONSUMER PREFERENCES
Customers are increasingly seeking transparent, high-quality services with an emphasis on customer reviews and digital engagement. Maintaining a strong online presence across social media, developing customer recommendations, and securing top-quality reviews by fostering those positive customer relationships will continue to mean you take advantage of these trends.
We are at a pivotal point in the industry’s journey, the outlook remains positive and with some tweaks such as investing in your skills and digital presence you will be positioned well to take advantage of this growth.
Expecting 40% growth over the next 10 years
04.
05.
Checkatrade Magazine December 2024
Made with FlippingBook Digital Publishing Software