News
Construction output forecast to decline by 1.7% in 2010
18/01/2010
The GB construction industry forecast just issued by Leading Edge predicts a fall in total construction industry output of 1.7% in 2010 compared to 2009, giving a figure of £96.9bn at constant 2005 prices. However, the construction sector is expected to return to overall growth in 2011 although recovery will be slow.
The new build commercial and industrial sectors are expected to struggle again in 2010 although the falls in output will not be as dramatic as in 2009 when we saw a reduction in output of up to a third. The new build sector makes up just over half of total construction output.
One of the key influences on construction output in 2010 and beyond will be the general election. Faced with a £175bn spending deficit, whoever wins the election is likely to implement spending cuts which is bound to influence construction activity in education, health and other public sectors.
On the positive side, 2010 is likely to see a return to growth for the housing sector which was the first sector into the recession and looks like being the first sector out of it.
The expectation for the final output figure for 2009 is slightly up on the previous forecast in July due to the increased activity in the public and infrastructure sectors. A number of large projects were brought forward from 2010/11 to help stimulate the industry last year. Leading Edge expects a final total output figure of around £98.6 bn in 2009 (at 2005 prices) although final figures will not be known until the ONS release their figures in March.
With the market sectors moving at different speeds, contractors and building materials manufacturers are going to have to target the right sectors to maximise any growth opportunities.
CIMCIG MEMBER OFFER
The Leading Edge construction forecast is a 6 monthly report that has been published for the last 21 years.
It covers historic data and forecasts for 2005 - 2013 for all the key construction sectors including; public and private housing, commercial, industrial, infrastructure, public, R&M housing and R&M other). It also gives forecasts for selected building materials (blocks, bricks, readymix concrete and cementitious materials).
Leading Edge are offering all CIMCIG members a discount on this report. The normal price is £150 plus VAT but CIMCIG members can obtain the report for £90 plus VAT, a discount of 40%.
To order a copy, please call Leading Edge on 01189 797800 and mention the CIMCIG offer.
For more information on whats included in the Leading Edge construction forecast go to: http://www.lead-edge.co.uk/downloads-and-reports/construction-output-forecast
