In G&T's most recent Main Contractor Survey, valuable insights were uncovered regarding the present condition of the construction market in the UK. Participants from the survey represent some of the most experienced and financially stable construction firms in operation. In this blog, we offer a quick-read overview of the key highlights.
Labour availability
The construction sector's most significant hurdle remains the lack of skilled labour and a shortage of expertise. While 53% of respondents said project labour resource is ‘available’, the number of contractors reporting ‘low availability’ has significantly increased (41%) since the last survey (18%).
Financial pressures
Driven mainly by labour shortages, the industry continues to face a degree of financial pressure. However, material price inflation has returned to pre-pandemic levels thanks to product availability.
Workload expectations
Main contractors (44%) said they expected no change in workload expectations over the next six months, while 63% predicted a ‘minor increase’ in workload in the next 18 months. It has been noted that strong order books can be expected to support workloads over the short term, with wider economic growth boosting demand in the longer term.
Biggest issues to face businesses over the next 12 months?
The majority of contractors surveyed named ‘supply chain insolvencies/cash flow and energy costs’ as the biggest issues to face construction businesses in the next 12 months. Further concerns included a ‘lack of confidence to invest in new projects’ and ‘concerns over onerous contractual conditions’.
What market pressures are driving construction prices?
Increased staff and labour costs due to the cost of living crisis
Supply chain downsizing
Move towards more sustainable practices
Reduced risk-taking
Energy price destabilisation as a result of the war in Ukraine
Extra costs on tender pricing
Availability issues with certain materials
Higher borrowing costs
Uncertainty over legislation
We hope you found this blog insightful, for further information make sure to download the full G&T report here.
Looking for work in the construction industry? Give the Pillar team a call on 0203 856 4048 today.
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