Slow Investment Leads to Faltering Construction Growth

Despite a number of positive signs that Construction is set to rebound from the issues caused by Brexit, in the short-term it appears that hesitance on the part of investors is leading to faltering growth in the sector. The Royal Institution of Chartered Surveyors (RICS) conducted a survey for the three months up to the end of June that saw industrial, private commercial and the housing sectors experiencing certain amounts of slowdown. The survey was conducted following the EU referendum result and was a mixed bag in terms of results. On the positive side, it found that workloads appeared to be growing for those in the affected sector, however, the pace of work being carried out is slower than may be expected, which points to a lack of investment.More than two-thirds of those who were questioned as part of the survey pointed to financing as the biggest issue that they had to deal with, leading to constraints on output.

The issue of a skills shortage was also highlighted, which may become an even larger problem should the Brexit result in fewer skilled workers immigrating to the United Kingdom.

However, respondents also noted that they still expect their workloads to increase by an average of 1% over the course of the next twelve months. While this is lower than the growth experienced during the previous year, it still demonstrates the strength of Construction in fairly uncertain times.

The RICS’s Chief Economist, Simon Rubinsohn, stated: “Anecdotal evidence does indicate that the challenge for the British government in establishing a new relationship with the EU could see some investment plans in the construction sector scaled back.”

Speed has often been an issue for Construction, particularly when it comes to tendering and procurement. These are both issues that the team at C-Link aims to remedy by providing a streamlined online system that allows both Professionals and Specialists the chance to enjoy increased efficiency in securing contracts.

We are keen to welcome people from all sides of the industry into the fold, so if you would like to find out more about what C-Link has to offer you, please take some time to examine our website and head to www.c-link.com if you would like to experience the many benefits that we offer to those in the industry.

C-Link – Speed and efficiency in Construction.