Construction industry proving to be boon for UK economy

Andy Sommerville, Director at Search Acumen, comments on the ONS Construction Output report for March, showing Construction industry proving to be boon for UK economy.

The Construction Output report for March 2021, published by the Office for National Statistics shows private and public new housing output jumps 9.4% and 16.7% respectively over the last month.

Andy Sommerville comments:

“This latest set of data underlines that the construction sector is proving to be a boon for the UK economy.

“The rise in new housing construction activity is likely to have been partly driven by housebuilders being encouraged by the UK’s property market running hot due to the Stamp Duty holiday. This is coupled with the approaching reopening of the UK economy which would have improved business confidence levels throughout March, prompting firms to progress residential building projects.

“However, rising input costs as a result of imbalances between supply and demand may prompt some housebuilders to rein in new building activity in the medium term, unless they can protect margins by passing on costs to consumers.

“With increased building high on the government’s agenda, more accurate planning decisions will be crucial if housebuilders are to contribute towards the prime ministers’ goal of 300,000 homes a year by the middle of the decade. Greater investment in the digitisation of property information will help housebuilders identify risks upfront, making production decisions more seamless and efficient. We are the first non-utility company to use the Line Search Before U Dig’s API tool, which is an example of using digital property information to better identify the risks and associated costs with a construction project before it has begun.”

Kindly shared by Search Acumen

Main photo courtesy of Pixabay