Demand outweighs cost pressures in the construction industry

Search Acumen comments on the publication of the ONS Construction Output statistics for November 2021, which shows that demand outweighs cost pressures in the construction industry as monthly construction output increased by 3.5% in volume terms, the largest monthly rise seen in construction output growth since March 2021.

Andy Sommerville, Director at Search Acumen, says:

“November’s figures are reflective of a stronger sense of confidence in the building industry. Construction firms continued to respond well to the reopening of the UK economy and sustained demand across the property market. The 3.5% increase in monthly construction output demonstrates how cost pressures and supplier bottlenecks have had less of an impact compared to over the summer.

“While the worst phase of supplier delays seem to have passed, price inflation persists, and haulage driver shortages continue to contribute to market headwinds. In spite of this, the construction industry has remained resilient, and demand fuels the sector. People are motivated to relocate in order to accommodate their new styles of living and working as the pandemic is driving the largest reconfiguration of spatial needs for a generation. We expect this trend to dominate the property market in coming months as COVID-19 shows no sign of leaving.  

“As the construction industry responds to high demand, we encourage the property market as a whole to its upgrade ways of working to create a more resilient future. The most efficient way of generating, analysing and sharing information throughout the property transaction process is undisputedly with digital tools. The entire industry must work together and  embrace digital ways of working to drive forward incremental process improvements, which will contribute to a more accurate and efficient property transaction process overall.” 

Kindly shared by Search Acumen

Main photo courtesy of Pixabay