REGISTER NOW LOG IN Home Job Search About Timesheet Reviews Candidates Employers Contact Categories All Industry Blog Internal Blog Our Team JOB SEARCH Permanent Temporary contract Advanced Search Back to News 27th April 2021 Construction set for 13% growth this year Construction activity is set for double-digit growth this year as the industry continues its strong rebound from the impact of Covid. But crystal ball gazers at the Construction Product Association have downgraded growth forecasts slightly fearing impacts from supply constraints for key imported construction products and uncertainty around demand for housing new builds, and commercial space. Construction activity accelerated in the first quarter of the year, although the story varies from sector to sector. Infrastructure was least affected by the initial lockdown and is set to motor ahead 29%, reaching its highest level on record. This will be driven by activity on major projects such as HS2, as well as activity on long-term frameworks in water, roads, electricity, and broadband sectors. Key points Infrastructure output to rise 29% in 2021 and 6% in 2022 Private housing output rises 14% in 2021 Commercial output at the end of 2023 to be 10.5% lower than in 2019 Private housing RM&I to grow by 12% in 2021 Public housing repair, maintenance, and improvement to rise by 15% in 2021 Extensions to the stamp duty holiday, Help to Buy, and job support schemes are expected to help sustain demand in private housing and private housing rm&i in 2021. Private housing is expected to continue its strong recovery with the Chancellor’s mortgage guarantee scheme likely to enable demand in the general housing market. Coupled with expectations of rising house prices during the year, starts activity is forecast to gather pace in 2022. CPA economics director Noble Francis said: “While the outlook is largely positive, the recovery in commercial – the third-largest construction sector – is expected to be muted given a lack of major investment in new projects, particularly in Central London. “Questions remain over future demand of commercial space, particularly in offices and retail, which may be converted into residential or warehousing and logistics, if homeworking and online spending persists in the long-term. “More notably, however, there are significant risks to the recovery in the form of supply constraints in terms of extended lead times and sharp rises in costs for vital imported products such as paints and varnishes, timber, roofing materials, copper, steel and polymers. “This may hinder the ability of construction activity to increase in line with our forecast. “Furthermore, concerns remain whether the high levels of demand for housing new build and rm&i can be maintained after the government stimulus and policy measures end on 30 September, particularly the furloughing and self-employment income schemes and stamp duty holiday.” Cardiff Office 1 Ty Nant Court Morganstown Cardiff CF15 8LW Tel: 029 2081 3331 Plymouth Office Gordon Court Craigie Drive The Millfields Plymouth PL1 3JB Tel: 01752 421888 Bristol Office Hollywood Estate Hollywood Lane Bristol BS10 7TW Tel: 01173 250352 Gloucester Office Kestrel Court Waterwells Business Park Quedgeley, GL2 2AT Southampton Office Sphere Solutions Southampton International Business Park International House George Curl Way Southampton SO18 2RZ Telephone: 02380 302 574 Swansea Office The Post House Adelaide Street Swansea West Glamorgan SA1 1SB Telephone: 01792 439146 On the site Home Job Search About Us Register With Us News/Blog Reviews Candidates Employers Contact Us Our Team Social Media Linked In Twitter Facebook YouTube Time Sheet Download time sheet Terms and Conditions Privacy Policy Cookies Site Map Copyright © Sphere Solutions 2021 | Web Design by CREO