Construction sector analysts, Glenigan, have announced a rise in their Construction Industry Forecast for 2020-21 because of reduced uncertainty and pledges on investment in the built environment following the recent general election results.
The update forecasts indicate a 2% rise in the value of underlying project starts in 2020 and a further 5% in 2021 for the construction industry. The main industries that should be optimistic are in housing (both private and affordable homes), education, health and civil engineering work.
Glenigan suggest post-Brexit nerves may still slow activity next year, activity will stabilise in 2021.
The government pledged an increase in the UK’s infrastructure spending during the election campaign, with public sector funding likely to become available in road works.
Major existing and planned infrastructure projects across the UK will also provide a forecasted boost to the construction industry, including Thames Tideway, Hinckley Point and £1.4 billion Stonehenge Tunnel projects, as well as work on the HS2 rail link bringing investment to the North West.
Construction sector for the health sector will also see a predicted boost, according to Glenigan’s analysis. An increase in capital funding for the NHS will see an increase in project starts over the next two years, gaining momentum in 2021 as NHS trusts around the country make decisions on how to implement their investment programmes.