Construction forecasts revised up after positive results | 13 January 2014
Construction industry forecasts have been rewritten after better-than-expected results prompted a re-think, constructionenquirer.co.uk reports.
During the last quarter of 2013, the Construction Products Association (CPA) said that it expects output to rise by 2.7 per cent during 2014, then by 4.6 per cent throughout 2015. Now, just three months down the line, it has reviewed these figures and revised them upwards, to 3.4 and 5.2 per cent respectively.
The factors that drove these revisions, the Association noted, were large retail schemes entering the pipeline and a recovery for the London market that was much stronger than expected. All of this, in addition, comes on top of the strong domestic property industry that is expected to help construction growth for at least four more years.
It also builds on the huge growth witnessed during Q3 2013, when office developments grew by 21.7 per cent – the largest expansion witnessed since the credit crunch began in 2007.
Considering office space alone, construction work is set to grow by ten per cent during 2015, before expanding by a further seven per cent during both 2016 and 2017.
Explaining these revisions, economics director at the Association, Dr Noble Francis, told hvnplus.co.uk: “The construction industry is in a very different place to just one year earlier, when output fell to a level 15.4 per cent below its pre-recession peak.
“Output in the largest construction sector, private commercial, fell 33.1 per cent between 2008 and 2012. In 2013, however, major office projects in London have proved sizeable enough to start a recovery in the sector.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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