|
|
 |
|
Viewing report
|
|
|
|
Construction Industry Market Review 2009
Key Note Publications Ltd, March 2009, Pages: 162
The total output of the construction industry in Great Britain was estimated at £123.24bn in 2008, an increase of 20.5% on the figure for 2004. Output rose each year between 2005 and 2008, but the growth rate slowed to just 1.1% in the latter year — the lowest figure recorded over the period, a result of the severe downturn now affecting the UK economy.
This Key Note Market Review focuses on four main sectors of the UK construction industry: housebuilding, infrastructure, industrial construction and commercial construction. It also includes a detailed examination of the UK market for building materials. The largest sector overall (excluding repair and maintenance) is commercial construction, followed by housebuilding. The infrastructure and industrial sectors are much smaller.
The UK construction industry faces serious challenges. In 2008, problems in the US sub-prime mortgage market triggered a catastrophic crash in the US banking sector, which in turn created problems in UK financial markets. Some UK banks now have a significant degree of government control and credit is very difficult to obtain, for either domestic or business purposes.
Individual sectors of the construction market also have their own specific challenges. In the housebuilding sector, for example, the Government has plans to build more homes but a shortage of buyers in the current market conditions is impeding progress. Fast-track construction techniques are facilitating more cost-effective housebuilding, but even this development is not having much effect on the affordability of housing. Although house prices are now falling, mortgages are still expensive for the many people who need to borrow a large sum of money in relation to the property price.
The infrastructure sector is the least affected by the economic downturn and has benefited from government investment in transportation. Public spending on hospitals and education, including Public Private Partnerships (PPPs), is an important factor in the commercial sector. However, offices and retail activities in the commercial sector are now experiencing a downturn, due to the problems in the banking industry and reduced consumer spending. Inevitably, the reduction in construction activity is having a knock-on effect on the building-materials sector. Some suppliers of building materials are closing or `mothballing' plants and implementing job cuts.
In terms of the future, by far the most important concern is the length and depth of the current recession. Continued volatility in energy markets will pose an additional challenge for the construction industry, because energy is a significant factor in material prices. Sustainability, the drive to reduce carbon emissions and the pressure to reduce the use of fossil fuels will also increase in importance and will create extra costs for the industry.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
Housebuilding Market Report
The Exporter's Guide To The UK Construction Market 2008-9
Housebuilding Market Report 2003
UK Construction Industry Market Review
Indian Construction Industry 2008
Construction Industry - Global Outlook
Construction Sector in Romania 2008 - Development Forecasts for 2008-2010
Construction Sector in Kazakhstan 2008 - Development Forecasts for 2008-2010
Construction Sector in India 2008 - Development Forecasts for 2008-2012
Construction Industry Market Review 2003
Construction Sector in Ukraine 2008: Development Forecasts for 2009-2011
Construction Industry Market Review 2006
|
|
|
|
