House builders were first to lead the way with the construction boom with the resurrection of the industry following the recession. However, this in itself has had an impact on the wider economy as a whole, particularly on interest rates.
House builders have enjoyed their strongest year since 1997 thanks to the government schemes encouraging and helping buyers get onto the property ladder. Positivity continues that growth will remain high as predictions show that 120,000 new houses are starting each year but 200,000 are needed to keep up with demand.
Another very positive sign is the increase in planning applications and approvals for grocery stores. Whereas planning approvals for construction as a whole have fallen by 20%, grocery stores planning approvals have risen by 10% . This is either a sign of the age of convenience we live in or the provision required for the house building boom … or maybe even both. Either way, this is another great sign for the industry.
2015 is set to be another boom year for the industry with output increasing by 6.1% and a big increase specifically in the commercial sector, rising from 3.7% growth in 2014 to 6.1% growth in 2015.
The challenges facing the industry, however, still remain. Skill shortages and the effect this has on margins is prevalent, as is the need to meet compliance with BIM processes by 2016. Without addressing these challenges, the optimism and growth in the industry could be short lived and detrimental overall for the future.
Overcoming challenges will be a key theme throughout 2015 as the positivity is feeding the energy of the industry. The business leaders in construction agree that 2015 is going to be another great year for construction … and so do we!!
Watch this space to find out more about how we continue to work with the ‘challenges’ in the industry and overcome them for business growth at TDS as well as a strong and sustainable industry.