Brighter Horizons: UK Construction's Path to Recovery - Insights by Myn

In June 2023, Glenigan, a leading provider of construction insights, unveiled a ray of hope for the UK construction industry. Their report forecasts a remarkable recovery of 12% in 2024, with a steady 3% growth in 2025. These predictions come as a breath of fresh air, especially after the challenges that the industry has faced in recent times.

Weathering the Storm

The construction industry in the UK has navigated turbulent waters, with stalled economic growth and rising interest rates creating a shaky foundation. In 2023, the industry experienced an 18% decline, a significant setback by any measure. The decline was confirmed by the Office for National Statistics, which reported a 0.6% fall in UK construction output in April 2023.

Rising from the Ashes

Despite these hardships, Glenigan's report paints a more optimistic picture for the near future. They foresee a resurgence in project starts at the beginning of 2024, driven by the expected return of UK economic growth. This revival will be buoyed by increased household spending and greater business investments, according to the report.

A key factor in this recovery will be the delivery of both existing and planned major capital projects. Notably, the decision to delay the HS2 construction project will temporarily reduce its contribution to the sector's workload.

Challenges Along the Way

Acknowledging the tough terrain of 2023, Glenigan points to the "stalled" economic growth and higher interest rates, which are set to further dampen private sector investment and housing market activity. The report notes that project starts saw a sharp decline following a mini-budget in October and a subsequent spike in interest rates. In the first four months of 2023, the value of project starts fell by a significant 38% compared to the same period in 2022. Although starts are expected to stabilise in the latter half of the year, they are still forecasted to be 18% lower than the previous year.

Easing Supply-Side Disruptions

In more promising news, supply-side disruptions are gradually subsiding. While material costs remain high, Glenigan suggests that greater price stability in the coming months will provide clients and contractors with more certainty when planning and costing projects during the forecast period. This positive development is a beacon of hope after several challenging months for the construction industry.

Looking Ahead with Myn

In these uncertain times, the construction industry is being reshaped by economic slowdown and structural changes. New regulations are transforming how projects are executed. While the road ahead may be challenging, there's a glimmer of hope on the horizon.

Structural changes are set to create fresh opportunities in logistics, office and retail refurbishment, and the repurposing of redundant commercial properties. Firms that remain responsive and adaptable will be best positioned to identify these growth areas and capitalise on emerging opportunities in the next three years.

In light of these insights and challenges facing the UK construction sector, Myn remains dedicated to supporting construction professionals across the country. As an advocate for workers in the construction industry, Myn offers a range of services and resources tailored to empower and uplift the construction workforce.

What Myn Can Offer to the Construction Worker

1. Diverse Job Opportunities: Myn connects construction workers with a wide range of job opportunities, allowing them to explore various roles and find positions that align with their skills and career aspirations.
2. Fair Compensation: Myn advocates for fair pay and benefits for construction workers, ensuring they receive competitive wages and essential benefits such as health insurance.
3. Timesheeting: Myn provides a user-friendly and free timesheeting tool, allowing workers to easily track their hours worked and ensure accurate payment for their services.
4. Advance Pay Services: To promote financial stability, Myn offers advance pay services, enabling construction workers to access a portion of their earned income before the regular payday, helping them meet immediate financial needs.
5. Financial Advice: Myn provides tools and advice for financial planning and management, assisting construction workers in effectively managing their finances.

In conclusion, as we look ahead to a brighter future for the UK construction industry, Myn remains committed to championing the interests and well-being of construction professionals. We stand alongside the industry's resilient workers, offering a comprehensive suite of services and resources designed to empower them in their careers, improve their quality of life, and provide crucial financial stability. Together, we can navigate the challenges and seize the opportunities that lie ahead in the ever-evolving landscape of construction.