An Overview of the Construction Industry
The construction industry plays a vital role in the UK economy and is slowly returning to normalcy after some years of recession. According to the latest statistics from the Government Construction Strategy, the sector rakes in more them £110 billion annually and accounts for 7% of the Gross Domestic Product (GDP).
It is very versatile and compromises of many trades including quarrying, mining, infrastructure, forestry, manufacturing of raw products, supplying of building materials, maintenance, disposal, transportation, and operation.
The private sector is the leading contributor accounting for 75% while the public sector takes the remaining 25%.
Data from the Government Construction Strategy indicates that Commercial and Social sector contribute 45%, Residential 40%, and Infrastructure 15%. New buildings contribute approximately 60% while maintenance and refurbishment account for 40%.
The industry had been on a downward slump following the recession a few years ago. This situation was put in jeopardy following BREXIT. However, the figures to date look quite promising although still low. This is according to the most current IHS Market/CIPS PMI.
As of October 2017, the PMI has risen to 50.8 from 48.1 in September. A number above 50 indicates growth and experts forecast this to continue.
According to Tim Moore, the associate director at IHS Market, greater house construction was the most vibrant while commercial activity and civil engineering experienced a decline.
Although commercial office construction declined and major infrastructure projects came to completion, homebuilding that was supported by the help-to-buy equity loan initiative from the government spurred growth.
The construction sector creates about 3 million jobs, accounting for 10% of employment in the UK. Data from the Department for Business Innovation and Skills (BIS) shows that contracting creates 2,030,000 jobs and 234,000 businesses, Services 580,000 jobs and 30,000 businesses, while product accounts for 310,000 jobs and 18,000 businesses.
Construction, which is considered a high risk and high-cost venture, is a long-term activity and it’s among the good indicators of economic performance. The growth of the industry spurs growth while a decline has roller effect on the economy.
Different leadership and governance arms play a role in the industry with the most notable being Department of Business, Innovation, and Skills, Department of Communities and Local Government, Government Contraction Board, Environmental Agency, Highways England, Ministry of Cabinet Office, Design Council CABE, Construction Industry Council (CIC), British Waterways and Health and Safety Executive. The sectors are charged with creating regulation and planning.
Although the sector is looking up, some player’s criticize it for being slow to act, adversarial, wasteful and slow in raising awareness and dissemination knowledge. This leads to slow decision making, poor implementation, duplication of effort, and lack of clear guidelines. They believe that if these issues were dealt with, the sector would be more vibrant.
Like any other sectors, the construction industry is faced with many challenges. Firstly, more and more people are heading to the cities and this creates a strain in the infrastructure, housing, and other related sectors.
Secondly, fast depletion of non-renewable resources puts pressure on the raw materials that are a key requirement in the processes. Industry players need to look for alternative sources which unfortunately are more costly.
Thirdly, the effect of climatic changes can’t be ignored. The government together with other partners in adopting methods that will reduce pollution, lower greenhouse gas emissions, and also increase the uptake of clean energy such as solar and wind power.
Even though the industry is showing improvement, a lot still needs to be done to meet the market demands and expectation. Data shows there is a Performance Gap where the buildings don’t perform as expected. This is seen in the design, efficiency, reliability and other factors.
A study from Post Occupancy Review of Buildings and their Engineering (PROBE) showed that consumers were consuming twice the energy.
The UK government spending on construction was among the lowest in the rich countries accounting for 2.4% of the national income. The private sector also fared badly, spending 14.3% of the GDP whereas the average for rich countries was 18.3%.
Both the government and private sector need to work together and put in more effort and resources to experience growth and long-term sustainability.
Conclusion
Birmingham Roofers is a major player in the construction industry and engages in the construction of new roofs, overhauling entire roofs, refurbishment and repair, loft conversion and much more. The company serves residents of Birmingham and caters for residential, industrial, as well as commercial customers.
Thanks to its team of expert contractors, the firm delivers topnotch and timely services and also provide a guarantee on the products and services. It’s always researching on new methods and techniques so as to satisfy the customer and keep abreast with the advancement in the sector.
For more information about the roofer, the services it provides, or the construction sector you can visit bmroofers.co.uk. Birmingham Roofers gives a free service quote on the services and all you need is send them an email, call, or simply drop by their office.
