Why our politicians should focus on building sector
A Sthe UK General Election looms closer, those who spend their lives and careers in the vital construction industry in the British Isles can only hope that candidates of all parties might prioritise a number of key areas which would bring it some measure of hope.
There is no doubt that, now more than ever, the UK construction sector faces a wealth of unprecedented challenges, and still remains impacted by the latest waves of rising costs in both materials and labour.
The sector’s importance was emphasised when it proved to be a rare success story throughout the pandemic, when many other sectors closed down. Figures from 2022 show that it contributed 7% of GDP and employed 9% of the entire UK workforce, according to the RICS.
However, though longer-term prospects show some grounds for optimism, construction output fell again at the start of this year, according to the Office for National Statistics, with eight out of the nine components of the industry decreasing. Private commercial new work was down by 4%.
It is generally agreed that infrastructure investment is one of the most important keys to a brighter future for the sector. It would be heartening if would-be politicians were to commit to sustained and strategic investment in Uk-wide infrastructure projects, enhancing transport, energy, and digital networks to drive economic growth.
There is some hope in this area. The National Infrastructure and Construction Pipeline, which relates primarily to England, includes £379 billion of planned investment, £164bn of which is planned for 2024/25, according to Government figures.
It is also vital to enhance funding for training programmes and apprenticeships to address the skills shortage. As well as a pipeline of work, we need a pipeline of people coming through with the necessary skills to take us through an era of unprecedented transition.
Sustainability is a key concern, and client demand and environmental regulation has already driven a revolution in the ways of working in the sector, although affordability is still a challenge for firms keen to adopt sustainable practices.
Our next political leaders must promote green building practices and renewable energy integration, as well as incentivising sustainable construction methods to meet climate goals and reduce carbon footprints.
As in so many elements of business, regulatory stability is a core requirement for a successful industry and politicians should aim to provide a stable and clear regulatory framework to facilitate long-term planning and investment, rather than introducing short-term measures to suit parliamentary timescales.
With rising populations and an ageing housing stock, across many parts of the UK, it is hardly surprising that many local authorities are declaring housing emergencies, It is incumbent on whichever party comes into power after the 4th of July to address the housing crisis by supporting policies that accelerate the delivery of affordable homes and streamline planning processes. Builders are ready to build if the conditions prevail that allow them to. Focusing on these priorities would bolster the construction industry and foster innovation, sustainability, and economic prosperity.
Fergus Adams is Managing Director of Dougall Baillie Associates