Construction industry growth forecast at 3.6% for 2016

The number of construction jobs available looks set to increase in the coming months, as the Construction Products Association (CPA) Winter forecast report has predicted that the sector will enjoy 3.6% growth in 2016.

It identified a sharp rise in the number of infrastructure projects and a steady increase in housebuilding as key drivers of growth, but also warned that there are reasons to be concerned about the health of the industry.

Risks that threaten construction activity have intensified, it said, particularly from weakening global economic growth, the EU referendum and skills shortages.

The main predictions in the CPA report were:

• Total construction output is forecast to rise 3.6% in 2016 and 4.1% in 2017
• Private housing starts to rise 5.0% in both 2016 and 2017
• Industrial activity expected to increase 21.3% by 2019
• Offices construction to increase 7.0% in 2016 and 2017
• Infrastructure work is forecast to rise 56.9% by 2019

Professor Noble Francis, the CPA’s Economics Director, said:  “The key fundamentals for the sector are generally positive and construction growth is set to be more balanced … all three of the largest construction sectors - private housing, commercial and infrastructure - are expected to drive industry activity.”

However, he added that finding the right workers to fill the construction jobs that this activity will create could be a problem.

“One of most important issues for the industry is the urgent challenge around skills shortages” said Prof. Francis.  

“The availability and cost of skilled labour has clearly impacted the house building sector; the recovery in other sectors is already showing a similar vulnerability.”

Many construction businesses are already finding that problems sourcing the right skills are having a detrimental impact on their projects and some are turning work down because of it.

Kalcrest Site Services has a long track record of finding experienced construction workers to fill both temporary and permanent jobs, including in the most severe skill shortage occupations, such as bricklayers, plasterers and joiners.

For more details about our recruitment services or to speak to one of our team about staffing for a current or forthcoming project, please call us on 01709 720348 or contact us via info@kalcrest.co.uk.