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A construction recovery?

After the problems of the last couple of years, what lies in store for the UK construction industry in 2011? Figures released by the Construction Products Association (CPA) show something of a mixed bag. It's already known that severe cuts in public spending will impact heavily on the industry, with construction work from the public sector is expected to fall by 17% over the next two years, but a modest growth looks likely in the private sector, with an increase of 5% over the same timescale.

According to the CPA's figures, private housing starts will grow 5% in both 2011 and 2012, while the commercial sector is set to rise 20% between 2009 and 2015. Also by 2015, rail construction is anticipated to double, despite the £1 billion saving on Crossrail, and energy construction is expected to treble due to nuclear and renewables work.

Commenting on the latest forecasts, Michael Ankers, Chief Executive of the Construction Products Association said: "The government has rightly focussed on the private sector playing a leading role in driving the UK’s economic recovery. Unfortunately, we do not expect the increase in private sector investment in construction over the next two years to compensate for the sharp falls in public sector investment. Although private sector construction is forecast to grow by 5% during the next two years, construction work from the public sector is expected to fall by 17%.

"By 2013, however, we expect to see strong growth in the commercial sector, combined with increasing construction activity related to housing, rail schemes and the development of energy infrastructure, leading to a recovery in construction output at the end of our forecast period."

So, while short-term prospects for the industry continue to be challenging, looking beyond the next few months, things should start to improve.