Partner Article

Construction output growth forecast gives reason to smile

Encouraging predictions from the Construction Products Association, whose latest forecasts indicate that although construction output is predicted to fall for the full year 2013, this is balanced by anticipated growth for the second half of the year, with 2014 output expected to grow at 2.2% and 2015 growth predicted at 4.5%.

This would seem to confirm the earlier report from the Federation of Master Builders, who reported that the net balance of workload for its members in the second quarter of 2013 was positive for the first time since 2007, and the respected Markit/CIPS UK Construction Purchasing Managers Index score for July, coming in above the 50 (no change) value for the third month in succession at 57, a marked increase from June’s Index of 51.

Initially the predicted growth is expected to be driven by the private sector housing, benefitting from the Governments “Help to Buy Scheme”. Proposed infrastructure projects such as Crossrail and power stations would feed in, after 12 to 18 months, to continue the growth.

It should be noted that both of these are driven by government policy and initiatives and that a general election is due in 2015, although it is considered unlikely that there will be wholesale changes post-election which should lead to a sustainable pattern of stable economic growth.

This is the latest in a raft of good news regarding the state of the economy, and in consumer confidence across the board. No doubt the feel good factor is helped by the recent good weather, sporting successes (well, apart from the absence of football) and non-financial positive stories (see how I avoided any mention of babies and royalty then!) All of this is as important as a happier, more confident consumer, is more likely to spend, and increasing consumer spend is the panacea to all ills in the economy at large.

Hodgson Sayers has worked exceptionally hard to retain the confidence of its clients during the difficult years by adapting to the changing requirements, whilst still providing the highest quality service levels. This has allowed the company to continue to grow, providing employment and training opportunities for the local area.

These latest positive outlooks reinforce our belief in the future successes of this region and our company. We look forward to the predicted growth feeding the wider economy, continuing the mutually beneficial relationships with existing clients, and exploiting growth opportunities with new clients and in new markets over the coming years.

With that said, it just remains to give everyone a reminder that we should welcome our antipodean cousins in the usual fashion when they arrive at the home of Durham Cricket, Chester-le-Street on Friday. Graham Onions has been included in the squad for the inaugural Ashes Test at his home ground, so expect fireworks!

This was posted in Bdaily's Members' News section by Hodgson Sayers .