Non-housing projects rise and why a Scottish ‘Yes’ vote could hinder growth

The Housing Sector

A high demand for houses has been a main factor in the construction industry’s improving figures, with house building proving crucial to the recovery of the industry and driving prices up across the UK due to the shortage.

The Help to Buy scheme has been cited as a main factor behind this growth, and as property prices are set to rise over the next 12 months, construction firms should see a big call for their services from housing providers, particularly in London and the Southeast.

Non-housing private projects

The latest Glenigan report shows strong growth in the hotel and leisure sector, offices and utilities, with the value of office construction projects starting in the first quarter of 2014 being 34% higher than Q1 of 2013.

With recent reductions in corporation tax and increased aggregate demand across the economy, non-housing project contracts are expected to become more popular.

Infrastructure

As government spending continues to be cut, less funding is available for large-scale infrastructure. However, with a general election getting closer, opportunities for more expansive construction projects could become available in the near future, creating more jobs for up and coming apprentice builders and architects.

Other Issues

If Scotland vote ‘Yes’ to independence, this could have a significant impact on construction companies, especially if jobs are being taken on across the border. Currency exchange rates could have a big impact and some contractors are concerned about the rising cost of raw materials.

Businesses can take advantage of Integrity Software’s job costing software in order to provide evidence of additional costs and keep track of which aspects of the work are exceeding the budget.

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