SECTOR WATCH: CONSTRUCTION
POST-BREXIT PROPERTY Property consultant remains positive for post-Brexit UK construction sector
One of the UK’s leading construction and property consultancies, Thomas & Adamson, believes despite the negative outlook among many for the construction sector in 2018, plenty of opportunities remain in a post-Brexit UK. “The outcome of Brexit for the construction industry will ultimately depend on the terms of any Brexit deal and the industry’s ability to adapt to its new situation and capitalise upon that,” said Chris Narrowmore, Partner at Thomas & Adamson. He added: “We expected a downtown on the back of Brexit, but it hasn’t kicked in fully across the UK yet. There are still real opportunities out there. The main concern is how UK-based major funds will be looking to place investment. This could initially mean more outward investment rather than into the UK. That said, we have seen a fair amount of foreign investment in 2017 - especially into the UK student accommodation market.”
H
e added, “It must clearly define what a prosperous postBrexit construction sector looks like. We cannot wait on politicians to determine the sector’s success. The construction sector’s players need to take the market by the horns and push ahead. Economists are talking about a decline in construction, but this really is more attributed to big infrastructure projects. There are still a lot of opportunities outside of government-funded projects and that’s what we as a company are focusing on.” Mr Wallace points to Thomas & Adamson’s internal growth as a positive sign for the industry in 2018. “We continue to invest in the development of our staff and focus on our existing clients, with 93 per cent of our business coming from repeat clients and referrals. We saw an increase in the number of new hires in
While forecasters at trade body Construction Products Association believe the sector will expand just 0.7 per cent in 2018, the slowest rate in six years, it remains positive about the overall construction output growth for 2017, which they expect to be 0.3 per cent higher than previously thought, at 1.6 per cent, beating the CPA’s previous estimate of 1.3 per cent. Senior Partner at Thomas & Adamson, Alastair Wallace, said: “Although uncertainty has the potential to derail the industry in the short term, the construction sector has a unique opportunity in a post-Brexit world to market itself.”
2017 compared to the previous year and our London team in particular has grown substantially.” Thomas & Adamson has a strong pipeline going into 2018, building on some current key projects, including: Jaguar Land Rover, Cityheart, Greenwich Millennium Village, Tesco, Pears Property, Muse Developments and British Land. We continue to focus on our key sectors: commercial, retail, hospitality and residential as they are the strongest sectors in the UK right now.” said Wallace.
CONSTRUCTION PAY TRENDS REFLECT CONFIDENCE IN SECTOR Hudson Contract has revealed that self-employed builders in England and Wales have seen a year-on-year increase* in average weekly earnings of 3.8% - with the biggest uplift experienced by those working in the East of England (3.8%). Across the construction trades, plumbers experienced the highest increase in earnings (9.4%) followed by those working in demolition and wrecking (8.3%), and insulation (8.2%). Electrical (-0.1%) and steel and timber frame erection (-4.5%) saw the biggest decreases in pay, year-on-year.
CONSTRUCTION PAY TRENDS
The biggest drop in average weekly pay was experienced in Wales which saw a 4.1% decrease in earnings, followed by a 0.3% decrease in London. Earnings for those in the West Midlands and South West remained the same year-onyear according to the figures.
+ 3.8% east of england
sFor the second year running, freelance builders in Yorkshire and the Humber,the East of England, North West, East Midlands and South East experienced an uplift in earnings.
+ 3.3% east midlands
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+ 2.1 % yorkshire and the humber
+ 1.3% north west
Issue 1 | 48
ISSUE 01 | 48
ISSUE 01 | 49