The construction sector is predicting an extended rebound by 6.3% in the industry in 2023.
Despite the pandemic and ongoing worries about materials and labour shortages dampening activity, forecasters at the Construction Products Association have released forecasts for this year and next.
- Infrastructure output to rise 23% in 2021 and 10% in 2022
- Private housing starts rise 24% in 2021 and 10% in 2022
- Commercial output at the end of 2023 is still expected to be 10% lower than in 2019 despite three years of growth
- Private housing RM&I to grow by 16% in 2021 and 3% in 2022
- Public housing RM&I to rise by 14% in 2021 and 8% in 2022
The reason behind the predicted construction growth in 2021 and 2022 will be down to infrastructure and the private housing sector. The CPA forecasts house building to rise by 20.9% in 2021 and a further 9.0% in 2022. In March 2021, output was 19.3% higher than pre-covid times.
Why is this?
The coronavirus pandemic has left individuals at home for over a year which has ironically had an incredibly positive impact on private housing repair, maintenance, and improvements. It’s been the quickest sector within construction to recover since lockdown. This is due to the ‘race for space’, the demand for more and/or better-quality space at home for leisure, domestic or office work.
The new statistics prove a particularly strong future for houses outside major cities, owing to shifts in working patterns, and is likely to remain so for the next 6-9 months at least according to housebuilders.