Recent industry estimates from the Construction Products Association suggest that the construction industry is set to grow by 13% this year, although the figure naturally varies across different sectors. This increase indicates continued recovery from the impact of covid-19 in 2020. The estimate comes after activity in the industry accelerated in the first quarter of 2021.
The growth in construction related to housing is thought to be due to a variety of reasons, including the new Help to Buy equity loan scheme and the extension to the stamp duty holiday. This growth is also coupled with a rise in house prices expected to continue throughout the year.
However, some are still concerned about the risks that may impact the industry’s recovery. For example, Noble Francis, economics director for the Construction Products Association, is aware that issues with supply may have a significant impact: ‘There are significant risks to the recovery in the form of supply constraints in terms of extended lead times and sharp rises in costs for vital imported products such as paints and varnishes, timber, roofing materials, copper, steel and polymers… This may hinder the ability of construction activity to increase in line with our forecast.’