Growing Economy & Employment | The Construction 2025 Progress Report
Posted by Marzuq Maher, Graduate Recruitment Consultant on Tuesday, May 17, 2022
The construction industry in the UK is undeniably large, providing a tenth of the UK’s gross domestic product, employing 2.4 million people, and contributing over £117 billion in 2019 alone. The construction sector in the UK looks set to continue developing and thriving, with the last significant economic output decrease being in 2013. 2013 also saw the publication of Construction 2025, a detailed report of planned figures, statistics, and milestones to be reached by 2025. In this article, we’ll discuss the key factors of the UK construction industry, how they seem to be progressing, and compare them to the aims set out in the Construction 2025.
Economic & Construction Output
The UK Construction Economic Analysis, researched and published by the Government in 2013, states that the construction industry saw a gross added value of over £90 billion in 2013. As of the end of 2021, this figure has now reached a substantial £122 billion. This totals a 35% increase in the 8-year time-gap between the two figures, and successfully fulfills one of the key target points of the Construction 2025 which was to increase the UK construction industries GVA (Gross Value Added).
Driving Construction Output growth was also a key feature of the Construction 2025, aiming to rise by 4.3% per annum. According to latest data from the Office for National Statistics, year-on-year construction output growth was at 7.4%, showing how the 2025 goal has already been hit. In fact, Q1 of 2022 saw a record high in construction output, surpassing the previous high set in Q1 2019. This was largely thanks to new infrastructure construction work, as some other areas of the industry have suffered because of Covid-19. For example, the residential construction sector is at a 4.4% decrease compared to pre-covid statistics. It’s not just the residential sector that’s feeling a sense of concern, either. A Construction Analyst at GlobalData commented about the mounting concerns regarding surging energy and construction material prices; both of which could have a profound effect on the industry.
There is also the issue of the Construction Output Price Index; the Construction 2025 aimed for overall construction costs to be lowered by 33%. However, due to consistent supply chain issues because of Covid-19, prices have since risen by more than 25%. Fortunately, these costs seem to be decreasing now many contingency plans have been enacted by the government.
Overall, many aims set out in the Construction 2025 regarding construction and economic output have been met. Furthermore, those that haven’t are now back on track to hit the targets before or by 2025.
Current Projects & Employment
The Construction 2025 set out to develop plans to secure “jobs and growth opportunities” by 2025, aiming to grow the industry by at least 60,000 jobs. As of 2022, this marks yet another target successfully reached.
The UK construction industry is currently thriving with an array of exciting construction projects, notably the High Speed 2 project. For more information, check out another one of our blogs here. It’s not just the HS2 lighting up the UK construction scene, though. From The Chancery Rosewood building being refitted to suit it new hotel purposes, to the regeneration of the 60 hectares of land at the Liverpool docks – costing an impressive £5bn.
These projects also reflect the current state of employment within the construction industry. A census carried out by the House of Commons Library detailed that in 2019, there had been more jobs than at any time since 2007. The construction industry also presents a unique factor in employment: the unusually high proportion of self-employment in comparison to the rest of the economy.
However, here at Maxim we understand that high employment rates don’t always correlate to how easy it is to find and secure the very best construction jobs that suit your needs. That’s why we’re here to help. If you’re looking to take advantage of the current market and secure yourself a new construction job, reach out to one of our consultants, or check out our current live vacancies.
The Construction 2025 has provided a detailed and effective plan, despite the interference of Covid-19, rising material costs, and supply chain issues. The growing economic and construction output, combined with the expanding employment opportunities has shown many of the initial goals being met well before its 2025 deadline, with hopes of meeting all its targets within the coming years!
The UK construction industry has been steadily growing, with projects, construction output, and employment rates ever-increasing. There has never been a better time to consider a move into your ideal construction job, and Maxim is here to help you. Whether you’re a skilled Project Manager, professional Quantity Surveyor, or an experienced Commercial Manager, reach out to Maxim today!