Skills shortage leading to construction decline
Statistics released by the Office for National Statistics (ONS) have indicated that there has been continued decline in output in the construction sector for the ninth consecutive period. The fall has been attributed to a decline in private commercial work during January 2018.
The figures, which are for the first three months of 2018 show a fall of 1% compared to the previous quarter and a decline of almost 4% compared to 2017. This is the largest month on month decline since 2013. All work total decreased to £12.6m in January this year - a 4% drop on the previous year.
Senior statistician from the ONS Ole Black has said that construction is a weak spot in the Uk economy and a large drop in commercial developments and a slowdown in house building has contributed to these figures.
Rebecca Larkin, the senior economist from Construction Products Association has stated that 2018 is unlikely to show a resurgence in industry growth and that any pauses that were in place due to the Carillion liquidation will be worsened. Additionally, the snow during February and March will have had a significant effect. She points out that new orders have declined across all sectors and there has been a decline in private housing of 2.3% - despite this previously being a high growth area.
Others in the industry are blaming the slowdown on Brexit including Michael Thirkettle, the chief executive of McBains. He suggests that the uncertainty surrounding Brexit is adding to the sluggishness of the sector. He points out that the government has once again challenged the construction industry to build more homes, but is not offering a supportive environment to do so.