Good News for the Construction Industry
July 6, 2021
Heavy & Small Plant Hire, Basildon, High Performance Plant Machinery, Dumpers, Diggers, Skid Steers & Rollers
The upturn in the construction industry seems to be continuing with a vengeance, as indicated by a recent survey. Another sharp rise in orders meant that overall construction activity grew at its fastest pace since 1997. The situation is however confounded by the fact that materials are still hard to come by! This unfortunately pushed prices up to record levels in June.
House building, commercial construction and civil engineering in places like Basildon, are the three main areas that have experienced increased activity. House building scored 68.2 according to the seasonally adjusted IHS Markit/CIPS UK Construction PMI Total Activity Index. This is the fastest pace since November 2003, and commercial work was pretty good too at 66.9, the strongest since 1998.
A major reason for the increased demand for construction work, is the gradual reopening of the UK economy. Construction companies have reported yet another month of employment numbers rising sharply. Subcontracting increased at a pace steeper than any year since April 1997. June has been the worst month for supplier delays, and around 77% of survey respondents reported longer lead times. Products sourced from within the EU have been subject to severe delays within shipping and haulage. Stock shortages of things like cement, plaster, concrete, timber, steel and roof tiles, has been a real issue affecting the majority of builders and tradesmen.
Tim Moore, economics director at IHS Markit, which compiles the survey, said: “June data signalled another rapid increase in UK construction output as housing, commercial and civil engineering activity all expanded at a brisk pace. The headline index signalled the fastest rise in business activity across the construction sector for 24 years. Total new orders expanded at one of the strongest rates since the summer of 2007, mostly reflecting robust demand for residential projects and a boost to commercial work from the reopening UK economy”.