Sunday, May 13, 2012
How To Recession Is Affecting The UK Construction Industry
In the last quarter of 2009 the building industry in the United Kingdom provided jobs for somewhere in the region of 2,.200,000 workers. There then existed almost 200,000 construction concerns in Great Britain. Of these companies, approximately 75,000 employed one single employee, whilst 62 companies employed more than 1,200. New orders received directly from the private sector were valued at excess of £18 million, whilst orders from the public sector were valued at more £15 million.Although the effects of the credit crunch had already began to bite by then, these figures nevertheless bear a stark and bitter contrast to the most recent statistics on the performance of the industry.
The most recent report from The office of National Statistics, on the performance of the construction industry in the UK shows that :
a) Compared to the first quarter of 2011, new orders fell by over 16% in the final quarter;
b) Never since 1980, have orders for new building contracts been so low;
c) Compared to the equivalent period in 2010, new orders fell by over 23 %;
The implications of these statistics regarding new orders has been immensely detrimental to the construction industry in the UK in general and to workers hose income was reliant on that industry in particular. The tried and tested reality is that construction can provide employment for over two million people in the UK. The tax revenues that can be accumulated from a booming construction sector represent a massive boost to the economy of the country. We should all hope that the government will make it one of their imperatives to take every possible measure to assist in the rejuvenation of the building industry and introduce proactive policies with a view to returning the construction industry to the position of strength that it enjoyed before the onset of the financial crisis.