The media has been consumed by the economic and political fallout from the referendum, and it has been difficult for all of us to decipher what it all means. However, there are a number of forecasts and announcements recently that should allow us to remain optimistic, not least because construction always wins out in the end.
Persimmon have recently announced a 6% increase in new home sales for 2016, and declared that it feels confident about the next 12 months, as the “market fundamentals remain strong”.
Redrow also recently declared record results with turnover up 20%, and said: 'Reservations continue to be taken and, indeed, we witnessed long queues and strong reservations at new sites launched last weekend.'
Carillion is also amongst those that are remaining upbeat about prospects for the year after Brexit with revenue and margins up in the first six months.
Carillion chief executive Richard Howson said “the group was on track to deliver growth this year with 97% of targeted revenue in place for 2016.”
UK Culture Secretary, John Whittingdale, says creative businesses in the UK will continue to thrive after Brexit. That success is built upon the extraordinary talent which exists in this country, an amazing cultural heritage, the English language and a tax system designed to support and encourage growth in the creative sector."
Arcadis experts believe the falling pound will lead to an influx of foreign investment which “would provide a timely boost for the UK construction sector in the long term, particularly if increased competitiveness is also matched by government funding for infrastructure, helping to underpin confidence in the new build sector.”
Glenigan’s mid-year forecast points to a return to modest growth, and highlights up sides to the post referendum period. Glenigan forecasts that projects starts pick up again and uncertainty disappears from the market place. It highlights some up sides to a weaker pound, with a likely increase in hotel and leisure project starts as an increase in tourism forecast for 2017. Long term across the education sector, from universities to primary schools, there will be a return to growth in 2017 to accommodate rising student numbers and pent up demand. Civil Engineering projects will play an even greater role in construction output, with major projects now seen by all major politicians as a way to stimulate the whole UK economy as it looks to restructure and support the midlands and north as part of George Osbourne’s celebrated Northern Powerhouse.
The construction Industry is resilient, and is seen by political leaders as fundamental in steering us through this transitional phase, this should allow us to plan for the future with confidence.