Covid 19 Has Led to a Decrease In Construction Output10 Aug 2020, by Crane Training News, Earth Moving Training News, Fire Safety Training, First Aid Training News, Forklift Training News, IOSH Training News, MEWP Training News in
As coronavirus continues to wreak havoc in certain parts fo the world, many countries have lifted their lockdowns and attempted to keep their economies going. In the United Kingdom, consumer confidence and unemployment are expected to cause a decrease in the output in the construction sector, meaning that it has yet to return to Pre-COVID 19 levels.
This comes as a shock to the industry. Workers returned to work quicker than expected post lockdown. There were few outbreaks throughout the industry. Ever signal pointed to a speedy recovery. However, that is not what has happened, leading many to estimate a rough year for this sector. There are several things contributing to the expected 20.6% decrease in growth.
Little Consumer Confidence
As consumer confidence has wavered, businesses across every sector are being affected. Housing projects are up in the air as more people stay in homes where they feel secure. They are spending less money in retail stores, leading to a shaken economy that is only slowly stabilizing.
Residential projects, such as the construction of Help To Buy, which must be completed by New Year, are supposed to help give the industry the boost that it desperately needs. However, the expected rise in unemployment and uncertainty that many lenders are experiencing fills the completion of projects like this, and the residential sector as a whole, with uncertainty.
A majority of those returning to work after the lockdown was lifted found that they were continuing to work on previously uncompleted projects. While these projects were in desperate need of completion, it has significantly postponed the growth that this industry needs to see. The need for heavy machinery handling such as MEWP trained specialists is still very much in demand for the industry as a whole.
Increase In Working from Home
While many employees are thoroughly enjoying their ability to work from home for an extended period of time, this is contributing to the slow growth in the construction industry. As fewer people work in office buildings and more employees find ways to work from home, fewer upgrades are needed in the commercial sector. This results in a significant decrease in output in the commercial sector.
Online Shopping Is Hurting The Commercial Sector
Due to the drastic increase in online shopping, companies are spending revenue to keep up with the current demand. As brick and mortar stores go untouched, the construction industry is seeing less business from the commercial sector in this category as well. The total decrease in the commercial sector is estimated to be almost 30%.
According to Noble Francis, the Green Homes Grant will bring more growth to the industry in a time that it is much needed. He stated that the expected growth for 2021 is approximately 18%, but this is still several percentage points shy of where the industry stood pre-COVID 19. The slogan “build, build, build” was geared to give this industry the boost that it needs, but it will not be enough to give the industry immediate growth. Instead, long term, stable goals are necessary for the construction industry to survive the havoc that Covid-19 has caused.