Construction Post-Brexit
Whatever your views on June’s Brexit vote, there’s no denying that it has had an economic impact on the UK. While many of the initial changes were due to panic (like the stock markets dropping and then regaining all their lost capital just 3 days later), other slowdowns seem like they will take longer to resolve.
Construction was a fairly conservative industry when it came to the referendum, and only 15% of property and construction executives favoured an exit from the EU. That’s no surprise to people who know that construction is easily hit by economic instability, since investors pull out of projects, commercial builds are shelved, and even domestic builds are less likely to take place.
Growth forecasts for construction have now been downgraded three times in the last 6 months – housebuilding and commercial have both seen an output drop which is affecting builders throughout the country.
What’s Next?
The important thing to remember is that the exit hasn’t actually happened yet. Article 50 – the process of separating from the EU – has not been invoked and when it is, it will still take another 2 years to formally leave the Union.
British construction is largely domestic – there is a housing shortage, the infrastructure needs repair, and all the needs of the British people were the same on June 24th as they were on June 23rd.
For construction businesses to weather the upcoming changes, whatever they may be, they need to maintain a quality and reliable supply chain and make sure that customers can find them, whether relying on word of mouth or online search.
87% of UK builders’ business suffers due to poor online presence, which is one of the items to focus on in order to improve work volumes and reduce quiet periods. Working with suppliers and forecasting requirements is another way to reduce delays and ultimately promote good word of mouth, which in turn can promote business.
Lawsons’ trade partnerships are one way that we help construction businesses reduce their costs and improve reliability when it comes to both the delivery and quality of materials. If you have any questions or requests to help you with your projects, please get in touch with your local branch.
