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Get in touch with us nowIs the construction industry still growing?
In the third quarter of 2021, not only did the gross value added by construction activities in the UK reach pre-pandemic levels, but they also kept growing in 2022. Nevertheless, the construction sector has been growing more slowly in early 2023. That positive outlook could be observed throughout the entire country. For instance, the number of new homes registered to be built in 2022 increased in comparison to the previous year in every region except Northern Ireland and the Isle of Man. The largest segment of the construction industry in 2022 was repair and maintenance and housing.An industry facing increasing challenges
However, even if the main indicators still show positive growth rates, the construction industry in the UK has been facing many challenges in the past months. Inflation has increased the price of building materials and other costs. For example, the increasing oil and energy prices affected materials whose production is energy-intensive, such as steel. In 2022, the price of concrete reinforcing bars, which are also made of steel, was nearly 38 percent higher than in 2021. The growth of oil prices also has affected the cost of transportation of other construction materials, resulting in overall higher prices for most construction materials. In addition, a more unstable economic situation may affect the number of new projects started. For example, the value of new office construction orders has fallen in the first quarter of 2023.
