A peak in planning approvals last month is raising the hope that new-build work could recover quite quickly after the coronavirus crisis.
The speed at which the industry recovers will depend on Government stimulus packages and confidence among private sector clients.
At present 25% of all UK construction projects currently on-site are suspended, with a total market value of £55bn, representing a staggering 34% of the total value of all work under-construction.
This has had an immediate impact on the industry with most main contractors furloughing large parts of the work force, and thousands of self-employed workers being laid off.
But a firm development pipeline recorded by construction information specialist Glenigan demonstrates that longer-term opportunities remain.
Researchers said: “Although firms are struggling to overcome herculean issues now, those that can spare some focus on the future will see that there is opportunity, and indeed, hope.”
As COVID-19 started to shut sites down in March, Glenigan recorded a significant increase in the volume of planning approvals versus any of the previous 12 months.
Project sectors that have the highest potential to rebound are health, community & amenity, education, and social housing.
The strongest uplift in planning approvals were in the North East, North West, and most notably Wales seeing the highest growth, although these are from a lower base than the south east and midlands.
(constructionenquirer.com)
