A lot of negative press has been hitting the news recently regarding the state of the construction industry in London, but is this really the case in all locations? Figures suggest the industry is in a much better state in surrounding areas.
It has been a turbulent time for most business sectors of late, and the construction industry has been riding the unpredictable waters alongside everyone else. It appears that London is most definitely the area worst hit. The London market is very turbulent, with output shrinking at its fastest rate since June 2009.
This is most probably due to much of the capital’s property money coming from many foreign investors, who are much more affected by exchange rate changes than investors from areas in Britain, and as such they are acting with much more caution than usual.
However, although London is reporting a negative impact after the Brexit vote, recent figures are showing a glimmer at the end of the tunnel, with areas outside London telling of positive statistics. Instead of the deterioration of the construction industry, post-Brexit fears are being washed away with every passing day.
In many cases it is business as usual – in fact, certain locations are thriving. The construction sector in Ireland and Scotland is displaying booming numbers, with commercial building and housebuilding activity increasing at its quickest rate since February, and employment in the industry also picking up, hitting a five-month high. Housebuilders who have no developments in London have seen business either improve or remain steady – there is no post-Brexit dive in sight.
Here at Kems Group in Essex, we seem to have repelled the negative post-Brexit wave, as the construction business is booming and numerous projects are filling our production schedule. We are hopeful that the industry will remain steady, and that we can continue working without any Brexit negativity.