Competitive Advantage in conjunction with the Chartered Institute of Marketing Construction Industry Group (CIMCIG) has set up a quarterly survey to measure the impact of Brexit on Sales & Marketing in the construction sector. Please follow the link to give us your feedback and register for a free report of the findings.
Here is a summary of recent Brexit news relating to the built environment, with a look at how the sector is rallying to provide guidance going forward.
Martin Hewes of Hewes & Associates, presented his forecasts on the Construction outlook for 2016-2018 following the Brexit vote at a CIMCIG Seminar in July, his presentation slides are available to view online. Michael Prince of Competitive Advantage attended the seminar and has written a summary of what Martin had to say in his forecasts and around Brexit.
BBC News provides a summary of the latest developments for the UK economy, housing and job markets following Brexit. Their summary includes the effects of the vote on inflation, house prices and construction output. The ONS have also created a round-up of key outputs following Brexit.
According to research from insolvency firm Begbies Traynor, UK businesses can expect six months of turmoil in the UK markets before the economy finds a “new normal”, with construction and property hit the hardest. However levels of ‘significant’ financial distress among UK business have fallen for the first time since immediately after the 2015 general election, but the business environment is expected to worsen over the next 6 months.
The latest Construction & Economic Review from Barbour ABI, suggests that although the Brexit vote has caused immediate economic shocks in many markets, it may take time for the impact to be shown in the official statistics. Yet recently released statistics (see our Market Activity report) show a decline in the construction sector, the CPA/Barbour ABI Index based on contracts awarded shows construction had a strong month in June across most areas.
In contrast, the Glenigan index, covering project starts in the run-up to the EU referendum and the immediate aftermath, shows that the value of work starting on site in the three months to July 2016 decreased by 12% compared with the same period a year ago. This fall is most likely due to the high levels of political and economic uncertainty during the period, prompting many private sector investors to defer their investment decisions.
The Resolution Foundation asks could a Brexit-induced house price fall benefit those who are struggling with housing costs? And say that we cannot rely on the uncertain house price effect of Brexit to solve the housing affordability problem in the UK. But, a range of active policies is needed now more than ever to help solve the problem.
Balfour Beatty have published Infrastructure 2050, a report that looks at future infrastructure needs with recommendations for a more diverse post Brexit economy. UK Construction Online has published Post Brexit Aspirations from the Construction Industry, where experts from across the industry have given their opinions and guidance on how Britain can move forward following the vote.
RICS have gathered the views and opinions of professionals in the construction sector to help them produce an EU referendum policy paper by asking what impact could Brexit have on the built environment industry across the UK?
The NBS have published the findings of their EU referendum survey covering what Brexit means for the construction industry. Overall, the findings show that the expectation of the design community is that the referendum result will have a negative effect on their businesses, their staff, and on the wider construction industry.
Members of the Construction Industry Council have met to discuss the challenges ahead in relation to Britain’s exit from the EU, looking at what opportunities could be provided once the UK begins the withdrawal process. It was also agreed that the council would help shape future policy for the construction sector and support the working group established by the Institution of Civil Engineers.