Construction slump - perfect storm
Statistics come out about the construction industry every week. And they always seem to be bad. But what do they really mean?
To try and answer this, and to get a bit of perspective, we've written a report that takes the long view.
How does the economic outlook today compare with the last ten years?
Here are a few of the headlines:
- Private sector construction collapsed after the credit crunch.
- But the public sector stepped in with a massive increase in spending, so overall the industry didn't fair too badly until the beginning of this year.
- Over the last 6-9 months however public sector funding has started to dry up.
- As a result, right now, total output is 9% lower than it was in 2002.
- If public sector cuts continue, the private sector will need to grow by more than a third of a billion pounds a quarter just to maintain current output.
- At the moment there are no signs that the private sector is growing.
Click on the link below to read the report:
Or download it as a PDF with bonus comments and possible solutions from David Trench:
See our suggestions for how to get construction back on track. Just click on the Discussion link at the top of this page.
Read an article in The Express about our report.
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