Following our On The Tools Brexit poll a massive 80% of you voted that you wanted to leave the EU. After the June results were revealed, it was a positive outcome for most. However, there were some initial concerns regarding the industry as within minutes, the value of the pound began to plummet. Initially, it wasn’t looking optimistic for those in the construction sector. Yet 4 months later, statistics show that the construction industry has actually come through these hard times and made it out on top.
To begin with, predictions expected construction to fall. However, monthly Brexit statistics from August to September instead show that it’s on the rise! According to reports, this is due to the strong housing market and increased civil engineering. These two factors have allowed the sector to gain confidence and improve output volumes. Reports have also shown that there has been the strongest rise in housing construction since January. The statistics indicate that unlike the predictions made, the referendum has actually improved the industry in the respect of providing more jobs and homes to live in.
Alongside this, it also displays that the construction sector is helping to improve national market conditions. Reports show that despite only making up 6% of the overall UK economy, the construction sector has also had some knock-on effects on the general economy. Therefore, critical infrastructure has become a matter of importance, in order to ensure that the industry is maintained and developed to further economic growth. The Chancellor’s statement, given on the 3rd, encourages this. Within the statement, further improvement for the construction sector was covered. It was announced that more money could be allocated to infrastructure investment in the Autumn statement.
Community secretary Sajid Javid also encouraged further public funding for the building of houses in the Tory conference. He addressed that the Treasury would borrow £2 billion. This would then be used to support an “accelerated construction” scheme and kick-start a £5 billion home building fund. This would hopefully then be able to provide loans to help build more than 40,000 homes by 2020.
Despite money being orientated towards home building funds, there was the fear that house prices would collapse. However, instead, data shows that they are actually on the rise. Reports show that this is due to lower interest rates for loans being introduced by the Bank of England. Senior economist at IHS Markit, Tim Moore, also noted that construction firms seemed optimistic about the next few months. He stated there was “the fastest rise in orders since March and a more economic news flow” and that “Brexit-related anxiety has receded among clients.”
Things have not only improved for the overall construction industry and the British economy but also for the workers. Wages have rapidly increased compared to any other district within the economy due to a shortage of skilled labour. Overall, according to Ruth Gregory of Capital Economics, earnings have grown by 5.7% in July 2016 alone. This is more than 3 times the rate seen for the entire economy! Not only have wages improved but also job opportunities within the sector which have risen for the first time since April.
In light of the months following the referendum, there has been a large national impact regarding the value of our industry and markets. Have you been impacted? Have your wages increased? Are you still finding work? Do you still agree with the decision to leave the EU? Drop us a comment below and let us know.