New Research Shows Optimistic Outlook for Construction Industry
One insolvency specialist says it has spotted strong indications of recovery across the construction industry. Despite a fall in industry output of more than 9% in 2012 and some very guarded predictions for recovery this year, the organisation’s research suggests substantial improvement on the horizon for the British construction industry.
The research, which assesses the financial well-being across corporate Britain, indicate that the real estate and construction sectors have been at the head of a general improvement in the UK’s economy. According to the report, construction distress cases have come down by just over a third, and have also been reduced in the real estate sector.
A partner at the company said: “Our figures show an improvement in the construction sector’s financial health. It is our belief that this reflects those building firms which have weathered the global financial crisis and are now reaping the benefits of better margins on a reduced cost base. “In the wake of the crisis, it also seems that some firms have bought land banks for a significantly reduced cost. Together with a real improvement in the sector’s output near the end of last year, we find this very encouraging.
“What’s more, sizeable infrastructure schemes, for example the building of the HS2 rail link, should have a really positive effect on the industry in the medium to long term, while, more immediately, the industry is enjoying the benefit of reduced competition since the start of the crisis, and ongoing forbearance as far as credit is concerned.“The generally improved construction and real estate pictures may also be a reflection of an easy in the mortgage market. Some of this may be to do with the Funding for Lending Scheme, launched back last August.
“The good news is that, while real estate and construction are often the first industries to be affected by a recessionary environment, equally they are also generally among the first to benefit from recovery afterwards. So these encouraging developments could hopefully be an indicator of a slowly but surely improving British economy.” However, with the recession still biting, things are no doubt set to remain challenging for many.
So, if you’re involved in any sort of construction project, it’s never been important to have the right quantity surveying services in place. This will prevent costs from spiralling out of control.
The organisation providing qs services will look at plans for a proposed scheme and work out how much the project will cost to build. Then they will liaise with architects throughout the life of a project, and deal with areas from valuations and final accounts to dispute resolution. They have proven skills in maths, finance, business – and are highly skilled communicators.
In the UK, most are registered with the Royal Institute of Chartered Surveyors (RICS). If you’re hiring a surveyor, it’s worth comparing a number of different quotes. Some quantity surveyors work for an hourly rate, others for a lump sum or as percentage of the project cost.There’s more online.