As another year draws to a close, the UK construction industry is currently facing a number of challenges that are set to impact its performance in 2022. These include:
1. A shortage of skilled workers
The UK construction industry is currently facing a shortage of skilled workers, which is set to worsen in the coming years. This is due to a number of factors, including the retirement of the Baby Boomer generation and increased demand for construction workers from other industries.
2. Brexit uncertainty
Brexit is creating a great deal of uncertainty for the UK construction industry. This is because it is unclear what the future relationship between the UK and the EU will be, and how this will impact trade and investment flows. This uncertainty is likely to lead to delays in investment decisions and reduced demand for construction services.
3. The need to reduce carbon emissions
The UK government has announced plans to reduce carbon emissions by 80% by 2050. This means that the UK construction industry will have to reduce carbon emissions by 40% by 2020. The government has also stated that it will end unabated coal-fired generation by 2025. This means that electricity generators will have to use a mix of clean technologies to produce power, which should decrease demand for construction materials such as steel and cement.
4. The high cost of materials and labour
The high cost of materials and labour is a challenge that the UK construction industry has been facing for a number of years. This is due to a number of factors, including:
– The increase in the price of raw materials, such as steel and cement.
– The depreciation of the pound since the EU referendum, which has made imported materials more expensive.
– Increased demand for construction workers from other industries, which has led to an increase in wages.
5. The need for innovation
The UK construction industry is in need of innovation if it is to meet the challenges posed by Brexit and the need to reduce carbon emissions. This includes:
– The adoption of new technologies, such as 3D printing, that can help to reduce construction times and costs
– The use of new materials, such as plastic lumber, which are more sustainable and environmentally friendly than traditional construction materials
– The development of new construction methods, such as modular construction, which can help to reduce labour costs and wastage.
Despite these challenges, the team at Lydon Contracting are excited about the future and have plans in place to deal with all of the above challenges. If you have a construction project you would like to discuss, contact our friendly team today.