FEATURED ARTICLES
Paul McGarry Management Solutions
The Fractional model gives clients access to well qualified people at a fraction of the cost of full time employees[Read More...]
What to expect in the latter half of 2025
What to expect from the construction industry in the latter half of 2024[Read More...]
CONTACT US
What to expect in the latter half of 2025
The UK construction industry is in for a mixed bag in the latter half of 2025. While forecasts predict nominal growth after an early year fall, challenges like inflation, business confidence and skills shortages persist. Here's a breakdown of what to expect:
Reasons for Optimism:
- Infrastructure Investment: Government spending on infrastructure projects is expected to continue, providing stability to the sector [UK construction sector expected to recover from 2024]. Housing is expected to increase but from a low ebb.
Persistent Challenges:
- Inflation and Interest Rates: Rising costs of materials and labour, coupled with higher borrowing rates, may dampen private sector investment and housing starts [3 Challenges Facing the UK Construction Industry In 2024].
* Skilled Labour Shortage: The industry continues to grapple with a lack of qualified workers, potentially hindering project completion times.
* Business confidence needs to improve following tax increases and lack of good leadership
Overall:
The second half of 2025 is likely to see a gradual improvement in the UK construction industry, but not without hurdles. Infrastructure projects and a pick-up in housing construction should provide some buoyancy, while commercial may see a slower recovery due to lack of business confidence. The Government has promised a real boost to housing but this is not without challenges.
