Labour Back In Demand As Construction Gets Going

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The UK is reportedly on track for a record economic resurgence during the third quarter of the year, with the construction industry continuing to enjoy an impressive period of growth.

City of London economists (from the Financial Times, and Fable Data) have predicted a 14.3% rise in GDP for Q3 – which is great news for the construction industry, says recruitment specialist Simon Robinson, co-founder of Red Diamond Executive Headhunters.

The Construction Purchasing Managers’ Index has also risen to 58.1 - slightly above what economists had predicted - compared with a record low of just 8.2 in April.

Although building activity shrunk by around 70% during lockdown, new figures show the industry grew at the fastest rate in almost five years during July.

Houses moving

House prices have risen again during August with £37 billion in property sales, according to the Rightmove House Price Index, agreed during July, the busiest month for house buying in more than 10 years.

Re-hiring

There are clean signs, says Robinson, that the green shoots of recovery are beginning to appear - and he predicts that workers who were initially laid off back in March could be rehired in time for a busy September.

 “Rishi Sunak’s decision to scrap stamp duty on homes below the £500,000 mark has proved to be a catalyst in getting the industry moving again. Another plus point is that the government has moved to support smaller businesses through favourable loan terms.”

– Simon Robinson 

Co-founder, Red Diamond Executive Headhunters

Proud building nation

And while nobody wants to rack up debt, equally it’s vital that businesses aren’t forced to pull out of developments," continues Robinson. Construction companies still have KPIs to meet, particularly in the lower echelons of the market, with starter homes especially in demand. Therefore, the appetite is there to reopen the market and I would expect to see a very busy autumn of activity, albeit with changes to the number of people allowed on site to enable social distancing.

“Britain is a proud building nation and, as we are told that people need to spend their money, what better investment is there than a house? First-time buyers especially can get great mortgage terms with no stamp duty – which means they can in turn spend more on their furniture and fittings or home improvements.”

Brexit

Robinson concludes: "With Brexit around the corner, more restrictions are likely to be put in place on foreign labour coming into the country, providing an opportunity for people who may have lost their jobs back in March to be rehired."

Picture: Simon Robinson.

Article written by Cathryn Ellis
26th August 2020

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