Construction Sector to bounce back in 2021
Although a rise in construction work in November 2020 saw the value of all construction work reach its highest level since the beginning of the year, Covid-19, Brexit and social distancing requirements still dominate the delivery of construction projects as we begin the new year.
Despite the challenges that continue to dominate the industry during these unprecedented times the rebuilding of the UK economy after the pandemic is a priority for the UK government. The announcement in December of the COVID vaccine sparks confidence, with projects being granted including a £100m contract to build a mixed-use development in central London and planning permission granted for the Bishopsgate Goodsyard development in East London.
To kickstart growth the Chancellor, Rishi Sunak, has committed to £27.5 billion investment in English Roads and funding of 23bn in HS2 until 2025 as well as a new £7.1bn National Home Building Fund and a promise to shift the focus of projects away from the South East and invest in the North of England.
As well as the HS2 rail project, the Hinkley Point C power station and the Thames Tideway tunnel there are many projects to watch out for in 2021 including Rolls-Royce's plans to build smaller modular nuclear reactors, Ikea and Skanska's 200-home development in Bristol and plans for the UK's first £2.6bn gigaplant car battery facility in Blyth. The outlook for infrastructure work is the second strongest of all sub-sectors and will be a key contributor to the UK economy in 2021.
As the vaccines are rolled out at unparalleled speed and the government continues to commit to the future of the industry, as the countries economy begins to recover, it is a great time to invest in the UK and be part of the industries future.