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NEWS

CIOB respond to third

consecutive drop in

construction output

On 10th September the Office for construction output for July due to a
National Statistics (ONS) released its growth in warehouses and distribution
data on construction output in Great centres.
Britain for July 2021. When asked by IHS Markit, survey
To summarise, construction output labour, especially in green skills. By respondents said that they were
fell by 1.6 per cent. As such, the level improving the rate of retrofitting in more optimistic about their growth
of output for July is below that of private housing this can support prospects in the year ahead.
February 2020 (pre-COVID-19). In fact, employment in this field. This is a positive sign as restrictions
this is the fourth consecutive month Infrastructure new work has have now ended in England and
that construction has seen such a continued to remain strong sites are returning to normal
decline. The IHS Markit Survey throughout the pandemic period (an operations.
published earlier this week showed increase of 3.7 per cent) with ONS Hew Edgar, Associate Director –
similar results, with both collecting anecdotal evidence suggesting that Policy, commented on the figures:
anecdotal evidence attributing the projects relating to warehouses and “Today’s figures from the ONS are not
lack of growth to price increases, distribution centres were the main unexpected. These are indicative of
product shortages caused by supply reasons for this. It is likely that new the continuing problems the industry is
chain issues and the lack of available infrastructure work will continue to facing in materials and skills shortages.
transport capacity creating long wait remain strong with more construction The high demand of materials
times. firms looking towards adopting coupled with issues of short supply
The decline in monthly output for July Modern Methods of Construction and lack of transport for goods is a
came mainly from private housing (MMC) to speed up delivery of global issue that will take some time to
according to the ONS, who reported housebuilding and creating new resolve. For construction to keep
a decline in both new work for private routes for the transport of pre- moving, it must be adaptable, and
housing (7.5 per cent) and repair and fabricated materials. clients should be having discussions
maintenance (6.2 per cent). Public housing repair and with their supply chain on how best
Repair and maintenance continued maintenance, private industrial to manoeuvre around the challenges
to decline in output for three months, new work and infrastructure new we are experiencing.
primarily due to the fall in the private work were the only sectors that We are glad to see that respondents
housing market. CIOB continues to saw monthly growth in July (2.2 per from IHS Markit are rightly optimistic
advocate for the Government’s cent, 19.7 per cent and 3.7 per cent about the year ahead, but CIOB
focus on retrofit, particularly if it wishes respectively). Private industrial work remain wary of the effects of any
to reach its ambitious sustainability has continued to rise since May future lockdowns on the economic
targets. In addition, the industry 2021. This is a relatively small sector, recovery and our ability to build back
continues to face a shortage in skilled but it has contributed significantly to better.”

www.modernbuilder.co.uk modern builder - issue 97 oct 7