When the UK public voted in June 2016 to leave the EU, there was much speculation over what will happen when the country leaves the single market.
One of the biggest concerns is that the freedom of movement will restrict access to EU workers and, as a result, the construction industry could lose up to 175,000 qualified personnel. Another issue is that Brexit could mean less foreign investment into the UK. Foreign investors represent 12% of current infrastructure projects.
These events might raise concerns that the number of construction projects will reduce; especially if investment drops. Also, construction companies may struggle to hire and retain qualified staff. However, the reality might be very different.
Increase In Building Work
In the immediate aftermath of the Brexit vote, people noticed that projects were cancelled or put-on-hold; further worrying industry experts.
But in late 2016, the construction sector showed significant signs of growth.
The closely watched Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) rose to 54.2 in December. This was up from 52.8 and its strongest since March 2016. More importantly, it was higher than the experts predicted.
Though some will disagree at why this bounce happened; it demonstrated that Brexit would not adversely affect the construction industry in the long-term. After all, people will still need homes built, maintained and repaired, and there will always be those looking for improvements.
While the UK still finds its new place in the world, there will still be construction opportunities. If you and your sales team are proactive, you shouldn’t notice any difference between your levels of work between now and after Brexit.
And, just because we are leaving the EU, it doesn’t mean other countries won’t invest in the UK. After all, other nations have already expressed an interest in free trade deals with the UK.
Therefore, while we may have some uncertain times, it doesn’t mean that the construction industry needs to be pessimistic.
What are your thoughts? Does the construction industry need to be pessimistic?
Let us know in the comments below.
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