This year the Construction and Earthmoving industry has seen an increase in equipment sales, the second quarter 3.8% higher than 2017 and online statistics predicting there will be growth of a further 1.9% by 2020.
Throughout the last 2 years, the value of the Construction industry has reached £109,387 million – its highest on record – the market’s private sector now making up just under three-quarters of new work within the industry.
It’s clear then, even amidst the uncertainty of Brexit, that the Construction industry is booming. So what is the is the reason behind the rise in sales and the increased demand?
How The UK Housing Market Is Affecting Sales
The last 3 years have seen gradual quarterly increase in equipment sales, the most popular machinery contributing to this being crawler excavators (with an 11% growth) and mini excavators (showing a 10% growth compared to the same second quarter of 2017).
This increase in excavator sales is tied directly to the increased demand; to hit Prime Minister Theresa May’s target of 300,000 new homes in 2018, the number of small-scale projects being taken on that require compact and crawler digger machinery has sky rocketed. Specifically, house building has increased by 74%, boosting the industry by £35bn a year.
Not only that, the number of house extensions has increased alongside new builds. Because of increased house prices, many homeowners are deciding to build on instead of move on; the demand for extensions has increased by 183%, and these are projects which also utilise smaller scale equipment. Planning applications for basement extensions and more living spaces have increased hand in hand with equipment sales.
Even this year’s weather has had an impact, with 2018’s heatwave pushing the Construction and Housebuilding industry to its second highest point in a decade as more outdoor projects were able to be taken on and completed. The first half of 2018 showed a 5% growth in sales in comparison to the first half of 2017.
More Builds: More Jobs
With that said, the demand for experienced professionals within this industry is on the rise. Recent growth has seen approximately 2.96 million people employed, directly or indirectly, within the Construction industry, compared to 1.32 million in 2017.
The Construction industry has in fact become the biggest creator of UK jobs compared to other sectors of the economy. A survey from the ABS recorded that a total of 250,000 people were employed within Construction in 2016, in order to deliver more homes to tackle Britain’s housing crisis.
Despite mounting concerns over the impact of Brexit, Construction remains strong and growth continues. Companies like Thomas & Adamson even remain optimistic that a move from the EU will actually encourage further investments in housing infrastructure and that sales in Construction and Earthmoving equipment will continue to increase.
CSG have a dedicated team working within the Engineering and Construction sector, who have a proven track record of success when it comes to sourcing and placing candidates in specialist, senior level roles. From Sales Managers and General Managers to Managing Directors, we work up to C-suite and board level, finding and placing your next business leaders.
For Construction Pros, A Mid-Year Follow Up on Used Construction Equipment Trends, 26.7.2018
Statista, Construction Industry in the UK- Statistics and Facts
Pbc today, Beast from The East Chills Housebuilding in Q1, 27.4.2018
Office for National Statistics, Construction Statistics: Number 19 2018 Edition, 22.8.2018
CSG Talent, The UK Moves Underground: A Surge In Structural Waterproofing, 18.4.2018