A new £170-million plasterboard factory confirms that businesses are betting on an upturn in the UK construction industry’s fortunes. Belgian firm Etex has invested in the new factory near Bristol, and domestic brick factories are also preparing for the predicted growth in residential housing.
Despite gloom in the global economy, construction industry predictions in the UK are becoming more optimistic. Glenigan’s most recent forecast predicts a strengthening housing market throughout 2026, with rising household incomes, lower mortgage rates and improving economic conditions all having a positive impact. Glenigan predicts residential housing starts will increase by more than 5% next year.
If these predictions are correct, it’ll be good news for construction firms and suppliers alike, who will all have a role to play in the anticipated housing boom. This upswing will be crucial if the current government is to meet its ambitious target of building 1.5 million new homes by the end of the current parliament.
The price of building a home has levelled off somewhat since the inflationary rises we saw during the pandemic, but the cost of skilled labour and materials remains high.
Highlighting the potential gamble that firms like Etex are taking, some surveys show that the industry is continuing to contract. According to the S&P Global UK Construction Purchasing Managers’ Index survey, UK construction activity suffered a sharp drop at the start of Q3. A fall in work was reported by around 29% of firms surveyed. These firms mentioned site delays, lower volumes of new business and weaker customer confidence.
However, other surveys contradict this, and we have certainly seen a strong pipeline of structural engineering work at Super Structures Associates this year. The good news is that when business is strong, we will have more suppliers able to support the UK’s building projects.
Etex plasterboards would have been imported from Spain in the past, but will now be manufactured at the Bristol site. It’s also possible, according to Glengan’s chief economist, Allan Wilen, that UK firms could benefit from Donald Trump’s tariffs, as EU construction materials bound for the US may end up being diverted to the UK.
After the delays of the pandemic era, when so many people had to down tools when no timber or plasterboard was available, it will be a relief to have suppliers on our doorstep.
It’s difficult to predict exactly how the next couple of years will pan out, but I do believe that if you work hard to keep your regular clients happy, then it’s a lot easier to keep the work flowing in.
Let’s hope that those investing in growth have got it right, and the demand will be there in years to come. Meanwhile, if you need any assistance with the structural elements of an upcoming project, please do get in touch.
