Scape Group chief executive comments on today’s ONS Construction Output

Mark Robinson, Scape Group Chief Executive, comments on today’s ONS construction output:

“The cautious optimism we have seen within the construction industry recently is continuing, with today’s data showing a modest increase in construction output. It is particularly promising that housebuilding continues to remain a key contributing factor to higher levels of activity.

“Despite these encouraging signs it is concerning to see that publicly funded construction projects in the health and education sector are falling, and in June accounted for only 5.3% of total construction work. Our own research shows that there is significant demand for new school places, with 14,522 new secondary school classrooms required by academic year 2020/21. Innovative approaches to delivering the facilities we need is vital, and the sector needs to continue exploring the benefits of modular construction.

“Whilst the figures suggest the sector is returning to the more positive outlook we experienced at the end of 2017, there is anecdotal commentary that the recent good weather has benefitted output. This year has clearly demonstrated how susceptible the sector is to the seasons and we must prepare ourselves with a steady stream of new work as we head into the coming months.”

Construction output in Great Britain: June 2018

  • Output increased by 0.9% in June 2018
  • Quarter-on-quarter increase was driven by a 2.7% increase in repair and maintenance work
  • Public other new work is 17% lower than it was in June 2017