The construction forecast 2023 – what TRIQS thinks

What will 2023 bring for the construction industry? Following a mixed 2022 overall, it is hoped the post-COVID boom will continue and that issues such as rising costs, materials shortages and a drop in available skilled workers can be overcome.

Data specialist Glenigan has reported that the UK construction industry will continue to suffer from the ongoing impact of the Ukraine war and resulting energy crisis, along with constrained demand.

Allan Wilen, Glenigan’s economic director, said: “As industry activity cools, supply side pressures may moderate, although skill shortages are likely to persist.”

It was pointed out that recruiting and retaining skilled workers is essential for this year, as there are over 49,000 unfilled positions currently, 96% more than pre-pandemic.

However, we don’t believe the 2023 forecast should only focus on the drawbacks, especially as in the second half of 2022, on-site work volume increased, which was partially driven by a 52% increase in industrial new-build output.

We also expect to see a continuation of the demand for logistics space, as well as an increase in refurbishment projects as businesses continue to operate on a hybrid model.

Some of the UK’s biggest projects like HS2 and Sizewell C are set to make huge progress this year too, particularly after Chancellor Jeremy Hunt’s promise not to scale them back. We hope the government carries on its support of such vital projects that are set to shape our country in the long-term.

Overall, although there are obvious struggles for the construction industry to overcome, we think there are many positives that will mean sustained growth over the year.

We will continue to report on the top construction news over the course of 2023, so make sure you’re following TRIQS Consulting on social media to stay up to date.