Survey Finds Confidence Returning To The UK Construction Industry

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25th October 2013 11:41 - Construction

According KPMG’s Global Construction Survey 2013: Read for the Next Big Wave, almost three-quarters (73%) of construction companies in the UK are “positive” or “very positive” when asked to describe their medium-term outlook (next two to five years). Companies in the Americas and Asia Pacific are also optimistic, with 91% and 65% respectively describing the medium-term outlook at “positive” or “very positive”.

Among respondents, almost three-fifths (57%) say they expect their company to grow anywhere between one and twenty-five percent this year (based on 2012 revenue). Again respondents in the Americas are the most confident when it comes to growth forecasts; four-fifths (80%) say they expect their company to grow between the same margins – one and twenty-five percent.

According to the survey, the majority of companies worldwide reported increased order books, pipeline and profit margins. In the UK, half (50%) of respondents said their order books at the end of 2012 had increase by at least 5% - compared with three-fifths (61%) in America. In addition, two-thirds (67%) of UK companies foresee an increase in pipeline by the end of this year.

More than half (53%) of UK construction companies think that government infrastructure plans, urbanisation and economic growth will be the key drivers for growth in the sector.

Richard Threlfall, UK Head of Infrastructure, Building and Construction at KPMG, said:

“There has been a growing sense in the last couple of months that the worst is over and the results of our survey provide further evidence that construction activity is finally picking up… Construction companies now need to invest in growth. What is holding back the industry now is not lack of demand, but the ability of businesses to resource for it and recruit sufficient experienced staff.”

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