Construction Industry Update – February 2022

Work exceeds pre-pandemic level after 13% output rise in 2021

Construction activity has overtaken its pre-pandemic level after output rebounded 12.7% last year.

Official figures from the Office of National Statistics show construction enjoyed an r-shaped rebound in output from the pandemic. It was helped by the industry’s big effort to return to work after the first shutdown.

Latest order figures also indicates the growth trend is set to continue at lower rates despite inflationary pressures.

Commercial work booms as construction gets off to a January flyer

Construction buyers reported their busiest month in January since last summer.

Commercial work led the way as the bellwether IHS Markit/CIPS UK construction PMI hit 56.3 in January, up from 54.3 in December.

It was the 12th month in succession the index was above the crucial 50.0 no-change mark and the strongest rate of output since expansion July 2021.

House builders put brake on wage hikes as labour shortages ease

Sharp rises in site labour rates show signs of easing as house builders report softening demand for skilled trades at the start of 2022.

A traditionally slow period for house building, average earnings for self-employed trades fell by 10% month on month.

The fall meant year on year, average labour rates on building sites increased by 3.2% to £863 per week during January, lower than consumer price inflation.

First factory-built homes to guarantee zero energy bills

A modular housing pioneer and a specialist alternative asset manager are set to deliver homes that promise zero energy bills, saving new owners up to £40,000 over 20 years.

To reach the ZERO bills specification low-carbon technologies will be installed to provide cheap, clean energy.

Rooftop solar panels will produce electricity to power the home’s air source heat pump, which provides all heating and hot water.