Beard Construction comments on latest CIPS PMI data
06 November 2023
Fraser Johns, finance director at Beard Construction said: “Despite a stabilisation of commercial building, the headlines will be the eleventh straight monthly fall in housebuilding which is having a major impact in skewing overall activity and the wider industry picture. Despite the positive news of the Bank of England holding rates, elevated borrowing costs and tighter access to credit remains a clear challenge. This is not unique to the residential space either and partnered with wider economic uncertainty may be causing some clients to hesitate when committing to new projects.
“There’s no question though that it will be a tough end to the year for UK construction and for many firms, with some smaller firms potentially not making it that far amid a growing number of insolvencies. At Beard, we’re in the fortunate position to see positive signs of demand, particularly from infrastructure projects for local frameworks, which continue to drive our pipeline. In particular, education remains a buoyant area as schools and universities not only look to improve existing infrastructure but expand too.
“As ever, a careful eye is needed on tendering and cost plans in the current climate, as well as a constant dialogue with clients and suppliers. As parts of the industry face greater pressure, we must also respond to opportunities in the most resilient sectors.”
