Clearview National March 2016 - Issue 172 | Page 32

INDUSTRYNEWS

STRONG GROWTH PREDICTED
»»THE COMMERCIAL GLAZING
Market Report UK 2015 – 2019 analysis has
revealed prospects for growth in the market
over the next four to five years look positive.
Following a period of decline between 2008
and 2011, significant growth in 2014 appears
to have been sustained and improved upon in
2015.
Increased activity in the construction office
sector has been a major influencer in this
growth; and the education sector is also likely
to see the number of new projects increasing
from 2016 onwards.
In terms of product sectors, the report
stated the largest segment by value is

commercial windows, followed by curtain
walling and ground floor treatments.
Jerry We bb, MD of specialist aluminium
fabricator CDW Systems, comments: “The rise
in new projects in the commercial market will
see higher demand for aluminium products.
Aluminium has always been the material of
choice in the commercial market. At the same
time we have been very vocal about the lack
of use of aluminium in the domestic market
and are campaigning to promote the benefits
of bringing this material into mainstream
projects such as new build housing.”
Tel: [phone] Web: www.cdwsystems.co.uk

Continued Signs of Construction
Growth reports CPA
»»THE CONSTRUCTION PRODUCTS
Association’s latest forecast estimates growth
for the construction industry of 3.6% in
2016, which is a downward revision from
the Autumn 2015 forecast of 3.8% primarily
because of slower UK economic growth.
The forecast horizon remains positive,
largely due to the inclusion of HS2 main
works for the first time; however, risks that
threaten construction activity have intensified,
particularly from weakening global economic
growth, the EU referendum and skills
shortages.
Highlights include:
• Total construction output is forecast to
rise 3.6% in 2016 and 4.1% in 2017
• Private housing starts to rise 5.0% in
both 2016 and 2017
• Industrial activity expected to increase
21.3% by 2019
• Offices construction to increase 7.0% in
2016 and 2017
• Infrastructure work is forecast to rise
56.9% by 2019
Professor Noble Francis, Economics
Director, said: “Private housing work,
especially in London and the South East,
provided the majority of growth between
2012 and 2015. During this forecast period,
however, all three of the largest construction
sectors – private housing, commercial and

32 » M AR 2016 » CL EARVI E W- UK . C O M

infrastructure – are expected to drive industry
activity.
“Private housing starts are forecast to rise
5.0% in both 2016 and 2017, buoyed by
a high latent demand for home ownership,
which is enabled through rising mortgage
lending and policies from government. The
demand-side policies in particular will fuel
house price inflation further, especially in
the capital, whilst also incentivising major
house builders to increase building rates over
the next 12-18 months. In addition, given
all the government assistance to boost the
housing market, house builders are likely to be
under pressure to increase supply throughout
parliament.
“Public housing prospects continue to be
poor. Housing associations will be adversely
affected by a lack of funding as rental income
will be hit by the extension of Right to Buy
and cuts to social rent. Public housing starts
are expected to fall a further 5.0% in 2016
and no significant growth is expected over the
forecast period.
“The energy sub-sector will be boosted
by work on Hinkley Point C where main
works are anticipated from 2018, though
further delays cannot be ruled out. Roads
construction is also likely to increase
throughout the forecast period, by 37.2%,
but this is substantially less than was initially

Construction Industry
Forecasts 2016-2019
Winter 2015/16 Edition - £175

expected as Highways England struggles to
enact its project pipeline to time and budget.
“There are significant risks to this forecast,
however. First is the uncertainty regarding
global economic prospects. The chief concern
remains weakness in China and the effect it
can have on other countries. Second is the EU
Referendum, likely due this year. While we
make no assumption about the result, we note
the uncertainty around the issue is already
affecting investment decisions. Third and
perhaps of most importance for the industry
is the urgent challenge around skills shortages.
The availability and cost of skilled labour has
clearly impacted the house building sector; the
recovery in other sectors is already showing a
similar vulnerability.”
Source: CPA