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: 01452 414853 Web: 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