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'Glenigan’s UK Construction Industry Forecast 2025-2026 forecasts an eight per cent growth in construction output in 2025 followed by a 10 per cent increase in 2026, compared to –1 per cent in 2024.'

Construction sector productivity flat since 1985 A new report highlights widespread productivity challenges in the construction sector, underlining the urgency of the government’s plan to make it easier and more affordable to build, Building and Construction Minister Chris Penk says.    “The New Zealand Chinese Building Industry Association have released a report investigating the building and construction sector and outlining the opportunities and challenges of one of New Zealand’s most important sectors.    “The construction sector is a crucial part of the economy. The report found that the sector contributed $99 billion dollars in sales in 2023 and indirectly supports over half a million or 20% of all jobs in New Zealand.    “However, the report paints a grim picture of the sector and points to a number of issues, including the fact that productivity levels have remained the same since 1985.   “Another key challenge is the slow and inefficient build process, which leads to longer wait times and higher costs. Worryingly, the report found that the time it takes to build a home has increased by 50% from 13 months to 19 months.   “These factors combine to create an unaffordable housing market which forces Kiwi families to spend more and more of their income on housing. It is unacceptable that renters now spend nearly 40% of their income on housing.    “This is reflected in the report which asked industry participants to describe the construction sector with one word, with the most common response being ‘expensive’. This is exactly why the government is focused on streamlining the building consent system and removing unjustifiable red tape that is slowing down the build process.   “Lifting productivity in the sector will not happen overnight but it is vital to build more homes so more Kiwi families can benefit from having a stable home and all the associated social and health benefits. “In the last six months the government has already progressed a raft of changes to address some of the issues raised in the report, including: 🔸 Removing barriers for overseas building products. 🔹 Progressing work to make remote inspections the default approach which offers significant productivity gains over traditional methods of inspections.  🔸 Making it easier for minor changes to be made to a building consent to remove the need for an additional application to be lodged for small changes. 🔹 Amending regulations so that smaller dams are not subject to excessive compliance costs.  🔸 Reviewing the earthquake-prone building system to better balance safety with cost and risk.    “I thank the NZCBIA for this insightful report into the building and construction sector, which has reconfirmed how critical it is we progress changes to make it easier and more affordable to build, so that we can lift the standard of living for all New Zealanders.” The report can be found here: https://lnkd.in/gqRZp-rv

Good times ahead ! Glenigan’s UK Construction Industry Forecast 2025-2026 forecasts 8% growth in construction output in 2025 and 10% growth in 2026.

A new report finds productivity in the construction sector is similar to that in 1985 – what needs to change?

Reframing the Construction Industry: From High Risk to High Growth The construction industry has long been perceived as high-risk, often associated with project delays, budget overruns, and economic downturns. However, as we progress through 2025, this narrative is shifting dramatically. The global construction sector is experiencing a significant boom, characterized by robust growth, increased investments, and substantial economic contributions. Labeling such a dynamic industry as high-risk overlooks its vast potential and the pivotal role it plays in economic development. A Paradigm Shift: Recognizing Growth Potential Recent data underscores the construction industry's upward trajectory. In 2024, the sector witnessed a 10% increase in value and a 12% boost in output, with construction spending surpassing $2 trillion. ([Autodesk](https://lnkd.in/euk7bn7e)) This momentum is expected to continue, with projections indicating further growth in 2025. Such statistics challenge the outdated perception of the industry as fraught with failure and instead highlight its resilience and expansion. The Economic Ripple Effect: Beyond Buildings Investing in the construction industry yields multifaceted economic benefits: Employment Generation: The sector is a significant employer, providing jobs across various skill levels. In 2018, the construction industry contributed £117 billion to the UK economy, accounting for 6% of GDP, and had a profound influence on employment, productivity, and business growth. ([CIOB](https://lnkd.in/eYXJT2-u)) Infrastructure Development: Construction projects enhance infrastructure, leading to improved transportation, healthcare, and education facilities, which in turn attract further investments. Financial Sector Stimulation: The demand for construction financing stimulates banking activities, leading to diversified financial products and services. Investment: The Catalyst for Sustained Growth For construction companies to thrive and meet growing demands, substantial investments are crucial. These investments enable firms to adopt advanced technologies, improve project efficiencies, and expand their operational capacities. Moreover, a well-funded construction sector can better withstand economic fluctuations, thereby reducing perceived risks. Conclusion: Embracing the New Era of Construction The transformation of the construction industry from a high-risk sector to a booming powerhouse is evident. Recognizing and supporting this shift through strategic investments will not only bolster the industry but also drive broader economic prosperity. It's time to reframe our perspective and acknowledge the construction sector's vital role in shaping a sustainable and prosperous future.

Montenegro’s construction sector: Growth, challenges and future prospects https://lnkd.in/dYqsfEvS

Glenigan’s UK Construction Industry Forecast 2025-2026 forecasts 8% growth in construction output in 2025 and 10% growth in 2026. https://lnkd.in/e92nsYeb

Another negative article on the construction sector. Whilst there are some challenges, there is cautious optimism for the sector's resilience and potential growth in 2025. #ukconstruction #construction #bdorealestate

This forecast for the construction industry in 2025 is promising, with analysts projecting a substantial uptick in construction starts. The anticipated growth is primarily fueled by factors such as declining interest rates, robust government investments, and a favorable economic landscape. Projections suggest a significant boost in residential building activities, with estimates pointing towards an 8% to 8.5% surge in total construction starts encompassing both residential and non-residential sectors. This positive trajectory indicates a flourishing landscape for the construction industry ahead.

The construction sector is forecast to see 8% growth in output in 2025 followed by a 10% increase in 2026, according to a new report. Glenigan's UK Construction Industry Forecast 2025-2026 revealed that this would translate to £74.3bn in the value of underlying project-starts in 2025, then £81.9bn in 2026. Glenigan claimed project starts are expected to strengthen as UK economic growth gathers pace and public investment is projected to rise in the second half of the forecast period. Find out more: https://lnkd.in/en4wvuPg