Xenia Broking’s Post

'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.'

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 Such statistics challenge the outdated perception of the industry as fraught with failure and instead highlight its resilience and expansion.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.

How US Construction Left the World Behind The American building industry has thrived in recent years while growth has eluded contractors in many other countries. U.S. project starts jumped 6% through the first eight months of 2024 compared to the same period in 2023, according to Dodge Construction Network. While U.S. construction activity has remained strong, the same can’t be said for other major economies around the world. Here’s how other nations’ construction industries have performed recently: China: China’s construction sector remains sluggish, with declining demand due to a property market downturn and reduced infrastructure investment, according to Fastmarkets. Mounting government debt continues to burden the sector, leading to less new projects and investment, reports The Wall Street Journal. Germany: The construction sector in Europe’s largest economy contracted again in August due to a steep drop in housing and commercial projects, according to an S&P Global report. United Kingdom: The U.K.’s construction industry recently posted signs of recovery after a difficult start to 2024, said Tim Moore, economic director at S&P Global Market Intelligence, in a recent report. However, the collapse of construction giant ISG, one of the largest construction firms in the country, has raised concerns about the stability of the supply chain and smaller contractors. South Korea: Construction activity is currently undergoing a slump, reports The Korea Times. The slowdown has caused a sharp rise in unemployment claims among construction workers, largely due to an increasingly pessimistic outlook around construction activity. New Zealand: About two-thirds of builders report less demand for their services compared to the same time last year in New Zealand, according to a builder sentiment report from EBOSS. That’s largely due to rising interest rates, increased material costs and a weak overall economy, according to the report.

Leading Construction insights provider Glenigan | Powered by Hubexo, has released its November 2024 construction index, covering project activity up to October. This report offers an in-depth look at sector performance, highlighting trends in residential, non-residential, and regional project starts. The index shows stabilisation in project starts, with gains in residential and non-residential sectors, though civil engineering experienced a decline. Notable growth areas include Hotel & Leisure and industrial projects, with private housing also showing resilience. Get a comprehensive view of the UK construction landscape and what lies ahead for the industry. Read the full article to explore the data and insights in detail - https://lnkd.in/esecsFzB #constructionindustry #ukconstruction #sectorinsights #glenigan #projectstarts #constructionindex #industrytrends #residentialgrowth

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

Construction saw the biggest upturn since April 2022 according to the September’s S&P Global UK Construction PMI. Tim Moore, economics director at S&P Global Market Intelligence, said: "UK construction companies indicated a decisive improvement in output growth momentum during September, driven by faster upturns across all three major categories of activity." Read the full story at DFT: https://lnkd.in/edkh94qh

The construction industry is expected to see a boom over the next two years as the industry continues to stabilise, says market expert Glenigan.

The construction industry is expected to see a boom over the next two years as the industry continues to stabilise, says market expert Glenigan.

Amid global challenges facing the construction industry, the U.S. stands out for its resilience and surge in construction activity. The U.S. has seen a 6% increase in project starts and a 31% rise in nonresidential construction planning, outpacing these economies. #ConstructionIndustry #USConstruction #WorldofConcrete

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