Despite concerns about ‘mutant covid’, the construction pipeline offers reasons for cautious optimism, writes Kris Hudson
The construction industry ended 2020 on a relatively strong footing, with output expanding for the seventh successive month in December according to the IHS Markit/CIPS UK Construction Total Activity Index. Confidence in a vaccine – and the sense of a route out of the crisis – has spurred on investment in projects that were delayed or mothballed by the onset of the pandemic.
However, the new covid-19 variant and announcement of another national lockdown at the start of January may well put the brakes on an already cautious recovery. Experian forecasts construction output to remain below pre-pandemic levels in 2021, with overall output levels only fully recovering in 2022 – and housebuilding activity predicted to remain below 2019 levels until 2023.
But amid the concern around this new strain of the virus and prospects for the coming months, there are also some bright spots on the horizon. Glenigan has forecasted that construction project starts are set to increase by 17% in 2021, with infrastructure expected to be buoyant.
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