April 26 2017 0Comment
Brexit and UK Construction Industry, What now?

Brexit & the UK Construction Industry, What Now?

THE UK CONSTRUCTION INDUSTRY AND BREXIT

The UK construction industry accounts for a considerable proportion of GDP and it is thought that the effect of Brexit will have an immediate impact on the UK in general. According to finance experts, the uncertainty in the construction industry would have a negative impact and will only become stable again when investors gain confidence. Although the UK construction industry is basically a domestic market a decision to leave the European Union would surely make an impact on its success.

 

WHAT ABOUT THE ECONOMY SO FAR?

The pound slumped immediately the day after the Brexit referendum 15% to the dollar and 10% against the euro. Similarly, property prices, the stock exchange and import and export all have been affected. Budgets may be needed to focus an immediate renewal in spending our way out of the economic slump.

 

WHAT ABOUT THE CONSTRUCTION INDUSTRY?

 

AFFECT ON THE LABOUR

A sudden decision about leaving the EU could upset construction and other industries in Britain dramatically. There are not many supporting Brexit in the construction industry. Construction executives would not relish the idea of investing in a landscape of uncertainty. Brexit has changed the whole labour investment scenario.

The UK’s construction industry accounts for three million jobs i.e. 10 percent of total employment. The majority of the skilled workers and professionals are currently from the EU. Freedom of movement is actually considered a big plus point of UK’s construction industry. Now, it would be difficult for people and companies to approach Britain. Therefore, many of them would prefer working for other EU members instead and this would lead to a skill shortage in the UK.

The UK is a premier attraction for professionals of various fields. It has attracted scientists and engineers to work and this has created an environment with a diverse variety of skills. People found it easy to travel and relocate to the UK. By leaving the EU, we predict this would no longer be the same. This is really something to worry about.

Likewise, resources were easy to import and export across the EU. With the advancement of the construction industry, more progressive materials and tools are required. But, a restriction on resources would hugely affect the construction businesses. The impact would encompass organizations, homeowners, and businesses. This would almost certainly increase the costs of resources and services.

The immediate aftermath of the referendum has lead to increased pressure built up on construction executives. They now have to change the policies regarding investments, labour, and resources. This is the first time any country is leaving EU after the formation of article 50 in 2009. So, everything is happening for the very first time and might take years of adjustments.

 

CONSTRUCTION AND BUILDING

Brexit would hit the construction and building prices significantly. The major cause is the shortage of workforce. A huge number of workers come from continental Europe and their free movement would be highly affected. They would pretty much want UK to stay in EU.

Two-thirds of the construction sector is supporting continued membership with EU. According to a survey by a leading UK building magazine 60% foreign investment would be declined and 55% increased material and labor cost.

 

FINAL VERDICT

The UK’s construction industry will be dramatically affected. The majority of the constructive executives back continual of membership with EU for strong economy, employment and business.

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