Despite ongoing financial challenges, surveyors see a bright future in the construction sector, particularly in 2025.
- The RICS UK Construction Monitor Q3 2024 shows positive indicators for growth across all construction sectors.
- Survey data reveals a net balance of +28% respondents expecting workload increases over the next year.
- Infrastructure is leading the charge, with high expected activity levels despite a slight dip from previous forecasts.
- Skill shortages remain a concern, yet employment prospects are expected to rise over the coming year.
The Royal Institution of Chartered Surveyors (RICS) in its UK Construction Monitor for the third quarter of 2024 highlights several encouraging trends despite current economic constraints. Headline workloads in the construction industry are largely stagnant across various sectors, excluding infrastructure. However, the outlook for the coming year remains positive, with an anticipated rise in activity across all sectors. A notable net balance of +28% of survey respondents predict increased workloads in the next 12 months, matching the sentiment observed in the preceding quarter and underlining a sustained sense of optimism within the industry.
Particularly within the infrastructure sector, expectations remain robust, albeit slightly lower than the previous quarter. A net balance of +30% foresee an uptick in infrastructure-related activities, suggesting a continuation of strong performance in this area. The survey also reflects a rise in confidence within the private residential sector, with +26% predicting growth, significantly higher than the +12% average recorded over the past year.
Additionally, private non-residential construction is expected to gain momentum, supported by a net balance of +17% respondents. This projection indicates a broader recovery within the construction sector, despite existing financial challenges.
Nevertheless, the construction industry continues to grapple with significant skills shortages. Survey participants identified bricklayers (37%), carpenters (33%), and plumbers (33%) as the most depleted roles. A shortage of general labour was highlighted by 44% of respondents, posing a notable challenge to construction activities.
Despite these hurdles, the employment outlook remains promising, with a net balance of +18% forecasting increased employment opportunities within the sector. Although slightly down from last quarter’s +23%, the expected rise in employment reflects a continued demand for skilled professionals. According to RICS senior economist Tarrant Parsons: “These results show some encouraging signs of improvement for the UK construction industry as we move into the final quarter of the year.”
Overall, the construction industry appears poised for growth, driven by optimism and anticipated improvements in key sectors despite ongoing challenges.
