One story continues to dominate the headlines – the UK’s decision to leave the EU. With a majority of people in construction in favour of remaining part of the union before the vote, the result has come as a shock to many involved in the sector. But what happens now? The immediate impact was a a crash in the share price of leading house builders and developers, and predictions that house prices would fall.
These moves are, however, spontaneous responses to the Brexit vote, as we enter a period of political and economic turmoil with no precedent, rather than a true reflection of how the industry will be affected in the longer term. The truth is that the full impact of the result will not be seen for years, until the fall-out from the negotiations and deliberations involved in Brexit become apparent.
Key areas for consideration include the need to ensure the construction industry has access to the right skills going forward. At the moment, 12% of construction workers plying their trade in the UK are of non-UK origin and organisations, such as the Federation of Master Builders, have called for a new system of immigration to be set up to allow migrant workers to build UK homes and infrastructure.
Companies in the sector will also be interested to see how the vote to leave the European Union will impact long term investment in the UK’s infrastructure. The Civil Engineering Contractors Association, for example has urged government ministers to stabilise Government, then re-establish their commitment to the projects outlined in the National Infrastructure Plan, most notably HS2 and a third runway at Heathrow “in order to maintain economic confidence”.
Whatever the political environment, companies in the construction and civil engineering sectors will continue to deliver on projects but the full picture of what Brexit means is still some time off.