Construction Industry Forecast for 2023-24

If you are a development manager or prospective investor, understanding the construction industry forecast can provide insight into the sector’s performance and what to expect in the coming year. CorkRend Limited offers a SprayCork – an innovative cork-based coating that can be used both internally and externally to improve energy efficiency.

The NFRC’s construction industry forecast for 2023 and 2024 highlights several key figures. Output is expected to rise by 2.2% in 2023, following a rise of 2.8% in 2022, originally forecast in Spring 2022. These figures are lower than previous forecasts made in 2021, which expected growth of 4.3% in 2022 and 2.5% in 2023. The cost of living crisis and continual energy price rises have been factored into the forecast, leading to a slight decrease in construction demand.

Looking specifically at private housing, the NFRC forecasts an increase of 1% to starts in 2023 and a 3% rise projected for 2024, with a higher increase expected for completions. The long-term uncertainty in the market is expected to shift house builders’ focus to completion rather than new starts.

In public housing, the focus is on improvement rather than expansion, with a 2% rise in output forecast for both 2023 and 2024. Repair, maintenance, and improvement (RM&I) output is projected to rise by 6% in 2023 and 7% in 2024, with urgent cladding remediation requirements and a backlog of catch-up work being the main drivers. However, a shortage of skilled labor and long lead times for key products and materials, particularly for cladding remediation, has led to a delay in the work. Additionally, there is a looming issue of decarbonization, with little retrofit activity to improve the energy efficiency of public housing. The government’s Heat & Buildings Strategy has allocated £800 million in funding, making this an area of potential high activity in the coming years.

In conclusion, understanding the construction industry forecast can provide valuable insights for development managers and prospective investors. CorkRend Limited offers SprayCork, which can help improve energy efficiency in both commercial and domestic projects.