Time to build on renewed optimism for construction sector

By MHA

26 Feb 2024

Joe Sullivan, MHA Moore and Smalley.jpg.jpg

More action needs to be taken to create certainty and boost confidence for construction firms, according to one of the region’s leading business advisors to the sector.

The call comes as new construction sector data shows fresh optimism among construction firms, but with challenges around cashflow and financial performance remaining due to issues such as high interest rates and ongoing delays in getting projects on site.

Joe Sullivan, partner and construction and real estate lead at MHA Moore and Smalley, said: “The rise in the recent construction PMI data is positive news and a sign that confidence is rising among construction companies.

“However, the PMI data remains below 50.0 as the industry continues to battle with challenges on multiple fronts. Although the drop in inflation is helping with input costs, interest rates remain stubbornly high, and the further announced increase in minimum wage in April, coupled with the ongoing shortage of labour in some regions will continue to bite in the short-term.”

Joe believes next month’s spring budget provides an ideal opportunity for the government to announce a medium to long-term commitment for the sector on both investment and planning, but expects any announcements to be short-term focussed.

He added: “Some quick wins would be to supplement existing support making entry-level housing more accessible, building on changes to permitted developments, and making it cheaper to repurpose non-residential buildings. All would help to give the sector some confidence.

“For the last few months, our commercial clients have been telling us that pipelines are very healthy, but work keeps getting deferred, presenting significant problems for cash flow and the overall financial health of those who are impacted throughout the supply chain. However, all could be set to change as customer demand returns.

“This encouraging news highlights that the construction industry is on the way up following a number of months in the doldrums. An improvement in the background economic conditions will engender confidence and the situation could improve further towards the middle of the year.”

Latest news

1

Acquisitions bolster Chorley investor's neuro rehab offering Handl Group

Acquisitions bolster Chorley investor's neuro rehab offering

12 Jun 2024

2

County council chief executive set to depart Angie Ridgwell

County council chief executive set to depart

12 Jun 2024

3

Root Fifty-Two welcomes fresh talent to its web development team IMG_2400.jpg.jpg

Root Fifty-Two welcomes fresh talent to its web development team

13 Jun 2024

4

Leading video production company rebrands proper-logo-white-purple-BG.png.png

Leading video production company rebrands

13 Jun 2024

5

Bowker technician Mick retires after 47 years PXL_20240517_150318098.MP (1)-1024x771.jpg.jpg

Bowker technician Mick retires after 47 years

13 Jun 2024

Lbv116 Ltb Strip980
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

The Business Network Central & East Lancashire
LBV Header (9).png.png
LBV Hub Networking
13 Jun 2024

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

How to Meet the Requirements of the Women's Health Strategy
LBV Hub Webinar
13 Jun 2024

How to Meet the Requirements of the Women's Health Strategy

x, Online, x

12:30 - 13:15

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
13 Jun 2024

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
13 Jun 2024

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
14 Jun 2024

Business Networking in Preston - BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

Chamber Annual Dinner
Chamber Logo1.png.png
LBV Hub Social
14 Jun 2024 - 14 Jun 2024

Chamber Annual Dinner

Morecambe Football Club, Morecambe, LA4 4TB

19:30 - 00:00

Liverpool City Region Business Expo
LCR 22 EXPO IMAGE.jpg.jpg
LBV Hub Exhibitions
14 Jun 2024

Liverpool City Region Business Expo

Exhibition Centre, Liverpool, L3 4DQ

09:00 - 15:00

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
14 Jun 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
18 Jun 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
18 Jun 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
19 Jun 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin