Beard Construction comments on latest ONS construction output figures

Following the release of the latest ONS construction output figures, which showed monthly output increase by 1.6% in June, we have a comment from Beard Construction.

Mike Hedges, director at Beard said: “A rise in output, driven by an increase in both new work and repair and maintenance is positive news for the industry to wake up to, and certainly mirrors what we’re seeing on the ground at Beard. A strong June meant quarterly output increased in Q2, which highlights the positive momentum that seems to be building for the second half of the year.

“We’ve seen firsthand this consistent trend of clients looking to improve and repair, rather than replace. For some, this may reflect the tougher borrowing conditions and access to credit that is preventing them from committing to new construction projects. However, we’re seeing greater emphasis being placed on maximising the value of the assets they already have, as well reducing both waste and the loss of embodied carbon.

“Nonetheless, infrastructure new work continues to play an important part in the industry’s recovery, increasing 4.7% in June. This is fourth consecutive monthly increase and comes as no surprise to us at Beard. Frameworks remain incredibly active across the south west and a key driver in pipeline activity, with specialised projects in the likes of healthcare and education.

“The continued easing of inflationary pressures will certainly help in improving the outlook for the second half of the year, especially in sectors such as housebuilding where higher interest rates have had the biggest impact on demand. Even so, the industry must remain agile and respond to opportunities presented by the most active sectors. As ever, we remain vigilant to changing market conditions and the global impact on the UK economy as we look ahead to the end of the year and beyond.”

Published: 11 August 2023