Beard Construction comments on ONS construction output data

10 March 2023

Following the release of the latest ONS construction output figures, which shows a 1.7 percent decrease in monthly output in January and weakest monthly grow since June 2022, we have a comment from Beard Construction.

Fraser Johns, finance director at Beard Construction said: “The new year certainly didn’t offer the new start many in construction would have hoped for with a decrease in output in January and a fall in new work. This is driven by continued economic uncertainty and higher borrowing costs contributing to some clients holding back on their commitment to larger projects.

“There was however an uptick in repairs and maintenance works, thus despite clients feeling less inclined to pull the trigger on high-value blockbuster jobs, there will be those still pushing ahead with improving and maintaining current stock. To combat a volatile and uncertain landscape, businesses must remain flexible and raise their profile in the markets that will be strongest in the next 12-18 months.

“While this snapshot of January shows the challenging start to the year for many of the industry’s key sectors, businesses will be encouraged by a much stronger February. Some areas still continued to show weaknesses, especially the housing sector, but a lessening of supply chain pressures and recessionary fears helped to boost both new orders and overall confidence.

“However, this shows the somewhat ‘hot and cold’ nature of the sector, which is driven by uncertainty in such difficult times. Staying close to suppliers and stakeholders will remain a key priority, as will being able to adapt to changing market conditions and project demands.”