Beard Construction comments on ONS construction output data

13 April 2023

Following the release of the latest ONS construction output figures, which shows a 2.4 percent increase in output in February, we have a comment from Beard Construction.

Mike Hedges, director at Beard Construction said: “Like many other key sectors, construction has been unable to avoid the challenges of the last nine months or so. However, it is positive to see the landscape beginning to improve with an increase in output and the highest monthly value seen since January 2010.

“While it’s encouraging to see a marginal increase in new work, we shouldn’t be surprised to see repair and maintenance continuing to lead the recovery effort. This could in part reflect customers being wary about committing to large new-build construction projects but could also reflect the emerging direction of trying to maximise value from existing assets, reducing waste and preserving embodied carbon.

“Looking beyond February at the three-month picture though, infrastructure new work was a key contributor to growth. This certainly mirrors the broad portfolio of projects we’re working on and the tender opportunities we’re currently seeing at Beard.

“It’s further proof that firms need to remain agile and pivot toward more resilient sectors that will continue to provide opportunities, such as specialised infrastructure projects for local and central government. This is especially true for those firms reliant on residential building or housebuilding, which continues to be challenging with higher mortgage rates and borrowing costs stifling new-build demand. It will be encouraging to see the challenges on these sectors ease later this year with the slowing of interest rate increases.”

I hope this helps in your reporting.