Beard Construction comments on ONS construction output data

13 December 2023

Following the release of the latest ONS construction output figures, which shows a decrease in construction output in October and the three months to October, here is a comment from Beard Construction.

Fraser Johns, finance director at Beard Construction said: “While wet and stormy conditions will certainly be a contributing factor to October’s drop in output, it’s the potential storm clouds brewing in the wider economy which is having the biggest impact on both confidence and demand. There are positive indicators – inflation coming down, a hold on interest rates and the availability and pricing of supplies. However, borrowing conditions still remain particularly tough, as evidenced by the continued slowdown in the housebuilding sector and the ability of clients to pull the trigger on new projects.

“As new work dips for the month and in the three-month picture, it is not a surprise to see a rise in repair and maintenance. While this can reflect the uncertain climate we find ourselves in, it is also a sign of clients actively choosing to maximise the value of existing building stock. It is also true that finance favours green schemes for lending. Alongside this trend, at Beard we continue to utilise both regional and national frameworks, which continues to be a key avenue for new work.

“Even in uncertain times, we are also making sure we respond to opportunities across the south and south west and we’re even expanding our footprint to meet demand with a new south coast office in the new year. There’s no question that agility will remain a key trait of successful firms in 2024, responding to the most buoyant sectors and areas of the market.”