Increased global demand in the construction sector, combined with the multiple and complex impacts of the pandemic and logistic issues, have resulted in unprecedented shortages, delays and ultimately, increased prices of materials and labour across the economy.

Within the UK, complications resulting from Brexit have exacerbated this situation, affecting all aspects of trade and labour availability. The repercussions are acutely impacting the UK construction sector.

Construction productivity has largely recovered from the initial shock brought by the pandemic and in some instances significant efficiencies have been achieved as a result of new working practices. However, over the summer, June in particular, a drop in productivity was reported due to sub-contractors self-isolating when contacted by the Test and Trace system.

Other factors affecting construction demand include significant lifestyle changes triggered by the pandemic, with many people continuing to work from home reassessing their housing needs. A booming domestic housing market, substantially increased demand in repair maintenance and improvement (RM+I) sector, combined with large infrastructure projects such as HS2 have all significantly contributed to recovery in construction demand.

This is evident from the ONS’ construction statistics which shows that following a 12% drop in 2Q2020, construction output (all work) has increased by 9.7% in 2Q2021 compared to the same period last year.

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