So, we’re at the end of another year.
The industry is still in the process of “picking up” following the COVID crisis and the after-effects of Brexit. The economic landscape continues to be hostile, and, though we are seeing increased approvals on projects, we commonly see that projects are becoming increasingly delayed on sites as clients are taking a cautious approach, hoping for financial stability. It is likely that this will continue to slow as we run up to the General Election, and Governmental priorities change to suit their election campaign.
We’ve seen both Education and Health Sector construction projects reduce from the same point in 2022, although COVID delays may have had the “knock on” effect of artificially increasing projects in 2021 & 2022, so this may not be a true figure.
Sadly, we’ve also witnessed casualties in our industry, which indicate that large construction firms are as vulnerable as smaller ones.
High levels of inflation and interest rates have led to further uncertainty in the industry. We commonly see requests to fix prices for periods more than 9 months, which was unheard of in previous years.
It’s not all bad news. Whilst there are challenges in the industry, we must view challenges as the parent of solutions, and to adapt and do things differently is at the core of our ethos at CGJ.
There is still demand for construction projects, and to succeed and to remain successful we must innovate and embrace new & different methods to get the tasks done more efficiently and to meet modern expectations.
They say that good things come to those who wait, however we would be more of the mindset that states that opportunities, adaptability, and planning lead to success, rather than just doing what we have always done in the way that we have always done it. Innovation and flexibility are key.
As the world stabilises after the challenges of the last few years, we believe that there is light at the end of the tunnel, and we look forward to walking towards it with you in 2024.
All of us at CGJ would like to wish our customers, suppliers, sub-contractors, and associated companies all the best for the festive season, and a Happy New Year.
(original photograph by Damien Walmsley)