Optimistic despite a seriesof challenges

There’s continued strong activity across the UK construction market despite rising concerns over shortage of materials, according to the latest RICS Global Construction Monitor for the first quarter of this year.

Just over a third, 34 per cent, of respondents reported a rise in workloads, this slightly up from 33 per cent in Q4 2021. Workloads are mainly being driven by a continued focus on infrastructure projects, as 41 per cent more respondents reported a rise.

Respondents also cited a firm commitment to energy infrastructure.

However, despite the strength in current workloads the impact of global supply chain shortages is seriously impeding activity across UK, with 84 per cent of respondents reporting that availability of materials is a major constraint to current activity.

Labour shortages and access to the right skills doesn’t seem to be improving as these issues continue to constrain the sector, almost three-quarters of respondents continue to highlight this issue.

Looking across the UK, the North East, Yorkshire, North

West have posted the strongest growth in workloads with 41 per cent of respondents citing a rise. However, when looking to the year ahead, it is the Midlands and East of England that anticipate the greatest pick-up in activity, with almost half of respondents anticipating growth.

RICS chief economist Simon Rubinsohn said: “The good news in the latest report is that the industry remains positive about the outlook for activity and that the generally upbeat mood can be seen not just in regard of infrastructure and housing development but also in the commercial sector.

“However, it is clear that the sector faces significant challenges with data showing a sharp rise in vacancies across the industry.”