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Output & Growth in the Construction Industry

During the August just passed, construction output in Britain grew at its fastest rate for seven months.

After suffering massively in the recession, the British construction sector started to show signs of strong growth last year. This is thought to have been assisted by the overall economic recovery and the low interest rates put in place by the government which have encouraged more people to buy properties.

House building itself has continued to grow over the same period and therefore the construction industry has been increasingly busy. The CIPS -which measures activity across the domestic building, commercial property, and civil engineering sub sectors- recorded a significant growth (62.4 to 64) over July.

The monthly estimates for construction output in June 2014 increased by 1.2% when compared with May 2014, with new work increasing by 0.9% and repair & maintenance increasing by 1.6

The CIPS concluded that there has been a rapid increase in the growth of construction industry, and that it shows no rate of slowing down.

Significantly, it was also reported that there had been the “steepest monthly rise in rates charged by sub-contractors since 1997.”

As the market has grown, so too has the rate of employment in the industry. Employment was at a record high in July and continues to be very strong with lots of companies predicting that they will be continuing to hire new staff in 2015.

The Scottish construction sector in particular is resurgent. According to Reuters, Scottish construction output is said to have increased by 10% last year, bringing in over £6 billion to the economy; this figure represents why the sector, and its continual growth, is hugely important for the survival of the economy.

The Scottish Government has even published that it hopes to make £9.62 billion for the economy in 2016; suggesting that there is currently no sign of the growth slowing down.

However, it is not just the Scottish Government who is enjoying increasing success in the industry. Annual growth across the UK in the 12 months between Quarter 2 of 2013 and 2014 increased by 4.8% according to the Office of National Statistics.

The monthly estimates for construction output for June 2014 had increased by 1.2% compared to May; new work had gone up by 0.9% while repair and maintenance was up by 1.6%.

While there are many positive effects of a growing construction sector, strain is being placed on suppliers who need to meet increasingly high demands. However, with Johnsons Timber you do not have to be concerned about finding the right materials.

We have an extensive range of timber materials available on our two-acre site. In addition to the materials that you need, we also have an operational saw mill which means that we can make bespoke materials especially for you.

We pride ourselves on providing high quality timber through a top quality service. If you have any questions, or would like to make an order please contact us on 0121 706 0404.

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