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UK to lead construction growth in Europe

Construction volumes in the UK will grow at double the average rate in Europe through to 2025, according to new research.

Global Construction 2025 forecasts that the construction market in western Europe will be almost 5 per cent smaller in 2025 than it was at its pre-recession peak in 2007.

But the research by Global Construction Perspectives and Oxford Economics expects construction volumes in the UK to grow at more than twice the rate in western Europe to 2025, with the UK market rivaling the size of Germany’s in just over a decade.

“The housing and infrastructure deficit will drive construction growth in the UK”

Graham Robinson, Global Construction Perspectives

Speaking at the launch of the report, Global Construction Perspectives executive director Graham Robinson said: “There is a big infrastructure deficit in the UK – we have not spent on infrastructure.

“The housing and infrastructure deficit will drive construction growth in the UK.”

He added that money from Chinese and other Asian investors would fund the development of infrastructure and real estate.

EC Harris head of strategic research Simon Rawlinson commented: “Given the value and quality of existing stock, it could be argued that Western European construction markets are commencing a transition to a business model focused on the maintenance, adaptation and decarbonisation of the existing asset base. 

“This will need new skills and delivery models, and we are beginning to see these approaches emerging in the UK.”

“World construction markets are at a tipping point already with 52 per cent of all construction activity in emerging markets today. We expect to see this increasing to 63 per cent by 2025”

Graham Robinson, Global Construction Perspectives

Global Construction 2025 looked at the prospects of 46 countries and found that worldwide construction output is due to grow by more than 70 per cent and be worth around £10trn by 2025.

China, India and the US will account for almost 60 per cent of all global growth, while emerging Asian markets will also have a high demand for construction activity.

Mr Robinson said: “World construction markets are at a tipping point already with 52 per cent of all construction activity in emerging markets today.

“We expect to see this increasing to 63 per cent by 2025, with China and India contributing most to growth in emerging markets.”

This growth is expected to be driven by the need for more than 270m new homes in China and India to meet the needs of growing populations and urbanization.

China is expected to increase its global share of the construction market from 18 per cent today to 26 per cent in 2025, but its rate of construction growth will slow down.

According to the research, Indonesia, Vietnam and the Philippines are becoming increasingly attractive for export-oriented manufacturing and represent a construction market growing at more than 6 per cent annually.

Oxford Economics director of industry services Jeremy Leonard said: “While China is the key market, it would be a mistake to ignore the transformations happening elsewhere in Asia, which will help boost construction in Asia Pacific.”

Readers' comments (1)

  • Surely if Europe sees a 5% reduction till 2025, and the UK is described as "double the growth", our industry will be 10% smaller!!! The figures do not add up.

    Anyway, must dash, I have some more money to lose on another miserable sub-contract.....

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