31 Mar 2023
UK Construction Boom Expected Thanks to Infrastructure and Energy Sectors
According to a recent report by Oxford Economics called Global Constructure Futures, by 2037 China, India and the US will account for more than half of the world’s building output. It’s expected that these three countries will account for around 51% of all of the world’s construction work.
It’s likely that rising interest rates and changing house prices will reduce the amount of residential construction that’s done in the US, but manufacturing and industry is less likely to be affected. However, this will not prevent the UK from experiencing a construction boom.
UK Construction Boom Expected by 2037
Between now and then, the UK is on track to be the fastest growing country in Western Europe in terms of construction. This is going to be driven by large infrastructure projects, of which there are set to be many. According to the Oxford Economics’ report, Britain’s move to renewable power networks by 2035 and a larger focus on energy security will play a big part. The report also predicts that global construction will grow by close to £3.5 trillion over the next 15 years, reaching £11.5 trillion by 2037.
China will also see a boost in construction work, especially once many of its COVID strategies are relaxed in 2025. We can also expect to see India overtake Germany before 2030, making it the third largest construction market globally. This is also linked to the country’s easing of COVID lockdowns, which are expected to drive the growth as more money is invested into India’s infrastructure. In Eastern Europe, growth is also expected over the next 15 years, thanks to reconstruction efforts worth £830 billion expected after the conflict between Russia and Ukraine comes to an end. The rebuilding that will be required in the wake of recent earthquakes in Turkey will also play a part.
Unfortunately, this amount of construction is likely to be more costly than before. The report suggests that materials could be 15% higher in 2037 than they were before COVID.