An Industry Review: Prospects for the Construction Industry Moving Forward and What it means for Talent

2023 was a tough year for many industries, but construction was hit especially hard. Productivity fell by almost 6.8% throughout the year. Hyperinflation, recession, and scarce resources all contributed to the bleak outlook for construction workers.

It’s not all doom and gloom, though. In fact, already there are some significant signs of recovery.

Potential Recovery?

Driven by reducing inflation rates, the construction sector has returned to some stability. Optimism within the construction sector has been at its highest point since January 2022.

Part of this resurgence is due to the return to activity in the homebuilding sector. Consumer confidence has returned as the U.K. recovers from recessions marked by reduced inflation and cuts to interest rates. As consumer confidence returns to normal, so does demand.

While there is some reason for optimism, tempering expectations is essential. Demand decreased in the commercial sector, with many projects facing budget constraints that caused difficulties in 2023.

However, many analysts think the increase in residential demand is a sign of things to come throughout the industry.

Tim Moore, economics director at S&P Global Market Intelligence, said, “ This was the best performance for the construction sector since August 2023, and the forward-looking survey indicators encourage that business conditions could improve in the coming months.”

Ultimately, the stabilisation seen in the first part of 2024 appears to set the framework for a complete resurgence in the construction industry.

What does it mean for talent?

This is good news for those with a construction industry career. Talent will serve as the fundamental bedrock for the industry’s recovery. Demand is already high, with the UK economy needing 227,000 additional construction workers by 2027.

Opportunities will arise for talent with the right skills, so it’s essential to know how to maximise them. As the economy and the construction industry bounce back, it can be challenging to know which step to take to develop your career further.

If you’re unsure where to turn, consulting an industry specialist is a good idea. A dedicated recruiter can help you find the correct position for you. With access to high-level positions, the right recruiter can help guide you through the construction industry’s recovery.

Pinnacle

At Pinnacle, we have over 20 years of placing talents in specialised positions across the construction industry. We focus on matching talent with opportunities that work for their preferences instead of just their qualifications.

We can help guide you through the coming construction resurgence and advise you on which steps to take to make the most of 2024.

If you’re looking to take advantage of new opportunities in 2024 or would just like some advice on where to take your career. Please call us at 0207 401 8886 or email us at [email protected]