Beard Construction comments on ONS construction output data

Fraser Johns, finance director at Beard Construction said: “As predicted and many firms prepared for, construction output continued to flatten into December as ongoing impacts from high interest rates and diminished confidence impacted new housing.

“But once again, the data shows a tale of two halves. The slowdown in housing work in both private new housing and private housing repair and maintenance was offset by an increase in new work across key sectors. The best performing were infrastructure new work and non-housing repair and maintenance which certainly mirrors what we’re seeing and the projects we’re winning here at Beard.

“Any appetite for new commercial work will certainly make for encouraging news, especially as energy costs continue to stabilise and material costs for once stay within expectations. While the cost to borrow still remains higher than many have become accustomed to, we’re starting to see positive indicators that inflationary pressures are beginning to ease.

“Those firms that can demonstrate their skillset in delivering smaller, specialised projects in key sectors such as education, healthcare and both local and central government will be well placed in the coming 12 months. Constructions firms need to stay close to all stakeholders, continue to adapt, and remain lean and flexible in the months ahead.”

Published: 10 February 2023